Company

Spread

for EUR/USD

Min.

Deposit

Platforms

Offered

Account

Types

Spread

Type

Funding

Methods

Customer

Support

Execution

Details

AvaTrade

Offers four ways to trade: Forex, Spread betting, CFD trading, and options trading

 Offers Bitcoin, Ethereum, Dash, Ripple and Litecoin
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Your capital is at risk
€/£/$100Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
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  • Micro
  • Standard
  • VIP
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  • Fixed
  • Variable

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Trust Score:

AAA

Used by:

200,000

Established in:

2006

Regulated by:

Central Bank of Ireland, ASiC ...

Plus500

Offers two ways to trade: CFDs, Forex

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Your capital is at risk
£100Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
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Trust Score:

B

Used by:

155,000

Established in:

2008

Regulated by:

Financial Conduct Authority (F...

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Your capital is at risk

eToro

Offers two ways to trade: CFD trading, and social trading

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Your capital is at risk
$50Min. Deposit Learn More
  • MT4
  • WebTrader
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  • Market Maker
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Trust Score:

AAA

Used by:

6,000,000

Established in:

2006

Regulated by:

Financial Conduct Authority, C...

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Your capital is at risk

Core Spreads

Offers one way to trade: Forex

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£1Min. Deposit Learn More
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  • Market Maker
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See Details
Your capital is at risk

ETX Capital

Offers three ways to trade: Forex, Spread betting, CFD and Binary options

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$100Min. Deposit Learn More
  • MT4
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  • Market Maker
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See Details
Your capital is at risk

City Index

Offers three ways to trade: Forex, CFDs, Spread Betting

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£25Min. Deposit Learn More
  • MT4
  • WebTrader
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  • Market Maker
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See Details
Your capital is at risk

Trade.com

Offers two ways to trade: Forex, CFDs

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Your capital is at risk
Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
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  • Micro
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  • Fixed
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  • Live chat
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Contact Details
  • Market Maker
  • DMA
  • ECN
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See Details
Your capital is at risk

XTB

Offers one way to trade: Forex

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Your capital is at risk
$1Min. Deposit Learn More
  • MT4
  • WebTrader
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  • Micro
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  • Fixed
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  • Market Maker
  • DMA
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See Details
Your capital is at risk

EasyMarkets

Offers one way to trade: Forex

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Your capital is at risk
$1Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
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  • Fixed
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  • Live chat
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  • Market Maker
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  • ECN
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See Details
Your capital is at risk

HY Markets

Offers two ways to trade: CFDs, Forex

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Your capital is at risk
Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
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  • Micro
  • Standard
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  • Fixed
  • Variable

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  • Market Maker
  • DMA
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See Details
Your capital is at risk
CFDs are leveraged products and can result in the loss of your capital. All information collected on 1/11/2017.
Fixed Spread

The Ultimate Guide to

Choosing a Broker
For Fixed Spread

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose AvaTrade
For Fixed Spread?

AvaTrade scored best in our review of the top brokers for fixed spread, which takes into account 120+ factors across eight categories. Here are some areas where AvaTrade scored highly in:

  • 11+ years in business
  • Offers 250+ instruments
  • A range of platform inc. MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 1.0 pips
  • Used by 200,000+ traders
  • Allows hedging
  • 2 languages
  • Leverage up to 1:400

AvaTrade offers four ways to trade: Forex, Spread betting, CFD trading, and options trading. If you wanted to trade EURUSD through copy trading or other means, skip to part two.

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

AvaTrade have a AAA trust score, which is v. good. This is largely down to them being regulated by Central Bank of Ireland, ASiC , FSA, FSB and BVI, segregating client funds, being established for over 11 years, and much more. For comparison:

Trust Score comparsion

AvaTrade Plus500 eToro
Trust Score AAA B AAA
Year Established 2006 2008 2006
Regulated by Central Bank of Ireland, ASiC , FSA, FSB and BVI Financial Conduct Authority (FRN 509909) and Cyprus Securities and Exchange Commission (License No. 250/14) Financial Conduct Authority, CySEC
Uses tier 1 banks
Company Type Private Public Private
Segregates client funds

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who AvaTrade is (& Isn’t)
Suitable For

As mentioned, AvaTrade allows you to trade in four ways: Forex, Spread betting, CFD trading, and options trading.

Suitable for:

  • Spread Betting
  • CFD Trading
  • Forex Trading
  • Social Trading

Not Suitable for:

  • Share Dealing

To trade with AvaTrade, you'll need a minimum deposit of $100. AvaTrade offers a range of different account types for different traders including a micro account, mini account, vip account.

Finally, AvaTrade isn't available in the following countries: US, Belgium, Canada & Singapore.

