Spread almost 0 in some brokers, what is it?

Discussion in 'Forex Brokers' started by Gabriel Melo, Mar 25, 2017.

  1. Gabriel Melo

    Gabriel Melo Newbie

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    Hi everyone, everything ok?

    I've been studying forex for a few weeks, and I came across some brokers who offer the Spread at practically 0 points, but they charge a fee per transaction, something like a commission.

    I found two brokerages that do this: FxPro and IcMarkets

    So, could anyone tell me what this is, and if you would advise me to operate that way?

    At ICmarkets you can check out the True ECN Account, and at FxPro you can check out the FxPro Trader system (almost 0 spread).

    If anyone knows what it is, could you tell me the name of this type of negotiation?

    Thank you!
     
  2. Enivid

    Enivid Administrator Staff Member

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    I am using a zero spread account from InstaForex and find it very useful for my news trading strategy. For normal trading, having zero spreads is not that important.
     
    Gabriel Melo likes this.
  3. garena

    garena Active Trader

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    I also see many brokers offering 0 spread, and normally they should have charged you commission for raw spreads. So please pay attention to the commissions you get for trading.
     
    Ketrama Rinok likes this.
  4. Lukas Schmidt

    Lukas Schmidt Trader

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    Brokers that offer accounts with such low spreads charge you commission, because they don't profit from 0-0.1 spread. So if you get 0 spread but the broker charges you $6 per lot commission - it's more or less the same as when pay 0.6 pips spread per lot
     
    Ketrama Rinok likes this.
  5. garena

    garena Active Trader

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    Indeed, but some brokers only charge $4/lot, it's better than $6/lot.
     
  6. smitit

    smitit Newbie

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    I think this account type is quiet common and suitable for scalpers. Brokers like Vantage and Yadix also have similar accounts. The spread is same spread as the broker gets from the liquidity.
     
  7. garena

    garena Active Trader

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    Nothing is free, especially in forex, if you are a scalper then you would stick to these accounts.
     
  8. jameswilliam

    jameswilliam Trader

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    Zero spread accounts are pretty common these days. they come with an added commission. I trade with finpro trading they have spreads from 0 pips and a nominal commission charge.
     
  9. hyper.trader

    hyper.trader Newbie

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    hello,
    Generally, in pure ECN accounts, you will see such raw spreads starting from 0.0 pips however they will charge some commission based on the volume you have traded. Some offer $4, some offer $6 and infact I have also seen the brokers offering $2 RT commission structure. In my view, paying commission is better than paying spread.
     
  10. garena

    garena Active Trader

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    why some pairs have 4, 6 and 2 in usd commissions? what cause it?
     
  11. Zak Hasmunir

    Zak Hasmunir Trader

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    If spread is 0 there should be another commission...
     
  12. LittleJosh

    LittleJosh Newbie

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    Make sure that you understand how commission works. It can add up to more than a 1pip spread
     
  13. s.taylor

    s.taylor Newbie

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    I also agree with the previous replies, paying commission is far better than paying high spreads. Pure ECN brokers charge a nominal amount of commission but their spreads are the least even starting from 0 pips on major pairs.
     

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