Low Spread Broker

[uncle gober]

The easiest way to check the spread is from your Market Watch window inside the Metatrader4 terminal. We've highlighted the EUR/USD in the window where you see that the spread is 0.1 pips (difference between Bid of 1.33849 and Ask of 1.33850).

 

 

So, why are low spreads important?

 

Spread and commission is the cost of trading. For example if you trade 1 lot of EUR/USD which is equivalent to around 134,000 US dollars and the spread is 1 pips then your spread cost is 10 US dollars.

 

Let's take a look at the spreads of Armada Markets on  Exchange account.  the spread on EUR/USD is 0.3 pips (courtesy of Myfxbook). If you traded (open and close order) 1 lot of EUR/USD right now then your spread cost would be 3 US dollars. Spreads fluctuate all the time depending on the market conditions and they can go as high as 2 pips, even 5 or 10 pips if there is maximum uncertainty and some big news come out. Big news are central bank interest rate announcements, major economic news (US jobs report, EU retail sales, etc).

 

Let's imagine that the same trader has also a trading account with another FX broker named BobFX and their average spread is 2 pips. The spread cost per on lot of EUR/USD would be 20 US dollars. As he made 100 trades then the total spread cost for him would be 100 * 20 USD = 2,000 US dollars.

 

So, at Armada your spread cost for 100 trades would be 100 US dollars, while at BobFX it would be 2,000 US dollars or 1,900 US dollars more. This means that also your profit at BobFX would be 1,900 US dollars less compared to Armada.

 

 

[myregister]

Low spread is important because it means that we must spend lesser and we can earn more. In the other hand, low spread broker is what many traders want to find out and join with. But i see the real low spread broker is only ECN.

[Decub]

A lot of people would always want to cling to low spread brokers because at least, they are not losing so muuch to spread which is something sop many traders want to avoid on brokers and those who are scalping.

[myregister]

Since with lower spread broker they will lose lesser or if they make profit their profit will be bigger because of the spread that imposed to them is totally low. Overall low spread broker helps trader to sustain their account.

[surya77]

low spread is the good for we, if we can trade using low pread price spread that is good for trading with scalping style, so I hope we can get more profit with this type trading.

[uncle gober]

Low spread is good for the trader who want to do scalping technic. I like trading with ECN.STP account. ECN/STP model provides clients with direct access to the other Forex market participants (retail and institutional). Broker do not compete with  clients or even trade against them. This grants clients more advantages over dealing desk market makers.

[Jacob McGivens]

One of the most important factor in Forex is to trade with a broker that has low spread and that is exactly what I get with my broker OctaFX, it has low spread of just 0.2 pips for all the major pairs and not only that their rebate service where we get 50-60% back so that makes the spread even shrink further so we can make profits instantly after opening a trade. It is something seriously important for newbies like me.

[myregister]

Low spread is good for the trader who want to do scalping technic. I like trading with ECN.STP account. ECN/STP model provides clients with direct access to the other Forex market participants (retail and institutional). Broker do not compete with  clients or even trade against them. This grants clients more advantages over dealing desk market makers.

Not only for traders with scalping technique but also for all kind of trader, with lower spread it means that you must spend little amount of money rather than bigger spread broker. Long term trader will earn more and spend less for that spreads. However, ECN has the lowest spread rate.

[TenkoFx]

Low spreads depends on the type of account that will be used, of course ECN accounts have low spreads with floating spread system. in several currency pairs, TenkoFx provide at least 0.3 pip spreads

[standart]

if we are perform scalp, mean that we should use small spread range. to make target easy to be achieved. when we are has good strategy, has chance to get daily profit. however, we should accept losses also when it occur. do not force to make position remain floating when we are know that we are make wrong decisions.

[myregister]

It is clear that ECN brokers will win over other type of brokers in the terms of spread, even you are combining their comissions too overall ECN brokers offer lower total expenses. Low spread broker is good for scalpers in order to attain bigger profit. Lower spreads broker also good for any traders who want to reduce their expenses.

[TenkoFx]

Low spread is one of the most important factors people look before choosing a broker. It is important for obvious reason, as no one likes to pay any money to the broker, but in reality that’s not possible as we get high leverage and all these luxurious facilities only because they earn something from us, otherwise it is not possible for them to survive. 

 

I trade with TenkoFx, it has one of the lowest spread at present amongst all ECN brokers. The exciting part is that, it stays that way even in high news event which is a rare case with other brokerage companies. 

[myregister]

I agree with you, up to now and i think for forever people will think about the fees too which means that as trader you must re-check your cost and calculate for the worst in this case as forex trader is spreads which already accounted to our position since we opened it. You can try more ECN brokers out there, most of them offers prime support and also for its server it has 99% uptime.

