I am doing research for my EA and I am looking for brokers with EUR/USD spreads less than 0.3 on average, I don’t mind ECN commission at $10 or less.
I found and have been monitoring Yadix spread on their ECN account, starts from 0 pips and average is 0.2 pips. I checked some other brokers (GDMFX, Open,Alpari) who have 0.5, 0.6, 0.7 or more raw spreads.
So far Yadix spreads are the lowest I found, any other brokers offering average spread of 0.2 -0.3 pips on EUR/USD?
Check IC Markets bro. Wont get a better soread anywhere. $7 IN/OUT commision but there are ways to reduce this (rebates).
Tickmill have low spreads too and are pretty good. I think they are UK regulated now as well
Not sure they offer raw spreads but commission is 4$ per lot, way lower than most brokers offer.
whats the spread, do you know?
I questions how broker offers $3 and $4 round turn? from what I understand, they have liquidity and bridge costs to be a decent STP, so doesn’t make sense to me that they can offer so low commissions and a spread that isn’t marked up…
Hello Mr. nutmeg
Compared among many other ecn brokers, finpro can also be considered for providing low spreads on EUR/USD averaged between 0.2-0.3 pips, that too at a very reasonable commission. I found their spreads to be quite low & satisfactory.
There are many ECN brokers that offer lower spread but with higher commission (in/out) that becomes expensive around 1 pip!
Finding an FCA broker below .3 pip spread and lower commission is tough. I think Tickmill is not bad for E.A and their spread of eurdollar is between .2-.3 pips with lower commission.
Share us about your EA.
Nutmegs, try Octafx (ECN account) as spread is around that level while there are no commission.
You can confirm it through their web site, as all spreads are live quoted for all types of account, so through that you can get better idea…. Hope it helps.
Their spread is also low somewhere near 0.2-0.4 pip. But keep in mind they may widen during volatility
Someone please help explaining how a broker earn money through spreads. I know they could give us a price higher or lower but I really don’t know how to earn from it.
Hello Nutmeg,
As per my knowledge, their commissions are based on volume traded. So as you trade more and volume, they earn more commissions. So simply taking an example that you traded 1 standard lot of EURUSD (100,000 units) at a price of 1.065 and your commission structure is $4 per $100k RT, so technically you get to pay them commission of $4.24 on 1 standard lot so as you trade more and more lots, they get to earn more commissions.
Hello Bengi,
Generally brokers earn from spread as well. Like the difference between the spread they are getting from the LP side and the spread you are seeing, will be their commission. For example, if they are getting 0.3 pips from LP and you are seeing a spread of 1 pip it means 0.7 is their commission. Generally, in this case no additional commission is charged and if your broker is charging spread as commission, he will be mentioning like how many pips he is charging you; usually it ranges in 0.7 to 0.8 pips. Also value of 1 pip on an average is around $10 (well it varies from instrument to instrument but generally it’s around $10) so if they are charging you 1 pip spread, technically they are making $10 from that.
On myfxbook you can find real time spead comparison, check there.