Best online forex-2pips spread




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Best online forex-2pips spreadBest Online Forex - 2 pips spread

When you can trade online with a 2 pip spread, why pay more?

Most online forex sites don't charge an out-right commission for trades, however their gains are hidden in the difference between the bid and ask prices – what is called 'Bid/Ask Spread' or 'Market Spread'. The best online forex sites offer a 2 pips spread which is considered in the industry to be very good (Pip is the smallest price increment in the last digit in the rate).

The 'pips spread' is where forex sites make their profits, and this is where you, the trader, are paying them for their services.

To make things even more complicated, each currency pair can have its own spread – with major currency pairs usually getting a better spread than the less popular currencies. Many online forex brokers offer a 2 pip spread for popular currency pairs like EUR/USD, USD/JPY, EUR/JPY, but their spreads for other currency pairings can be 3 pips or more.

If you are trading mostly the major currencies, you can easily compare the spreads offered by the brokers, however if you wish to trade in less obvious currencies, where some players have earned huge jackpots in the past due to their higher volatility, you will have a very hard time trying to find the online forex site with the best spread on offer.

Is a 2 pips spread so important?

The difference between a 3 pip spread and a 2 pip spread may sound minor at first, but experienced traders know that it can have a huge effect on their profits, and can even make the difference between earning big money on a trade, and just breaking even, depending on the size of the trade of course.