[Anne Morris]

I agree with you, up to now and i think for forever people will think about the fees too which means that as trader you must re-check your cost and calculate for the worst in this case as forex trader is spreads which already accounted to our position since we opened it. You can try more ECN brokers out there, most of them offers prime support and also for its server it has 99% uptime.

 

To be fair I have never seen any broker even the worst having any issue with uptime while about using ECN broker then you are completely spot on since this is one type of broker which allow us to trade directly with the global banks and we never have to worry over desk dealing or such scenario. I use top ECN broker OctaFX, it has even been rewarded with the award for the same thing and anyone who trades with them will know good their service actually is.

[my name]

dear low spread is the best because if we use low then after making any mistakr we have to loss little money instead if large so its a best thing for every new trade .we have to use lower liverage because we have not enough skill abiut the forex work its a very xangerious ine for every new trader .some time we have to loss all of our money when we make mistake

[aliforex]

dear low spread is the best because if we use low then after making any mistakr we have to loss little money instead if large so its a best thing for every new trade .we have to use lower liverage because we have not enough skill abiut the forex work its a very xangerious ine for every new trader .some time we have to loss all of our money when we make mistake

Right, most of traders look for broker which has low spread. But i think, it's not only about spread but also other trading terms which we must know because every broker has advantages and disadvantages.

[gaban]

Right, most of traders look for broker which has low spread. But i think, it's not only about spread but also other trading terms which we must know because every broker has advantages and disadvantages.

 

yes, I am also happy to trade using a broker that provides low spreads. With low spreads, the capital we will have the rest of the lot. especially with the high leverage the profits will double

[myregister]

To be fair I have never seen any broker even the worst having any issue with uptime while about using ECN broker then you are completely spot on since this is one type of broker which allow us to trade directly with the global banks and we never have to worry over desk dealing or such scenario. I use top ECN broker OctaFX, it has even been rewarded with the award for the same thing and anyone who trades with them will know good their service actually is.

99% uptime means that it is nearly perfect but it would be good if that is better, i personally does not use ECN at the moment since i need big bucks for it, because their leverage cannot be that high, i prefer STP now this broker's rate is usually low but sometimes getting a bit higher during spike or big impact news.

[Upul Tharanga]

No don’t look for low spread broker only because this is an old school trick so we can’t look too much into it. I trade with Nova FX and they are completely regulated so far confirming that they are good enough so now I don’t have to worry with whatever they offer which is also fantastic since their spread is very small just 1.5 pips while also have ideal customer service that is active 24/5 to help us regarding any problem or issue.

[uncle gober]

I think by using ECN account with low spreads very favorable and it is not a trick that was made by the broker. traders can now obtain a spread comparison between brokers in serving this website and reliable as in TICKMILL. one of which is already well-known website that presents a comparison of the spread between brokers in real time is myfxbook

[my name]

low spreading trade is good for us as we know forex work is depound upon the skill only if ee have more skill then we can get more profit from the market .one of the best one broker is the fx open broker and in the last few month a get a best profit by fxopen if we are new then never try to chive a large pofit while trading its not a good for us

[CahCuncun]

Low spread is good for trading. We must try to maximize it as well as possible because it's the best trading conditions which is looking for by traders. But i also feel satisfied and comfortable when trading with TenkoFx.

TenkoFX investment forum for PAMM account investors

[Dion Ebrahim]

Do you really believe that mate? I don’t think it’s so much to do with spread, leverage or lot size that will help us double/triple our profit instead it is the hard work and skills that will help us doubling the profits and remember higher leverage can be the worst thing for a new comer as that can be another way to lose quickly.

 

I get low spread with OctaFX of just 0.2 petite but that does not make me mad instead I still aim for 10-20% profits over a trade and slowly aim for growing my balance which works effortlessly thanks to them and the superb conditions that they have given us to work with and it is alongside their ideal customer service that’s active 24/5.

[myregister]

Do you really believe that mate? I don’t think it’s so much to do with spread, leverage or lot size that will help us double/triple our profit instead it is the hard work and skills that will help us doubling the profits and remember higher leverage can be the worst thing for a new comer as that can be another way to lose quickly.

 

I get low spread with OctaFX of just 0.2 petite but that does not make me mad instead I still aim for 10-20% profits over a trade and slowly aim for growing my balance which works effortlessly thanks to them and the superb conditions that they have given us to work with and it is alongside their ideal customer service that’s active 24/5.

Spread is your cost  and that is important to know which broker that offers reasonable spreads, it does not mean so low but still in reasonable price and there isn't any other fees. Also i think it is all about scalpers, they are care about spreads since their profit per position is low compared to those longer term traders.

[pepy]

@upul: Usually non ECN broker offers something like that a fake spreads, but mostly ECN especially to those regulated one has real low spreads, and usually brokers with low spread has comission but for overall the price still competitive if you ask me.