geraldinemarsh
Well-known member
Forex forums are an excellent resource to learn from other traders, and this forum is one from where I have taken important lessons in the past. And now I want to share my 2 bits on what I consider to be one of the most important factors in trading - spreads - which is one of the most crucial factors when it comes to determining the cost of trading.
What factors drive the forex spreads?
1. TurnkeyForex:
What factors drive the forex spreads?
- The market witnesses periods of high volatility during big economic events, which causes spreads to widen.
- Liquidity dries up when the number of participants becomes lesser.Therefore, forex brokers have to increase their trading spreads to account for the risk of loss.
- Lower trading costs: The tighter the spreads, the more profit you can save on a trade and the wider it is, it can be more difficult to make a profit.
- Efficient for day traders: Finding the best broker who offers tight spreads is particularly important for scalpers and day traders because they make a large number of trades and have to pay the costs irrespective of the outcome.
1. TurnkeyForex:
- Average spread: 0.2pips
- Commissions: $1/lot
- Maximum leverage: 500:1
- Minimum deposit: $10
- Trading platforms: MetaTrader4, MetaTrader5, ActTrader
- Average spread: 0.7 pips
- Commissions: $6/ lot
- Maximum leverage: 500:1
- Minimum deposit: $10
- Trading platforms: MetaTrader4
- Average spread: 0.2pips
- Commissions: $2 per side
- Maximum leverage: 500:1
- Minimum deposit: $100
- Trading platforms: MetaTrader4, MetaTrader5
- Average spread: 0.4pips
- Commissions: $1.5/lot
- Maximum leverage: 1000:1
- Minimum deposit: No minimum deposit
- Trading platforms: MetaTrader4, MetaTrader5
- Average spread: 0.5pips
- Commissions: $3/lot
- Maximum leverage: 500:1
- Minimum deposit: $100
- Trading platforms: MetaTrader4