Brokers with floating spread are the most attractive to traders who enter into a large number of trades per day. Such trading strategy is scalping, or pipsing. Their meaning consists in fixing the minimum return (sometimes no more than 2 points). However, the number of such transactions can be more than 100 a day, so it is important to find a broker who charges a low spread.
Most often, brokers offer accounts with two types of spread to choose from: a fixed or floating. Brokers fixed spread more suitable for trading using automated systems (advisors), as they offer a more transparent trading conditions. fixed spread is not expanded under the influence of the release of important economic news, but it has one drawback – its size is often 2-3 points.
The main advantage of brokers with floating spread is its size, which is 0.1 points. The disadvantages of floating spread is that it can greatly expand during the release of important news, as well as before closing forex on Friday, and sometimes as high as 50 points. However, when skilful approach to trading accounts with floating spread can significantly save your money.