Hello traders!
I’d like to know if it’s a good idea to open a Zero account. I trade with a small balance (around $250) so I’m currently using a Micro account. Now I can see that the Zero account has 0 pips spread and the commission is $3.5 per $100.000 traded. So since I trade with small leverage (around 10), do you think it would be a good idea for me to switch to a Zero account now? It seems to be a lot better and “cheaper”.
Thanks for your replies in advance.
Cheers!
So if you traded a single microlot (£1,000) = .01 of a lot, Would teh commission still be $3.50 or would it be 3.5 cents ? - ie $3.50 / 100 ?
Hi @Mordengaard,
Is the broker in question claiming their spreads will always be zero regardless of market conditions? How are they regulated?
It’s important to understand that retail forex brokers get their liquidity from banks, and those banks will widen their own spreads if market conditions warrant.
In this post, we provide more details on the three methods retail forex brokers can use to execute your orders: Who is the counterparty in an exchange?
Oh, thanks for the quick replies. Now I got some more questions so I better read the details more in depth and ask the customer representative to help me. I think it should be cents but now I’m not sure so I’ll read about it later and contact them as well for clarification. Appreciate your help!
Mate first of all you need to be clear about everything. Micro account is safe but small investment has small risk and small profit. So, you might think it is better to switch now from zero account but I think still you are not clear about many things. Before switching please go through the BabyPip school. Another question came in my mind, is the spreads in pips or pipettes? DO you know about it clearly?
Thanks for your replies and concerns!
I trade NZDUSD and the spread on a Zero account is 0.00008, I just checked it. Also, the commission is $0.07 (7 cents) per $1000 (0.01 lot) traded. The customer rep clarified it as well.
This is something to consider:
“The average spreads shown here are calculated throughout the day. They tend to be narrower under normal market conditions. However, spreads may widen following important news announcements, during political uncertainty, unexpected events leading to volatile market conditions or at the close of the business day and on weekends when liquidity is lower. When you trade with us Trading Point is your counter-party. Your trades are matched and any next exposure above predefined thresholds is hedged with our partner banks (our liquidity providers) at the current market spread. However, during volatile and illiquid market conditions our liquidity providers quote larger than normal spreads. At such times Trading Point is forced to pass on some of the spread increases to its clients.”
Ok - So we nw know they are Lying to you in calling the account a “Zero account” when it DOES have a “spread” as @FOREX.com suspected they would.
As an overall situation, 1 pip on Micro is about 10 cents, so they are effectively charging you 0.7 of a pip as a “Commission” - Now do they charge you another 7 cents as another commission to close the bet ?
When people quote “spread” that is normally a “Round trip” so you pay a half on entry and another half on exit. If these people charge you “commission” on both sides of the trade that would equate to aroung 1.4 pips on the round trip - which is closer to what you might expect.
They do have an honesty in explaining that they Are “Counter party” as far as they can be. You need to know the actual extent of these “floating spreads” since they can be a pain and are manipulable. I got stopped out this morning, when price got to 4 PIPS away from my SL which I consider excessive.
So the thing to do is to open a Demo account with them and observe how the “Real spread” is operated by them by watching the Bid/Ask price at different parts of the day and when price is “rocketting”
“fee” to trade) rather than variable spreads, but if you are paying both, it rather negates the point of the excercise.
Clearly you are not ready to trade for real yet, so open the demo and “Get the feel” of their charges at the same time as you THOROUGHLY investigate the company from the point of view of how others have found things like “Getting their money out” and again as has been mentioned, where they are regulated is very important.
If you are going to lose your money, at least you need to be content that you "Lost it fairly! "
3.5 for opening and 3.5 for closing so overall 7 cents for 0.01 lot trade. But yeah, what you say makes sense so I’ll research more about it. Appreciate the concern!
I agree with the others that you should do some more digging about this. I am not familiar with these Zero accounts but honestly it doesn’t seem very trustworthy. As for the zero spread, there is no such thing 
Especially if they are a counterparty and they stream the spreads directly from the liquidity providers. If the spreads are floating then it is absolutely possible that you could receive widen spreads, for sure during news releases and around the rollover. So, in my opinion you will be better with the Micro account but as mentioned, make a more detailed research.
Thanks for the reply. I agree. I think I’ll just stay on my Micro account for now. 
But is that account with the same broker? You never said how they are regulated.
@sebastiano summed it up well.
Yes. My broker is regulated and have already withdrawn money before with no issues.
I confess I’ve never heard of zero accounts. I know and I’ve used micro accounts in the past, but a zero account is something brand new for me.
The trading spread is zero; maybe you know this kind of account, isn’t?
No, I can’t say I’ve ever seen spread that is zero. Very small, yes, but not zero.
Actually, small trading spread is logical but zero is doubtful.
Thanks for the replies.
Broker makes profit from spreads and commission. They are here to make money as well. Transparent broker tells you are they are taking from you. Zero spreads account could be a good option if your broker is good. And unless you are a scalper there is nothing much to think about it.
I trade daily using the 4H and daily charts. 
Thanks for your comment. I will definitely try this kind of account sometime.
Zero spread would be a boon for any scalper, but I confess I am sceptical of any broker that offers it.