what kind of spreads do you look in a broker

Nov 27, 2020 at 04:39
2,867 Views
61 Replies
Member Since Sep 23, 2020   42 posts
Dec 07, 2020 at 11:34
As I scalp most of the times, I am always looking for spreads as low as possible, as such with Fxview. They are absolutely good for scalping.
Member Since Oct 07, 2020   104 posts
Dec 08, 2020 at 06:21
Daxton posted:
As I scalp most of the times, I am always looking for spreads as low as possible, as such with Fxview. They are absolutely good for scalping.
yea i have heard about them a lot ill go through the website today.
hope they are good
Member Since Dec 05, 2020   81 posts
Dec 09, 2020 at 06:35
ele020 posted:
richardmarcus posted:
what kind of spreads do you look for in a broker, higher commissions, and less tight spreads or the other way around?

I always like pure ECN spreads starting from 0.0 pips with pure market execution and no re - quotes.

But are there really any broker that Offer spreads as low as 0.0 pips?
Member Since Oct 07, 2020   104 posts
Dec 09, 2020 at 09:12
Jude_craig posted:
ele020 posted:
richardmarcus posted:
what kind of spreads do you look for in a broker, higher commissions, and less tight spreads or the other way around?

I always like pure ECN spreads starting from 0.0 pips with pure market execution and no re - quotes.

But are there really any broker that Offer spreads as low as 0.0 pips?
yes I have seen may people saying that their spreads are really low as 0.0 pips
Member Since Dec 05, 2020   81 posts
Dec 11, 2020 at 05:58
richardmarcus posted:
Jude_craig posted:
ele020 posted:
richardmarcus posted:
what kind of spreads do you look for in a broker, higher commissions, and less tight spreads or the other way around?

I always like pure ECN spreads starting from 0.0 pips with pure market execution and no re - quotes.

But are there really any broker that Offer spreads as low as 0.0 pips?
yes I have seen may people saying that their spreads are really low as 0.0 pips

Hmm, I really doubt. Which broker precisely?
Member Since Oct 07, 2020   104 posts
Dec 16, 2020 at 06:18
Jude_craig posted:
richardmarcus posted:
Jude_craig posted:
ele020 posted:
richardmarcus posted:
what kind of spreads do you look for in a broker, higher commissions, and less tight spreads or the other way around?

I always like pure ECN spreads starting from 0.0 pips with pure market execution and no re - quotes.

But are there really any broker that Offer spreads as low as 0.0 pips?
yes I have seen may people saying that their spreads are really low as 0.0 pips

Hmm, I really doubt. Which broker precisely?
i am still searching one
Member Since Dec 16, 2020   23 posts
Dec 16, 2020 at 08:59
EbonyJones posted:
You should choose that broker which gives you lowest spread.
Which broker according to you has lowest spreads?
Member Since May 11, 2020   74 posts
Dec 16, 2020 at 12:27
richardmarcus posted:
Jude_craig posted:
richardmarcus posted:
Jude_craig posted:
ele020 posted:
richardmarcus posted:
what kind of spreads do you look for in a broker, higher commissions, and less tight spreads or the other way around?

I always like pure ECN spreads starting from 0.0 pips with pure market execution and no re - quotes.

But are there really any broker that Offer spreads as low as 0.0 pips?
yes I have seen may people saying that their spreads are really low as 0.0 pips

Hmm, I really doubt. Which broker precisely?
i am still searching one

you can check myfxbook spread here: https://www.myfxbook.com/forex-broker-spreads
just click regulated from 'all brokers' dropdown and tick commissions (for spreads and commission combined), and filter on any pair you want to see lowest. you'll see fxview, tickmill competing to be on top in most pairs. I mostly use that page to check the spreads.
Member Since Jul 23, 2020   869 posts
Dec 16, 2020 at 17:27
Traders also should look tight spreads. During Volatile market spreads often become wider than usual.
Member Since Oct 07, 2020   104 posts
Dec 17, 2020 at 07:50
LyudmilLukanov posted:
Traders also should look tight spreads. During Volatile market spreads often become wider than usual.
ok i will check these factors
Member Since May 13, 2020   128 posts
Feb 04, 2021 at 14:15
The lower the spread the broker offers, the better for trading. That is why my choice was on the Amarkets broker with a spread of 0.2 pips.
Member Since Jul 20, 2020   399 posts
Feb 04, 2021 at 16:14
richardmarcus posted:
what kind of spreads do you look for in a broker, higher commissions, and less tight spreads or the other way around?

