From my understandings a spread is regulated by brokers. Does it mean that the brokers can trade their own money with “0” spread?
I doubt it…
First off, the spread is not really regulated by the brokers. It may be “padded” in some cases but the broker plugs their server into their liquidity provider(bank) and they then become a client of that bank and are subject to those spreads which will vary depending on liquidity(even for a fixed spread broker).
At the very outside, you may find a broker will be able to trade on slightly better spreads…but I also am not convinced how practical it would be for them to set up a separate data feed simply so their staff or owners can trade.
Now if they are offering STP/ECN, you will probably find that the staff and owners will probably get commission free(or discounted) trading, since that is pretty easy to set up.
Unfortunately, not even the banks at the top tier get to trade with zero spread…that is just how the market works.
No, spread exists even in the interbank market. Be it often much tighter than what we retail traders get.
The spreads are what make these companys soooo rich
Then what is this all about?
Forex Brokers offering a Zero Spread Account
I looked at that list I didnt see any with a zero spread there was a couple with a 0.5 spread though, I would consider changing brokers for a spread that low but I would like to know if they are legit or not, my broker deals a 2 pip spread on EURUSD and 3 pips on the other major pairs
Thats probably a temporary gimmic to get you to join, read the fine print because if there is no spread, then for sure there will be a service fee…
There is indeed a service fee; you pay commissions. However, it seems to me like this is the best option because the commissions are paid only on winning bets.
How are commisions worked out ? If they are a percentage of the win trade it might end up being worse than paying a spread