Which Spreads ?

Jun 07, 2018 at 10:28
2,156 Angesehen
34 Replies
Mitglied seit Aug 11, 2017   886 Posts
Jun 07, 2018 at 10:28
I much prefer fixed spreads rather than floating spreads because sometimes floating soread can widen regarding fast movement that is not good for hedging trading, sometimes spreads could reach 30 to 40 pips, that’s why I always like to depend on fixed spreads.
Mitglied seit Apr 06, 2018   254 Posts
Jun 10, 2018 at 05:58
Mohammadi posted:
I much prefer fixed spreads rather than floating spreads because sometimes floating soread can widen regarding fast movement that is not good for hedging trading, sometimes spreads could reach 30 to 40 pips, that’s why I always like to depend on fixed spreads.
Fixed spread broker provides fixed spread only 95% of the time. When there is high impact news release spread widen. So there is no 100% fixed spread account.
The market will trade through it’s path of least resistance .
Mitglied seit May 15, 2018   12 Posts
Jun 10, 2018 at 06:43
I find that most of the brokers that offer fixed spreads are just bucket shop brokers that give huge slippage or don't pay up when you win
Mitglied seit Aug 11, 2017   886 Posts
Jun 18, 2018 at 10:36
The trading spreads is a big deal when choosing a reliable broker , we can choose the broker which for all time make sure best trading environment by providing lowest trading spreads which is very supportive to make profit with certainly by using any kinds of trading strategies in particularly the scalping that brings profit in a short time. That’s why when choosing a broker we have to looking for better trading spreads.
Mitglied seit Feb 12, 2016   427 Posts
Jun 20, 2018 at 08:41
I am not an experienced trader, however I prefer to trade with a DMA broker that provides interbank spreads. Thus the spread cannot be fixed... but always floating as it depends on the market conditions. LongVision is right there is no 100 % fixed spread and it is not normal to be like this ...
Accept the loss as experience
Mitglied seit Feb 12, 2016   522 Posts
Jun 25, 2018 at 14:39
I am also fan of DMA/STP interbank core spreads providing brokers. I understand that the spreads can not be 100% fixed, so it is better to be floating but interbank core :)
Mitglied seit Jul 05, 2018   11 Posts
Jul 06, 2018 at 06:38
Yeah, why would a broker every give you good spreads it would mean that they lose money on average
Mitglied seit Aug 11, 2017   886 Posts
Jul 06, 2018 at 10:28
I favor fixed spreads because I don’t know any advantage of floating spreads. Well I think floating spreads may cause trader to make bad entry, especially buy entry.
Mitglied seit Feb 12, 2016   522 Posts
Jul 09, 2018 at 14:49
Mohammadi posted:
I favor fixed spreads because I don’t know any advantage of floating spreads. Well I think floating spreads may cause trader to make bad entry, especially buy entry.
I think, a broker which provides fixed spreads is 100% Market maker with dealing desk. I do not trust such brokers, because they wins from traders losses :)
Mitglied seit Mar 21, 2018   13 Posts
Jul 15, 2018 at 06:07
Market makers are just like bookies. They will take you money all day long
Mitglied seit Feb 12, 2016   522 Posts
Jul 24, 2018 at 12:17
Yeah, but it is not easy to find them. There is not a broker that will tell you 'I am a market maker' :) But there are some signs to find which brokers are market makers and which- not. One of the most important things is the 'Execution model'. Before starting using any broker, every trader should know what is the execution model of the preferred broker. For example, if the execution model is 'NDD DMA/STP' this means, that the broker don't have Dealing Desk and provides Direct Market Access / Straight Trough Process, therefore such brokers aren't market makers.
Mitglied seit Jul 27, 2018   10 Posts
Jul 29, 2018 at 05:42
A good rule of thumb is..

Fixed spreads = Market maker
variable spreads + commission = proper broker
Mitglied seit Jul 18, 2018   10 Posts
Jul 31, 2018 at 14:11
What do you mean by proper broke? Do you mean regulated?
Mitglied seit Feb 12, 2016   522 Posts
Jul 31, 2018 at 14:50
TeddyBrendon posted:
A good rule of thumb is..

Fixed spreads = Market maker
variable spreads + commission = proper broker

Well said and true :) Floating spread + separately charged commission is great sign for the broker, that he doesn't win from the traders loses, just from commissions.
Mitglied seit Aug 14, 2018   6 Posts
Aug 19, 2018 at 07:36
TeddyBrendon posted:
A good rule of thumb is..

Fixed spreads = Market maker
variable spreads + commission = proper broker
then what would you like to say about those brokers who offer both fixed as well as variable spreads.
Mitglied seit Aug 03, 2018   10 Posts
Aug 19, 2018 at 14:00
Many brokers offer fixed and variable. But if you go with fixed the broker bets against you but if you go variable then it should be ECN which means you are in the market (and is better IMHO)
Mitglied seit Apr 07, 2015   55 Posts
Aug 21, 2018 at 06:45
Like the others before me said -
Fixed spreads is a sign that that broker is a Market Maker.
Variable spreads = ECN or DMA/STP broker

I'd add just another note - most brokers offer Marked-up spreads (the commission is included in the spread) which makes the spread even bigger.
You should look for brokers that provide Core Spreads (= Market spread) and they will charge commission separately. Which is good because you can clearly see how much is the commission you pay for each trade.

You can read more about those here - https://www.jfdbrokers.com/en/core-vs-marked-up-spreads

Mitglied seit Aug 27, 2018   9 Posts
Sep 02, 2018 at 06:44
I know that separate spreads are better but I still prefer it when all the fees are in the spread. It is so much easier to calculate how much the trade costs me
Mitglied seit May 15, 2018   2 Posts
Sep 02, 2018 at 14:55
A good rule of thumb is Fixed spreads = Market maker and variable spreads + commission = proper broker
Mitglied seit Feb 12, 2016   522 Posts
Sep 04, 2018 at 08:03
CarlosMZ posted:
Like the others before me said -
Fixed spreads is a sign that that broker is a Market Maker.
Variable spreads = ECN or DMA/STP broker

I'd add just another note - most brokers offer Marked-up spreads (the commission is included in the spread) which makes the spread even bigger.
You should look for brokers that provide Core Spreads (= Market spread) and they will charge commission separately. Which is good because you can clearly see how much is the commission you pay for each trade.

You can read more about those here - https://www.jfdbrokers.com/en/core-vs-marked-up-spreads


Thank you for the link bro :) Very useful and well explained. Regards.
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