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Do you prefer fixed spreads or dynamic spreads?

Gornix
Jan 26 2017 at 08:32
10 posts
Fixed and dynamic spreads might be differently good for different strategies of trading

BaldoN (BaldoN)
Jan 26 2017 at 09:08
522 posts
Fixed spreads means you trade with MM broker in almost 99%. Some STP/NDD brokers may offer also, but this will mean you will pay some additional markup added over the flow to meet your criteria for fixed spread :)
From other side, using fixing spreads makes placing pending orders more accurate above or below highs and/or lows :).

AlGauthier (AlGauthier)
Jan 26 2017 at 16:31
35 posts
@BaldoN So it seems both types of spread have their advantages and right to live 😄
@Gornix You also have a good point!

FradeauX (FradeauX)
Jan 29 2017 at 07:35
14 posts
On fixed spread type of one of brokers I was observing spread's jumping up'n'down for much time. Then I understood that I understand this weird world to weakly 😀

FradeauX (FradeauX)
Jan 29 2017 at 07:35
14 posts
@Gornix I suggest it is more question of personal trading convenience but think that you are also right in some aspects

BaldoN (BaldoN)
Jan 30 2017 at 12:25
522 posts
AlGauthier posted:
@BaldoN So it seems both types of spread have their advantages and right to live 😄
@Gornix You also have a good point!


That is correct :)
Both have good and bad sides. Just the bad side for spread with MM brokers is closely related with execution of large orders or when the account makes constantly profits :)

hedgescalp
Jan 31 2017 at 13:26
10 posts
in my view, dynamic spreads are more preferreable than fixed spreads as in case of fixed spread, there is 99% possibility that your broker might be a Market Maker. Also, it can affect the execution speed and one more thing I have noticed that they are not really fixed, if you notice them in them in the volatile time like news, you will actually get fill at another price

Darren72
Jan 31 2017 at 13:31
12 posts
Generally, fixed spread brokers are not pure ECN as they do not offer direct liquidity from the LP’s. However, the floating spread brokers usually offer tighter spreads and the data feeds directly come from the LP’s. A trader shall always go for a variable spread broker because it is completely reliable. A broker who trades with fix spread has some specific strategies and they do it to earn profits in fundamentally affected market situations.

hedgescalp
Feb 05 2017 at 07:35
10 posts
In fact brokers with variable spread are also not completely reliable. They can also be MM and trade against so you should check for their spreads as well very carefully when trading with them.

kerstin71 (kerstin71)
Feb 08 2017 at 07:47
40 posts
I hate fix spread. That is impossible for a broker to get a fix spread from liquidity providers. And I found most of the traders has bad idea. Sometimes Broker hit stop loss intentionally.
Live floating spreads are better as you know when they are going to high and can do something about it.
ECN/STP and MM does not matter if you are using well regulated broker and know how to make profit. Broker will automatically put you in their A book/B book if you lose more than 30%. I am using Hanseatic Broker and faced no such problem so far.

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