Im a scalper too and i prefer lower spreads as it is a purer price move.
Member Since Apr 25, 2020   5 posts
Feb 04, 2021 at 20:14
LyudmilLukanov posted:
Traders also should look tight spreads. During Volatile market spreads often become wider than usual.

Absolutely right. This principle also applies to the pairs that typically have more volatility all the time, like the NZD or GBP pairs. Traders need volatility to make money. Volatility is a good thing, regardless of what they tell you on CNBC. Once a trader takes a position in a currency pair, price needs to move in order for it to make money. Traders therefore tend to gravitate to trade the pairs that move the most day after day.
Brokers know this and will exploit it by increasing the spread/commission required to trade more volatile pairs, especially around the time of fundamental announcements and daily rollover (usually around 5pm to 6pm EST - which is UTC minus 5). The spread can go from 1.5 pips to 10 or 15 or even 20 pips!

Therefore, when researching brokers, don't just look at their claims of offering 0.0 pips on EUR/USD. That's the bait, and as any fisherman knows, bait is always accompanied by a hidden hook! Brokers are in business to make money, and you WILL pay transaction costs one way or another, either upfront, or through other more serpentine ways. You should have a better experience sticking to large, well-regulated brokers, even if you pay 2 or 3 pips per trade.

Think about the math.
Most forex traders have an account funded with less than $2000.00. Each trade you put on should risk less than 2-3% of your capital. That means if you have a stop loss of 50 pips in order to make a return of 100 pips, and you have 200:1 leverage in your account, you should not be trading more than 8 to 10 micro lots. That works out to be about 80 to 100 cents per pip. For each trade on, lets say, GBP/NZD, you are paying your broker about $2.40 to $3.00 if your spread is 3 pips.
That's not a lot!
If your broker offers 0.0 pips spread, but charges you a commission of $3.50 on every trade, you are actually PAYING MORE in transaction costs! This is the reality for most beginning forex traders, and I would suspect that a large percentage have accounts that are $500.00 or less, which means the problem is magnified even more.

Therefore, I would recommend that if you are searching for a quality broker to start trading forex with, stick to the large, well-run, well regulated brokers that offer you a simple, reasonable pip spread with zero commisions and STP (Straight-Through-Processing).
Happy Trading!
Start with EQUITY MANAGEMENT
Member Since Jan 21, 2021   48 posts
Feb 08, 2021 at 11:25
Tight spread with low commission.
Member Since Oct 07, 2020   104 posts
Feb 09, 2021 at 04:39
MichaelEX posted:
Tight spread with low commission.
any suggestions...can you inbox me ?
Member Since Oct 16, 2020   137 posts
Feb 09, 2021 at 10:53
Variable ECN spreads are what I look for and best suited for me.
Member Since Dec 28, 2020   187 posts
Feb 10, 2021 at 08:54
I would prefer variable and tight spreads starting from 0.0 pips and commission should be low.
Member Since Oct 05, 2020   18 posts
Feb 10, 2021 at 10:54
I always prefer tight spreads & low commission, which is why I am trading with fxview.
Good spreads – average 0.2 pips on majority of pairs
Low commission - $1 per lot per side
Member Since Aug 28, 2020   37 posts
Feb 10, 2021 at 14:22
I'm a scalper, so I prefer trading with a broker with tight spreads starting from 0.0 pips in major currencies like EURUSD, GBPUSD, JPYUSD etc... and my current broker of choice that provides the criteria I require is FP Markets.
Member Since Jul 19, 2020   751 posts
Feb 21, 2021 at 06:19
Personally I like zero spreads account where spreads starts from zero. I am ready to give commission. But trade execution should be instant without any requote.
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