Hello, please, Which broker has the best spread in dow jones and oil?
my broker use 2 pip for us30. 2 pip is too big. for oil 3+ :31:
any idea?
thank you:)
Sounds like your broker is better than mine (!)
I’m with AxiTrader and DJ30 is 4pips spread, while WTI is 5pips
Cheers
I’m not sure what the pip value is of your broker (they can very a bit given the CFD terms are not standard between all brokers,) but the general rule of thumb is: CFD spreads are going to be wider than the underlying markets they tract.
WTI / USOil, generally is based on the CL futures contract on the CME, where the spreads are usually a tick. . . the CFD equivalent spreads can be 2-5 ticks in value depending on the broker. Of course, there’s a commission fee with futures you gotta keep mind of, but generally speaking the total cost of trading on an equal exposure basis is lower on futures.
People tend to still go CFDs since they (sometimes) require less margin to hold swing positions (carry over rollover,) or because they do not want the full exposure of a standard futures contract (~$10 per tick/pip in CL’s case) and the ‘mini’ and ‘micro’ versions of the contract are not liquid enough (common problem for futures.) But frankly I find this just leads to inappropriate use of leverage more so than better managed risk on a trade.
Just saying.
i am interested scalping this instrument. big spread is problem for my.
2 pip. where?:31:
bump… anyone know of 2 pip or less US30 spreads on the MT4 platform? I want to use MT4 for testing so that I can run analysis on the trade results of my demo trading