There are brokers who make profits by seeking commission per trade, while there are few who’ll charge the spread between the bid and ask price.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Broker recommendations!!
- Thread starter botsmarok
- Start date
Well, I simply find out whether the spreads are fixed or variables before selecting a broker. Like I went ahead with XM. IG and fxview because they provide pure ECN spreads starting from 0.0 pips. Anyone know any other brokers with the same spread and pips?There are brokers who make profits by seeking commission per trade, while there are few who’ll charge the spread between the bid and ask price.
Help me understand what causes the large bid ask spread.Yes. Also each broker varies their spreads every minute of each day. Each pair has 2 prices, bid (sell) and ask (buy). The ask is never lower than the bid.
Watch the quoted bid-ask prices on your preferred target pair minute by minute to see how spread varies. Watch at high risk times like around news announcements or the open or close of trading in London, New York and Japan.
I suppose it’s the stock’s price that influences the spread. If the price is low, the bid ask spread will be larger and vice versa. Purely because of the liquidity reasons.Help me understand what causes the large bid ask spread.
Firstly spreads widen and contract continuously. I was watching USD/JPY pre-US open the other day: in 1 minutes it ranged between 0.6 pips to 1.2 pips and every price in between. This sort of limited spread move probably reflects the company's total exposure to risk on this pair as their clients move into and out of positions, set and adjust and cancel orders and as the cost of hedging varies.Help me understand what causes the large bid ask spread.
Secondly spreads widen out at known times per day when market volatility will make risk harder to quantify - from some time before the market open until activity resolves itself into a visible direction and volatility reduces. These spread moves are large but reasonably predictable.
Thirdly spreads widen around scheduled and unexpected news announcements until the broker can see which way the market is going to go in reaction. These spread moves can be huge - watch your own broker's quotes to see how huge.
Volatility as per me is what affects the spread and I usually define my strategy around this.Help me understand what causes the large bid ask spread.
Why is there so much hype around ECN accounts?They are offering just this ECN account. You can check here: https://fxview.com/account-type
How much precisely is their commission cost?I recommend trading with FP Markets since it is an older broker that has been active since 2005 and offer some of the lowest commission cost per lot per round.
Firstly the prices are consolidated that makes the trading very seamless. Second, these accounts come with low spreads even during high volatility. I guess these are good enough reasons for preferring these.Why is there so much hype around ECN accounts?