Fixed spread broker

Hi Guys,

I have been live trading, scalping the London opening for the last couple of months. The broker I have been using is Pepperstone. I have an issue with slippage with them which always seems to be in their favour.
My question is if I was to change brokers to one that offers fixed spread would this solve my problem. i.e can you have slippage on a fixed spread account ?


When brokers work with a true fixed spread they are exposed to market risk or there is something fishy. The spread is marked up by brokers to earn their commission (nothing wrong about that) but is variable due to market conditions (if not something fishy).

When you are looking for smaller spreads you should consider a commission account. Commission is chaged sperately so the spread are smaller (up to 0.2 pip in normal market conditions) but still flexible.

These accounts normally require a higher deposit and perhaps higher min.

I am afraid that you have to deal with it in your scalping strategy or go for a premium (ECN or ECN-style account).

Thank you Toekan for your reply.

I should have mentioned that it is the Pepperstone Razor account that I have and that is a commission account.

Would a fixed spread account avoid slippage ?


Ahh, you already took that step. Still, good advice… :wink:

No, it doesn’t prevent slippage. Especially when busy (400 trades a second) there is the change that your spot is already taken by someone else and the price moved. Especially when your ping is high. It is not a coincidence that stock trading companies pay millions for data centers within a 30 miles range from the NYSE data center. Each 30 miles is one extra milliseconde delay.

True scalping is not easy. Maybe you have more succes having a fresh look at your strategy. send me an private message if you like to do that. Maybe automation is something for you. (No, I am not ofter your strategy as scalping is not my style. Just want to help out.) :slight_smile:

Hi Toekan,

Thank you once again.



Brokers offering fixed spread accounts are DD brokers. Therefore, there shouldn’t be any slippage, but hey, they are MM. You can’t avoid slippage when trading on ECN/STP accounts.

Hi FredForex16,

Thank you for you response.


I’ve been testing different trading accounts of Hotforex and I find their fixed spread account excellent for trading on news releases. How big was your spread with PP? Lot size?
On Hotforex its only 1.8 pip fixed spread on EUR/USD and most other majors. Some other brokers put these numbers in their FLOATING spread (like Ctrader), what a ripoff…

Hi profitbaby,

On 22/01/16 at 08.00.00 EA had a pending sell order at 1.08300 and a SL of 1.08330 order opened at 1.08283 (17 pips slip) and closed at 1.08306 (6 pip slip)


Agree. Both floating and fixed spreads have disadvantages. I like scalping on EURUSD with floating spread from 0 pips on ECN from FreshForex. Much better than fixed spreads in my experience.

Hi Termen Wox,

Thanks for the input.


Slippage occurrence is very rare with the platform I use. I mean the profiforex platform. And there is fixed low spreads for currency pairs.

Fixed spread broker with google doesn’t work? I thought you must get dozen of results.

Hi, if a Broker offers fixed Spreads usually means that the Broker filters prices. Is this, what you would like to experience? a Broker who filters prices? If you are not happy with your Broker you should start searching for a new Broker and in my opinion a Broker who offers direct market access.

Can you explain why fixed spread means broker manipulates prices?

Well they have terrible platform then. Have you inquired their support about this issue? Ask for account audit if there was off market quotes they should reimburse you. Otherwise leave complaints and switch to other brokers with fixed spreads (though it doesn’t guarantee you won’t get slippage)
If you want slippage-free platform then look for instant execution broker (market makers). But they have their own drawbacks

Manipulates was maybe a wrong word to what I was trying to say. The appropriate would be filter prices.

I think there is just average range floating spread may change and some rare case when they exceed it. So making spread fixed brokers just get upper bound of that floating range and offer it to a client. I use fixed spread account time to time with Hotforex but prefer to stay on their Zero spread account for scalping.

I cant say its spread manipulation, but its more like having a fund for a certain fluctuation price, like for example Singapore (if my memory serves me right) has very low fuel price fluctuation due to having a certain fund that cover certain or sudden movements in crude market, meaning even if there is a sudden hike in the world market, it wont change (sudden change) the price in the local market coz there is a fund to make up for the price hike and so on and so forth, if there is a sudden decline in prices this fund gains, while prices remain the same, im not sure how it works, but in my opion, fixed spreads might have the same concept, never the less its a give and take situation between broker and trader where broker gains as well (in the long run) while trader avoid certain spread widening…

im just speaking my mind here, dont quote me on this LOL. but thats how i see it anyway.

Hello guys,
Has anyone experience with dealing desk brokers?