Do you prefer fixed spreads or dynamic spreads?

TiffanyK posted:
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.

Definitely I read some comparison that compared your average ECN with commission to Forex.com and the ECN was literally half the price

All it depends upon the trading strategy. Like for a scalper fixed spreads won’t work as there can be too many requotes and added markups. I personally prefer variable spreads and my broker also offers me pure ECN spreads. Dynamic spreads can be sometimes very tight or even zero during some news events. But fixed spreads remain the same always, so you are not able to take advantage of real market tight spreads.

Good point montreal. I agree that it depends on the strategy. Also it is important how you program any EAs that you may use.

I vote for the variable spreads. However, sometimes what you see in your terminal is not what you get in your trades...

CliveCampbell posted:
Good point montreal. I agree that it depends on the strategy. Also it is important how you program any EAs that you may use.

Thanks Clive. I absolutely agree with you that EAs play an important role. With EA strategy you can play with dynamic spreads as in you can set a spread calculator in your program so that it keeps on calculating the lowest spread (diff b/w bid & ask) and executes the trade when it gets the lowest spread which can be even below the average spread. Also you can set a upper limit for spread that is to not execute trade if spread goes above.

One more vote for the floating spreads. It is better if no mark up is added to be in higher control of the pending orders triggering.

I am trading FX with dynamic spreads since the very beginning. I guess this is what I am used to. I agree with Carlos about the mark-up in the spread. This is important for the costs and performance.

When I started trading FX I used fixed spreads because I thought this brings predictability of the costs. Nowadays I trade at dynamic spreads and it's all fine as long as they are stable at market news.
I would add a second question - do you prefer the commission to be separate or included in the spread? 😄

Hello, I like dynamic spreads more because in my experience they are generally more advantageous than fixed ones in common traded volume

Fixed or dynamic, they need to be stable during market news especially when you scalp.

I kinda associate the fixed spreads with the broker dealing desk and a manipulation of the price. This is a red signal for me to avoid it. Variable spread looks to me as the most realistic option.

lee42747 posted:
I kinda associate the fixed spreads with the broker dealing desk and a manipulation of the price. This is a red signal for me to avoid it. Variable spread looks to me as the most realistic option.

Same here Jay! One more vote for the dynamic spreads 😄

leopoldo posted:
Fixed or dynamic, they need to be stable during market news especially when you scalp.

'Scalp during news' - I suppose trading should not turn into gambling 😂

Dynamic spreads with no commission markup - this is my choice!

I think we have all (or most of us) agreed on one thing - that the commission should be charged additionally. Spreads choice should be synchronized with your strategy choice – no doubts.
Regarding scalping during news – this is the easiest way to lose your money 😀

I trade Australian & NZ news all the time with Vantage ... spreads are never that much wider ... there's only so much liquidity in Asia anyway ... I think tight stops are what kills most people when news trading minor events like these

JayTeeFX posted:
I trade Australian & NZ news all the time with Vantage ... spreads are never that much wider ... there's only so much liquidity in Asia anyway ... I think tight stops are what kills most people when news trading minor events like these

If you spread is fixed or quite high including the commission, tight stop losses can definitely do what you say. Either you have less room for action or you risk more.

JayTeeFX posted:
I trade Australian & NZ news all the time with Vantage ... spreads are never that much wider ... there's only so much liquidity in Asia anyway ... I think tight stops are what kills most people when news trading minor events like these

I think setting trailing stops could be also helpful in such cases, btw.

I am used to the variable spreads and it works perfectly fine for me.