Lowest Spread Forex Brokers For Cross Pairs
On any trading platform, there are two prices for each financial instrument – the Bid and the Ask. When buying or going long, traders use the Ask Price, while the Bid Price is used for selling or going short. The difference between the Bid and Ask Price represents the spread. It is an income for the broker (fee), which is also a cost for the trader. Therefore, a lower spread would be much better for traders.
Besides offering the lowest spread on several popular Major Currency Pairs, some brokers also offer their lowest spread for Cross Pairs. Though these pairs are not as popular as Major Currency Pairs, some traders are willing to trade them because they provide bigger volatility. If you are interested in trading Cross Currency pairs, these lowest spread forex brokers for Cross Pair could be helpful.
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Why do scalpers need low spreads?
A scalper can open and close 30 positions in a day. Say the broker charges a spread of 3 pips for every position, the profit average is 5 pips, the loss average is 3 pips, and the scalper makes 20 winning trades and 10 losing trades. The total profit and loss without the spread are:
(20 x 5) - (10 x 3) = 70 pips
If the spread is charged:
((20 x 5) - (10 x 3)) - (30 x 3) = -20 pips
The result is disappointing, right? Although they have made twenty profitable trades, the total profit/loss turns to minus once the spread is applied.
Continue Reading at The Secrets of Successful Scalping Strategy
Why should you trade with cross pairs?
If you trade only the major pairs, you will only have a few different opportunities. But if you add cross-trading pairs to the mix, you can make even more combinations to match your trading style. Instead of just focusing on the limited number of dollar-based pairs, you can find even better opportunities if you pay attention to currency crosses. So overall, you will have wider ions of strategy and instruments to use.
Continue Reading at Best Forex Brokers to Trade Cross Currency Pairs
What are the most traded cross pairs?
Most traded cross currencies involve JPY, which are AUD/JPY, GBP/JPY, EUR/JPY, and so on. The reason is that trading against JPY creates interest rate gaps which could result in more profits.
Another most traded cross currency is EUR/GBP. Both represent some of the largest economies in the world, so it makes sense that many people trade them. However, cross currency pairs relatively have small daily movements compared to major currencies, and so forex traders usually ignore them.
Continue Reading at Currency Pairs Characteristics in the Forex Market
What are the best brokers to trade cross pairs?
Here is the list of brokers suitable for trading with cross pairs:
- IC Markets
- Exness
- TriumphFX
- Pepperstone
- FXCM
- FBS
Continue Reading at Best Forex Brokers to Trade Cross Currency Pairs
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