One of the brokers I use for example most all USD based pairs are less than 1 pip. This is where it is nice demoing a broker but a lot of brokers have different spreads with live accounts vs demo. Always shop around brokers. Do your research check out our guide HERE but do your own as well. Open up multiple demo accounts and test them out.

Even when you go live test out with smaller micro lots to make sure everything looks good. Here is a basic caclulator you can use to calculate spread and total trade cost. Just a simple one. As you test out with demo you will just be able to tell by looking at your spreads on your MT4, CTrader, or whatever platform you use for your broker. That is something people misinterpret as well is that a lot of brokers provide you with multiple platforms you can trade on.

I use MT4 still currently mainly because I have a VPS setup for trade strategies and a few other reasons. But at the time of this writing I am now starting to look at Ctrader and of course I use tradingview for all my charting needs.

However I am unable to currently use tradingview as my actual trading platform. So I normally execute trades straight from my phone.

There are many different factors that go into spread including what broker you are using but excluding that we will dive into the others for a bit. Currency Pair is one of those factors. Major currencies have the most liquidity the majority of the time so they, in turn, will have a lower spread pairs like EURUSD or USDJPY.

There are more market makers for these major pairs. This simply means more buyers and sellers to dump your trades. News is another key factor. If there is some big news coming up especially for USD based pairs the spreads will get crazy. Economic news includes U.

Non-Farm Payrolls. Other political election news, Trump tweets, Brexit votes, etc. This goes to the volitity news makes pair very volitile so spreads widen. A safe way to get around this is to not trade 1 hour before or after major news. So stick to the majors and not around news starting out and you should be just fine.

Another area to not trade around is around New York Session close which right now is 5pm EST. These will usually be the pairs with the lowest spread. Honestly depending on the broker XAUUSD aka GOLD can be a low spread pair to trade as well. Also can be very fun.

EURUSD is probably one of the most popular pairs and for that reason also has one of the lowest spreads. When starting out you may want to start by trading only one pair this may be the one. When a pair is moving you can get quite a few trades in per day with the right strategy.

The higher the liquidity, the lower is the spread. Therefore, the most liquid assets, such as euro-dollar, have the lowest spread, generally of the order of magnitude of some tenth of pip.

The reason is simple: if the asset is liquid it is easier to place orders in the real market, therefore the effort for the broker is minimum. The higher the volatility, the higher is the spread. In this case there is a relationship of inverse proportion. Also in this case the reason is easy to see: if an asset is volatile, the risk that the ratio between bid and ask disadvantages the broker is higher.

When talking about spreads, we should distinguish between fixed and variable. Some brokers opt for fixed spreads, others for the variable ones. It really depends on the case, neither of the alternatives prevails on the other. However, which option favours the trader? In reality, to answer this question we need to look at minimum spread set by the broker. If it is high, the fixed spread is more convenient to the trader.

In fact, if it already starts from a high basis, even variations of increase by some pips can cause serious damage. In a scenario now saturated with brokers, it is Key To Markets to offer the most favourable setup to the traders. In fact, it proposes very low and variable spreads. We have already mentioned that the spreads are decided by the brokers with a certain margin of discretion. This relative freedom can cause some disorientation to the trader. Substantially, they might not understand, at least not at first, when a spread is high or low.

The most effective way to assess the spreads is to compare them with those from other brokers. The most rapid, but still effective way is to identify a benchmark and make a single comparison. This benchmark may well be Key To Markets. In line with tradition, it is the euro-dollar pair which has the lowest spread. We are considering mobile values, that is true, however the spread is around 0. The other pairs follow: pound-euro 0.

Gold has a slightly higher spread, around 1. Reasonably low are also the spreads of the commodities. For example, the Brent and the WTI, rarely go above 0. Trade with more than 40 products, take advantage of leverage options up to , access the account from all desktop and mobilke devices, trade with scalping strategies and robots and with a segregated account. What is the spread There is much of talk about spread.

The definition of spread The spread is the difference between bid and ask. How the spread is calculated Rather than a precise calculation, we signal protocols and factors which impact the spreads more or less the same way.

