When selecting a broker each trader pays attention on spread size, proposed by various companies of the Forex market.
In this section is presented the table specifying exact current values of the spread at broker companies on each currency pair. The lower is the spread, the higher will be the profit. The lowest size of the spread is designated in the green color, medium in blue, high in red.
The price at which it is possible to purchase currency (Bid), differs from the price at which the same currency is sold (Ask). This difference is the commission, which the broker receives from each transaction, and it is designated by the term “spread”. Getting profit from the spread, the brokerage company in most cases gives the traders opportunity to carry out all transactions without any additional payments.
Change of Spread Size
There are some factors which can affect the spread size. If the market is trading slowly and the traded value is not so large, the spread grows. Respectively, in the case of active trading with a largely traded value of the demand and supply (high liquidity) the spread, on the contrary, tightens. Noticeable political and economic events also have an influence on spread size. When the situation in political and economic life is stable, the spread size is low. At last, but not the least on the importance the place is taken by the volatility of the currency tool. If the current volatility of the currency pair is high, spreads can widen.
The size of a spread is very important trading conditions parameter. Choosing a broker, the traders should pay to this indicator the first-priority attention.