Trading, and a spread is how a broker makes money out of trades. Despite it looking low, this number can easily compound especially when trading in high volume, and this is the reason why Forex traders are always on the lookout for brokers offering zero spreads or at least tight spreads. Does a real zero spread Forex broker really exist? A zero spread Forex broker offers trading accounts that have no difference between the bid and ask price.
As mentioned, spreads are at which a broker makes russian phone number money out of traders, so why would it give a zero-spread offer? For obvious reasons, traders see spreads as a major disadvantage to their trading activities as buying a currency at a higher price than they could sell it directly means a loss. Many brokers zero spread offers as a marketing strategy. But in reality, there is no ‘real’ zero spread in practice. Platforms will always find ways to make a profit out of trading activities, and this kind of offer often means hidden charges and high commission rates.
On the other hand, zero spread Forex brokers can be beneficial for beginner traders who have zero idea how pips work. In this case, charges from commissions are more straightforward than the complexity of varying spreads. But those who are already proficient in the nooks of the Forex market are often looking for low spread offers as they consider them as more transparent in general. Platforms offering 1 pip spread are considered low spread brokers, and some of the mainstream service providers such as RoboForex, IC Markets, Exness, and FP Markets currently observe such structures.
Such a threshold is within the normal range of Forex
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