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Resolved Question
Fixed and not fixed spreads question?
in baby pips they talked about finding a broker that has a spread of about 3 pips.
I assume that's the fixed spread.
When I look at bid/ask on different brokers the spread is around 20-40 pips.
Do you only pay the broker the fixed spread or what ever the difference between bid & ask is?
about 1 year ago
Best Answer - Chosen by Voters
The spread really depends on the pair you're trading. For majors, you shouldn't really have to pay more than 5 pips in the spread. For the more exotic ones, say the czk/pln, you will get spreads up to 75 pips! Always read the fine print when signing up with "fixed spread" brokers. Some of them offer these "fixed spreads" on normal market conditions only, meaning during the times when there is no news.
about 1 year ago
Answers (1)
The spread is the difference between the bid and ask price. Ideally, you should work with a broker that offers small pip spreads so that pay very little to the broker. Usually fixed spreads are larger than variable spreads because fixed spread brokers have to take varying market conditions into account. Variable spread brokers could offer very small spreads at times but you have to be careful about slippage, when the spread suddenly changes.
about 1 year ago
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