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Do you prefer fixed spreads or dynamic spreads?
Mitglied seit Dec 11, 2015
1462 Posts
Jun 07, 2016 at 09:10
I generally prefer fixed spreads when that's possible, because with them there are no nasty surprises during high volumes and high impact events.
Mitglied seit Jun 12, 2016
16 Posts
Jun 12, 2016 at 18:43
execution speed on floating spread is always better rather than using fixed spread, the bad thing with floating spread is dangereous if you use hedging as your strategy because spread can widen during weekend or spike on news releases
nothing is impossible
Mitglied seit Mar 28, 2016
94 Posts
Jun 13, 2016 at 06:38
good
forex_trader_29148
Mitglied seit Feb 11, 2011
1768 Posts
Jun 14, 2016 at 07:47
dynamic,always better
Mitglied seit Dec 11, 2015
1462 Posts
Jun 14, 2016 at 08:35
herodontcry posted:
execution speed on floating spread is always better rather than using fixed spread, the bad thing with floating spread is dangereous if you use hedging as your strategy because spread can widen during weekend or spike on news releases
To be honest, the spread widening during news events is dangerous even if you're not hedging. It can widen considerably, take your stop and then the pair continues on its merry way in the direction you were expecting.
Sep 21, 2016 at 10:55
It is suggested to go for variable spreads as the price feeds are direct from LP's. So in fixed spread your broker can be market maker. Also if you are day trader go for variable spread but being a long term trader you can earn with fixed spreads at the time of events or news as spread is larger at that time.😐
Mitglied seit Oct 01, 2015
47 Posts
Oct 21, 2016 at 13:22
it's dangerous for sure to trade with dynamic spreads during news, but there is always a good chance to make a profit
Mitglied seit Feb 22, 2011
4573 Posts
Oct 21, 2016 at 15:31
With dynamic spread on ECN broker you can get cost of trade less than 1.0 pip.
Havent seen fixed like this.
Havent seen fixed like this.
Mitglied seit Dec 11, 2015
1462 Posts
Oct 22, 2016 at 11:13
CliveCampbell posted:
it's dangerous for sure to trade with dynamic spreads during news, but there is always a good chance to make a profit
True. On the other hand, it carries considerable risk, and said risk is too much for me, so I avoid trading during that time.
Oct 25, 2016 at 07:26
trading with fixed spread could save you during big spikes and is a bit better for news trading, but with fixed spread you pay a lot more in the mark up as with dynamic spread. If you accept the risks of the market and the dynamic srpeads you are paying less for your trading volume. Paying 1.5 Pip fixed Spread for 1 lot is more expensive than lets say paying 8 EUR Commission with dynamic 0.2 Pips spread . The difference is 5 EUR for each 1 lot traded.
Mitglied seit Feb 22, 2011
4573 Posts
Oct 25, 2016 at 07:28
Well even fixed spreads are stretched during news.
Mitglied seit Mar 14, 2016
36 Posts
Oct 25, 2016 at 08:50
It all depends on strategy, but I usually stay away from fixed spreads, because sometimes, brokers are having mark up on the fixed spreads. But some EA's are better working with fixed spreads, so like I explain before it all depends on the type of strategy that you are using.
Oct 25, 2016 at 13:51
I vote for the variable spreads in combination with real market execution. They reflect the true pricing which is always a dynamic dimension. Better also to have the commission charged additionally, not in the spread.
Accept the loss as experience
Mitglied seit Sep 15, 2016
24 Posts
Oct 27, 2016 at 12:51
In my view, variable spreads are better than fixed spreads. The reason being is the trading cost. For example, normally in case of variable spread, a commission (like around $4 per $100k) is charged to you and the average spread tends to remain around 0.3 or 0.5 pips so the total trading cost tends to remain below 1 pip (while it also depends on broker to broker, if you are going for ECN or STP account and what commission they are charging). While, in case of fixed spread, in normal market conditions the trading cost remains generally higher at 2 pips. If you go for variable spreads, during the time of high volumes, it can go to 0.0 pips as well for EURUSD or GBPUSD, in that case your variable cost goes even further down but it does not happen in fixed spread thus leading to higher trading cost. Also, fixed spreads don’t remain the fixed always, at the time of news, even fixed spreads get widen, you will see your spread fixed at say 2 pip only however if you try to buy or sell, you will see a different execution price from what you are seeing.
Mitglied seit Oct 08, 2015
35 Posts
Nov 02, 2016 at 07:34
olivia_jones posted:
In my view, variable spreads are better than fixed spreads. The reason being is the trading cost. For example, normally in case of variable spread, a commission (like around $4 per $100k) is charged to you and the average spread tends to remain around 0.3 or 0.5 pips so the total trading cost tends to remain below 1 pip (while it also depends on broker to broker, if you are going for ECN or STP account and what commission they are charging). While, in case of fixed spread, in normal market conditions the trading cost remains generally higher at 2 pips. If you go for variable spreads, during the time of high volumes, it can go to 0.0 pips as well for EURUSD or GBPUSD, in that case your variable cost goes even further down but it does not happen in fixed spread thus leading to higher trading cost. Also, fixed spreads don’t remain the fixed always, at the time of news, even fixed spreads get widen, you will see your spread fixed at say 2 pip only however if you try to buy or sell, you will see a different execution price from what you are seeing.
I also agree that fixed spread can be more costly over long term!
Trading is like football - if you don't practice you can't win the game!
Mitglied seit Oct 08, 2015
35 Posts
Nov 02, 2016 at 07:34
I prefer the floating spreads but also to have the commission separate and shown in full when I open the trade. This gives me a clear picture of the costs involved and how much should I earn at least to be on profit.
Trading is like football - if you don't practice you can't win the game!
Mitglied seit Oct 01, 2015
47 Posts
Nov 03, 2016 at 07:20
BaldoN posted:
trading with fixed spread could save you during big spikes and is a bit better for news trading, but with fixed spread you pay a lot more in the mark up as with dynamic spread. If you accept the risks of the market and the dynamic srpeads you are paying less for your trading volume. Paying 1.5 Pip fixed Spread for 1 lot is more expensive than lets say paying 8 EUR Commission with dynamic 0.2 Pips spread . The difference is 5 EUR for each 1 lot traded.
Very good point and great explanation. Thanks for this
Mitglied seit Oct 01, 2015
47 Posts
Nov 03, 2016 at 15:31
I like trading with fixed spread, personally because I feel free more secure when there are sharp movements during news. I understand that of course dynamic spreads might be cheaper some times, but it can also be more expensive.
