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Broker Spreads on FX

Discussion in 'Forex and Cryptocurrencies' started by TheBigKangaroo, Nov 21, 2018.

  1. TheBigKangaroo

    TheBigKangaroo

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    Hi fellow eternally disappointed...
    I was wondering if anyone has an opinion of the best spreads of brokers for FX. I have been doing some analysis of them and it is bloody hard to reach a useful conclusion. Why cant they just stick to the same bloody spread and make it easy for us!!!
    From the few I have looked at. Admiral seem the winner over all but City Index are maybe better for AUD pairs. Please NO ONE rely on this because as said, it is very hard to do a compare. Does anyone have an opinion on this topic.

    thanks in advance
    Big Roo
     
  2. T0BY

    T0BY counterparty

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    Hello, you can compare some brokers spreads (you can choose to include commissions or not) at myfxbook. There are a few brokers missing unfortunately, but it gives you an idea of what is typical. You can pick what pairs you want to compare also - if you're looking at trading something specific.
     
  3. TheBigKangaroo

    TheBigKangaroo

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    Great thanks Toby. Isnt the spread the commission or have I got it wrong. Isnt the spread all that the broker gets! thanks again

    Roo
     
  4. greggles

    greggles I'll be back!

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    Roo, the spread is the difference between the bid price and the offer price.

    https://en.wikipedia.org/wiki/Bid–ask_spread
     
  5. TheBigKangaroo

    TheBigKangaroo

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    ok. I have not seen a "commission". Well I dont think so anyway. Am I missing something. cheers
     
  6. T0BY

    T0BY counterparty

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    yeah, some brokers are no commission and just the spread. Other brokers have tighter spreads but also charge a commission.
     
  7. TheBigKangaroo

    TheBigKangaroo

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    ok.. thanks for your responses. Who do you use if I may ask. I am quite new and any "heads up" would be appreciated.
     
  8. T0BY

    T0BY counterparty

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    I'm not affiliated with any broker, I have traded with IC markets and think they are alright in general.
     
  9. willoneau

    willoneau

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    The spreads will widen as volatility increases but choosing a broker that only charges the spread is better in my opinion if trading alot.
    I use Pepperstone and they seem ok, which ever you choose start with small account and try paper trading with the platform see if you like it.
     
  10. TheBigKangaroo

    TheBigKangaroo

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    Thanks again Toby and to you Willoneau. Yes well I got into trading through FOREX CT and after losing $8,000, I finally worked out that what they were teaching me was not how it was meant to be. Their business model is appalling quite frankly. Yes IC look ok and I will have a look at Pepperstone as they get good reviews. For me, a lot on in private life but will "start again" and go through the learning process as everyone should. I am quite new at trading but I have learned a hell of a lot so far. My bug bear at the moment is trying to understand how the market makers (MM) function. Lets face it, unless you are an institutional trader, we need to deal with MM (I think). cheers
     
  11. aus_trader

    aus_trader

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    Roo I wish you had stubbled upon my warnings about my experience with Forex CT in various Fx threads at ASF. I feel for you mate, as I've been stung myself. As for other members who haven't been ripped off by them, below is the warning I wrote in Peter2's Fx thread:
    ""
    G'day all ASF members,

    I don't have a forex thread and I know a lot of members watch Peter2's threads. So I thought to post a warning message about a Forex broker to stay well clear of. I don't normally like to make any noise if the company is reasonable in their conduct but this one is not and when I received the below email that just pushed me over the edge to warn people:
    [​IMG]
    Also I was constantly called up to place trades even when I didn't want to so they could earn their commissions. So do your research and find a good broker and stay as far away as you can from ForexCT.

    ""
     
  12. willoneau

    willoneau

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    Hi roo if you have a lot going on then i suggest leaving FX alone until you can devote some serious study time to it.
     
    cynic likes this.
  13. Triple B

    Triple B

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    With my broker there is a choice between fixed spread and tighter spread + commissions.
    FP Markets .
    Here are their spreads. I have found during high liquidity times their ecn raw spreads are usually tighter than their stated averages!
    https://www.fpmarkets.com/products/forex-trading/forex-spreads/
    On EUR /USD
    Standard account avg 1.45 pips no commission.
    ECN raw 0.45pips ( I usually see 0.2-.03 during london open)
    ECN raw also has commission of $3.50 per standard lot of 100,000 units of currency to get in and $3.50 to get out so a round trip of $7.00 per full lot.
    You can then calculate which would be cheaper to use depending on what you want to do , ie swing trade , scalping etc
     
    aus_trader likes this.
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