Floating Spread or Fixed?

[John_Davy]

Most companies provide fixed spreads, others floating, there are also some companies which provide both fixed and floating depending on the account type. What do you think.

which is more beneficial. Personally I think that fixed spreads provide more transparent trading and besides with fixed ones you feel more secure, as you never think that maybe in the following moment the spread will change.


What do you think about it?

 

[UMAF]

Fixed spreads are cerainly better if you dont hold your trades for the long-run. For newbies and scalpers, it is the best choice. I also find fixed spread convenient when trading non-US paris and exotics that have high spreads (imagine what would happen to exotics and other non-popular pairs during new release)..On the other hand, I often find it difficult to locate a very reputable fixed spread broker (not that they are not there..i dont want to name them, will feel like marketing)..

 

[Emibluz]

For scalpers, fixed spread is not the best choice. Fixed spreads are for traders who wish to hold their position for days and weeks, which is very beneficial incase there is a spike in the market during the set time. However, scalpers can benefit from floating spreads because if gives them the lowest and it will remain so because they open trades and close in less than 30mins. So, if you want to scalp, use floating spreads because they are lower than fixed spread.

 

[vicknic]

I prefer floating spreads as they are very low. Fixed spreads are very high, which might not go well if I don't make enough pip. If I want to use fixed spread, I will make sure it is a long trade where I aim to grab many pips.

 

[Exness Support]

Those brokers who offer you fixed spreads do not connect you with the real market. Because in interbank market the spreads will never be fixed. Usually these kinda brokers are not trustable and charges a big spread like 3 pips for majors. For instance take etoro. I am trading with exness they are offering very low spreads like 1 pip on majors but sometimes in time of news rarely it goes upto 3 pips.

 

[chief]

float or fixed one ?
perhaps you should add, how much is it ..
a float spread at average 5 pips, no one would ever trade with them.
a fixed spread at 0.1 pips, this broker are insanely generous one, unless there's a commision charged.
let have EURUSD as comparison, i've been trade with this pair at many different brokers for years.
fixed spread usually offered by MM brokers type, mostly 2-3 pips spread charged, some charged a commision instead.
float spread are offered by MM brokers and ECN also. but there's quite different on spread charged, at MM brokers 2-3 pips, as ECN an average below 1 pips.
here's a simple comparison

my current brokers Armada Market spread average 0.2 pips on EURUSD. while the other one charge 2 pips on EURUSD fixed!
there's a huge different on stop level, while MM broker set at 50 pips minimum, while Armada 0 pips. which means I can move my take profit level as near as possible to the current market price.

 

[Robert.FXBJ]

A fixed spread is good for those who just trade around news release time! but for scalpers and even long term trades a floating spread usually is better because in average it is lower!

 

[chief]

A fixed spread is good for those who just trade around news release time! but for scalpers and even long term trades a floating spread usually is better because in average it is lower!

there's no guaranteed a fixed spread account, wouldn't widen upon news event.
perhaps the spread are fixed, how you anticipate the market gap upon news release then, it even worse than a widen spread.
for scalping I prefer use ECN account service, been doing this over years with my armada markets.
other thing to consider is a slippage, as we all know fixed spread price never give best price executed, they will shown delay during a volatile price especially during news release.

 

[alexflemj]

I agree, choose fixed over variable spread especially if you trade around news times or hold your positions long term.

 

[tomas.v]

If you are a newbie trader then I recommend fixed spreads. If you are more experienced it is better to switch to some ECN accounts.

 

[InstantKarma]

I agree that fixed spread is better for inexperienced traders, it provides the comfort of a stable trading conditions.

 

[jezzykid]

I prefer brokers that offer floating or variable spreads; which most times is an indication that the broker is an ECN broker. Also you get very tight pips when the spreads are floating spreads; like he 0.1 pips I get on the EUR/USD currency on Profiforex.