Spreads difference

Beginner Questions
1

Hellow there guys…!!!

I would like to know the difference between brokers that provides large difference in spreads and lower spread difference

And which one between those two above is the best for somebody with a capital of atleast $ 200
I mean broker with
1.small spread difference OR
2.Large spread difference

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2

You’re always looking for the least amount of spread as possible. The higher the spread the more you pay.

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3

like what @momoisnyc said,you want a broker that provides a low spread,you pay less on each trade you make

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4

Thank you brother

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5

Thank you brother am keep on learning

6

I’m a sister, but no problem :joy:

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7

We are all here to help each other at the end of the day any piece of information that is valuable to make all of us better traders counts.

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8

exactly, I’ve encountered some traders online that really don’t want to tell you anything. Don’t they realize that the person actually has to do the work in order to even get to where they’re at? Like the market is open for everyone and there shouldn’t be any type of competition in my opinion

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9

What you said was so TRUE. We are small guppies in the water with sharks, whales & other larger amphibious creatures. It’s in our interest to try to help each other achieve our goals.

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10

exactly, and I’ve noticed that people tend to change or switch up whenever they reach a level of success,not just in forex but in anything…life is all about helping and inspiring others

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11

Very true you can inspire others who potentially want to learn and create their own paths.

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12

Start with small capital, 200$ in my view as included as small capital hence will good to choosing a broker with small spread, generally small spread will be giving benefit for trader, because spread is like as fee that we must pay to brokerage as their service, small spread will quickly to recover fee with several pips price movement

13

Thanks brother and stay winning

14

Like the brothers and sister (@justshell :stuck_out_tongue: ) said - pick a broker with the smallest spread possible.
Try to find one that is regulated by one of the big regulatory bodies - preferably in your region.
If the broker is not a Market Maker - that’s an added bonus - because DMA/STP brokers tend to provide smallest possible spreads and best execution times because they are making profits from trade commissions rather than the spread. Which in turn means that they need a larger number of active traders on their platforms. And in today’s open market economy - this means they have to provide the best possible trading conditions for the traders to pick them.
Considering your starting liquidity is low you might want to look for a broker with a cent account. Also, make sure the trading conditions on the demo with the broker of your choosing are the same as you’d get on the live account.
From then on it’s pretty straight forward.

  1. Open a demo account with the same leverage and starting capital as you’d use on your live account.
  2. Test, test, test.
  3. Build a strategy. Test it, tweak it then test it again.
  4. Once you’re consistently profitable for a good period of time (3 months to a year) with your demo account.
  5. Open a live account.
  6. Do it all again only this time on the live account.
  7. Follow the strategy you’ve been profitable with and if need be - make changes to it. Return to the demo and test those changes.

P.S The best tips I’d follow are:

  • Never invest more than you can afford to lose
  • Diversify your portfolio (invest in different income sources) - i.e Don’t put all your eggs in one basket
  • Do not get greedy.
3 Likes
15

Spread always reduces the profit ratio! So, try to use the live trading facility only with those brokers who offers, small trading spread service.

16

Nice little thread this, and quite right that we should all help one another. That’s the point of the site, and we aren’t in competition for some finite pot of winnings!

One point I’d add on spreads - they vary according to the currency Pair. I trade a range of currencies and spreads can vary wildly on the more exotic Pairs, so do watch out for that. I mostly trade EOD so it isn’t a major factor for me, but for some trading styles the spread can render a Pair untradeable.

ST

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17

Always stay with the 1st option I mean the small spread difference.

18

Yes indeed if we make dept research, each pair sometimes having different spread, choosing pair to traded also important for trader, usually eurusd and gbpusd is most pair that many trader trades on this pair, because has low spread and high average movement

19

I agree with the others. Tight spreads are better, usually floating. Fixed spreads are higher and mots of the time they have hidden costs in them. Usually the spread of the exotic pairs is wider so in the beginning try with the majors. Also, avoid trading right before and after the rollover because around that time the spreads of all pairs are quite widen.