Forex Spreads

[MrWhite]

I've just been demoing an account at a new provider (Switching from Go with MT4) and I am just wanting to clarify the spreads.

On Go for EUR/USD they offer a 2 pip spread.

On my new provider the spread goes from EUR/USD .0001 to .000080

Is the new providers spreads less than 1 pip as it suggests or is it actually fluctuating between 1 and 7 pips if I was using MT4?

The go spreads are in full decimal places i.e 2 or 3 so I am a little confused by the new providers.

From what I can figure out Go's price was 1.3953 to 1.3951 so the 2 pips is actually 0.0002

Whereas my current provider is going to 1.39552 to 1.39558

So in MT4 terms the spread is actually less than 1 pip.

Is that correct?

On USD/JPY I regularly see negative spreads, so I am guessing you enter the position in profit....


If that's the case scalpers rejoice.

MrWhite

 

[stawned]

I thought GOMARKETS offered similar ECN-like spreads?? as seen on their demo?

 

[tayser]

I thought GOMARKETS offered similar ECN-like spreads?? as seen on their demo?

not in their live accounts yet.

 

[MrWhite]

The demo feed on Go is currently different to live as they are trialling a new fee system.

They are advertising that the spreads are much tighter on the new system, but it is not on live accounts yes.

I think that is what you are referring to.

Their current live spreads are:

AUD/USD 3pips
EUR/USD 2pips
GBP/USD 3 pips

 

[tayser]

I've just been demoing an account at a new provider (Switching from Go with MT4) and I am just wanting to clarify the spreads.

On Go for EUR/USD they offer a 2 pip spread.

On my new provider the spread goes from EUR/USD .0001 to .000080

Is the new providers spreads less than 1 pip as it suggests or is it actually fluctuating between 1 and 7 pips if I was using MT4?

The go spreads are in full decimal places i.e 2 or 3 so I am a little confused by the new providers.

From what I can figure out Go's price was 1.3953 to 1.3951 so the 2 pips is actually 0.0002

Whereas my current provider is going to 1.39552 to 1.39558

So in MT4 terms the spread is actually less than 1 pip.

Is that correct?

On USD/JPY I regularly see negative spreads, so I am guessing you enter the position in profit....


If that's the case scalpers rejoice.

MrWhite

yes it's less than a pip - fractional pip pricing (5th decimal place).