What is Fixed Spread Forex Brokers and Types of Spread
Fixed Spread Forex Brokers
What is the Spread in Forex?
Fixed Spread Forex Brokers offer their clients a predetermined spread for each currency pair, regardless of market conditions. The difference between two prices buy and sell is known as the Spread. Spread is the difference between the bid and ask price of a currency pair. The bid price is the price at which a trader can sell the base currency and the ask price is the price at which a trader can buy the base currency. Spread is typically expressed in pips. A pip is the smallest unit of price movement in a currency pair. Spreads are variable and should be considered when trading forex pairs.
Types of Spread in Forex
1: FIXED SPREAD
Fixed spreads are a type of spread offered by some forex brokers. With a fixed spread, the broker promises to offer the same spread at all times. This broker risk is very low. This can be an attractive option for traders who want to avoid the volatility of variable spreads. However, it’s important to remember that not all brokers offer fixed spreads.
Fixed Spread forex brokers offer their clients a fixed spread on currency pairs, regardless of the market conditions. This type of broker is often used by beginner traders, as it offers a more predictable cost of trading. However, FS forex brokers may also charge commission on each trade.
2: VARIABLE SPREAD
VARIABLE Spread is a type of spread that allows the trader to have more control over their position. VARIABLE Spread is often used by those who want to trade with a smaller amount of risk. VARIABLE Spread can be as low as 0.2 pips on some major currency pairs like EUR/USD. VARIABLE Spread is also available on other currency pairs and some commodities.
Best Fixed Spread Forex Brokers
FS Forex Brokers are a type of broker that offers their clients a set, or fixed, spread on currency pairs. This means that when you trade with a FS Forex Broker, you will always know what the spread is, and it will never widen beyond that amount. FS Forex Brokers are popular with traders who want to limit their risk. Many Forex Brokers. If you’re looking for a reliable FS Forex Broker, be sure to compare different brokers to find the best one for you.
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