Brokers fixed spread – is dealing centers are charged a fee for the provision of their services in the form of the spread, the amount of which is registered in advance in the contract specifications and is usually 2-3 points. Traders choose fixed spread to protect the deposit from a sharp widening of spreads in the news release. When floating spread while increasing the volatility of currency pairs are often an extension of the spread knocks open positions on foot. In the case of a fixed spread is completely excluded. The trader known in advance the size of the spread, so it takes into account its impact at the opening of the new deal.
In addition, brokers with fixed spread are ideal for scalping or trading on the news. In this case, the trader is not afraid of mood swings in the Forex market. Also fixed spread can be useful to those who use in their trading automated trading systems. For normal operation, some counselors in their settings, you must specify the size of the spread, so it is better that it be fixed.
However, it is worth remembering that offer fixed spreads are usually only those dealing centers, which are market-makers, so there may be a conflict between the broker and the trader. If you want a more transparent trading conditions, you’d better pay attention to the brokers, which displays transactions on the interbank market.