What spread from a broker is considered appropriate or excessive? What are some examples of brokers with low spread?
Low spread: Pepperstone RAZOR, FXPig.
Myfxbook has a list of brokers with live spreads of various instruments. Some brokers have fixed spreads, some don’t. Some advertise really tight spreads but then when news comes out, the spreads become ridiculous/scammy.
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It depends on a trading pair and market conditions. For example EURUSD average spread is 0.1-0.5 pips. But during a news release, low liquidity, roll-over times spreads can widen. I prefer to trade on accounts which apply fixed commission + floating spreads because it is cheaper. Among the low-spread brokers I know are Hotforex, Tickmill, IB.
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A lot of brokers nowadays posts itself as low spread brokers. But spread depends also on liquidity of asset, market conditions, economics news. Even If the broker provides low spread, It can widen on market opening moment.