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Hello guys
I wonder something about FX brokers.What is your typical price (spread of EURUSD for example) of a FX broker.
For instance 1 pip fixed spread broker may earn any profit if this broker clears all orders out of their liquidity suppliers.
I suggest they give 1 pip fixed spread for eurusd what if their price for this pair?
The issue is same with other majors.
What's the FX brokers price for USDJPY-USDCHF-GBPUSD pairs?
You state that when market is not in anormal conditions Brokers cost for EURUSD is 0(zero) pips.If it's like that then they could provide 1 pip fixed spread and can earn money.But I see many of ECN broker typical spread more than 1 pip plus they get commission so are you certain that environment is really valid for fixed broker to bring in profit from transactions?
for a set spread broker that doesn't charge commission, they make profit on the spread, but that I don't know of any given spread broker offering 1 pip on EU; fairly sure they are all pips. But if you know of one, please let me know
Generally Brokers gives 2 pip fixed spreads but they could provide 1 pip rebate to their introducing brokers or they could provide 1 pip spreads for top their high quantity traders.And also there is 1 broker 1 pip fixed spread termed EMPFX.
Any idea from other pairs such as GBPUSD, USDCHF, USDJPY?
Spreads right now at Oanda are 0.9 for Euro, 1.1 for DollarYen, and 1.8 for Pound.
Oanda spreads are extremely variable and may be widened very oftenly occasionally (5 pips or longer ).And plus they reverted spreads in every Asian sessions consistently(1.2 to 2 pips)...
So their average spreads are a lot more than 1 pips should you get typical of daily spreads...
It seems like you may be thinking spreads are a lot more static than they really are. When I said spreads could be zero on EU at a true interbank ECN, that's right, however it's not like that all the time, and you'll never know when exactly. Spreads are fluid and are always in a state of flux (i.e. altering ).Quote:
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When the ECN broker you are looking at has a typical EU disperse over 1 pip AND they're still charging a commission, then you should find a new broker because you are getting ripped off.
Incidentally re. Rebates, how a lot of brokers can provide that's by increasing the spread to those customers who receive the rebates. Not all of them do it, however, IKON is just one that really does for example. I had an account with them through an IB so I could get blessings, and noticed I'd awakened spreads. I asked IKON about it, and they were very upfront telling me it was because I went through the IB.
The fixed spread broker you say (that I've not heard of), will be cutting it close if they supply a 1 pip spread without a commission.
On the opposite pairs, ECN spreads that I see are approximately 1.2 for GU, 0.8 for both UY, and 1.2 for UCHF.
Hope that helps...
There is in factn't an average price, but spread on EU at a legitimate interbank environment is virtually always less than one pip, is often zero, and is sometimes even inverted (ask lower than the bid). At a ECN, the broker makes profit entirely.Quote:
Originally Posted by ;
For a set spread broker that doesn't charge commission, so they earn profit on the spread, but that I don't know of any fixed spread broker offering 1 pip on EU; pretty sure they're all 2 pips. But if you know of one, please let me know https://www.forexforum.co.za/attachments/1528385222.png
By the way, repaired spread brokers don't have some liquidity providers. They are bucketshops that handle all orders internally, i.e. they take the other side of your transactions, selling to you when you buy, buying when you sell. All they're actually providing is that a price feed; your orders not really go anywhere...