Fixed vs dynamic spread discussion | Forex Factory

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Fixed vs dynamic spread discussion

  • #1
  • First Post: Apr 24, 2013 11:17pm Apr 24, 2013 11:17pm
Hi everyone here!

Let's discuss what is the best for your trading: fix spread or dynamic spread? And why is it so? Let's begin!
  • #2
  • Apr 24, 2013 11:24pm Apr 24, 2013 11:24pm
As for me I prefer dynamic spread because it's really can be tight or it can be zero in different situations! Sure, when there are a lot of important news, the spread is growing. But! When spread is fix, it'll be always fix and you won't get any chances to open your positions if on real market the spread will really tight! It like as a medal of two sides. Omg!
  • #3
  • Apr 25, 2013 12:10am Apr 25, 2013 12:10am
Only dynamic spread. I trade only during the day, because spreads on major pairs, which ones I trade, can be really tight.
For example, I traded previously with one broker, spread on GBPUSD was 4 points, it was fixed. It was very profitable at night, because at this time spreads are wider by other brokers.
Currently, I trade with other broker and on slow market spread is 0.2 - 0.4 points. At night it can be really wide, but it doesn`t influence my strategy.
As a result, if you trade at night the fixed spread can be more profitable for you. But you can loose some profit during the day.
  • #4
  • Apr 25, 2013 2:26am Apr 25, 2013 2:26am
Fixed spread is usually provided by exotic brokers to attract clients ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #5
  • Apr 25, 2013 5:07am Apr 25, 2013 5:07am
Also fixed spreads can be very attractive for newbies. It's easier to count your profit in this way. I guess dynamic spreads are more for the advanced traders. However, they reflect market situation far better.
It's a city that just has to be discovered
  • #6
  • Apr 25, 2013 9:08am Apr 25, 2013 9:08am
Quoting meng88
Only dynamic spread. I trade only during the day, because spreads on major pairs, which ones I trade, can be really tight. For example, I traded previously with one broker, spread on GBPUSD was 4 points, it was fixed. It was very profitable at night, because at this time spreads are wider by other brokers. Currently, I trade with other broker and on slow market spread is 0.2 - 0.4 points. At night it can be really wide, but it doesn`t influence my strategy. As a result, if you trade at night the fixed spread can be more profitable for you. But you...
You do realise that this is a global community?
Your night is somebody else's day.
Probably a better idea to refer to sessions. I guess that when you say that you trade during the day, you mean the European or the US session.
Please Do Not PM Me With Coding Enquiries
  • #7
  • Apr 25, 2013 10:36am Apr 25, 2013 10:36am
Quoting Marco_Polo
Also fixed spreads can be very attractive for newbies.
Again, this is only to attract newbies

A serious broker has absolutely no reason to profide fixed spread.
MT4/MT5 EAs/Indicators/Alerts coder
  • #8
  • Apr 25, 2013 12:01pm Apr 25, 2013 12:01pm
Quoting FerruFx
{quote} Again, this is only to attract newbies A serious broker has absolutely no reason to profide fixed spread.

FerruFX could you explain why please....will love to understand why

landsat
Logic will take you from A to B Imagination will take you anywhere (A.E)
  • #9
  • Apr 25, 2013 8:31pm Apr 25, 2013 8:31pm
Quoting landsat
FerruFX could you explain why please....will love to understand why landsat
The spread reflect the current market conditions. A fixed spread should be considered as manipulation of the current market feed.
MT4/MT5 EAs/Indicators/Alerts coder
  • #10
  • Apr 25, 2013 8:37pm Apr 25, 2013 8:37pm
Quoting FerruFx
{quote} Again, this is only to attract newbies A serious broker has absolutely no reason to profide fixed spread.
Quoting FerruFx
{quote} The spread reflect the current market conditions. A fixed spread should be considered as manipulation of the current market feed.
I guess that brokers who offer fixed spreads simply re-quote instead of widening the spread?
Please Do Not PM Me With Coding Enquiries
  • #11
  • Apr 25, 2013 11:17pm Apr 25, 2013 11:17pm
Quoting FerruFx
Fixed spread is usually provided by exotic brokers to attract clients ...
I absolutely agree, cause yes, it seems really comfortable when spread is fixed and you had some kind of pseudo guarantee of your convenient conditions of trading.
  • #12
  • Apr 26, 2013 6:11am Apr 26, 2013 6:11am
Quoting FerruFx
{quote} The spread reflect the current market conditions. A fixed spread should be considered as manipulation of the current market feed.
FerruFx

Thank's for your response , im oanda customer , and i should admit that their variable spread , make feel unconfortable , it goes to 1.0 to 1.4 in a blink of an eye .....
not yet use to it ... but for sure in exchange i got a very accurate and fast execution on their web-based plateform

Thank's

Landsat
Logic will take you from A to B Imagination will take you anywhere (A.E)
  • #13
  • Last Post: Apr 26, 2013 6:13am Apr 26, 2013 6:13am
Real spread should be dynamic, not fixed one.
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