According to recent statistics, over 80% of traders in the Forex market experience unexpected costs due to fluctuations in floating spreads. While this type of spread is generally affordable in calm market conditions, many traders are looking for brokers with fixed spreads to ensure cost predictability and greater security.
But the question is, do brokers with fixed spreads even exist in the Forex market? If so, what features do they have, and is choosing them suitable for you?
What is a Spread and Its Types?
A spread refers to the difference between the buy and sell price of a currency pair in the Forex market. This spread is usually charged by brokers as the transaction cost to traders.
Spreads are divided into two main types:
- Fixed Spread: This spread remains constant under all market conditions and does not change.
- Floating Spread: This spread changes based on market conditions and price fluctuations.
Which is Better: Fixed or Floating Spread?
The choice between a fixed or floating spread depends on the trading strategy and the type of trader. A fixed spread is more suitable for short-term traders and those employing scalping or swing trading strategies because they do not experience sudden changes in the spread. On the other hand, a floating spread can sometimes be less costly when the market is calm.
What are the Advantages and Disadvantages of Brokers with Fixed Spreads?
The answer to this question depends on the broker type and their policies. Currently, several reputable brokers in the Forex market offer fixed spreads to their clients, but it’s important to note that these types of brokers are generally less common than those offering floating spreads.
Advantages
- Cost Stability: The biggest advantage of a fixed spread is that you know upfront what the cost of each transaction will be. This is particularly useful for those with long-term or medium-term strategies.
- Better Planning: Traders using fixed spreads can easily predict their costs, helping them plan their trades more effectively.
- More Security in Volatile Markets: In volatile conditions, a fixed spread ensures you don’t incur additional costs and prevents unexpected spread fluctuations.
Disadvantages
- Higher Costs in Normal Conditions: In some cases, a fixed spread might be more expensive than a floating spread under normal market conditions. This is especially noticeable when the market is calm.
- Lack of Flexibility in Volatile Markets: Some brokers might adjust their spreads during certain times (e.g., during economic news releases or global crises), even if the overall spread is fixed.
- Possible Limitations in Currency Pair Selection: Brokers offering fixed spreads usually have limitations regarding available currency pairs or trade volume.
Which Type of Broker Has the Lowest Spread?
One of the most important factors for Forex traders is the spread costs, which directly affect their profits and losses. Choosing a broker with the lowest spread can be a significant advantage. In this article, we will explore the types of brokers with the lowest spreads and the factors that influence them.
ECN Brokers (Electronic Communications Network)
ECN brokers usually offer the lowest spreads because they send customer orders directly to interbank markets. The spread in these brokers can go as low as 0.0 pips, but they may charge commissions per trade.
STP Brokers (Straight Through Processing)
STP brokers function similarly to ECN brokers and also offer low spreads, but usually without additional commissions. The spread for currency pairs like EUR/USD in these brokers is typically 0.1 pips.
Market Maker Brokers
Market Maker brokers tend to have higher spreads because they process customer orders internally. For currency pairs like EUR/USD, the spreads in these brokers are usually around 0.5 pips or more.
Factors Influencing Spread
- Trading Volume: Brokers with higher trading volumes tend to offer lower spreads.
- Account Type: ECN and STP accounts typically have lower spreads.
- Market Conditions: During volatile periods, spreads may widen.
Which Brokers Offer Fixed Spreads?
Fixed spread accounts are those where the spread (the difference between the buy and sell price) remains constant throughout the day without any changes. Unlike floating spread accounts, where the spread changes based on market conditions, fixed spread accounts offer predictable and steady trading costs. These accounts are particularly suitable for specific trading strategies like scalping and long-term trades, and are generally preferred by beginners and those seeking a stable and predictable experience.
