Do you prefer fixed spreads or dynamic spreads?

Aug 27, 2012 at 07:53
Vistas 6,395
127 Replies
Miembro desde Feb 22, 2011   posts 4862
Feb 08, 2017 at 08:46
kerstin71 posted:
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.

Exactly
Miembro desde Mar 31, 2015   posts 45
Feb 09, 2017 at 14:39
What I don't like in the fixed spreads is that they usually include the commission as a markup which automatically makes them much higher than the floating spreads and affects the execution.
Miembro desde Mar 14, 2016   posts 44
Feb 10, 2017 at 14:40
VickyJones posted:
What I don't like in the fixed spreads is that they usually include the commission as a markup which automatically makes them much higher than the floating spreads and affects the execution.

Yes, same here, I hate this mark up stuff! And better if you see the full commissions straight from the opening of the trade!
Miembro desde Feb 08, 2017   posts 6
Feb 12, 2017 at 08:11
Forex brokers generally offer two types of trade spreads, variable or fixed. On the other hand, fixed spreads are predetermined and remain constant throughout all trading conditions and variable spread are changing constantly on the basis of the market condition. Personally I prefer to use variable spread in forex market. Because sometimes the spread is very low in market and we can take a short trade with low spread and more profit.
Miembro desde Jul 09, 2015   posts 48
Feb 13, 2017 at 11:10
I also prefer variable spreads. The reasons for that are well presented by others here so far.
Miembro desde Jan 31, 2017   posts 30
Apr 19, 2017 at 09:22
dynamic spreads are the real market quotes so there are no chances of markups. many ECN brokers even provide spreads on major pairs starting from 0 pips. However, i do not prefer fixed spreads as brokers manipulate them. I prefer paying nominal commissions additionally rather than having fixed spreads.
Miembro desde Apr 03, 2017   posts 8
May 02, 2017 at 09:10
I prefer fixed spreads generally as you know exactly what you are getting. It is difficult to calculate commissoin + variable spreads. But some brokers with fixed spreads are not very good
Miembro desde Jun 02, 2017   posts 13
Jul 04, 2017 at 14:55
stevewalker posted:
ECN Account
- slippage + Comission + var Spread

it is better to trade with
- 4 digit or 5 digit fix spread NDD broker

variable spread is a big trap for EA s to fail.

better to trade with fix spread. ( 4-5 weeks ago I was on the other side )

walker

Can you please, explain why are the variable spreads big trap for EAs to fail? as that is what I am doing so far, and I believed I was doing just fine. Should I change my broker to another one who's offering fixed spreads, in order to get higher profit?
Miembro desde Jun 20, 2017   posts 7
Jul 05, 2017 at 06:21
The variable spread are the proof of orders going straight to the market. If only trade with fix spreads may face the risk of dealing with market maker, which means you are betting against the company and not actually trading in the market. So I would suggest var spread as well.
Miembro desde Feb 12, 2016   posts 522
Jul 10, 2017 at 12:19
jackfrost posted:
The variable spread are the proof of orders going straight to the market. If only trade with fix spreads may face the risk of dealing with market maker, which means you are betting against the company and not actually trading in the market. So I would suggest var spread as well.

not quite quite agree that 'variable spread are the proof of orders going straight to the market'. This is something many maker makers offers as well. There are many other way's to understand really what broker you are dealing with. :)
Miembro desde Dec 11, 2015   posts 1487
Oct 09, 2017 at 15:41
True. And besides, it's better for one's spread not to widen ridiculously during news events hitting the stop loss.
Miembro desde Sep 12, 2015   posts 1948
Oct 09, 2017 at 21:32
I always watch the spread before a trade, sometimes it takes the broker awhile to adjust it according to risk, if its to wide I stay out, try to calculate the difference while its moving.
"They mistook leverage with genius".
Miembro desde Oct 12, 2016   posts 855
Oct 10, 2017 at 14:43
Dynamic spread is always better than fixed spread, because most of the times brokers providing fixed spread are market maker brokers. So you should stay away from a broker offering fixed spreads.

Fixed spreads might be good if you are trading just in a cent or micro account or a very small account in that range just to test your system, but definitely not suitable for large accounts.
Artificial General Intelligence
Miembro desde Dec 11, 2015   posts 1487
Oct 11, 2017 at 14:37
Wouldn't fixed spreads also be beneficial if one uses scalping strategies to trade?
Miembro desde Nov 04, 2017   posts 14
Dec 14, 2017 at 08:28
TheLastBear posted:
Hey guys,

do you prefer fixed spreads or do you prefer dynamic spreads? What does your broker offer you?

Thanks for taking time to respond.


I think that a broker has mobile spreads can be a big problem if we are interested in the short term, or if our account does not have much margin to support the operations.
Miembro desde Feb 22, 2011   posts 4862
Dec 14, 2017 at 08:54
IMHO variable spreads are better as usually they are lower than fixed.
During big news BOTH fixed and variable spreads are rising.
Miembro desde Apr 11, 2015   posts 38
Dec 15, 2017 at 12:21
Staying with the topic on fixed and variable spreads, will a commission based trades offer better execution and reduce slippage during big news? Is this a better option for people tading on news? Thanks in advance for the feedback.
Miembro desde Sep 12, 2017   posts 3
Jan 17, 2018 at 12:55
I feel more comfortable the variable spread as it is suiting my trading style. I don’t know how long I will stick to that but at present, I like to go ahead with the variable spread.
Miembro desde Feb 22, 2011   posts 4862
Jan 17, 2018 at 13:28
TradingtheCloud posted:
Staying with the topic on fixed and variable spreads, will a commission based trades offer better execution and reduce slippage during big news? Is this a better option for people tading on news? Thanks in advance for the feedback.
will a commission based Broker offer better execution and reduce slippage during big news?

I would say it does not depend on fixed/variable spreads
Execution and slippage differs from broker to broker.
Logically the best conditions during news could offer B-Book broker as such trades will never reach the market :)
Miembro desde Nov 30, 2017   posts 12
Jan 17, 2018 at 14:39
Slippage is the big black box of brokers. Spreads can be compared but slippage can also eat into your results around news time. Some ECN brokers that are good most of the time suck during news
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