Fixed spreads Forex brokers are a common term that most Forex traders come by. Most Forex brokers offer floating spreads depending on market fluctuations and instrument volatility. However, a lot of brokers offer accounts with fixed spreads under specific trading conditions.

Fixed Spreads Forex Brokers List

Broker
Description
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Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


FP Markets
FP Markets

Regulation: ASIC, CySEC
Min. Deposit: $/€/£ 100
Leverage: 1:500
Spreads: Ultra Tight from 0.0 pips

Review


NSBroker
NSBroker
Regulation: MSFA, BaFin, FCA,
Min. Deposit: $250
Leverage: 1:100
Spreads: Low as 1.2 pips

Review
XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review

 

What is a Spread?

A spread is the term used to describe the difference between a currency pair’s asking price and bid price. A low spread is one in which the prices do not differ greatly, compared with a high spread, where there is a greater difference between the two figures. Trades with a low spread incur fewer costs than those with a high spread. Spreads can change frequently depending on market activity. And, given that the whole point of the trade is to make a profit, low spreads Forex trading can be more financially beneficial. In the market, spreads can be variable or fixed.

Fixed Spreads

So, what of fixed spreads in Forex trading? The clue is in the name. Fixed spreads are spreads that do not change, despite the conditions in the market. These fixed spreads can help traders to know what their bottom line is so that they can calculate profits no matter what the volatility and liquidity in the market is. This enables Forex traders to develop their strategy in a simple way. There’s a clearer transparency in prices and therefore an assessment of cost that is much more predictable even before trading begins.

The most prominent of brokers with fixed spread in Forex trading would be eToro and Plus500, where they have the best options for the fixed spreads.

The Advantages of Fixed Spreads

Unlike variable spreads, where the spread fluctuates continuously, fixed spreads Forex brokers set their spreads so that they do not change depending on the market conditions. When you trade with tight spreads what you are offered is what you will end up paying. Let’s have a look at the overall advantages of fixed spreads Forex brokers to see if you can find the best fixed spread Forex broker for your needs:

Transparent Costs

As mentioned above, with a fixed spreads Forex broker, you know what you are going to have to pay straight away so transactions are always clear and profit calculable. The costs and charges to the traders are processed and explained to the traders, because Fixed spread Forex brokers prefer to have a transparent clear track of their financial transactions.

Lower Costs

The cost of trading can be reduced given that you won’t be faced with any nasty surprises. The costs of transactions can be budgeted for, which can help to improve the way that you manage costs throughout your Forex trading journey. This means that traders can expect a constant cost level and there won’t be any unexpected events that could cause additional costs to the trader.

Easier Trading of News

Fixed spreads are perfect if there are volatile conditions in the market. This can mean that, whilst quieter times may benefit variable spreads, news events causing market fluctuations and creating a volatile market works well in conjunction with fixed spreads. For fixed spreads, there is a constant as mentioned above, but it is also easier to trade with fixed spread.

Volatility Safeguarding

As a result, traders can trade on news in the same way with any other condition in the market. It means that trading is less confusing as there is less fluctuation between bid and ask prices. Since there is a constant level of stability with the bid and ask prices, then traders will not be swayed by the conditions of the market and they can trade on news all the same.

Short-term Strategies Can Be More Effective

Making many trades in a short space of time is easier when you are using fixed spreads Forex brokers. The gains may be small, but there is a greater level of transparency within the prices. It will be safer and more transparent for the traders when using Fixed spread brokers, despite the fact that the financial gains may be considered small.

Conclusion of Fixed Spreads Forex Brokers

Fixed Spreads Brokers are Forex brokers that offer fixed spreads for currency pairs, which means that the spreads are unchangeable with disregard to any factors of the market or the liquidity available. Even though the current liquidity of a particular currency pair that may be affected, the spread itself will stay at the same level at all times. There are several traders who search for a fixed spread because it can be easier to implement a particular trading strategy. Furthermore, there are various different Expert Advisors (EAs) that carry out better in a fixed spread setting compared to floating spreads. Traders also prefer Fixed Spread Brokers than a floating spread because they want to avoid the financial risk that follows a spread widening. An expanding spread could lead to Stop-Loss activation or even Stop-Out on the trader’s active account.

For all the Fixed Spread Brokers, they commonly expand the spread fairly, compared to floating spreads Forex brokers. It is also safe to guess that Fixed Spreads Brokers are more probably dealing in a Market Making model, with the condition that the available liquidity is offered by the broker and not from an ECN setting.

Having a read all about fixed spreads in Forex trading, it’s important to know that there are many brokers with fixed spreads. To help you find the best fixed spread Forex broker for you, we’ve come up with a list above that will help you find the right one and look at all the aspects.