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What are the benefits to trading on low forex spreads



forex





There are many benefits that come with the super-tight forex spreads available in an FXCM Standard account. First, lower transaction costs. The spread is one component of your transaction cost. So, lowering the spread—all else remaining equal—lowers your transaction cost.

• Profitability: Lower transaction costs put you in a better position to trade profitably. The market doesn’t have to move as far in your favor for your trades to become profitable.

• Trading Style: Lower transaction costs also open the door for you to explore more trading styles and opportunities. This is especially true for those who use EAs and other types of automated trading strategies and for scalpers. The more trades you place, the more transaction costs you have to pay. Thus, low transaction costs could be the difference between success and failure for active traders who are looking for small, quick profits.

In addition to helping lower transaction costs, super-tight forex spreads can also have a significant impact on your trading performance due to the benefits you gain with stop- and limit-order execution.


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