When shopping for a forex broker, people tend to look at spreads first. Not that spreads are everything – on the contrary; after all, what good is a broker that offers tight spreads and crappy execution, unreliable trading platform and unresponsive customer support?!
Nonetheless, low spreads remain important, and Trading 212 takes that into account. After lowering its spread
on the four most traded currency pairs last November, the brokerage continues with the cuts: as of now, you can trade EUR/USD at even better conditions.
Currently the broker offers two options for trading the currency pair: EUR/USD and EUR/USD Pro. The first one is for volumes of 10,000 currency units or less, and comes with a fixed spread
which has now been cut to 1.9 pips.
If you are ready to argue that 1.9 pips is still a high spread for the industry, then you must have missed the operative word “fixed” here. Fixed spreads are usually preferred by scalpers or news traders, as with such they are protected from market swings. Of course, this additional protection comes at a price, and therefore fixed spreads are generally wider than the variable ones. In fact, the average spread on EUR/USD ranges between 2 and 3 pips, so Trading 212's offer is still quite lucrative. You can compare the spreads of different brokers here
EUR/USD Pro is designed for people who trade higher volumes – to open a position on this pair, you need to buy or sell at least one mini lot (10,000 units). Here, the spread is floating and Trading 212 promises that it stays at 1.3 pips 98% of the time. If you're worried that this spread may widen during news releases, because of unexpected market events or at the end of trading sessions, you should keep in mind that the broker has set a cap of 3 pips to protect you from unwanted losses and make sure that your trading is profitable.
As I said at the beginning, the spread isn't everything in forex but in the case of Trading 212 you can also rely on a good custom trading platform, fast execution and outstanding customer support – so all in all, I give the broker thumbs up.
About Trading 212
Trading 212 is a 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-friendly platform.