Benefits of fixed or variable spread?

[TanFX]

Dear traders.

I am experience scalper using variable spread on STP or ECN brokers - no DD beacuse of my agressive strategy but, I don't understand why people find fix spread attractive. what's the thing here?

Am I missing something, other than spreads stay fixed during news... is there anything else I am too stupid to miss?

I need your opinion. please help me to understand. Thanks.

 

[nsmcc07]

thank you very much great explanations and usefull knowladge thanks a lot

 

[Markllee30]

I think it depend on your trading style and strategy in forex. i believe that variable spread.

 

[naninov]

Dear traders.

I am experience scalper using variable spread on STP or ECN brokers - no DD beacuse of my agressive strategy but, I don't understand why people find fix spread attractive. what's the thing here?

Am I missing something, other than spreads stay fixed during news... is there anything else I am too stupid to miss?

I need your opinion. please help me to understand. Thanks.

i do scalping technical too.. but i have a bad experience lost of my money trading using variable spreads because of spread widen during news section while i have some hedging position to reduce risk, i will not lost my trade if i used fixed spread that day and in fact i should be make good profit from my trades that day

 

[nhasan]

Forex is a place where broker makes profit for all the time - both for variable or fixed spread. Your strategy must be more profitable than broker's profit/commission to sustain in Forex.

 

[gkintl]

It all depends on the trading style. Most traders begin to make a bounty using news and wide spreads will hamper their idea. So, a fixed spread is preferred. On the other hand, a trader who does balanced number of trades during calm period and also during news time will find very little advantage. This is because fixed spread brokers have higher spread relative to variable spread brokers during calm periods. All in all, it is one and the same for a trader who only looks for trading opportunities and are not specific about news or otherwise

 

[petertrading]

In the Forex market, there ar 2 kinds of spreads that you simply can have to be compelled to become acquainted with. a hard and fast unfold goes to be identical for a currency try no matter what's occurring within the market. as an example, a broker may tell you that they perpetually have a coffee, fastened unfold on the EUR/USD market of one pip. this suggests that though there's not plenty of mercantilism occurring within the market, you'll be able to still place a trade and solely pay them one pip on it try. several brokers that have fastened unfolds can have a distinct spread for every currency try.

Variable spreads can fluctuate with market conditions. With this sort of unfold, it'll be low typically and high at different times. Typically, throughout the busiest periods of the market, the unfold goes to be a lot of under throughout the slow times. Therefore, with variable spreads, you must try and trade throughout the London and the big apple sessions if you would like low spreads.

 

[kasual]

ECN account offering small profit and even below 1 pips. However, it could increase very high during high impact news. Such account suit to scalper who catch quick profit from market. But not during high impact news. While in standard and mini account, spread fix both during quite period or high impact news releases.

 

[budado]

In my

ECN account offering small profit and even below 1 pips. However, it could increase very high during high impact news. Such account suit to scalper who catch quick profit from market. But not during high impact news. While in standard and mini account, spread fix both during quite period or high impact news releases.

I never experience that you can earn profit below 1 pip. Unless you have five decimals account. But the big question is this. Is it a fix spread or not? Because if it is then its will never be below 1 pip. Now is it floating? Then you need to put into consideration the commission charge per lot size in your computation.

 

[Decub]

Perhaps he is talking about the pipette. There is no way one would make a profit lower than a pip as it is the smallest know value of either profit or loss. Well, I think everyone wants to trade with a broker offering a very low spread and that is the most important thing.

 

[kasual]

Well, fix spread offered on micro or standard account. While we will found that spread fluctuated on ECN account. Small indeed spread offered on ECN account, but it increase high during high news impact releases. ECN account fit to trade scalping, but during news, spread raise high which make many traders to avoid trading at that period.

 

[Tom Latham]

Dear traders.

I am experience scalper using variable spread on STP or ECN brokers - no DD beacuse of my agressive strategy but, I don't understand why people find fix spread attractive. what's the thing here?

Am I missing something, other than spreads stay fixed during news... is there anything else I am too stupid to miss?

I need your opinion. please help me to understand. Thanks.

Maybe, fixed trading spread provides fixed number! Yes, I am also trading with the fixed trading spared! Because, I need to execute my trading plan in the live market so keenly!