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ali555

Why The Spread Is Different?

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I always want to know about this, maybe if you know it can answere my question.


We see in all pair the spread is not same....


eur/usd 3 pips, gbp/usd 3 pips, usd/jpy 3 pips



gbp/jpy around 6 pips, aud/chf 10 pips, aud/nzd 33 pips, etc



why all the spread not same?


this is look like broker direct us to trade in the main pair in forex..isn't it?




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It is like this for all brokers. I think it is for two reasons, the crosses have a smaller liquidity and usually a greater volatility. And if you were to take a cross trade in the majors you would have to take a double spread. For example long gbp/jpy is the same as long gbp/usd short usd/jpy.

But in FBS, for micro account. you can get 1 pip spread for EURUSD and GBPUSD pair

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I think every broker has a spread which varies depending on the policy of the broker. and spread is also usually affected by market movements. In Real Trade spreads offered very little and fixed. So it is very convenient for trading

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Actually it depends on broker such as my broker FreshForex offers 0.9 pips. However interest rates and comparing the financial exchange between each be associated with because it affects the pair to make this move more than other viability and thus benefiting the companies accepted to make the difference greater than the other pairs

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Spread always varies brokers to brokers. Its actually the amount that broker takes as charge. Whenever you place any trade, broker takes a amount or pips from your trade and let place it different than your trading position with few loss. In Forex industry, so many brokers takes 1PIP as minimum spread and 3-5 pips as highest spread. Actually scam broker always tries to steal money from Forex trader. But there are few brokers that support traders best.

As I do trade with OctaFX broker, I do get only 0.2 pips facilities from my broker for all major currencies with Micro lots account. It's the best opportunity for me to save money from losing. As well, OctaFX offers me the 1:500 leverage facilities so that I can trade with high risk to get maximum profits. My broker is indeed a client-oriented company.

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what actually contribute to the variation of spread offered by forex brokers in my own opinion is the volume of trade or transactions that take place,the volume is not the same with all pairs,pairs with high volume would therefore have high spread.

i think Eur/USD pair have a high trading volume, so i can get the lower spread in my broker ( FBS ). now, i am trying to concentration to making money on this pair

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Spread differs because brokers have different LP and the second factor is price and trade changes. I always has very low spreads in my Hotforex real account. Even in news trading spread stays the same (it can widen but insignificiantly) what helps me to avoid extra losses during my scalping..

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I think spread varies on the different market volatility offer by the currency pairs. For example, those exotic pairs seem to move very wide on daily basis that some traders called it as scalper haven. While major pairs like EUR/USD is not that violent so maybe that is the reason why they have lower spread. so i choose this pair when trading in my broker - FBS -

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Naturally, the lower the spreads, the better it is for trading result, especially with scalping trading strategies. traders should had a proper understanding, how spread affect our trading result. for example i had monthly total order at average150 transaction on EURUSD, at first i use non ecn broker service, 2 pips spread on eurusd which means, 150 x 2 pips, 300 pips monthly cost in total,but now my result getting better as I moved into armada market, an ECN brokerage service total cost per-transaction are 0.7 pips x 150 trades equal to 105 pips monthly cost. have anyone ever consider how spread cost your trade. and yess indeed ecn brokers cost cheaper, now i have 195 pips additional profit. before start and pick up your desired trading style, better consider how much it cost, what benefit and what the risk. scalping are commonly an overtrade system, which means spread does matter with this trading system. all the best for you.

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Low spread is the most wanted by trader in forex. But infact, every broker have different spread. We just have to choose broker which provide the best trading condition, not only from spread, but also their service, we must test it.

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I think mostly the spread is directly affected by how the violate the trading pair is and how often it is been traded. If we trade on Eur/Usd, it is the most traded pair, therefore the movements are very closely so we get low spread while with pairs like Aud/Nzd have huge spread as it is not traded that often.

I am trade with OctaFX, it is a trading company that is really popular for their low spread. We generally receive low spread and when it comes to major pairs like Eur/Usd, it is really low with just 0.2 pips while even for other pairs it is definitely not as high as mention above, so I would always recommend them strongly.

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Yes, trading spreads are much important subject for me. Because, I am a scalper. Therefore, I always want to trade whitish regulated trading broker provides narrowest trading spreads for major currencies. Actually, the size of trading spreads I directly depend on your trading broker. Therefore, I have selected ‘GCI’ trading broker as my trading partner where I can trade by only one pip trading spreads for all major currencies. Even, I am enjoying their no requotes and zero spillage guarantees. As a result, I can make highest profit by scalping. On the other hand, I can trade in any Forex currencies even, Gold , silver, Indices and CFDs. So, my trading life becomes much flexible. Interestingly, I get 4% interest from this trading platform.

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Low spread is the most wanted by trader in forex. But infact, every broker have different spread. We just have to choose broker which provide the best trading condition, not only from spread, but also their service, we must test it.

yeah some even write down an extremely low spread, but without put down further notice of commision charged per trade.

many traders are lurk for mixed up brokers review spread out all around the net. i've been done my routine as traders for years, and i'm not hasten my selected brokers based on spread and review only. these where i always put a test deposit at first with less margin to had an access of how their trading condition in actual trading activity. my armada markets acccount are no exception, I just get long with 300 usd first on their ECN account. attach my ea system, and made a comparison with other account different brokers (mostly the past brokers one).

well, traders required to experience by himself, by trading on real account, not decided only by read others post.

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I don’t understand these stuff, but all I know is that with my broker OctaFX, it has low spread of 0.2 pips for almost all major pairs, so I don’t need to worry much at all. I am working with this company since last 3 years and it has been truly special for me to work with them especially due to their facilities that includes low spread as I mention while even 24/5 support system is what makes it worthy for me to work with them.

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I think the spreads differ in terms of the volatility of the the pairs. And i've come to notice that the major pairs have the lowest spreads. The exotic and unpopular pairs have high spreads. I think this is also why most traders don't trade them that much.

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Actually, devoid of narrowest trading spread, it is not possible to make profit constancy, in spite of good trading knowledge. That’s why; I have selected MXTrade as my trading broker due to only one pip trading spread. by means of this narrowest trading spread, I am able to make profit by using any kind of trading strategy with scalping.

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Basically, we can’t modify this because it’s totally depends on your trading platform. By the way, I seem, for professional trader it’s really good option for use which broker has fixed trading spread facility. Because, if you use this type of broker then you don’t need to do any extra calculation on trading spread. Yes! I get fixed trading spread facility from TradingBanks. So, I achieve my daily trading target smoothly. On the other hand, I also get here no slippage surely. And, really I never faced any slippage in high voltage news time.

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