FIXED SPREAD FOREX BROKERS

The trading cost always is the key feature to any trader or investor, as by the end of the day a significant amount can be paid just for the difference between the sell and buy price. It is a fact that typically the trading costs charged by the Broker are built into a difference between the price for a particular instrument or more known as a spread. Read about Spreads on Wikipedia.

• Initially, there are known two types of spread offering, which is either the fixed spread or the variable or floating spread.

The Fixed Spread, as its obvious from the name, is fixed to the particular charge, which remains the same under any market conditions, throughout liquidity or volatility. This model brings a stable trading environment and makes it a way easier to predict or calculate the total trading cost.

• Fixed Spreads usually offer a wider cost, as the Broker should include into the proposal all risks, rather than the floating spread that changes according to the market conditions.
• Nevertheless, there are many strategies which demanding, in particular, the Fixed spread due to its nature and is a necessary demand within the long-term traders or the beginning ones (Check out Forex Brokers for Beginners).

Important to note that it is common the Fixed Spread Forex Brokers are operating as OTC Brokers or Market Maker Brokers in order to provide the liquidity. Most often reputable and well-regulated companies offering Fixed Spread to the potential benefit of their traders. Yet, always consider only sharply authorized brokers as the risk to fall under the fraud through a non-regulated brokerage offering Fixed Spread opportunity is extremely high due to its loose of obligations towards any laws.