Do you prefer fixed spreads or dynamic spreads?

Aug 27, 2012 at 07:53
6,308 zobrazení
127 Replies
Členem od Dec 11, 2015   1487 příspěvků
Nov 27, 2016 at 11:25
Do people actually try to scalp during news events? 😲
Členem od Mar 26, 2015   35 příspěvků
Nov 28, 2016 at 15:19
mlawson71 posted:
Do people actually try to scalp during news events? 😲

For individual traders I think it is too risky. Maybe some crazy advanced algos that open and close small trades in milliseconds but still I think it would be very difficult to make a profit.
Once a trader, always a trader!
Členem od Mar 26, 2015   35 příspěvků
Nov 28, 2016 at 15:21
When it comes to the spreads, I prefer the variable option and read in the initial discussion about the 4 or 5 digits case. I prefer 5 digits after the point as it gives more flexibility when coupled with micro or mini lot sizes offered.
Once a trader, always a trader!
Členem od Mar 31, 2015   45 příspěvků
Nov 30, 2016 at 15:45
LLewis posted:
When it comes to the spreads, I prefer the variable option and read in the initial discussion about the 4 or 5 digits case. I prefer 5 digits after the point as it gives more flexibility when coupled with micro or mini lot sizes offered.

I also prefer the 5 digits option but I know it is not offered by all brokers.
Členem od Jun 15, 2015   52 příspěvků
Dec 06, 2016 at 15:51
I am also among those who prefer the dynamic spreads. If I see it's too risky, as during news, I simply avoid trading or placing large orders.
Členem od Aug 10, 2015   49 příspěvků
Dec 07, 2016 at 16:00
mlawson71 posted:
Do people actually try to scalp during news events? 😲

Sure, there are different people around the world, but not me! 😄
Členem od Dec 08, 2016   19 příspěvků
Dec 09, 2016 at 09:22
I think it is wise fixed spreads, as many traders in a more transparent approach a broker does not notice or do not understand the fees factor. Nevertheless, with most brokers are changing the model from fixed to variable patterns and commissions, transaction costs went straight down. According to my calculations, the Commission applies the model are cheaper than fixed spreads.
Členem od Feb 22, 2011   4862 příspěvků
Dec 09, 2016 at 10:12
HarriOshord posted:
I think it is wise fixed spreads, as many traders in a more transparent approach a broker does not notice or do not understand the fees factor. Nevertheless, with most brokers are changing the model from fixed to variable patterns and commissions, transaction costs went straight down. According to my calculations, the Commission applies the model are cheaper than fixed spreads.
@HarriOshord
Fixed spreads sounds very stable. It is not. Fixed spreads are higher during low volatility that variable and during high volatility they rise up so no longer fixed.
Členem od Dec 08, 2016   19 příspěvků
Dec 09, 2016 at 12:48
togr posted:
HarriOshord posted:
I think it is wise fixed spreads, as many traders in a more transparent approach a broker does not notice or do not understand the fees factor. Nevertheless, with most brokers are changing the model from fixed to variable patterns and commissions, transaction costs went straight down. According to my calculations, the Commission applies the model are cheaper than fixed spreads.
@HarriOshord
Fixed spreads sounds very stable. It is not. Fixed spreads are higher during low volatility that variable and during high volatility they rise up so no longer fixed.

I will consider and analyze your words. Thank you.
Členem od Dec 28, 2016   3 příspěvků
Jan 24, 2017 at 08:01
😝fixed is better
Členem od Mar 29, 2016   10 příspěvků
Jan 26, 2017 at 08:32
Fixed and dynamic spreads might be differently good for different strategies of trading
Členem od Feb 12, 2016   522 příspěvků
Jan 26, 2017 at 09:08
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 :).
Členem od Nov 13, 2015   35 příspěvků
Jan 26, 2017 at 16:31
@BaldoN So it seems both types of spread have their advantages and right to live 😄
@Gornix You also have a good point!
A knight's tale!
Členem od Sep 11, 2015   14 příspěvků
Jan 29, 2017 at 07:35
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 😀
Flat space
Členem od Sep 11, 2015   14 příspěvků
Jan 29, 2017 at 07:35
@Gornix I suggest it is more question of personal trading convenience but think that you are also right in some aspects
Flat space
Členem od Feb 12, 2016   522 příspěvků
Jan 30, 2017 at 12:25
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 :)
Členem od Jan 31, 2017   10 příspěvků
Jan 31, 2017 at 13:26
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
Členem od Jan 30, 2017   12 příspěvků
Jan 31, 2017 at 13:31
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.
Členem od Jan 31, 2017   10 příspěvků
Feb 05, 2017 at 07:35
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.
Členem od Feb 04, 2017   40 příspěvků
Feb 08, 2017 at 07:47
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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