The FXORO Fixed Spread trading account is designed to primarily accommodate forex traders who require fixed spreads. In order to downpay a little bit of the volatility, the trading spread remains constant throughout most trading conditions and a better spread than the variable alternative on average. No matter what the trading conditions are, the trader is most of the time guaranteed of the difference between the buying (ask) and selling (bid) price.
- Cheaper to trade around key economic events: One main advantage of trading on fixed spread is that traders are most of the time guaranteed reliable spreads throughout times of market volatility such as interest rate announcements. Volatile times are often the periods during which spreads may widen dramatically abruptly frequently catching traders off guard.
- Ease of mind: Tight fixed spreads mean that our clients can trade with peace of mind, knowing that even in the most volatile market conditions, where spreads can widen excessively, they can continue to enjoy the same spreads most of the time. Equally, traders of minor or exotic FX pairs can trade with the knowledge that for these specific pairs, our forex spreads will be capped most of the time at specific levels, even during periods of low market liquidity.
- Less slippage: Slippage is common in the forex markets, particularly when prices are moving quickly. One of the downsides of slippage is that if a price moves by the time your trade is placed into the market, your execution price could be slightly worse. With fixed spread account, the chance to have slippage is lower than when the spread is variable.