In the Forex world, there are two sorts of spreads offered by Forex Brokers towards their traders. This implies they can trade shrink on a Fixed spread or Variable spread as it were. There are numerous traders that will choose to open an account with a particular Broker simply because of the spread sort that the Broker offers.
Also, I noticed another kind of spreads. So here on myfxbook while I was searching for broker spreads to compare between fxview and ICM, I noticed that there are spreads and spreads+commission, it actually made a lot of difference, on the overall cost of my trade.
Choosing fixed spreads or variable spreads depends on the situation I am in. When I will be entering and exiting a trade in a few hours, I prefer fixed spreads and when it is about making a long-term investment, I go for variable spreads.
Fixed or variable spread depends upon your trading strategy. personally i prefer variable spreads as i am pretty much aware of the times when generally the spreads are high or low in the market. So I only prefer trading when market has good liquidity.
I am not sure about others but I usually trade with ECN brokers that offer transparent trading environments. And because of this, it doesn’t really matter whether I am using variable spreads or fixed ones.
I really don’t think that using fixed spreads or variable spreads has much impact on your bottom line as a trader. It is your trading style and risk appetite that determine the best spread structure that you must opt for.
Choosing the right type of spreads is more of a personal choice. Just because variable spreads work better for me, I can’t be sure that they will work for you also. You will have to determine that yourself.