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Spreads: which forex brokers have better or worse trading terms?

28 December 02:58 AM

All forex brokers and DCs clearly understand the attractiveness of minimal spreads for traders and choose one of two variants:
■ either to make a spread smaller, gaining less from every separate transaction, but eventually having high profit from the whole range of transactions attracted by narrow spreads;
■ or to make profit by means of a big spread, but having a considerably smaller number of transactions.

International rating of forex brokers, held by Masterforex-V Academy, takes into consideration the size of spread according to five most popular currency pairs, which is one of 19 criteria of forex brokers. It is worth mentioning that many DCs Forex indicate only minor spread at their web-sites; as a result, the actual spread from this broker’s terminal is taken into account. The lower the spread, the more points are received by the company.

Which forex brokers have lowest spreads?
 

As observed from the table, the most favourable spreads are suggested by ForexTrend company, which is a winner in the nomination “Best broker for investors worldwide”.

The second place is occupied by EXNESS company. FOREX MMCIS group has very attractive trading terms. The same concerns the leader of Masterforex-V Academy rating of forex brokers FOREX.com and FreshForex. Other companies that have favourable terms include Nord FX, MIG BANK, Finam, and Forex4you. They are followed by BMFN and FxPro Group Lt.

Which forex brokers have widest spreads?

Judging from the table, the least favourable trading terms are suggested by ACM company – the third, lowest league of the rating, a 4-point spread of main currency pairs. DC AvaFX has very wide spreads, as well as such well-known companies as Forex club, TeleTrade (upper league), and InstaForex (third, lowest league). Companies ICM Brokers, Alpari, LiteForex, and Forex4you do not suggest most favourable terms either.

“Market Leader” Magazine, designed fro professional traders and investors, holds a questionnaire in the forum of forex traders, held by Masterforex-V Academy: in your opinion, how important is the size of spread when choosing a broker?
■ it is a major criterion, which is closest to the trading process and very important for scalpers and intraday trading;
■ it is not a major criterion – gapping and requoting can bring this advantage to naught; a lot also depend on the trading strategy;
■ it is an important factor, but only jointly with other criteria such as the quality of dealing, absence of non-payments, claims from traders, etc. – as in the rating of forex brokers held by Masterforex-V Academy.

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