There are two types of spreads offered on the forex market: fixed and variable (floating). The latter type varies depending on market behavior, while fixed spreads are, well – fixed, and don't widen during news releases or the Asia forex trading session for example.
Lately, variable spreads are becoming more and more popular as they are generally lower that the others, however there are still quite a few brokers offering fixed spreads – see a list below.
As we mentioned, fixed spreads are known to be wider than floating ones: they are usually between 2 – 3 pips, however variable spreads often widen significantly during news releases and major events. In other words, fixed spreads offer customers a predictable trading environment that they can depend on, and protects traders from wild spread swings. This is particularly useful when scalping or trading the news – of course, these swings can help you make some juicy profit of sudden market moves but they can also catch you unprepared and cause you to lose a lot of money.
Another benefit of the predictability mentioned above is that it also makes it easier to apply automated trading strategies and trading bots to fixed spread accounts.
Fixed spreads suggest a certain level of transparency – with the, brokers can't widen the spreads to their advantage. You should keep in mind, though, that only market makers can guarantee you fixed spreads, so there is a certain conflict of interest between traders and brokers.
|MT4 fixed spread brokers||Micro account fixed spread brokers||PayPal fixed spread brokers|
|www.fxnet.com||$5||1:500||0||100% Margin Bonus|
|$10||1:400||1.7||$100 no deposit bonus|
|www.skyfx.com||$100||1:300||3||15 days risk free live account|
|tadawulfx.com||$500||1:500||2||Swap free accounts|
|$300||1:50||2||up to $300 bonus|
|$500||1:400||3||up to $5000|
|$100||1:200||3||up to $2000|