The spreads offered by your broker affect your total trading costs and thus your profits. So expert traders are keen to choose brokers with access to deep institutional liquidity pools, which allow them to offer the lowest spreads on all types of assets, including forex and other types of assets.
Also, choosing the right broker is very important to reach the best trading conditions. Depending on the trading strategies, selected assets, capital, and other requirements, the broker should be able to offer you the right account type that will help you maximize your trading potential.
BDSwiss offers customers spreads low Extremely On a wide variety of assets, regardless about their account types. All clients are offered direct liquidity by routing orders through world class financial institutions, so that they enjoy access to real market prices and improved trading conditions.
But before we get into that, let's take a look at how spreads affect your trading results.
Mechanism for calculating spreads and trading costs
The spread is simply the gap or difference between the bid and ask price of an asset.
If you are thinking of trading a specific currency pair for example, such as the EUR/USD pair, you will see the current quote for the pair, bid/ask or buy/sell as follows:
EUR/USD = 1.20748
Selling = 1.20745
Purchase = 1.20761
So, for example, if you want to buy EUR/USD the spread is calculated here as: 1.20748 – 1.20761 = 0.00013
The pip value will be determined as the fourth digit after the decimal point in the EUR/USD pair, which means that the final spread is displayed above at 1.3 pips
So, if you wanted to buy 1 lot on EUR/USD, you would buy at 1.2076$ per EUR plus the spread of 0.0001.3$ times 100,000 (which is the size of 1 lot). In other words, to open a position at 120,760.00$ on EUR/USD you will need to pay 13$ as the spread, so your position will open negative 13$ at 120747.00$ Similarly, if you are selling a position on EUR/USD, you can sell it at 1.2074$, but you do not Still need to pay the price difference.
To calculate the total spread, the lot size factor must be taken into account. For example, if you are trading a standard lot of EUR/USD, this means that you are trading 100,000 units of the currency.
And here the spread will be = 0.00013 x 100,000 = $13.
Factors that affect price differences
You should know that spreads can vary throughout the day, especially when your broker offers variable spreads.
The main advantage of variable spreads is that they enable you to access the best market prices in real time, which can be much lower than calculating a fixed spread. However, many factors can widen the bid/ask spread including:
- Releases of major economic data or the time before them
- Transfer time between trading sessions or trading outside working hours
- High Impact Newsletters
For forex trading, the spreads are usually lower during trading sessions Like the New York and London sessions. The above events can also lead to high volatility and low liquidity in the market, which affects the price difference.
The best way to stay prepared for such events is by following Agenda Economic.
BDSwiss provides its clients with advanced tools to stay ahead of current events through alerts Trading in time Actual and conduct Comprehensive analytics to market Easily.
Types of trading accounts and their features
The right broker is the one that can offer customized trading solutions to its clients including accounts that offer extremely low spreads.
BDSwiss offers the most competitive trading terms across a wide range of asset classes. Traders can trade CFDs on more than 250 assets including forex, indices, metals, stocks and commodities. taking advantage of Trades With the powerful and intuitive tools offered by BDSwiss, traders can deploy different types of trading strategies and enhance their risk management.
Take a look at the three types of accounts that traders can choose to take advantage of our customized trading solutions:
- Classic Account
you may start a journey your trading With a classic account, which offers spreads from 1.5 on the most liquid currency pairs, including the EUR/USD. And with a minimum deposit of $100, you can access multiple features, such as:
- There are no fees for deposits and withdrawals
- Access to trading alerts
- Built-in basic trend analysis tools
- Standard Autochartist Tools
- Access to trading education through live webinars and BDSwiss Trading Academy
- Islamic account option
- Daily market analysis reports
- Free webinars and access to the Trading Academy
- Zero commissions on all forex pairs
- VIP account
For expert traders who want to take advantage of premium tools, low trading costs and priority services, an account VIP It offers unparalleled trading conditions, with a minimum deposit of 3,000$.
- Zero commissions on all currency pairs and indices
- Low spreads, starting from 1.1
- VIP Trading Alerts via Telegram
- Premium trend analysis tools
- VIP access to exclusive webinars
- personal account manager
- Autochartist VIP Performance Statistics
- Daily market analysis reports
- priority services
- Free webinars and access to the Trading Academy
- an account RAW
For advanced traders who trade forex in large volumes, trading costs can be an important factor. Short-term trading strategies can benefit from the lowest spreads for forex trading starting from 0.0 pips per an account RAW From BDSwiss. Premium trading terms are also available for a RAW account with a minimum deposit of 5,000$.
- Net account spreads starting from 0.0 pips
- VIP access to exclusive webinars
- personal account manager
- Advanced Autochartist Tools
- VIP Trading Alerts via Telegram
- Basic trend analysis tools
- Daily market analysis reports
- priority services
- Commissions at 5$ for forex pairs, 2$ for indices, 0.15% for stocks
- Free webinars and access to the Trading Academy
Regardless of account type, BDSwiss does not charge any fees for deposits and withdrawals, and offers competitive leverage and 24x7 customer support for all traders. It also guarantees transparent fees and commissions to continue Traders control their capital and costs.
Monitor your trading performance while on the road
Featuring phone app mobile BDSwiss As a multi-award winning trading interface, it has been developed in-house to allow traders to access all CFD asset positions available on the MT4 platform, to be able to trade on any mobile device. Moreover, BDSwiss . offers< A risk-free €10,000 demo account, which is a great way for traders of all experience levels to experience the platform's premium trading features. Traders can also use this account to practice their trading strategies and get familiar with its features before trading the markets with real money.
Other factors that may affect your trading costs
Regardless of the low spreads, timely execution is critical to your strategies so that you can practice them the way you planned. As is performed more than 89.6% of All deals In less than 0.2 seconds on the podium. With the help of live streaming, best executable rates and instant confirmation, traders can avoid re-quotes and slippage.
Slippage occurs when the execution price differs from the order price, due to the system's response time. Reliable trade execution is just as important as low spreads for managing trading costs. BDSwiss offers fast market order execution, with minimal response time.
For long-term success in the financial markets, it is important that you have the support of a transparent and regulated broker such as BDSwiss, who invests in your trading journey and in your success.
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