Spreads

Hi everyone,I see a post on here from a guy looking for lowest spreads and high bonus for signing up for a live account.The fact is that low currency spreads just means that the broker will catch you some other way,slow to close positions,freezing,slippage ,routing orders to dark pools,always question your provider how they can give such low spreads.

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Most brokers hedge in house,unless your in book B then it's hedged out to the bank,thanks for the info.

Be lucky.

Good info, thanks.

so true!

snapdragon1970 posted:
Hi everyone,I see a post on here from a guy looking for lowest spreads and high bonus for signing up for a live account.The fact is that low currency spreads just means that the broker will catch you some other way,slow to close positions,freezing,slippage ,routing orders to dark pools,always question your provider how they can give such low spreads.

It is the other way around. Broker with low spreads allows you to stay profitable while broker with bonuses usually cancel these when they could cassette most harm

togr posted:

snapdragon1970 posted:
Hi everyone,I see a post on here from a guy looking for lowest spreads and high bonus for signing up for a live account.The fact is that low currency spreads just means that the broker will catch you some other way,slow to close positions,freezing,slippage ,routing orders to dark pools,always question your provider how they can give such low spreads.

It is the other way around. Broker with low spreads allows you to stay profitable while broker with bonuses usually cancel these when they could cassette most harm

That's funny a broker that wants clients to stay profitable,they not in the business of charity.

be lucky.

RobSchiz posted:

snapdragon1970 posted:
Most brokers hedge in house,unless your in book B then it's hedged out to the bank,thanks for the info.

Be lucky.

Hedging is very risky if you don't have enough knowledge about it.

I agree with you.

Spread means there is a difference between the bid and the ask price.

Spread is a fixed charge for each trade. Sometimes it is more / less. The spread facility of the broker creates an opportunity for the trader to trade.

Spreads are far more important to the traders than the broker since it is the cost that they have to bear to do trade with the broker.

GraceGilm posted:

LukeRachel posted:
Spread is a fixed charge for each trade. Sometimes it is more / less. The spread facility of the broker creates an opportunity for the trader to trade.

this is all correct, only each broker has its own conditions on this matter

Exactly, the condition of the broker is different but from whose point of view, he is correct.

I know a lot of new traders set out looking for a broker with a high deposit bonus or other type of promotion going on, but I've found that these are often there to distract you from other terms offered by the broker or terms & conditions surrounding the promotion make it difficult if not impossible to withdraw. In many cases, the brokers that don't offer this can be better. For example, if I decide to open an account with a broker primarily because they offer a $30 deposit bonus, but they have a $7+ withdrawal fee, high spreads, high commissions, and hidden charges (like inactivity fees), then I would have been better signing up with the broker that has no bonus but also doesn't charge for withdrawals, with low pricing and no hidden charges. The charges with the first broker will add up quickly and exceed the bonus in no-time.

HeavLeighGill26 posted:
I know a lot of new traders set out looking for a broker with a high deposit bonus or other type of promotion going on, but I've found that these are often there to distract you from other terms offered by the broker or terms & conditions surrounding the promotion make it difficult if not impossible to withdraw. In many cases, the brokers that don't offer this can be better. For example, if I decide to open an account with a broker primarily because they offer a $30 deposit bonus, but they have a $7+ withdrawal fee, high spreads, high commissions, and hidden charges (like inactivity fees), then I would have been better signing up with the broker that has no bonus but also doesn't charge for withdrawals, with low pricing and no hidden charges. The charges with the first broker will add up quickly and exceed the bonus in no-time.

You have to select a broker that provides all the services correctly from platform spread to withdrawal. Supporting a broker always provides benefits to a trader. All in all, the broker's service will be honest and trustworthy.