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Fixed or floating spread account?


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Fixed spread is the best to be sure but sometime the traders may chose to use the floating spread as this may as well become positive for them but before we get move on what we need to do is rational our mind.

Yes closely examine our mind before placing any other keep us posted in the right format

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  • 3 weeks later...

Hm, but you know that is not the way market do something, the spread is dynamic depend on the condition and doesn't stuck with one digit or even zero point bla bla spread. I prefer floating account because of this cases but with some exceptions, as long as the brokers is well-regulated both kind of account is fine, but understanding that all fixed spread account is dealing desk.

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@myregister, I think that the dynamic spread you are talking about here is the floating spread yes this varies as we trade one currency pair to that of another it is the best method for anyone who want to trade scalping since broker make their money from here

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I am use broker that offer fixed spread and commission, as long as my broker still giving good service and every wthdrawn still processed smoothly,hence will always use my broker and grateful so far still enjoy and can running business with comfortable, but maybe some trader they like dynamic spread because they have certain reason

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Dynamic spread do change its not constant its varies alot so for this reason fixed spread is good but I prefer dynamic spread thou all this depend on the choice of broker which we want to use this may help us alot. Infact before we start I think that our choice broker need to be in our mind before such thought to trade forex come in

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Yes, it will keep change as the time goes on but what i see here is that fixed spread made for non dealing desk broker which mean you against the broker, broker win you lose and if the broker is lose you are the winner. It is more like gamble than trading to me, but floating spread used in non dealing desk where broker act as your broker, as middleman to be exact.

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  • 2 weeks later...

Fixed spread is impossible if that is non dealing desk. Broker is not the one who control the market even maybe try to influence the market but remember FX market is so big so its influence maybe so small. If DD broker it is clear they have influence to change the price and able to make the price spread stay at the same amount.

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I think low spread is just what we all want, it’s okay if it’s fixed or floating, I mostly don’t look too much into spread because I believe quality broker is first requirement and then everything else should be located, so that’s something which helps us with performance.

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To some people spread is bigger matter but the others don't mind if that is a bit higher as long as that is in reasonable rate. If the broker is dealing desk who trade against you even you have small spread your earning won't be big and if you secure more profit usually that kind of broker trying to rape your profit by using illegal technique since they are the market maker.

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I think also will depending with our choice using broker, and many trader might having different view to using broker, there are broker that offer fixed spread and this is also useful for scalping trader with use low spread, but might there are broker that will making wider spread on news high impact which movement very volatile

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Yes it depend just like what i said before it is impossible for a broker to offer fixed spread if that broker is not dealing desk. The spread is fluctuating in reality to offset the liquidity on the current market, if liquidity is high then there is high spread and vice versa, while in dealing desk the one who control liquidity is broker, so apply fixed spread is very very possible there.

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I think also will depending with our choice using broker, and many trader might having different view to using broker, there are broker that offer fixed spread and this is also useful for scalping trader with use low spread, but might there are broker that will making wider spread on news high impact which movement very volatile

Sure that is right, but when it comes to fixed spread it is clearly dealing desk. Remember that broker offset the liquidity on the market by increasing and lowering the spread. When the market is crowded means full with transaction and open position that's when spread is fall as low as possible and when market has small liquidity that's when spread is up. This is why if you have access to the weekend market you will see small movement with very high spread even for currency like EURUSD. 
 
So, to conclude this all i think it is depend on them this is why i agree with you. But one must be wise when choose what kind of broker they want to choose, don't be blindly by just lower spread or zero fixed spread account.
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i think i work well with narrow floating spreading from 0p that FreshForex has, very convenient for me.

Glad to hear that , but i don't want to promote anything here, it is just that floating spread which make sense and also fixed spread is good for someone who already know the nature of that broker, if they know they already know the risk and want to gamble with it. Floating spread is the step taken by broker to lower their risk too.

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If broker offer low spread this will useful for scalping trader which they usually will catch profit only few pips target, and low spread of course as trader only need waiting few pips movement, but indeed not all broker will allow scalping and better check our broker whether we can trade as scalping or not.

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If broker offer low spread this will useful for scalping trader which they usually will catch profit only few pips target, and low spread of course as trader only need waiting few pips movement, but indeed not all broker will allow scalping and better check our broker whether we can trade as scalping or not.

Sure that premise is right, but floating spread sometimes offer small spread sometimes not, and i am sure that in high volatility condition they will never offer any kind of small spread to the market LOL. In forex spread account usually or if not most of that accounts offer small spread from zero to one or two at most. It will keep like that and will never change.

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  • 5 months later...

Usually, I would have preferred fixed spread due to news trading, but ever since I have joined up with OctaFX, I don’t worry much as their flexible spreads are extremely cool. It starts from 0.1 pips while there are over 70 instruments to select from and much more, it’s all fantastic and helps me work out so well and even the big rebate program is good having 50% back on all trades, it’s really handy and helps a lot in working!

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Usually, I would have preferred fixed spread due to news trading, but ever since I have joined up with, I don’t worry much as their flexible spreads are extremely cool. It starts from 0.1 pips while there are over 70 instruments to select from and much more, it’s all fantastic and helps me work out so well and even the big rebate program is good having 50% back on all trades, it’s really handy and helps a lot in working!

indeed every broker certainly presents it stays with us who manage and control it well, because it all depends on us, respectively, so we should not depend on what we can make easy, because it is not necessarily easy to make us lucky
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indeed every broker certainly presents it stays with us who manage and control it well, because it all depends on us, respectively, so we should not depend on what we can make easy, because it is not necessarily easy to make us lucky

 

because the gains and losses depends on our own running. therefore we must improve our ability with good skill, and manage capital well, and psychologists under control, in order to facilitate our trade and get the results we want
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because the gains and losses depends on our own running. therefore we must improve our ability with good skill, and manage capital well, and psychologists under control, in order to facilitate our trade and get the results we want

Trend market that very dynamic and unpredictable sometime causing loss although actually this is not expected, but as trader should accept it, and if we can making good profit in trading we also will get happiness and want start again usually
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Trend market that very dynamic and unpredictable sometime causing loss although actually this is not expected, but as trader should accept it, and if we can making good profit in trading we also will get happiness and want start again usually

Therefore we can use the tools to be able to limit our losses well and understand how our analysis so well that what we do can be controlled and managed properly
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