Thread: We need Low Spread Broker

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.

The only quality broker that I have found in last 2 years with low spread that stays that way is OctaFX, it is a company that charges just 0.2 pips for all pairs and keep it that way most of the time while in high events like NFP, it goes up, but still far lesser than any company and mostly remain below 2 pips during those events. I can comfortably do trading on news thanks to low spread that they take.

I am trading with litefoex and they have have very low spreads, i found that they are offering one of the best spreads in the market.

Broker with low spread will be the most wanted broker by traders. I also get it in TenkoFx. Every broker also has own advantages and disadvantages. As a trader, we just have to understand about it.

Low spread is good for the trader who want to do scalping technical. 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.

Originally Posted by Uncle Gober

Low spread is good for the trader who want to do scalping technical. 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.

Low spread in a broker will make us feel comfort when trading. In TenkoFx, i also get low spread. And we must be able to maximize it. Make more profit here so we can be a successful trader.

Originally Posted by CahCuncun

Low spread in a broker will make us feel comfort when trading. In TenkoFx, i also get low spread. And we must be able to maximize it. Make more profit here so we can be a successful trader.

I am very happy with the broker that has low spreads. EUR/USD average raw spread 0.2-0.3 pips. Standard commission 20 per million and through my IB I get a 5% reduction. No-requotes on my close to 1700 trades now. Positive slippage on news trading. Armada ( now is tickmill ) is one of the best FX broker out there.

These days competition in the brokers community is really very high and Brokers are offering really low spreads in order to attract clients from different parts of the World, I'm using FBS and they are offering best possible services not only in low spread but also other features as well so that they can differentiate themselves from other brokers.

Yes, it is necessary if we want to be successful then we must search for a broker that has low spread as having that give us kind of guarantee that will get some profit if not more while for scalpers the lower the spread is the higher lot size they could use and also that would be less risky.

I trade only with OctaFX broker where they provide me low spread of just 0.2 petite and still they have many other conditions that go hand to hand with low spread which is perfect execution of all trading orders and the requotes are guaranteed not to affect our performance and also there is never any slippage or any sort of error.

competition broker with low spreads will provide benefits to traders where traders can take advantage of brokers that provide the lowest spreads. I trade with my broker with spreads as low as 0.0 pips; no re-quotes, delays nor interventions; scalping, EAs and news trading allowed; STP, DMA and NDD; Leverage up to 1:500; trade from 0.01 lot