THE MOST IMPORTANT FACTOR IN DECIDING THE BROKER IS TO CHECK ITS SPREAD, SO THE LOWEST THE COST OF THE BROKER MORE PREFERRABLE THE BROKER IS!
This page will give you the details of top 5 broker who offers the lowest spread values.
“Reaching any goal in trading requires specific domain knowledge and technical skills. But then, after that, it’s all mindset management. Yet most people ignore that —they automatically think they have that last part all figured out, and it’s a mistake.”
Criteria to Consider Low Spread Broker is as follows:
If there is any account that has a commission fee, we will add it to the spread, for example, Exness’s Raw Spread account has a commission fee of 7 USD / lot (round trip), where the assumed account spread is equal to 0. Will be combined, the spread will be equal to 7.
1. GMI EDGE
Account Type: ECN MT4
The best thing about this broker is that it is a Swap Free and its spread is very low (average 6.5).
This automatically makes GMI suitable for a variety of trading styles whether it is short or long-held. Providing with such a low spread and without swap, the broker deserves to be ranked #1 for this rating.
2 . Weltrade
Account Type: Pro
Weltrade is among the top of the list of brokers of low spread which is surprising. The rating is strictly on the basis of spread, swap, and commission basis only.
Overall, weltrade is not considered the best broker as it is expensive in order of high deposit and withdrawal fees.
Account Type: Micro
Being well known in India they also provide the lowest spread, without any commission only swap is charged by the broker. The broker also ranks in top Forex Broker in India.
4 . Exness
Account Type: Raw Spread
Overall everything swap, spread and commission are good. No doubt exness offers the best services of all.
Account Type: Zero
HotForex Zero account provides the minimum spread of all even if we add commission value to it, the broker commission starts from USD 6 per lot, along with that there is no commission in Gold trading. the average spread comes out to be the lowest of this account type.
The broker might not be much known in India but overall services of the broker are quite good to trade with.
The term Spread is considered to be the most important factor when choosing a broker because of spread only we can analyze the cost of the broker. Along with that commission and swap are other two important factors to keep in mind, Our research is particularly done on the basis of the data we have collected while doing trading with that broker that is from Monday to Friday. The calculations might differ for other websites as the spread changes at every moment.
What is Spread?
Explanation of Spread:
Spread in Forex is termed to be the difference between the bid and ask value. In Forex Trading the term which decides the profit and loss we will have is spread, the lowest the spread higher the profit, and the higher the spread lowest the profit. It can be seen in the MT4 platform as follows:
As per the above image the column with the name of “!” shows the spread of that particular currency. If you look more into it you will be able to deduce that it indeed is the difference between bid and ask values. Spread value matter most to all the traders out there and it is more beneficial for those who play short- held bids.
Spread is different for different brokers at the same time even it is not same for different account types as well. For example let’s have a look at the spread value for exness two account pro and raw spread at same time for USDJPY.
As per the above image you can see that there is a huge difference in the spread of same broker with different account types. This simply means that the spread of different account are different. This quantity changes ever second.
Understanding high spread and low spread:
There is the time period when the spread is highest and lowest of all, so these time periods are necessary to remember, reason for such a thing to happen is the volatility or liquidity that this market holds.
When doing trading, you might notice that the spread of every currency is different in that there would be some currency pairs that have low spread. On the other hand, there will be some currencies that hold high spread values. The currency which has the lowest spread is known as major currency meaning it is the currency in which most people trade-in that’s why it has higher volume and lower spread.
Additionally, one should know that the liquidity of any currency can dry up, and the spread may widen at certain points majorly when there is some news that can end up changing the direction of the currency strength.
The spread is highest if there is a huge difference between the bid and ask price which certainly will lead to a high spread. This happens when the currency has high volatility and low liquidity.
Spread is lowest if the difference between the bid and ask price is minimum. This happens when the volatility is low and liquidity is high.
When the market opens every Monday, it is suggested to not open trades or you may suffer a huge loss because the spread is highest at that time.
Overall, only considering a broker on the basis of the spread is wrong, because there are certainly other factors that we have to keep in mind while choosing a broker. Yes, these are also important but that doesn’t mean that the other factors are not important. So, the right way to choose a broker is to consider all the points last and then decide which broker will perfectly fit you are per your requirements. My judgment of the brokers is as per my experience whereas, you can have a different opinion.