What is a Forex Spread in Trading (Part 3)

Previous part : https://cutt.ly/CjEXEEJ

Forex account without spread

Are you wondering if it is possible to trade Forex without a spread ？

No dealing desk trading accounts or ECN accounts are accounts with no brokerage fees for the broker. On this kind of account, you only pay the interbank fees, for example, 0.1 - 0.2 pips on the EUR/USD pair.

In this case, the broker will charge a fixed commission for each negotiated contract, because of course, no one gives access to the market without fees and also, brokers must be remunerated.

Which is the best Forex spread ？

The best forex spread is the interbank spread. The interbank spread is the true spread of the currency market and the spread between the bid and ask prices of the exchange rates. To have access to the interbank spreads, you need an ECN or STP account. On this kind of Forex trading account, the investor pays only a commission and has access to the interbank spreads.

How to see the spread on MetaTrader 4 ？

Once your MetaTrader 4 trading platform is open, all you have to do is go to the “Market Observation” section if this is not already present on the left side of your screen.

Now here are two available solutions included by default in the MT4 forex trading platform :

1.Right click on your mouse in the white part of the window and select “Variance”. This manipulation displays you directly the corresponding spread in real time after the bid and ask quotes for each instrument.

2.On an MT4 trading chart, right click your mouse and select “Properties”

This second option opens a parameter window which is linked directly to the MT4 trading chart, all you have to do is to check the box “Show ASK line (request)” in the “General” part of the MT4 parameters and click OK.

So, the spread is represented on your MT4 forex trading chart with the help of a red line ---- the ASK line, which materializes the current quote. The difference in size between these two lines represents the spread visually .

(To be continued ... )