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Fixed or floating spread account?


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That is for sure dealing desk, if you already know the risk that your broker are dealing desk brokers then you can just join it, but for me i will never trade in dealing desk. I prefer non dealing desk which for sure is non floating spread account, because it reflects the real market price feed.

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  • 3 weeks later...

All I know when trading is that I prefer to have a low spread that is suitable for me in trading, it does not matter if it is fixed or floating, but of course floating does not mean it change regularly, but just sometimes. I trade with OctaFX due to their low spread of just 0.2 pips for all major pairs, but it is floating yet it mostly remains the same most of the time while in big events it stays below 1 pip which is extra ordinary, as all other brokers have it well above 5-6 pips.

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That is for sure dealing desk, if you already know the risk that your broker are dealing desk brokers then you can just join it, but for me i will never trade in dealing desk. I prefer non dealing desk which for sure is non floating spread account, because it reflects the real market price feed.

 

No.. Certainly it is just a good alternative for scalp traders, entering in periods of high volatility when market can expect liquidity probems and traders get widened spreads and slippage. Just imagine that during some crucial economic release you don't get annoying 5, 10, 20 pips or even requotes, but get stable fixed spread (maybe even at broker expense, but not sure )

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No.. Certainly it is just a good alternative for scalp traders, entering in periods of high volatility when market can expect liquidity probems and traders get widened spreads and slippage. Just imagine that during some crucial economic release you don't get annoying 5, 10, 20 pips or even requotes, but get stable fixed spread (maybe even at broker expense, but not sure )

For scalping but from what i am sure about that most of the fixed spread broker are dealing desk which we know love if you loss because it means they are in profit. But if you really reflected the market, then floating spread acount is for you, since i am not scalper anymore floating spread account is the most suitable and best account/broker for me.
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  • 4 weeks later...

 

For scalping but from what i am sure about that most of the fixed spread broker are dealing desk which we know love if you loss because it means they are in profit. But if you really reflected the market, then floating spread acount is for you, since i am not scalper anymore floating spread account is the most suitable and best account/broker for me.

 

 Yeah, Hotforex also have floating spread account, I traded on it for 9 month, but I heard that commission-based account is a next professional stage for forex traders. What do you think?

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I always prefer to have a fix spread. In this way I will know how much profit and loses I can make. Unlike if its floated that the spread is low when you open a position. But when the time come to close your position the spread is wider. And those accounts that does not have spread actually have commission that we need to pay.

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For scalpers, fixed spread is not the best choice. Fixed spreads are for traders who wish to hold their position for days and weeks, which is very beneficial incase there is a spike in the market during the set time. However, scalpers can benefit from floating spreads because if gives them the lowest and it will remain so because they open trades and close in less than 30mins. So, if you want to scalp, use floating spreads because they are lower than fixed spread.

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I always prefer to have a fix spread. In this way I will know how much profit and loses I can make. Unlike if its floated that the spread is low when you open a position. But when the time come to close your position the spread is wider. And those accounts that does not have spread actually have commission that we need to pay.

Yes, i think, every trader want to trade with broker which has fixed spread. But i think, if we get floating spread, it's not a problem too. I also get floating spread, but it's small.

 

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Personally, I prefer fixed spread. That is seen from the fact that I want the spread that way it was when I placed my order and not that which the value of spread will keep varying according to the market conditions. I also like a broker that will offer an option to select either fixed or variable as your order is open.

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  • 2 weeks later...

Floating spread is my own favourite since that is reflected the right market situation. Fixed spread seems impossible unless that broker created their own market, and become market maker by their ownself which of course become a dealing desk one.

 Lots of ECN and STp brokers have fixed spreads, it is a good alternative for high-volume traders, expecting stable low spread and bit of clearness in transactions costs. I trade both fixed and floating spreads account on Hotforex, applying different strategies to both of them.

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 Lots of ECN and STp brokers have fixed spreads, it is a good alternative for high-volume traders, expecting stable low spread and bit of clearness in transactions costs. I trade both fixed and floating spreads account on Hotforex, applying different strategies to both of them.

Huh? where did you get this information? as far as i know ECN is connected through interbank where the market is totally dynamic and it means that the spreads also dynamic, even it is usually ranging at around 0.xx-2.xx, but even when the liquidity is very low, the spreads even burst higher up to 3.xx.

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if we are want to perform scalp, we can trade by use ECN account. it serve floating spread and start with very low. but during high news impact, it will raise suddenly. but if we are kind of swing or long position trader, we can choose to trade either on ECN or standard account, which serve fix pips spread.

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Honestly floating spread is more plausible account and also more reliable rather than fixed account. In addition, if there are brokers that offer these two accounts simultaneously there is a possibility of this broker may act as a market marker and trade against their trader, but this is just possibility.

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  • 3 months later...

Floating spread is usually better for a scalper because it’s a lot lower, but remembers that company makes a big difference, if we go with any ordinary broker they might keep increasing spread even with showing low initially. I prefer a proven broker OctaFX, it has 0.2 pips floating spread and it remains in a very stable way, so that’s really helpful and I don’t need to worry about anything while with other companies, it is always growing to very high number.

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  • 2 weeks later...

Floating spread on Forex and CFD markets is a constantly changing value between Ask and Bid prices. Floating spread is a completely market phenomenon and, most of all, interbank relations are characterized by it. Thus, along with the usual trading accounts with floating spread, a number of companies offer clients so-called ECN accounts (Electronic Communication Network). ECN Forex broker provides a platform where participants (banks, market makers and private investors) trade with each other, by placing buy and sell orders in the system. As usual, clients have lower spread trading on the ECN platform, but, at the same time, they pay commission to the broker during their operation. my broker now ( TICKMILL ) is the one broker which has a ECN trading conditions with lowest commision and spread

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Still choosing floating spreads rather than fixed spread account, first because fixed spread does not make much sense second mostly or even all of fixed spread account supported by dealin desk broker, and that means we are trading against the broker which means there are conflict of interest.

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  • 2 weeks later...

Still choosing floating spreads rather than fixed spread account, first because fixed spread does not make much sense second mostly or even all of fixed spread account supported by dealin desk broker, and that means we are trading against the broker which means there are conflict of interest.

But it doesn't mean that fixed spread sort of all bad thing, because fixed spread usually has lower spread compared to the floating one, even yeah that means DD and also agains the broker which is very risk if trade with it. I think i will also still stick with floating spreads since it is more feasible and i don't have to against the broker, it is a win win solution and brokers love if i make profit because it means residual income for them.

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  • 2 weeks later...

But do you prefer to trade in dealing desk when you are against the broker itself, it is not win win solution it is win lose solution either you or the broker that win a trading, this is not like floating spread one which mostly as far as i know is non dealing desk where really love for sure if their client make a profit, because it means they may get more and more income.

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Not to offend the users of fixed spread broker but floating spread broker offers many thing which is more realistic, the market itself is dynamic and i think that is logically if the spread also dynamic, make it fixed seems like there is a game behind, and it is true most of fixed spread broker is dealing desk broker which against a trader.

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Why do you should feel offended to others. That is really realistic and not just the rumour, Floating spreads offering near real experience, if the liquidity is low then spread is wider but when liquidity is so high the spread is thinner than usual compared to fixed one which always be the same.

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