I’m new to Forex ie. just read a bit about it. I’m thinking that I’m probably best suited to longer term trading and I believe that fixed spreads are the best option for this type of trading. Can anybody recommend a broker that offers fixed spreads. I would also prefer a broker without a time limit on their demo account.
I went to How to Choose The Best Forex Broker where it lists FXCM as a fixed spread broker but when I spoke to someone there he said that they only offered variable spreads so that’s left me rather puzzled.
The information my colleagues provided you is correct. FXCM offers you variable spreads, because our prices depend on what’s available in the market at any given time. On our No Dealing Desk (NDD) forex execution, we offset each of your orders one-for-one with the best available prices from competing liquidity providers. That means we don’t profit from your losses or lose from your profits.
The only way a broker could offer you a fixed spread is if their dealing desk sets its own prices independent of what’s available in the market. That means they could be taking the market risk on the other side of your trades, and potentially profit from your losses or lose from your profits. This presents a conflict of interest that could have an impact on the execution of your stops, limts and entry orders.
FXCM’s NDD model offers the following advantages:
[ul]
[li]Low spreads from liquidity providers
[/li][li]Anonymous order execution (price providers cannot see your stops, limits, or entry orders)
[/li][li]No re-quotes; no dealer intervention
[/li][li]No restrictions on the strategy you use (scalp, trade the news, use any EA)
[/li][li]Potential price improvements on all order types
[/li][/ul]
Thanks for your reply. I’m still left wondering why FXCM was listed as a fixed spread broker on Best Forex Broker 2019 - Trusted Broker Reviews but I appreciate that FXCM isn’t responsible for the content on other websites.
