If you want to constantly trade with the same commission size, knowing in advance how many points the broker will take from you, the best choice in this case will be a fixed spread.
Brokers’ fixed spread – is a commission for opening transactions that does not change following the liquidity of the market.
This option is most suitable for some trading strategies and when trading with advisors.
After all, forex advisors conduct automatic trading and very rarely control the change in the size of the commission. Therefore, its unplanned increase can lead to quite serious losses.
As an alternative to a fixed spread, a commission per million turnover can be applied, as a rule, its size also always remains unchanged.
Fixed spread, brokers with similar accounts:
InstaForex ( instaforex.com ) is one of the largest companies that still has such types of accounts, in addition, it has options for accounts with a commission:
At the same time, the broker’s fixed spread is 3 pips or more, depending on the currency pair, but if you refer to the site http://forexluck.ru/, you can get a discount of up to 2 pips per lot.
AMarkets ( amarkets.org ) is an interesting company that has been on the market since 2007 and welcomes scalping and trading with Expert Advisors:
The fixed spread on the FIXED account starts from 3 pips per lot, if you trade in large volumes, try to negotiate a discount.
Fibo Group ( fibo-forex.org ) – those who have long been engaged in stock trading remember the broker since 1998. A completely reliable company with an individual approach to each client:
As it is already clear for trading, you should open MT4 Fixed here, the lowest spread for the EUR/USD currency pair is only 2 points.
Which broker to choose, with fixed or floating spread?
If we consider the size of a fixed size, then for the EURUSD currency pair, then on average it is 2-3 points, depending on the company.
At the same time, the average floating size is between 0.8 and 1.5, and it all depends on the broker. You can compare the commission rates of different companies at the link ” Broker commissions “.
As can be seen from the information presented above, the size of a fixed spread is, on average, still larger than a floating one for a similar currency pair.
Its use is justified only for automated trading and when trading in situations where there is an excessive expansion of the floating spread. For example, when the liquidity of the trading instrument is low or vice versa, the market is highly volatile.
True, it should be borne in mind that in some cases the fixed spread of brokers can also expand, although not as significantly as the floating one.
- Script showing size statistics – http://forexluck.ru/skripty/2900-statist-spred
- Brokers with the lowest commissions – http://forexluck.ru/treyding/1242-nizkiy-spred
