CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
Variable spreads are also known as floating or dynamic spreads. As the name suggests, variable spreads are always changing. With Variable spreads, there is a continuous change in the difference between the bid and ask prices of an asset. Variable spreads are offered by non-dealing desk/direct market access brokers who typically run their business over Electronic Communication Networks (ECN).
The hallmark of brokers offering this model is that they get the pricing of assets from several liquidity providers and pass on same to the trader without the intervention of a dealing desk. Spreads will therefore widen or narrow based on the demand for the asset and the market volatility.
Typically, spreads widen during news releases as well as other periods when the liquidity in the market drops. For example, a trader may open the GBPUSD currency pair with 2 pips in spread, but just as the execution is about to be made, a press release affecting the currencies like Brexit may cause the spread to widen to 10 pips.
If you unsure as to what a spread and pip is or want to know more about fixed spreads, take a look at our What is a spread article.
Generally speaking, frequent traders and those with larger accounts will benefit from floating spread pricing.
Swing or position traders: Traders who make hundreds of pips per trade in very few trades that are kept open for days or weeks, benefit from floating spreads.
Large accounts: Traders with larger accounts who prefer having a selection of pricing from different liquidity providers, generally choose floating spread brokers.
Fast Execution: Traders who need faster executions without requotes, often trade with a floating spread broker.
Forex.com scored best in our review of the top brokers for variable spreads , which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex . If you wanted to trade EURUSD
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.
Forex.com have a AAA trust score . This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|USD/JPY Spread||0.90||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|