Lowest Spread + Trading Service = Excellent!
What is your consideration when choosing a forex broker ? Lowestspread ? Commission per lot? Service?
Usually one of the things above is a consideration in choosing a broker.But usually the most attention is spreads and commissions.
Most traders want trading with the lowest spread possible.
Strict spreads are more desirable because to “chase” BEP (break event points) for transactions you make will be relatively smaller. For example the spread for EURUSD is 0.3 pips (0.00003 points).
For example, you make a transaction to buy EUR / USD at a price of 1.161 00 (Bid) /1.161 03 (Ask), then the transaction will be executed at the price of 1.16103 (Ask price). At that time you will experience floating loss as much as the current spread , which is minus 0.3 pips (0.00003 points). In my experience, 0.3 pip doesn’t take long. In the Asian market, maybe only as fast as you count 1 to 3, especially if the European and American markets will be even faster.
The story will be different if the spread is wide – for example – 3.0 pips.When you buy at a price of 1.161 00 (Bid) /1.161 30 (Ask), then you must wait for the price to rise by at least 30 pips to get BEP.
Do you think like that? Let’s think again.
Not Just Spread
Okay, you might have found a broker with a tight spread. But is that the only thing that needs to be seen?
You certainly understand that the forex market works in the “24 x 5” format; 24 hours a day, 5 days a week. Therefore, make sure you also choose a broker that has a “24 × 5” service as well as for its customers, so you don’t need to be confused if you face technical difficulties in trading.