How To Have Lower Spreads In Your Forex Trades

[moonchild]

One of the biggest costs of trading is the spread – the difference between the bid and ask price of a currency pair. The lower the spread, the more profitable your trades can be. But how can you have lower spreads in your forex trades?

Choose a broker that offers tight spreads. Look for a broker that has a reputation for offering low spreads and doesn't charge high commissions or fees. I do not want to recommend brokers but there a lot of good ones out there you just to check brokers review websites

You should also trade during the most active hours of the day. The more liquidity there is in the market, the tighter the spreads tend to be. So, consider trading during peak hours when the market is most active, this solely depends on the time zones you trade in.

Lastly, avoid trading during times of market volatility. High volatility can cause spreads to widen, which means you'll pay more to enter and exit trades. this happens especially during news releases or during war like the ukraine-russia unrest or the monthly NFP news releases, you should not trade during these hours, make sure you have a news outlet that you get your news from.

 

[marym]

That's a great summary of how to reduce the cost of trading through lowering spreads in forex. It's important to be aware of the spread and how it can affect your profitability in forex trading.
Choosing a broker with low spreads and fees is a key factor to consider when starting out. Checking reviews and doing research on the broker's reputation can help you find the right one.
Trading during peak hours when the market is most active can also help reduce spreads, as there is more liquidity in the market. However, it's important to take into account the time zone you are trading in.
Lastly, avoiding trading during times of high volatility, such as news releases or during geopolitical unrest, can help prevent widened spreads and ensure that you are not paying more than necessary to enter and exit trades. Staying informed through a reliable news outlet is essential in this regard.

 

[FXOchartist]

Yes, in forex trading choose broker low spreads goves more benefit especially when we trade scalping or short term trading, which scalping is aggressive trading, with choose pair and broker low spread many times order will more cheap transaction fee.

For long term trader with choosing low spread broker also gives benefit of course although more rare to open trade compare to scalping traders.

I use FXOpen broker which this is offer variable spread from 0.0 pips os spread, variable spreads means the spread is floating depends on the market, pair low spread good for scalping is EURUSD, AUDUSD, USDJPY, and more, trading on Gold or XAUUSD also very interesting which this also taken low spread.

 

[Asahi]

Some brokers offer variable trading spread whereas some others offer fixed trading spread. It’s up to traders which one they will prefer. Eurotrader offers narrow trading spread to traders that helps traders earn big.