Many forex brokers offer lower spreads to attract new clients these days. But what about FP Markets? Read further to find out.

FP Markets Spreads

In exchange for providing trading services and access to the currency market, forex brokers typically quote their clients with spreads, or the difference between the bid and ask price. This means that the price to purchase an asset will always be a bit higher than the underlying market and the selling price is always a bit lower. Basically, spreads are the cost of trading that's measured in "pips".

The amount of spreads may vary from broker to broker, so it is important to check on each broker in order to find the best deal that suits your needs. Most experienced traders like to pay attention to the changes in spreads in order to minimize their spending. This is particularly useful for scalpers or day traders who make multiple trades within a single trading day. FP Markets spreads can go as low as 0.0 pips on the Raw ECN account and 1 pip on the Standard account.

 

FP Markets Spreads and Commissions

FP Markets is a well-known broker that has been in business since 2005. The brokerage firm offers more than 10,000 tradable instruments across various types of assets, including currency pairs, stocks, commodities, metals, and cryptocurrencies. Aside from that, FP Markets is known for providing award-winning platforms, various market research tools, and incredibly low trading costs.

In FP Markets, all the spreads are variable, which means that the spread amount may widen or tighten depending on the overall market volatility. The advantage of using this type of spread is the low chance of getting requotes. Aside from that, variable spreads offer more transparent pricing, especially if you are getting access to multiple liquidity providers.

To get the best prices, FP Markets generates real-time quotes from leading international banks and other financial institutions. During liquid periods, forex spreads can go as low as 0.0 pips on the Raw ECN account and 1 pip on the Standard account. It is worth mentioning that the spread varies on different types of assets. For instance, the average forex spread on AUD/USD is 1.2 on Standard account and 0.2 pips on Raw ECN accounts. Meanwhile, the average spread on XAG/AUD (precious metal) is 0.04 pips on Standard account and 0.032 on Raw ECN accounts. We'll talk about this later in this article.

It is worth noting that commission-free trading is only available on Standard account. If you use Raw ECN account, the broker will charge an additional $3 commission for every trade. On top of that, the broker may charge swap fees for overnight positions and conversion fees if you deposit or withdraw using a different currency than your account base currency.

 

How to Check FP Markets' Real-time Spreads on MT4

  1. Launch the MT4 platform and log in using your MT4 trading account. If you have no account in FP Markets yet, follow the guide here.
  2. Right-click anywhere on your chart and "Properties".
  3. Open the "Common" tab and check the "Show Ask Line" box. Click "OK" to proceed.
  4. Click on "View and Choose Market Watch".
  5. In order to see the spread of a particular symbol or currency, right-click anywhere on the Market Watch window and choose "Spread".
  6. A separate column will be displayed on the screen, showing the spread for each currency pair, commodity, or indices. However, please note that the spreads are quoted in MT4 points. If you want to convert it to pips, simply divide the number by 10.

Checking Spreads

 

Different Assets, Different Spreads

As mentioned before, the spread amount differs depending on the asset that you use. In FP Markets, all of the spreads are floating. To give you an idea of the average spreads offered by FP Markets, let's take a look at the tables below.

 

Forex Spreads

Symbol Average Spread
 Standard Account Raw ECN Account
AUD/JPY 1.6 0.5
EUR/NZD 2 0.9
GBP/CAD 1.9 0.8
USD/CHF 1.7 0.5
USD/CNH 2 0.9

 

Metal Spreads

Symbol Average Spread
 Standard Account Raw ECN Account
XAG/AUD 0.04 0.032
XAG/USD 0.02 0.014
XAU/EUR 0.4 0.22
XAU/USD 0.21 0.07
XPD/USD 14.61 -

 

CFD Indices Spreads

Symbol Average Spread Standard Account
AUS200 1.61
CHINA50 8.01
EURO50 1.79
UK100 1.62
US100 1.53

 

CFD Commodities (MT4/MT5)

Symbol Average Spread Standard Account
COCOA 2.65
COFFEE 0.9
CORN 0.71
SOYBEANS 1.12
WHEAT 2.12

 

Cryptocurrency Spreads

Symbol Average Spread Standard Account
BTC/USD 18.66
DOT/USD 0.029
ETH/USD 5.16
LNK/USD 0.029
SOL/USD 0.666

 

Tips on Getting Lower Spreads

Variable spreads may vary depending on market conditions. The amount is also different for each currency pair and account type that you use to trade. Therefore, you need to plan your trade well in order to get the best spread possible.

The spread can reveal a bunch of useful information for traders, such as time, volatility, and liquidity. Major currency pairs like GBP/USD tend to have lower spreads compared to exotic pairs like USD/KES. In forex trading, there are 8 major currencies that account for roughly 85% of the forex market cap. So, if you are looking to trade with lower spreads, it's highly recommended to open positions on major currency pairs.

Another thing that traders should also pay attention to is their trading time. Lower spreads typically occur when the market is in high liquidity and low volatility. This is why many traders like to trade during major forex sessions when the liquidity is incredibly high. Quite the opposite, if you trade when the liquidity is low, you need to be prepared for the high cost. One of the examples is trading AUD when it's nighttime in Australia. During this time, there aren't many active participants, and many financial markets that may affect forex are also closed. As a result, the liquidity is low and the spread is usually high.

 

Summary

FP Markets offers some of the lowest spreads in the industry, starting from 0.0 pips on Raw ECN accounts and 1 pip on Standard accounts. The rest of the trading fees are also relatively low, making it suitable for practically any type of trader in the market. Since the spreads are constantly changing, it's important to regularly check the real-time updates of the cost of each currency that you wish to trade. Make sure to choose the right instrument and time in order to get the best possible deal for your trades.

Where to Find the Information on the Official Broker Site?

  • This information is reported per Mar 29 2024.
  • We can not ensure if this offering is still available or remain the same in future.
  • The broker announcement page may or may not exist anymore, You may explore FP Markets homepage and try to find "Promotion" section on the menu, footer, etc, to ensure the availability and validity of this promotion.

 


FP Markets is a broker that provides various trading services, including low-spread trading. Here, traders can access markets such as Forex, Shares, Indices, Commodities & Cryptocurrencies.