Here are some of the brokers offering fixed spread accounts and their key features:
| Broker | Account Type | Spread | Features | Advantages |
| AMarkets | FIX | From 0 pips and up | Fixed spread, fast order execution, suitable for professional traders | Reasonable commissions, low spreads for specific strategies |
| Errante | Tailor Made | Fixed | Persian support, customizable conditions, suitable for professional traders | Customizable account settings, ideal for experienced traders |
| HYCM | Fixed Spread | Fixed | Persian support, predictable and transparent conditions throughout the day | Fixed and predictable spreads, great for long-term strategies |
| DeltaFX | Fixed Spread | Fixed | Fast deposit and withdrawal, stable and predictable spread | Reduced trading risk, suitable for short and long-term trades |
| NordFX | FIX | Fixed | Fast order execution, stable spread | Great conditions for professional traders |
| IFCMarkets | Fixed Spread | Fixed | Easy deposit and withdrawal, supports scalping | Suitable for both beginner and professional traders |
| Aron Groups | Nano Fixed Spread | Fixed | Nano accounts with fixed spread | Ideal for smaller traders and beginners |
| Orbex | ECN, Standard | From 0 pips and up | Advanced platforms, low spreads, reasonable commissions | Excellent for scalping and fast trading |
| Vingo Markets | VIP | From 0 pips and up | VIP accounts with low spreads and advanced trading conditions | Very low spreads, from 0 pips upwards, with a starting investment of $10,000 |
| IFCMarkets | ECN | From 0 pips and up | Fast execution, low spreads | Ideal for scalping and fast trades |
1. Errante Broker (Tailor Made Account)
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Account Type: Tailor Made
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Features: This account is specifically designed for traders who need customized trading conditions. It offers fixed spreads and fast order execution.
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Advantages:
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Customizable account settings based on individual needs.
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Ideal for professional traders who require flexibility in their trading conditions.
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2. AMarkets (FIX Account)
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Account Type: FIX
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Features: The FIX account at AMarkets is one of the best options for those seeking fixed spreads and clear trading conditions.
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Advantages:
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Fixed spread starting from 0 pips.
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No additional commissions.
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Perfect for professional traders who require fast order execution.
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3. HYCM Broker (Fixed Spread Account)
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Account Type: Fixed Spread
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Features: This account offers fixed spreads, making it ideal for traders looking for consistency in their trading costs.
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Advantages:
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Fixed and predictable spreads throughout the day.
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Helps reduce risk in long-term trading strategies.
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4. DeltaFX Broker (Fixed Spread Account)
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Account Type: Fixed Spread
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Features: This account also offers fixed spreads and is perfect for those who want to trade without fluctuations in transaction costs.
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Advantages:
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Simple and transparent trading conditions for traders with diverse strategies.
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5. NordFX Broker (FIX Account)
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Account Type: FIX
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Features: The FIX account at NordFX is designed for those looking for fixed spreads and specific trading conditions.
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Advantages:
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Fixed spreads and reasonable commissions.
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Ideal for traders looking to trade effectively in the Forex market.
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6. IFC Markets Broker (Fixed Spread Account)
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Account Type: Fixed Spread
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Features: This account provides fixed spreads and predictable trading conditions, making it an excellent choice for those who prefer low-risk, fixed-cost trading.
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Advantages:
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Suitable for both beginner and professional traders.
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Helps with precise cost predictions and planning for trading strategies.
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7. Aron Groups Broker (Nano Fixed Spread Account)
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Account Type: Nano Fixed Spread
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Features: This account is tailored for traders who are looking for low-volume trading with fixed spreads.
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Advantages:
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Fixed nano spreads for smaller traders.
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Ideal for those who want to start with smaller trade sizes.
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8. Orbex Broker
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Account Type: ECN, Standard
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Features: Orbex is a well-known broker offering extremely low spreads, perfect for professional traders looking for advanced platforms and fast execution.
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Advantages:
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Low spreads, reasonable commissions, and excellent customer support.
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9. Vingo Markets Broker (VIP Account)
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Account Type: VIP
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Features: VIP accounts at Vingo Markets offer very low spreads and advanced trading conditions for professional traders looking for a specialized experience.
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Advantages:
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Extremely low spreads starting from 0 pips.
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A minimum deposit of $10,000.
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10. IFCMarkets Broker (ECN Account)
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Account Type: ECN
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Features: This account is designed for traders who seek near-zero spreads and fast order execution.
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Advantages:
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Spreads as low as 0 pips.
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Great conditions for scalping and fast-paced trades.
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Which Type of Spread is Best for You?
The choice between a fixed or floating spread depends on your trading strategy.
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Fixed Spread: Best for traders looking for predictable costs and stable conditions.
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Floating Spread: Ideal for traders who prefer to take advantage of lower costs during calm market conditions.
Which Type of Spread is More Suitable for You?
✅ Fixed Spread:
If you prefer stable and predictable costs and want to avoid sudden changes in fees during market volatility, fixed spreads are the best choice. This type of spread is particularly suitable for traders using short-term strategies like scalping or swing trading.
✅ Floating Spread:
If you trade mostly during calm market conditions and seek to minimize costs in such scenarios, floating spreads are a better option. This type of spread allows you to pay lower costs during normal market conditions, but you should be prepared for potential spread fluctuations during volatile periods.