Spread is a very considerable thing in Forex trading. Narrow trading spread is highly desired by traders because traders can’t gain much by trading from those pairs with high trading spread. But, when traders see volatility, they don’t care about high or low trading spread. Lowered spread must increase your return.
For scalpers spread is vital. Of course, spread becomes less important with the move towards higher time-frames…
Good thing to take into consideration when opening a trade especially for scalpers intraday traders
I would like to say something about spread, but not in prism of profits, but building strategies. When you are building a strategy, you should remember about spread your future account because, sometimes strategies are sensitive to different broker conditions. For example, ECN brokers has low spread and commissions, Market Makers has bigger spread without commissions. These differences could make an impact on your profits. It would be a pity if you were building a strategy for several months, and later it would turn out that you cannot trade it due to the trading conditions of the selected broker.
technical yes. Spread is your cost of trading so if you can trade at lower spread then you are gaining more on your trade. However, it depends on the type of account that include commission fee or not.
A low spread means there is a small difference between the bid and the ask price. It is preferable to trade when spreads are low, like during the major forex sessions. A low spread generally indicates that volatility is low and liquidity is high. I would say therefore variable spread is better and offer better chance, one reason I enjoy trading with Forexchief as their spread is from 0 pips and no requotes.
Umm, not necessarily, in my experience, the thing that spread affect the most is our trading strategy. Especially in a shorter time period, the size of the spread tends to widen. So whether or not it will affect your return depends on your trading strategy, the smaller the pips you are looking for, the bigger the effect of the spread.
Also keep in mind that just because a broker offers a low spread doesn’t necessarily mean they’re the best option for you. There might be drawbacks. I’ve personally had good experiences with brokers like Tickmill, PrimeCodex, IC markets, and CMC Markets.