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Lowest Spread Forex Brokers For EUR/USD

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In trading platforms, each financial instrument has two prices: the Bid and Ask. Traders use the Ask Price for buying and the Bid Price for selling, with the difference known as the spread – a fee for brokers and a cost for traders. A narrower spread is preferable. Brokers usually offer the lowest spread for popular pairs like EUR/USD, representing about 20% of forex market trading volumes, with daily price fluctuations of up to 120 pips. If you're seeking brokers with the best EUR/USD spread, the list below can aid in finding a suitable option.


Apr 27 2024

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Score Broker EUR/USD Spread Min Deposit Max Leverage Regulation

In forex trading, the spread is the difference between a currency pair's Bid and Ask prices. The bid price is the price at which a broker is willing to buy a currency, and the Ask price is the price at which a broker is willing to sell a currency. The spread is the cost a trader pays the broker to enter or exit a trade.

The lowest spread for EUR/USD varies depending on the broker, but it can be as low as 0.1 pips. It is important to note that the spread is not the only factor to consider when choosing a forex broker. Other factors should also be considered, such as the fees charged by the broker, the trading platform offered, and the customer support available.

A good spread for EUR/USD typically ranges between 0.1 to 1.0 pip. However, the definition of a "good" spread can vary depending on market conditions, the broker's policies, and your trading strategy. Lower spreads are generally more favorable for traders as they reduce trading costs. Still, it's essential to consider other factors, such as execution speed, reliability, and the broker's overall reputation, when evaluating your best trading option.

The average spread for EUR/USD varies depending on the broker, but it is typically around 1.0 pips. However, the spread can be as low as 0.1 or 2.0 pips, depending on the broker and the market conditions. 

Low spreads can affect trading EUR/USD in several ways.

  • Smaller trading costs: A lower spread means you pay less to enter and exit trades. This can be a significant advantage for traders scalping or taking other short-term trading strategies, as it can help them maximize their profits.
  • Increased liquidity: A lower spread can indicate that the currency pair is more liquid. This means more buyers and sellers are in the market, making it easier to trade the pair without affecting the price.
  • Reduced risk: A lower spread can also reduce the risk of losses. This is because you are paying less to enter and exit trades, so you have less money at risk.
Additional FAQ

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?

Here are some moderate to high-impact releases you should note if you want to trade EUR/USD pair:

  1. FOMC Meeting and the subsequent Fed interest rate decision
  2. FOMC Meeting minutes (two weeks after the meeting)
  3. US Fed/FOMC Chairperson speeches
  4. US GDP
  5. US Nonfarm Payrolls report which also includes wages and unemployment rate
  6. ECB rate decision and the subsequent ECB President Speech.
  7. IFO Business Climate Survey
  8. European trade balance
  9. Eurozone GDP
  10. Eurozone inflation

Continue Reading at EUR/USD Fundamentals and Trading Tips

The journey of the Euro actually began when the Euro was still in the form of an internal accounting unit for members of the European Community (EC). There were two forms of the Euro at that time, a European accounting unit and a European currency unit (ECU). However, both were not actual currencies. Instead, both forms of "currency" were like a basket of several EC currencies designed to help stabilize the European exchange rate. Nonetheless, the ECU paved the way for the single Euro currency.

Exactly on January 1, 1999, the Euro was introduced as a single currency. The value of one Euro was equal to one ECU, and the original exchange rate of the Euro vs. the US Dollar at that time was 1.1686. Although the Euro did not become a physical currency until 2002, the Euro launch already bounded the Eurozone currencies collectively. In other words, the French Franc, German Deutsche Mark, Spanish Peseta, Italian Lira, and other Eurozone countries no longer had separate exchange rates.

Continue Reading at 5 EUR/USD Facts Every Beginner Should Know

EUR/USD is extremely sensitive to economic reports from the US, as well as other factors that are highly influential towards the US Dollar, such as commodity prices. On average, EUR/USD may move around 100 pips a day; but on particularly high-impact news releases, the pair can shoot up or drop down as much as 150-250 pips in a few moments. At the same news release, other major pairs may not result in similarly spectacular fashion.

Continue Reading at EUR/USD Fundamentals and Trading Tips


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