Assalam O alaikum and hello ,
I am new to forex , learning forex for almost two years (Blowing demo accounts:p) , now i am seriously thinking of getting live in couple of weeks ,
my question is reagarding spread , Spread means alot to scalpers and daytraders as they are only holding their positions for couple of minutes or couple of hours , does it matter to swing traders too , they do hold thier positions for couple of days , does spread matters alot to them too
I am considering different brokers with different spreads , my strategy is off swing trading , Daily charts .
I will be glad if someone answer the above question
I would be more concerned about swaps, but look for true ECN spreads anyways. Even if the spreads make a difference of 1-2% in your profitability, why not take advantage of that. I strongly suggest a broker with cTrader platform. Best spreads and swaps around.
I am more interested in swap free account .
for example FXCM in non Dealing desk (NDD) offers 2.6 pips spread for Eur/USD, now they will add 1.5 markup if I chose to open swap free account at FXCM now 4.5 pips spread in swing trading ,
like you already said swaps should be in focus , but i am thinking 4.5 pips spread is or is not high for swing trading…
Hi Atiq few brokers have fixed spread you can check those brokers but they might have unnecessary fees added like commission etc.
During the trading day spread varies all the time for different reason but if you know what price you want to open a position then wait for the minimum spread and then open the position.
If you want to keep the position for 5 min and closed it then it is really important to get fixed spread. If you want to keep it for a day or longer look for the good brokers like FXCM etc who normaly keeps their spreads low most of the time.
Swaps can’t be avoided. This is usually the change in rates overnight, so no way I am afraid. Some do charge roll over charges that my broker does not have.
Spreads can be low as 1.9pips and even 1.2pips. The more in an account some brokers lower the spread. In all honesty if you are rolling over you will be collecting 90-200 pips every week so I won’t worry too much about spreads.
Heck I have been using FXCM, tradersway and alpari for a long while - not that I do not check other brokers which I kind of do, just to see what’s on offer and I can tell you that so far, you’re better off with FXCM. I have been getting spreads as low as one pip on a few majors…
But if you are still not sure, check out broker reviews, though I should point out that most of the reviews are not the real Mccoy, so use your judgement…good luck