Lowest Spread Forex Brokers For Major Pairs

Believe it or not, you can ask the broker directly. Some ECN/STP brokers openly state that they mark up spreads because they feel they have the right to do so.

You can also check the authenticity of spreads from an ECN/STP broker that (perhaps) covers up its spread mark-up by directly comparing the broker's spread with the actual market spread.

Continue Reading at Forex Broker Cheats and How to Anticipate Them

Given the importance of spreads in day trading, it is essential to find a broker that offers low spreads. Lower spreads can help day traders reduce their trading costs, which in turn can lead to increased profits.

It is noteworthy that IC Markets stands out in this regard because it offers lower spreads compared to its counterparts. For instance, the average spread on the EUR/USD for IC Markets' standard account is around 0.62 pips while FP Markets' is around 1.2 pips.

Continue Reading at Broker for Day Trading: FP Markets or IC Markets?

A raw spread account offers low or zero spreads, meaning there is no difference between the market price and the broker's price. A raw spread account is often called an ECN (Electronic Communications Network) account. Both account types provide trading at exact market rates but differ in spread and commission structure.

Continue Reading at Raw Spread Vs Fixed Spread: Which is the Best for Scalping?

Spread affects the kind of strategies that a trader can use. For instance, scalping is a popular trading strategy in which traders open several trades throughout the day to make a series of small profits. However, if the spread is too high, it might end up consuming most of the profits made by the trader via this strategy.

The implication of this is that many profitable strategies are rendered useless when the spread is too high since the trader will only keep losing money.

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