The spread is one of those elements of trading that all the investors, even novices, cannot afford to ignore. In addition, it deeply affects their chances of profit, and especially it does it directly. In order to avoid negative consequences on the activity of trading, it is therefore advisable to make some choices on account of the spread.

For example, the choice of the broker. After all, the spread is related to the relationship trader-broker. It is simple, it offers very low spreads. There is much of talk about spread. To avoid ambiguities, it is important to make a clarification. The spread in trading has nothing to do with the spread mentioned on TV. That one is an indicator of the value of the Italian public debt with respect to the related German one.

So, what is the spread in trading? In the next paragraph we will give a short but complete definition. The spread is the difference between bid and ask. It is the difference between the real price of an asset and the price with which the trader operates.

It is right, in the majority of cases, and always when talking about spread, the trader does not operate with real prices. It can appear as an uncomfortable truth, even shocking. In reality, it reveals a totally physiologic dynamic. The spread is in fact as legitimate source of profit of the broker, the price the trader has to pay to have guarantee that all their operations are really executed. The brokers are free to set the spreads as they please.

In fact, the game of the acquisition of new clients is also played with the spreads. However, the margin of discretion is not infinite, more and more often certain calculation protocols are executed. Rather than a precise calculation, we signal protocols and factors which impact the spreads more or less the same way.

However, there is a constant: the unit of measurement, the pip. Moreover, in the vast majority of cases the broker sets a spread for each of the assets offered. Anyway, here are the two factors that mostly affect the spread. The higher the liquidity, the lower is the spread. Therefore, the most liquid assets, such as euro-dollar, have the lowest spread, generally of the order of magnitude of some tenth of pip.

The reason is simple: if the asset is liquid it is easier to place orders in the real market, therefore the effort for the broker is minimum. The higher the volatility, the higher is the spread. In this case there is a relationship of inverse proportion. Also in this case the reason is easy to see: if an asset is volatile, the risk that the ratio between bid and ask disadvantages the broker is higher.

When talking about spreads, we should distinguish between fixed and variable. Some brokers opt for fixed spreads, others for the variable ones. It really depends on the case, neither of the alternatives prevails on the other. However, which option favours the trader? In reality, to answer this question we need to look at minimum spread set by the broker. If it is high, the fixed spread is more convenient to the trader. In fact, if it already starts from a high basis, even variations of increase by some pips can cause serious damage.

In a scenario now saturated with brokers, it is Key To Markets to offer the most favourable setup to the traders. In fact, it proposes very low and variable spreads.

We have already mentioned that the spreads are decided by the brokers with a certain margin of discretion. This relative freedom can cause some disorientation to the trader. Substantially, they might not understand, at least not at first, when a spread is high or low.

The most effective way to assess the spreads is to compare them with those from other brokers. The most rapid, but still effective way is to identify a benchmark and make a single comparison. This benchmark may well be Key To Markets.

In line with tradition, it is the euro-dollar pair which has the lowest spread. We are considering mobile values, that is true, however the spread is around 0. The other pairs follow: pound-euro 0. Gold has a slightly higher spread, around 1. Reasonably low are also the spreads of the commodities. For example, the Brent and the WTI, rarely go above 0. Trade with more than 40 products, take advantage of leverage options up to , access the account from all desktop and mobilke devices, trade with scalping strategies and robots and with a segregated account.

What is the spread There is much of talk about spread. The definition of spread The spread is the difference between bid and ask. How the spread is calculated Rather than a precise calculation, we signal protocols and factors which impact the spreads more or less the same way. Fixed or variable spreads When talking about spreads, we should distinguish between fixed and variable.

How to asses the spreads? Therefore, it is advisable to consider values that Key To Markets can offer in terms of spread. Trade with a Real ECN Account. Do You Want to Improve and Automate your Trading Results? Start trading with a REAL ECN ACCOUNT. Open a Trading Account.

In the table below I have listed lot size in Forex you will have. It is the difference between the real price of an asset and the price with which the trader operates. To get the value of a single pip, simply take 0. Remember one thing about the spread. Using the example above, the spread of 0. The difference between the buy and sell price of a currency pair in a variable spread fluctuates in range, whereas the fixed spread remains constant regardless of the circumstances. That increase can sometimes be from 2 pips to 20 or more pips, depending on the pair.

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