Variable spread vs FIXED spread & broker comment/feedback | Forex Factory

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Variable spread vs FIXED spread & broker comment/feedback

  • #1
  • First Post: Jul 24, 2008 3:08am Jul 24, 2008 3:08am
Variable spread- advantages? disadvantages?

All I know about fix spread is that it doesn't change, no matter what the market conditions are;whatsoever.



Hi fellow trading buddies, I'm a newbie & is having a demo account with forex.com

I'd read much in forums with an understanding that there're pros & cons in every broker. It boils down to personal preference;liking.


Appreciate experienced(successful) traders to comment / feedback?(if you're using forex.com)
(Feel free to leave me a private message,thanks buddies.)
  • #2
  • Jan 16, 2009 3:33pm Jan 16, 2009 3:33pm
Quoting dont know mu
Variable spread- advantages? disadvantages?

All I know about fix spread is that it doesn't change, no matter what the market conditions are;whatsoever.

Hi fellow trading buddies, I'm a newbie & is having a demo account with forex.com

I'd read much in forums with an understanding that there're pros & cons in every broker. It boils down to personal preference;liking.

Appreciate experienced(successful) traders to comment / feedback?(if you're using forex.com)
(Feel free to leave me a private message,thanks buddies.)
You can trade with no spread at all and commission is always constant.
http://www.forexfactory.com/showthread.php?t=58948
  • #3
  • Jan 16, 2009 3:42pm Jan 16, 2009 3:42pm
However, their commission is more than every other major brokers, spreads. Which means it is more expensive to trade with FX Clubs Express platform then it is to trade with other brokers. As a newbie or anyone it would be a bad choice.
  • #4
  • May 20, 2009 8:25pm May 20, 2009 8:25pm
Advantages and disadvantages of variable spreds? Well, they vary What I mean is that they can be as tight as 0.1 pip (on eur/usd for example) but can also be as wide as 60 pips during major news release or market volatility.

For fixed spreads you should also consider whether they are fixed at all times. There are some brokers that offer fixed spreads but widen the spreads only during news and night time (if they are 2 pips on eur/usd during the day, they are 3 or 4 pips during the night).
  • #5
  • May 21, 2009 6:54am May 21, 2009 6:54am
Quoting fxtrader42
However, their commission is more than every other major brokers, spreads. Which means it is more expensive to trade with FX Clubs Express platform then it is to trade with other brokers. As a newbie or anyone it would be a bad choice.
Well.. It depends on which currency u trade with.
For example: USDCAD, USDCHF, GBPUSD and for some major crosses their commissions are equal or even less than most offered spreads by other brokers. In this case an instant commission payback on negative trades looks really attractive.
  • #6
  • May 21, 2009 9:09am May 21, 2009 9:09am
Quoting dont know mu
Variable spread- advantages? disadvantages?

All I know about fix spread is that it doesn't change, no matter what the market conditions are;whatsoever.



Hi fellow trading buddies, I'm a newbie & is having a demo account with forex.com

I'd read much in forums with an understanding that there're pros & cons in every broker. It boils down to personal preference;liking.

Appreciate experienced(successful) traders to comment / feedback?(if you're using forex.com)
(Feel free to leave me a private message,thanks buddies.)

Forex.com is almost a combination of both. They call their spreads 'floating' with 4-digit pricing, but spreads are very consistent on majors. Now, this also could be looked at as a way for them to manipulate the pricing..

Use the indicator attached (drop into the 'indicators' folder of your MT4 program file) and apply it to 1M or 5M charts to see exactly what your broker is doing..
Attached File(s)
File Type: ex4 FXRM Spread History.ex4   3 KB | 1,162 downloads
  • #7
  • Last Post: Jan 31, 2012 3:49am Jan 31, 2012 3:49am
Although rare, companies that offer Fixed spreads are able to hook up their clients on STP. However, clients will receive requotes, if the real spread is wider than the fixed spread. (theorectically, a broker could be willing to take a loss, in such a case, but wouldn't bet om it).

Therefore, news trading with fixed spread/stp is nearly impossible, unless you add a pip deviation slippage to the order.
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