Should We Trade With Brokers With Lowest Spreads?
- Author Asha Abir
- Published September 29, 2018
- Word count 883
In the forex market, spread is considered the transaction fee to traders and profit to forex brokers. Therefore, all traders love the lowest spread brokers while to some of brokers, they want to raise it as much as possible.
CLICK HERE FOR THE BEST ACCOUNT FOR BEGINNERS
Today, I have shortened from the list of many brokers in forex market at the moment to top 5 who provide the least spread.
The five are:
Maybe you know some others with even lower spread. But I did not choose any of them without reasons.
- The list is for scalpers
Only scalpers need low spread. Scalpers are trader who trade with an account for a short time and soon close it. Unlike long term investors, they do not have to pay swap but pay in spread or commission. They can only earn some pips per order and the less spread is, the more they could keep for themselves.
If you are about to invest for long time, no need to look at the list. You had better find the most reliable and the best in this list to trade with.
- The list is non-ECNs only
In forex, there are many brokers which are divided into 3 types: Market maker, STP and ECN brokers. Among these, the final doesn’t charge clients by spread. Bank’s quotes to Market maker and STP brokers will be added up a bit (or Mash Up) and offered to traders. The difference of original quotes and final quotes is profited by those traders. Besides, they won’t charge you other transaction fee.
ECN would give you the original quotes which they get from the bank, therefore, their spreads are usually low, sometimes zero. However, those brokers will charge you commission for trading you made.
CLICK HERE FOR THE 5 BEST ECN BROKERS
- The list is for many traders on earth.
There’s a truth that you should have known. You cannot trade well with a distanced broker. My advice for my friend or any people who just came to the game is trading with local brokers.
Forex is like business and you trade with risk of loss and liars. Local brokers are regulated and licensed by local authorities, they will protect you the best.
For example, if you are Chinese, you should trade with Exness instead of XM. Exness has website and 24/7 live support in Chinese, you have their assistance any time. Moreover, Exness uses regulations of CySEC, it’s all trustworthy system and able to protect you from expected loss.
On the other hand, XM in general offer higher spreads but XM is regulated by one of the most reliable system on earth, the FCA (UK). XM targets at European people so it lays offices and a perfect payment system there. We should know that paying for regulation cost a lot and some European policy do not allow high leverage, thus, these brokers quoted higher spreads.
You can read more about XM spread review here.
Other spreads for your reference:
Broker Name EUR/USD spread Regulation
Exness 0.7 Pip (Classic account) CySEC, FCA
Hotforex 1.1 Pip (Premium account) Vincent
FBS 1.1 Pip (Standard account) Belize
XM 1.7 Pips (Zero account) FCA (UK)
FXTM 1.7 Pips (Standard account) Belize
Forex.com 1.8 Pips NFA (US)
FxPro 1.7 Pips FCA (UK)
In my opinion, you can sum it up as following:
Exness is the best for Asian scalpers due to its lowest spreads among the non-ECN brokers and it policy for new traders are more supportive than other brokers.
XM and FxPro are the best choice for Africa traders because of the FCA regulations. It’s also good for Europeans, so does Exness.
To US traders, I would like to recommend nothing than the Forex.com, even its spreads is the highest of the list, but for US regulated brokers, it’s still the least.
- They are not only brokers with lowest spread but the best ones
For many brokers, they do not trade by an only way. In fact, a broker can charge commission or spreads or both, and for spreads, they also offer different types of spreads (such as fixed spread, variable spread,) so customers can choose the best way to do the business.
They are all the best brokers all around the world that I recommended you to trade with, instead of the other. There are more reasons to choose a broker such as: reputation, scam reports, customer services, payment systems, trading types… and spread is just one of those.
For example, Exness and XM have been established for almost ten years with network all over the world. There’s no scam reports you can find about them. So even you are long term investors or a new man just want to five forex a try, Exness or XM is still suitable. They even have a program for anyone who want to practice trading.
In summary, it’s not difficult to list top lowest spread brokers. You might just need to go on their website or do some orders. However, not every of them is the best to trade with. Everything to brokers matters to your profit and rights. No matter how long you trade, a trustworthy broker should be selected.
CLICK HERE FOR THE 5 BEST FOREX BROKERS
There are no posted comments.
- Weimar America?
- Stock Loans: A great, safe alternative for listed companies and stockholders alike.
- IPCAPITAL:IPCapital's AIA BOT System is Transforming Forex Algorithmic Trading
- Insights on Where to Buy and Sell Bitcoin Instantly
- What Are Forex Signals?
- Investing In Stocks
- Blockchain strategies and approaches
- Why is it worth having your savings in a different currency?
- Getting To Know How Forex Trading Can Change Your Life
- The Importance Of Opening A Forex Trading Demo Account
- Interest in cash is falling - what's the next banknote?
- Should You Prefer Trading Commodities Using Futures Contracts Or Options?
- Why USD is a Safe Haven During the Crisis
- What you should Know about Ubanker Nigeria
- What I Discovered About Forex Trading
- The One Skill Every Forex Trader Should Master To Succeed And How To Master It.
- Factors that inhibit the popularity of Forex in numerous countries
- USEFUL TIPS: HOW TO CHOOSE A FOREX BROKER
- How to find the best Forex signals?
- What type of regulation to expect in finance in 2020
- Top forex trading tips
- Third world countries where trading is most popular
- Forex Reviews 2020 by Top Forex Brokers Reviews
- 4 things to look for before investing in a stock
- What Forex Brokerages Should Look For in a Forex Trading Platform
- Does the license of a brokerage determine how worthwhile it is for traders?
- How to review a Forex Broker
- How to Use Oil Prices As A Signal in Currency Exchange
- How An Investor Can Use A Financial App To Select The Best Stocks?