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#1
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The spread is the amount of pips between the bidding price and the asking price is called the spread. The spread is what forex brokers use to make money on every forex trade placed through their network. For example, the forex broker may be paying a price of 1.3600 for buying or selling. The broker will then allow you to buy the currency for 1.3601 or sell it for 1.3599.
The truth is fixed spreads do not offer any significant advantage and are subject to forex broker tactics such as widening - a tactic whereby forex brokers with dealing desks manipulate the spreads on offer to their clients when client trades move against the broker. 5Stars forex's ECN/STP trading model does not have a fixed spread. This means the spread on offer will accurately reflect the true buying and selling rates for a particular currency pair and ensures investors are trading forex under real forex market conditions of supply and demand. A fixed spread may seem like a good thing when market conditions are optimal and there is heavy supply and demand. The fact is, a fixed spread remains in place even when market conditions are not the best and regardless of what the true buying and selling rates for any given currency pair are. Our ECN/STP model provides our clients with direct access to the other Forex market participants (retail and institutional). We do not compete with our clients or even trade against them. This grants our clients more advantages over dealing desk market makers: • Very tight spreads • Better forex rates • No conflict of interest between 5Stars forex and its clients • No limits on Scalping • No “stop-loss hunting” 5Stars forex strives to offer its clients the most competitive rates and spreads in the market. This is the reason we have invested heavily in establishing strong relationships with the most reputable and reliable liquidity providers. The advantage our clients have is that they enter the forex arena on the same terms as majors. Prices are streamed from various liquidity providers to 5Stars forex’s Aggregation Engine which then selects the best BID and ASK prices from the streamed prices and posts the selected best BID/ASK prices to our clients, as illustrated in the flow diagram below. |
#2
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Having a quality broker is so vital for one to get the results in our favour, so just having low spreads is not enough for it. I get it all with FreshForex broker, where they have superb setup including lowest possible spreads, smooth trading platform and my favourite 101% Tradable Deposit Bonus, so all this makes me love working with them.
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#3
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I would like to recommend LMFX broker, each LMFX trading account offers a different approach in terms of spreads of the individual products. In order to make this clear and transparent we have lined them up side by side so that at a glance you can compare the structure of each; The LMFX Premium Account offers you the traditional variable spread; The Fixed Spreads account predefines the spread with no commission; The Zero Account offers the tightest spreads possible with fixed commissions on the Majors and Minors.
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#4
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Whatever the spread, if the regulation is not good it's advisable to find another broker. It's too risky for a trader to work with unregulated companies.
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