Lowest Forex Spreads Full

Please Wait
<!—Kode iklan adsense pasang disini -->
Just like you've seen in any newspaper ad during any holiday season for any electronics store anywhere. They all guarantee the lowest prices anywhere. The same is true for many retail Forex brokers. They always talk about the lowest Forex spreads.

If a price of a currency is a price of a currency, then theoretically there should be no difference between the spread prices between brokers. They should all have the lowest Forex spreads. But that's not true and it is a definite consideration when any trader is shopping for a Forex broker.

Why a spread

Forex brokers don't make their money on commission. They may make a big deal about their zero commission offering, but they all do the same thing so it's no great bargain. That's not where their bread and butter is. They make their money on the spread. The spread is the difference between the bid price and the ask price for the currency being traded. The broker adds this spread onto the price of the trade and keeps it as their fee for trading. So you can consider this as a hidden commission.

When brokers offer the lowest Forex spreads, they are often talking about the most commonly traded pairs; for instance, the EUR/USD. The less commonly traded pairs often have a wider spread because the volume is less.

Making a difference

Some traders don't care about the spread and for a broker that offers the lowest Forex spreads may not be a selling point. If a Forex trader is a long term trader, the difference between a pip or two isn't an attraction to sway their business. Most traders aren't long term traders. Most traders are day traders, and several of them are scalpers. When you're going for a ten pip profit, you want all ten pips in that profit. When you're a scalper and snatching out two and three pips at a time, the size of the spread can determine your entire profit.

One good thing about the spread is you pay it when you buy and not when you sell. A trading of 4 pips vs. 5 pips makes a difference of 25% on your trading costs. This makes the point clear why you would need a low spread Forex trading platform. When searching for the broker who offers the lowest Forex spreads, make sure it's being offered in the kind of account you're using. The spread might be different when you're dealing with a mini account, for instance.

Trader beware

Always read the fine print when it comes to the spread being offered by any broker. Make sure it fits your needs in the style of trading you're planning or that to which you are accustomed. You don't want them hiding their higher spreads with bells and whistles like “free cash” or “cash back.” These deals sound great, but if you're planning to trade often, or even a few times, a day the size of the spread makes more of a difference than the cash they're offering you. By the way, the cash always has strings attached, also. You should do some more fine print reading as far as that's concerned, too.
Don't let the broker take money from you unnecessarily. Find out the lowest Forex spreads and begin there. It's a good place to start. 


Ready to start trading? Beginner traders may appreciate all that Plus500 has to offer, while intermediate or advanced traders will likely love the choice of trading platforms offered by Markets.com. Read our reviews of the top-rated Forex brokers such as our FXCM review or our AvaFX review to find the right broker for your needs.

Cari Blog Ini

Casey Stubbs Blog Full

Please Wait
Klik 2X untuk generate link <!—Kode iklan adsense pasang disini --> Casey Stubbs — Winners Edge Trading
Before entering trades there are pieces of information that traders should possess.  Trading is a business that an individual must plan and prepare for, just like any other business. Trading is not gambling unless you are just entering blindly without a plan. Every time you enter a trade you should already what your target price is, what the risk level is, and what strategy you are using. These three keys that I am going to be explaining in detail in this article will ultimately be the difference in being successful or being a complete failure.
It is important to know the target level before you enter a trade. The reason this is important is because you need to know where you are going if you want to be able to get there. What I mean is that if you have a target you are more likely to stay in a trade until you reach that target. Most traders get in then t…

Forex Moving Averages Assist Trading Full

Please Wait
Klik 2X untuk generate link <!—Kode iklan adsense pasang disini --> Another very useful tool that is usually found in all the Forex platforms toolbox is the moving averages options. Needless to say a moving average is a trending line that helps you gauge the market direction and the market main movements as it is being developed. As always, these tools help you make sure you are on the right track but should not be used in isolation to determine an entry in a trade unless extensively studied and well educated about these tools potentials.

In Forex moving averages are also known as rolling averages, for the meaning of a running average. This is a sum that continues to develop as it progresses during the trading session and will change direction all the time during your trading session.

Moving averages in Forex are usually either ‘simple’ or ‘exponential’ as the most common although other variations namely weighted moving average and cumulative are also used…
Diberdayakan oleh Blogger