Earlier today Trading 212, a leading European broker, announced that it is decreasing its spreads for the most traded currency pairs.
Up until now, the broker offered fixed spreads of 3 pips on EUR/USD and these will continue to be valid for trading smaller volumes. Traders transacting with higher volumes, however (1 mini lot or more), can now take advantage of the new, lower variable spreads:
- EUR/USD Pro: from 1.5 pips
- GBP/USD Pro: from 1.9 pips
- USD/JPY Pro: from 1.9 pips
- AUD/USD Pro: from 1.9 pips
Note that these new spreads are available for Pro currency pairs only; the difference between regular and pro pairs is the minimum trading size requirement: micro lot (1,000 currency units) for regular pairs and mini lot (10,000 units) for Pro pairs.
This is not the only good news that has recently come from Trading 212: last month the broker launched new charts and a really good iPhone app, and just ten days ago the night margin on index trading was decreased from 2% to 1%. The only thing that would make Trading 212 even more attractive would be a nice deposit bonus offer.
Looking at spreads alone, Trading 212 is not offering the lowest on the market. Other major brokers like Forex.com and FXCM offer similar spreads, while others go way lower – 4xp’s typical spread on EUR/USD is 0.5 pips + commission.
However, Trading 212 has two major advantages that make it an excellent choice of a broker: capped spreads and execution.
The spreads on EUR/USD Pro for example is capped at 4 pips, on USD/JPY Pro there is a spread cap of 5 pips and on AUD/USD Pro and for GBP/USD Pro, the cap is 6 pips. These caps prevent you from losing too much money due to stop orders activated because of a high spread. To see what a great advantage this is, you just need to look at spreads statistics for the last month: at a certain point (probably during a news release), IBFX for example has reached the ridiculous spread of 24.8 pips on EUR/USD.
As far as execution is concerned, Trading 212 is an excellent partner: all orders are filled at the requested price. Currently most brokers fill stop and market orders with slippage (e.g. the price at which the orders are filled is different from the one requested) – and this slippage increases transaction costs significantly and low spreads make no sense any more.
I guess that the excellent trading conditions combined with the outstanding customer support will help Trading 212 establish itself as a major broker. The only thing that I would really like to see is charts that open in the main window instead of in a new one – but I hear rumors that Trading 212 is already working on that.
About Trading 212
Trading 212 is an well-regulated European broker with outstanding trading conditions and highly professional customer support team. Trading 212 customers can trade currencies, commodities, CFDs and stock.
The broker's biggest advantage is its proprietary web-based trading platform that is designed with usability in mind - even a complete beginner will have no difficulties findinf their way around the intuitive and user-friendlt platform.