Finding a reputable online broker is harder than it should be. We built BrokerNotes to provide traders with the information needed to make choosing a suitable broker easier and faster.

Finding a reputable online broker is harder than it should be. We built BrokerNotes to provide traders with the information needed to make choosing a suitable broker easier and faster.

Looking for fixed spread brokers? We have compared13broker accounts (out of 147) that are suitable for you below.

BrokerNotes is the fastest way to compare 100+ of the best regulated online trading brokers, so that you can find a reputable and affordable broker faster.

While our site is free to use, some links to brokers use affiliate links which means that – at zero cost to you – we may earn a commission if you sign up for a broker from our site.

71% of retail investor accounts lose money when trading CFDs with this provider.

79% of retail investor accounts lose money when trading CFDs with this provider.

72% of retail investor accounts lose money when trading CFDs with this provider

83% of retail investor accounts lose money when trading CFDs with this provider.

79.6% of retail investor accounts lose money when trading CFDs with ETX

81.75% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

69.70% of retail investors lose money when trading spread bets and CFDs with this provider.

79% of retail investor accounts lose money when trading CFDs with this provider

74.3% of retail investor accounts lose money when trading CFDs with UFX.

82% of retail investor accounts lose money when trading CFDs with this provider.

Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.

Forex brokers normally quote two different prices for currency pairs: the bid (buy) and ask (sell) price. The difference between these two prices is known as the spread. Generally speaking, the spread is how no commission brokers make their money. Instead of charging separate fees for making trades, the cost is built into the buy and sell price of the forex pair you want to trade.

The spread is usually measured in pips, which is the smallest unit of price movement of a traded asset. For most currency pairs, one pip is equal to 0.0001. An example of a 4 pip spread for EUR/GPB would be 1.2339/1.2335. However, currency pairs involving the Japanese yen are quoted to only 2 decimal places an example of aUSD/JPYquotes would be 109.53/109.45. The example quote indicates an 8 pip spread.

The type of spreads seen on aforex platformis determined by the structure of business offered by the forex broker. There are two types of spreads:

Fixed spreads are usually offered by brokers that operate a market maker model of business whilevariable spreadsare offered by brokers operating anon-dealing deskmodel of brokerage business.

Fixed spreads stay the same irrespective of what market conditions are at play at any given time. In other words, conditions of slippage or intense volatility do not affect a fixed spread. Fixed spreads are seen with brokers that offer themarket makerbusiness model.

With this model, the broker buys off large positions from the liquidity providers and offers these positions in smaller chunks to traders using a dealing desk. Thus, the market maker acts as the counterparty to the trade. In this manner, the broker is able to offer fixed spreads to its clients because they are able to control what is offered to these traders using the dealing desk.

Fixed spreads have smaller capital requirements, so trading with variable spreads requires a lot of liquidity which many retail traders cannot afford. Therefore, fixed spreads offer a viable and cheaper alternative.

Trading with fixed spreads also enables better trade planning. This is because traders are always sure of what they can expect to pay when they execute a trade. If you are a scalper, then the fixed spread is for you. Scalping involves taking very small profits in many trades within a day. Obviously, the spread will impact on any profits made, so scalpers will be better served using fixed spreads.

Requotes are very common with fixed spread arrangements since pricing is coming from just one source. There will always be times when pricing moves very fast as a result of supply-demand dynamics. With no room for spread adjustment to accommodate these movements, the broker has no option but to ask the trader to accept a new entry price provided for the trade.

Slippage can be another huge problem. When prices are moving fast, the ability of the broker to offer a fixed spread is compromised and the price fill may end up being far worse than if a widened variable spread was use. Because fixed spreads are only possible because the brokers dealing desk is controlling the order flows and execution prices, you may find the concept of trading with fixed spreads not very attractive.

The question of which is a better option between fixed and variable spreads depends on the situation of each individual trader. There are traders who will find the use of fixed spreads more advantageous than using variable spread brokers. However, the reverse can also be the true for other traders. Generally speaking, traders withsmaller accountsand fewer monthly trades will benefit from fixed spread pricing.

Those who get in and out of the market very quickly, multiple times a day and just take a few pips at a time generally prefer trading with fixed spread brokers. However, there is a caveat that a broker offering wide fixed spreads may not be the best fit.

Traders who trade the news could benefit from using fixed spreads. Some traders have complained of spreads widening to as high as 50 pips during news trades with variable spread brokers, therefore choosing a broker with the fixed spreads brokers could prevent this.

Low-frequency traders and those with smaller deposits usingmicro accountscould be better off with fixed spread brokers. You will not pay extra commissions (just the spread as discussed above) on trades, unlike with variable spread brokers who charge commissions on each side (buy and sell) of trades.

AvaTradescored best in our review of the top brokers for fixed spread, which takes into account 120+ factors across eight categories. Here are some areas where AvaTrade scored highly in:

AvaTrade offers four ways to tradeForex, CFDs, Spread Betting, Social Trading. If you wanted to trade EURUSD

The two most important categories in our rating system are the cost of trading and the brokers trust score. To calculate a brokers trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

trust score, which is v. good. This is largely down to them being regulated by Central Bank of Ireland, ASIC, FSA, FSB and BVI, segregating client funds, being segregating client funds, being established for over 12

Central Bank of Ireland, ASIC, FSA, FSB and BVI

A Comparison of AvaTrade vs. XTB vs. City Index

Want to see how AvaTrade stacks up against XTB and City Index? Weve compared their spreads, features, and key information below.

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.

MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps

MT4, Mirror Trader, Web Trader, Tablet & Mobile apps

Payoneer, Credit cards, Bank transfer, PayPal, Neteller, WebMoney,

Payoneer, Credit cards, Bank transfer, PayPal, Neteller, DebitCard,

Payoneer, Credit cards, Bank transfer, MasterCard, BPAY, DebitCard,

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Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.