Why does anyone trade with a broker with wider spreads than another? I’m looking at Oanda and Saxobank spreads side by side as an example but wondering why, in general, anyone would trade with the broker with the higher spreads.
I’ve come to overlook spreads in general now. I’ve begun trading longer timeframes and thus, profit targets and stop losses are much larger.
When I was interested in scalping, a 10pip target would be eaten by a 3 pip spread (30% gone). But now that I trade higher time frames, that 3 pip spread is not so bad. If I target 60pips and 3 is accounted in the spread, thats still 57 pip profit.
Ratio-wise its just become a little annoyance and nothing more. For the scalper I can see how it would be a major player in deciding what broker to go with.