Forex Zero Spread Broker
Zero spread widening is an important factor to consider in forex trading. When a trader is ready to enter the live Forex market for the first time or whether a professional trader needs to open another trading account, the first thing that needs to be done is to open and fund a live trading account with a reputable broker. Whilst short listing suitable brokers, a forex trader must consider whether the candidate broker widens their spreads during volatile market periods. Volatile market periods can occur due to economic news releases (foreseen or unforeseen), political developments, terrorist acts, natural disasters etc.
Many brokers widen their spreads during volatile market periods in order to minimize their risk from anticipated excessive trade flows from investors seeking to profit from the market volatility. Therefore, it is fair to say that spread widening is more beneficial to the brokers than the investors. Traders are essentially being forced to pay a larger premium than usual to the broker in order to enter a trade during volatile market periods. Forex. Binary options demo uk.
As a result the traders are increasing their capital exposure and risk and might not be able to insert themselves in a very profitable trade as the risk /reward ratio is skewed negatively against taking the trade. It is imperative therefore, that a trader researches and confirms the candidate brokers’ policy during high periods of market volatility and whether there is excessive spread widening. Traders should feel free to contact candidate brokers and question them directly with regards to this issue if it is not clearly stated on their website or other advertising literature.
You’ll find a host of in-depth data, including live price charts, breaking news, and expert insights. For insight into what’s driving FX rates, index trends and commodity pricing, click on any of the markets displayed. We update our data in real-time to show live rates on currencies, indices and commodities – and help you determine the opportune moment to enter or exit a trade. You can also view client sentiment data on live currency rates. Forex currency exchange rates.
If you want zero spread, where you enter the market direct with an open position at neither a loss or a profit, but unfortunately still pay $7 round trip, well you have to use someone like Infinity Futures. Going with a low-fee zero spread broker can be much cheaper than trading with spreads, especially if the said broker offers a regressive commission scale based on the volume. The concept of commission-based trading is closer to your mindset than that of the spread-based trading. CMC Markets placed fifth with 9,959 instruments, including 330 forex pairs (including two-way quotes, such as EUR/USD and USD/EUR), which is the most number of forex pairs of all the broker’s we’ve tested in 2018.
Forex Zero Spread Broker
Once assurances have been given by the broker that spreads do not widen excessively during high periods of market volatility, then it is up to the trader to decide whether the responses received are convincing enough to conduct business with that broker. A candidate broker that offers zero spread widening during high periods of market volatility should be placed high on the shortlist of candidate brokers that a trader might decide to open and fund a live account with. Essentially, doing business with a broker that has a zero spread widening policy puts the trader in an advantageous position and allows them to capitalise greatly during periods of high market volatility. Moreover, traders will not miss out on great trading opportunities because they are worried about negative risk/reward ratios that spread widening causes.
Forex Broker With Zero Spread
To conclude, zero spread widening is a great way of establishing a long lasting relationship between broker and trader as it instils trust and fairness. Hercules.Finance is a financial education website powered by a team of Financial Specialists and IT experts, mainly introduce solutions of Forex, CFD and Commodity Investment, and a number of Payment Services. With more than 30 partnered companies all over the world, Hercules.Finance offers trusted and timely information for Investors and Users of the services. By referring to Hercules.Finance, you can find all latest News/Information, Financial Technical/Fundamental Analysis, Main/Exclusive Bonus Promotions of partnered companies and a number of Educational Materials of Finance. For the list of all partnered companies, please visit. For more latest information of the website, please visit. DISCLAIMER Foreign Exchange and Contracts for Difference ('CFDs') are complex financial products that are traded on margin.