:: Free article content
Authors: Maximum article exposure. Publishers: Reprintable article content.
Featured Articles
Recently Added Articles
Most Viewed Articles
Article Comments
Advanced Article Search
Submit Article
Check Article Status
Author TOS
RSS Article Feeds
Terms of Service

Should We Trade With Brokers With Lowest Spreads?
Home Finance Stocks, Bond & Forex
By: Asha Abir Email Article
Word Count: 965 Digg it | it | Google it | StumbleUpon it


In the forex market, spread is considered the transaction fee to traders and profit to forex brokers. Therefore, all traders love the lowest spread brokers while to some of brokers, they want to raise it as much as possible.


Today, I have shortened from the list of many brokers in forex market at the moment to top 5 who provide the least spread.
The five are:
Maybe you know some others with even lower spread. But I did not choose any of them without reasons.

1. The list is for scalpers
Only scalpers need low spread. Scalpers are trader who trade with an account for a short time and soon close it. Unlike long term investors, they do not have to pay swap but pay in spread or commission. They can only earn some pips per order and the less spread is, the more they could keep for themselves.
If you are about to invest for long time, no need to look at the list. You had better find the most reliable and the best in this list to trade with.

2. The list is non-ECNs only
In forex, there are many brokers which are divided into 3 types: Market maker, STP and ECN brokers. Among these, the final doesnít charge clients by spread. Bankís quotes to Market maker and STP brokers will be added up a bit (or Mash Up) and offered to traders. The difference of original quotes and final quotes is profited by those traders. Besides, they wonít charge you other transaction fee.
ECN would give you the original quotes which they get from the bank, therefore, their spreads are usually low, sometimes zero. However, those brokers will charge you commission for trading you made.

3. The list is for many traders on earth.
Thereís a truth that you should have known. You cannot trade well with a distanced broker. My advice for my friend or any people who just came to the game is trading with local brokers.
Forex is like business and you trade with risk of loss and liars. Local brokers are regulated and licensed by local authorities, they will protect you the best.
For example, if you are Chinese, you should trade with Exness instead of XM. Exness has website and 24/7 live support in Chinese, you have their assistance any time. Moreover, Exness uses regulations of CySEC, itís all trustworthy system and able to protect you from expected loss.

On the other hand, XM in general offer higher spreads but XM is regulated by one of the most reliable system on earth, the FCA (UK). XM targets at European people so it lays offices and a perfect payment system there. We should know that paying for regulation cost a lot and some European policy do not allow high leverage, thus, these brokers quoted higher spreads.
You can read more about XM spread review here.

Other spreads for your reference:
Broker Name EUR/USD spread Regulation
Exness 0.7 Pip (Classic account) CySEC, FCA
Hotforex 1.1 Pip (Premium account) Vincent
FBS 1.1 Pip (Standard account) Belize
XM 1.7 Pips (Zero account) FCA (UK)
FXTM 1.7 Pips (Standard account) Belize 1.8 Pips NFA (US)
FxPro 1.7 Pips FCA (UK)

In my opinion, you can sum it up as following:
Exness is the best for Asian scalpers due to its lowest spreads among the non-ECN brokers and it policy for new traders are more supportive than other brokers.
XM and FxPro are the best choice for Africa traders because of the FCA regulations. Itís also good for Europeans, so does Exness.
To US traders, I would like to recommend nothing than the, even its spreads is the highest of the list, but for US regulated brokers, itís still the least.
4. They are not only brokers with lowest spread but the best ones
For many brokers, they do not trade by an only way. In fact, a broker can charge commission or spreads or both, and for spreads, they also offer different types of spreads (such as fixed spread, variable spread,) so customers can choose the best way to do the business.
They are all the best brokers all around the world that I recommended you to trade with, instead of the other. There are more reasons to choose a broker such as: reputation, scam reports, customer services, payment systems, trading typesÖ and spread is just one of those.
For example, Exness and XM have been established for almost ten years with network all over the world. Thereís no scam reports you can find about them. So even you are long term investors or a new man just want to five forex a try, Exness or XM is still suitable. They even have a program for anyone who want to practice trading.

In summary, itís not difficult to list top lowest spread brokers. You might just need to go on their website or do some orders. However, not every of them is the best to trade with. Everything to brokers matters to your profit and rights. No matter how long you trade, a trustworthy broker should be selected.



Article Source:

This article has been viewed 277 times.

Rate Article
Rating: 0 / 5 stars - 0 vote(s).

Article Comments
There are no comments for this article.

Leave A Reply
 Your Name
 Your Email Address [will not be published]
 Your Website [optional]
 What is five + six? [tell us you're human]
Notify me of followup comments via email

Related Articles

Copyright © 2019 by All rights reserved.

Terms of Service | Privacy Policy | Contact Us | Submit Article | Editorial