How important are tied spreads to you?
- Thread starter Rambo35
- Start date
- Watchers 52
Mostly I trade with fixed spread it is easy for a trader to calculate about trading .With variable spread we are confused have to manage all things again. Nothing else affects the transaction costs of forex trading more than the spreads which are offered by your forex broker.
Depends ont the trading pair and frequency of trading. I use low-spread liquid pairs for scalping and high spread assets with lower liquidity for investment trades. You should pay attention to the average costs per trade, if it is higher that 0.1% then you have to revise your trading strategy and limit the number of entries.
i dont mind market close/opening spreads when they go elasticity because i make sure i have no trades opened and i wait till the spreads go back to tightening before i open a trade, as well i like the tighter ecn spreads, what i dislike is spreads widening an hour before a market close/opens as most times my setup falls in that barrier hence i will be in profit but the spread elasticity takes it away, very annoying
Just avoid trading during that time and also make sure you increase your stop loss before weekend close or rollover times otherwise spread widening can trigger "dumb" stop loss which is annoying.
Yes, tight spreads are definitely important, but it's also worth paying attention to commissions when choosing a broker.
Rightly said. However, it is better to choose a broker whose commission charges are reasonable and not 0 as it peaks up spreads and vice versa.
Yes, definitely, commissions and spreads usually correlate to some extent. It's best to decide which "combination" of spread and commission sizes is best for your trading style.
I trade on a 0 commission account with pretty decent spreads. It's definitely important to find a broker with tight spreads and I personally only deal with floating spreads. Every offer for fixed spreads that I've ever seen has been outrageous.
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