What is a zero spread account and which forex broker is a Zero Spread Brokers, this is the question arise in every trader’s mind.
Spread is the difference between a bid price and an asking price. This difference is an actual Broker commission. Not many brokers offer accounts without spreads, but those who do can usually compare by commission (or fee) they charge per execution of one standard lot. Traders should favour brokers with the lowest commission. Unfortunately, such brokers also have high minimum account size associated with no-spread accounts.
As per the financial dictionary, “Spread” is the difference between Bid and Ask price of a currency pair.
Trading Forex without spreads offers an opportunity to know your entry and exit levels precisely. Here is a list of brokers who provide Zero Spread Account.
Zero Spread Brokers List
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Start Your Trading with Zero Spread Account
Among those choices of a broker that you can find today. Some of them will offer you with Zero Spread. Hence, those broker with this offer is known as Zero Spread Brokers. Therefore, this is an option of a broker that you can find with a different feature offered. It comes with zero spread which considers as one of the best features from brokers. Some brokers come with this kind of functionality. However, there are still further details that you need to know about this feature since every broker comes with a different rule. It is essential to understand those rules so that you will not find any broker in which you don’t know how their feature will work for you.
Facts about Zero Spread Account
- Zero spread brokers are cheaper than the trading with the spread.
- Also, Traders has direct access to the market and deep liquidity.
- Furthermore, Brokers ask trading costs as the fixed commission per trade for zero spread account.
Know More about Zero Spread
This term is quite familiar in trading since the spread is the term to define the difference of the bid price and ask when a trader make a transaction. This different may widen or narrow depending on the volatility of the pair. This spread will charge with a certain number that has been calculated by each broker. The more widen the spread; the cost will also be higher. For this reason, some traders might not prefer the broker with this kind of spread rule to let them trade. Therefore, this problem comes with the solution for those brokers that come with zero spread.
This kind of service of the feature will provide up to zero spread just like what it calls. However, it doesn’t mean that every trader will not charge at all. On the other side, the broker will determine a particular charge. Some other brokers will also use a specific type of zero spread that comes with a specific range. Despite the benefit that you can find from zero spread broker, there is also the other side that might still charge for individual cost needed for your spread with a different term.
Advantage and disadvantage of Zero Spread
Like every other entity in this world, zero spread brokers and zero spread accounts also have some advantages and disadvantages. Here is the pros and cons of a zero spread account.
- Traders have a chance to start trader as per market position.
- Trade is cheaper than the fixed spread account.
- Above all, In zero spread account, costs associated with trade is visible.
- First of all, Brokers earned money by fixed commissions.
- Also, Zero spread account has a bigger account opening size.
- Finally, Execution speeds is slower than the fixed speed account.