Forex fixed spreads

The spread represents the difference between the buying and selling prices of assets on the financial market. Spreads usually widen during volatile market conditions. Forex brokers that offer fixed spreads provide traders with a consistent spread, even during market volatility. However, it's important to note that these brokers are often market makers, acting as the counterparty for their traders. Due to this nature, it is critical to choose Forex brokers with fixed spreads that are highly reliable, well-regulated, and have a proven track record of fair practices. To simplify the process of selecting reliable Forex brokers that offer fixed spreads, we have researched and ranked top-tier brokers in the list below.

8.28

HYCM read review

MT4MT5Copy tradingHigh leveragePAMM

Regulations

CIMA, CySEC, FCA UK

Platforms

MT4, MT5

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8.10

easyMarkets read review

MT4MT5Copy tradingHigh leverage

Regulations

ASIC, CySEC, FSA Seychelles +1 more

Platforms

MT4, MT5, TradingView +1 more

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5.59

FxPro read review

MT4MT5cTraderCopy tradingHigh leveragePAMMSignals

Regulations

CySEC, FCA UK, FSC Mauritius +2 more

Platforms

MT4, MT5, cTrader +1 more

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5.41

AMarkets read review

MT4MT5Deposit bonusCopy tradingECNHigh leveragePAMM

Regulations

MWALI International Services Authority

Platforms

MT4, MT5

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Fixed spreads typically start above 1 pip, while floating spreads can begin from 0 pips. However, these 0-pip spreads may widen during periods of market volatility or major global news events. Fixed spreads are more advantageous for trading during volatile markets while floating spreads can be much lower under normal market conditions. Ultimately, the choice between the two depends on the trader's strategy and trading style. Scalpers generally prefer lower spreads, while day traders or news traders may opt for fixed spreads. It's important to note that Forex brokers that offer fixed spreads are market makers with a dealing desk. If a trader chooses an unregulated broker, there's a risk of market manipulation and fraud. Therefore, it's crucial to select a regulated broker to ensure fair practices and market integrity.

FAQs about Fixed spreads

What is fixed spread in forex?

In Forex and financial markets, a fixed spread refers to a constant difference between the ask and bid or buying and selling prices set by the broker for trading instruments. These spreads remain unchanged regardless of market volatility giving traders the ability to trade with the same spreads at all times.

Is fixed spread better?

Fixed spreads can be beneficial during volatile markets to trade with low costs. During Stable markets, floating spreads may be better because of low costs. In the end, it all depends on the trader’s strategy and approach.

Which broker has a fixed spread?

Few Forex brokers offer fixed spreads, but traders;s must find reliable, well-regulated brokers to avoid potential market manipulation as the brokers with fixed spreads are market makers with dealing desks acting as counterparties for their traders.