Brokers with low spread
On the Forex market is always a difference between actually available in the current Ask price bids (sales) and the Bid (buy). She called spread (from the English spread - the spread) and occurs because the organizers of the auction - banks, stock exchanges, brokerage companies in this way receive from each transaction its small commission. Here is a ranking of brokers with a low spread, that is, with a low commission for transactions. The magnitude of the spread is measured not in money but in (from the Latin punctum - point). The term "point" refers to the low amount of the smallest possible change of any magnitude. For example, if the quote has three decimal places, then its change can not be less than 0.001, and the size of the item is equal to 0.001. Spread for different trading instruments can vary from a few to several hundred points.
The smaller the spread, the more easily an asset can be sold or bought at the best price, or the higher its liquidity (from the Latin liquidus - flowing, liquid). The most liquid currency pairs, such as EUR / USD or GBP / USD, have the smallest spread. Profit broker working with them can be significantly higher than that of the "exotic", with a huge spread of Bid and Ask, but traded in small volumes pairs USD / ZAR and CAD / PLN.
Since the Forex market every broker at the same time organizing the purchase and sale, he can set his fixed spread value for customers. It includes all of the Commission and its own reward. But the spread can be significantly increased in some situations. For example, if the crisis in the state actively limit the volume of sales of the national currency to stabilize the exchange rate, broker spreads inevitably grows. A reduction in the excessive liquidity of trading can even temporarily stop.
ECN brokers, providing direct interaction between participants of the market are usually offer their clients a floating spread, which constantly fluctuates. Its value can range from zero to a certain maximum value in the contract. This is due to the fact that trading conditions are different at each time point, and the liquidity of the financial instruments is also different.
Some companies offer their customers a "zero" spread. In fact, it is a marketing gimmick - so it is impossible to trade by the very nature of the Forex market. But the broker can lay the average price difference between the Bid and Ask or fixed fee for each transaction, or slightly change the quotes. For long-term trade is not significant. But when working within the day, especially in the "scalping", broker choice may be determined by the width of the spread - the profit on the transaction should be significantly greater than its limits.