Brokers with no spread
What to choose-accounts without spread, but with Commission deduction, or regular spread accounts without Commission, read our article.
Recently, brokers have increasingly started to meet accounts with zero spread, where instead of the spread, a Commission is charged on the trading volume. At the same time, accounts without spread are slightly different from classic ECN accounts, since in the latter case both the spread and the Commission are charged, but unlike standard accounts, the spread here is very narrow from 0 points. Let's find out in which cases brokers without spread will be useful, and in which it is better to trade in the classic way without commissions.
Which is more profitable – spread or Commission?
When you open a buy or sell order, the trade immediately goes into negative territory, meaning you are charged a spread. However, there are non-spread accounts where you are charged a Commission instead of a spread. Many traders believe that accounts with zero spread are more profitable, but in fact this is not the case. In fact, you are charged an average Commission, which can be compared to a fixed spread. If you want to save on Commission, then you need to look for a broker that offers accounts with a minimum Commission, but you will still not notice the difference between the spread and the Commission. If you trade in a plus, you will not be afraid of any spreads or commissions. Here you need to put a different question: "what is more convenient – spread or Commission?", because depending on the trading style, you may be more comfortable with accounts without spread.
If you are a scalper
For pipers without spread accounts will be more convenient. You don't need to wait for the price to come out of the negative, as a result, you get a psychological advantage, which has a positive effect on the profitability of the strategy.
If accurate inputs are important to you
There are strategies where the most accurate inputs are important, especially when you are trading pending orders. Sometimes a pending order is triggered early due to the spread (stopor Vice versa, the price does not reach the limit order and goes in the right direction, leaving you without profit. In this case, spread-free accounts will be useful for you, since you don't need to calculate anything, you set up pending orders and wait for them to work.
If you trade exotic currency pairs
On exotic currency pairs, the spread is much higher than on the main ones, while the Commission amount is the same for all trading instruments, so it is more profitable to use accounts with zero spread. However, usually no spread accounts apply only to major currency pairs, so this recommendation does not always work.
If you trade major currency pairs
For major currency pairs, the opposite is true – accounts with a floating spread are more profitable. If you take the most popular currency pair EURUSD, the Commission on it will be more than the spread.
Thus, if you are a scalper or trade pending orders within a day, then choose brokers without a spread. in other cases, it will be more profitable for you to trade on accounts with a minimum spread.
Best brokers without spread or brokers with minimal Commission
|Place in the rating||Broker without spread|
Only reliable spread-free brokers that have been on the market for more than 10 years and have an impeccable reputation participate in this rating