Spreads make a difference

The cost of doing business: paying the broker

I am only in EURUSD. Spreads range from 0.5 to 4 pips.

I would challenge any trader worth his salt to wait for the spread to drop down below 1 EVERY SINGLE TRADE (unless scalping for a few pips)

Why throw your pips away to the broker?

Yeah, you time the entry... but wait a few extra seconds to save that extra pip...

See the thread I started here to see the difference it makes long term:
http://www.forexfactory.com/showthread.php?t=268564

Best,
Tom

If your spread goes as low as 0.5 then I suspect you rarely get 4 pips. In that case you will rarely have to wait, generally it will be between 0.5-1 pips, and although you may save 0.5-1 pip on the spread, there is also the opportunity cost - wait a few seconds for a better spread and price may have moved against you.

Absolutely true. To save 1 pip in spread by waiting, you might be worsening your entry price by 4 or 5 pips.


Regards,

Nader

That's a very good advice and it's a shame to see that some EAs don't check the spread before taking a trade. It's often a tell-tale of poor thinking, poor strategy and poor programming.