Broker costs for the EURUSD pair

Hello guys

I wonder something about forex brokers.What is the average cost(spread of EURUSD for example) of a forex broker.

For example 1 pip fixed spread broker can earn any profit if this broker clears all orders from their liquidity providers.

I mean they give 1 pip fixed spread for eurusd what should their cost for this pair ?

The question is same with other majors.
What is the forex brokers cost for USDJPY-USDCHF-GBPUSD pairs ?

There really isn't an "average cost", but spread on EU in a true interbank environment is almost always less than 1 pip, is often zero, and is sometimes even inverted (ask lower than the bid). At a legitimate ECN, the broker makes profit entirely from commissions regardless of spread.

For a fixed spread broker that doesn't charge commission, they make profit on the spread, but I don't know of any fixed spread broker offering 1 pip on EU; pretty sure they are all 2 pips. But if you know of one, please let me know

By the way, fixed spread brokers don't have any liquidity providers. They are bucketshops that handle all orders internally, i.e. they take the other side of your trades, selling to you when you buy, buying when you sell. All they are really providing is a price feed; your orders never actually go anywhere...

You say that when market is not in anormal conditions Brokers cost for EURUSD is 0(zero) pips.If it is like that then they can offer 1 pip fixed spread and still can earn money.But I see most of ECN broker average spread over 1 pip and they still get commission so are you sure that environment is really valid for fixed broker to earn profit from trades ?

{
For a fixed spread broker that doesn't charge commission, they make profit on the spread, but I don't know of any fixed spread broker offering 1 pip on EU; pretty sure they are all 2 pips. But if you know of one, please let me know
}

In general Brokers gives 2 pip fixed spreads but they can offer 1 pip rebate to their introducing brokers or they can provide 1 pip spreads for high their high volume traders.And also there is one broker 1 pip fixed spread named EMPFX.

Any idea from other pairs such as GBPUSD , USDCHF, USDJPY ?

Spreads right now at Oanda are 0.9 for Euro, 1.1 for DollarYen, and 1.8 for Pound.

Oanda spreads are very variable and can be widened very oftenly sometimes(5 pips or more).And also they widened spreads in every Asian sessions consistently(1.2 to 2 pips) ...

So their average spreads are much more than 1 pips if you get average of daily spreads...

It sounds like you may be thinking spreads are a lot more static than they really are. When I said spreads can be zero on EU at a true interbank ECN, that is correct, however it's not like that all the time, and you'll never know when exactly. Spreads are fluid and are constantly in a state of flux (i.e. changing).

If the ECN broker you are looking at has an average EU spread over 1 pip AND they are still charging a commission, then you should get a new broker because you're getting ripped off.

By the way re. rebates, the way a lot of brokers can offer that is by increasing the spread to those customers who get the rebates. Not all of them do it, but IKON is one that does for example. I had an account with them through an IB so I could get rebates, and noticed I had jacked up spreads. I asked IKON about it, and they were very upfront telling me it was because I went through the IB.

The fixed spread broker you mention (that I've not heard of), would be cutting it close if they offer a 1 pip spread and no commission.

On the other pairs, ECN spreads that I see are about 1.2 for GU, 0.8 for UY, and 1.2 for UCHF.

Hope that helps...