Part 3

A Comparison of AvaTrade vs. Plus500 vs. eToro


Want to see how AvaTrade stacks up against Plus500 and eToro? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
AvaTrade Plus500 eToro
Fixed Spreads
Variable Spreads
EUR/USD Spread 1.0 0.01% 3.0
GBP/USD Spread 1.8 0.01% 4.0
USD/CAD Spread 1.80.02%3.0
USD/JPY Spread 0.90.02%2.0
Crude Oil Spread 0.03 0.08% 5.0
Gold Spread 0.60 0.03% 45.0
DAX Spread 1.5 0.01% 100.0
FTSE 100 Spread 1.0 0.02% 100.0
S&P500 Spread 0.25 0.02% 100.0

Comparison of account & trading features

AvaTrade Plus500 eToro
Spread type Fixed B AAA
EUR/USD Spread 2006 2008 2006
EUR/GBP Spread Central Bank of Ireland, ASiC , FSA, FSB and BVI Financial Conduct Authority (FRN 509909) and Cyprus Securities and Exchange Commission (License No. 250/14) Financial Conduct Authority, CySEC
Crude Oil Spread
Gold Spread Private Public Private
DAX Spread

Part 4

What is the spread in forex?

Forex brokers always quote two different prices for currency pairs: the bid (buy) and ask (sell) price. The difference between these two prices is known as the spread.

Generally speaking, the spread is how “no commission” brokers make their money. Instead of charging separate fees for making trades, the cost is built into the buy and sell price of the forex pair you want to trade.

The spread is usually measured in pips, which is the smallest unit of price movement of a traded asset. For most currency pairs, one pip is equal to 0.0001. An example of a 4 pip spread for EUR/GPB would be 1.2339/1.2335.

However, currency pairs involving the Japanese yen are quoted to only 2 decimal places – an example of a GBP/JPY quotes would be 131.60/131.52. The example quote indicates a 8 pip spread.

On a typical forex platform, you can see the listing of the bid and ask prices for every currency pair. The snapshot below shows a typical example you will see when making a trade.

what is a spread

The type of spreads seen on a forex platform is determined by the structure of business offered by the forex broker. Spreads are of two types:

  • Fixed
  • Variable

Fixed spreads is usually offered by brokers that operate a market maker model of business while variable spreads are offered by brokers operating a non-dealing desk model of brokerage business.

Fixed spreads

Fixed spreads are spreads that stay the same irrespective of what market conditions are at play at any given time. In other words, conditions of slippage or intense volatility do not affect a fixed spread. Fixed spreads are seen with brokers that offer the market maker business model.

With this model, the broker buys off large positions from the liquidity providers and offers these positions in smaller chunks to traders using a dealing desk. Thus, the market maker acts as the counter party to the trade. In this manner, the broker is able to offer fixed spreads to its clients because they are able to control what is offered to these traders using the dealing desk.

Pros and cons of fixed spreads

Benefits of a fixed spread broker

  • Fixed spreads has smaller capital requirements. Trading with variable spreads requires a lot of liquidity which many retail traders cannot afford, so fixed spreads offer a viable and cheaper alternative.
  • Trading with fixed spreads also enables better trade planning. This is because traders are always sure of what they can expect to pay when they execute a trade.
  • If you are a scalper, then the fixed spread is for you. Scalping involves taking very small profits in many trades within a day. Obviously, the spread will impact on any profits made, so scalpers will be better served using fixed spreads.

Disadvantages of a fixed spread broker

  • Requotes are very common with fixed spread arrangements, since pricing is coming from just one source. There will always be times when pricing moves very fast as a result of supply-demand dynamics. With no room for spread adjustment to accommodate these movements, the broker has no option but to ask the trader to accept a new entry price provided for the trade.
  • Slippage is another huge problem. When prices are moving fast, the ability of the broker to offer a fixed spread is compromised and the price fill may end up being far worse that if a widened variable spread was use.
  • Because fixed spreads are only possible because the broker’s dealing desk is controlling the order flows and execution prices, you may find the concept of trading with fixed spreads not very attractive.

Fixed vs Variable Spreads: Which is Better?

The question of which is a better option between fixed and variable spreads depends on the situation of each individual trader.

There are traders who will find the use of fixed spreads more advantageous than using variable spread brokers. However, the reverse can also be the true for other traders. Generally speaking, traders with smaller accounts and fewer monthly trades will benefit from fixed spread pricing.

Popular choices made by different trader types:

Fixed spread traders

Scalpers: Those who get in and out of the market very quickly, multiple times a day and just take a few pips at a time generally prefer trading with fixed spread brokers. However there is a caveat that a broker offering wide fixed spreads may not be the best fit.
News traders: Traders who trade the news could benefit from using fixed spreads. Some traders have complained of spreads widening to as high as 50 pips during news trades with floating spread brokers, therefore choosing a broker with the fixed spreads brokers could prevent this.
Traders with micro accounts: Low frequency traders and those with smaller deposits using micro accounts could be better off fixed with spread brokers. You will not pay extra commissions (just the spread as discussed above) on trades, unlike with floating spread brokers who charge commissions on each side (buy and sell) of trades.