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Spread

for EURUSD

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Markets.com

Offers five ways to trade: Forex, Shares, Indices, Commodities, ETF and CFD

 
Markets.com
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$100Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
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  • Market Maker
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Trust Score:

B

Established in:

2008

Regulated by:

CySEC, Financial Services Boar...

CFDs are leveraged products and can result in the loss of your capital. Rankings are influenced by affiliate commissions. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For Low Slippage

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 Markets.com
For Low Slippage?

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

  • 9+ years in business
  • Offers + instruments
  • A range of platform inc. MT4, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 2.0 pips
  • Used by + traders
  • Allows hedging
  • 5 languages
  • Leverage up to 100:1

Markets.com offers five ways to trade: Forex, Shares, Indices, Commodities, ETF and CFD. 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.

Markets.com have a B trust score, which is good. This is largely down to them being regulated by CySEC, Financial Services Board, segregating client funds, being established for over 9 years, and much more. For comparison:

Trust Score comparsion

Markets.com
Trust Score B
Year Established 2008
Regulated by CySEC, Financial Services Board
Uses tier 1 banks
Company Type Public Private 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 Markets.com is (& Isn’t)
Suitable For

As mentioned, Markets.com allows you to trade in five ways: Forex, Shares, Indices, Commodities, ETF and CFD.

Suitable for:

  • CFD Trading
  • Forex Trading

Not Suitable for:

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

Finally, Markets.com isn't available in the following countries: AF, DZ, AS, AO, AU, BE, BA, BR, KH, CA, CN, CU, KR, GU, GY, HK, ID, IR, IQ, IL, JP, LA, MO, MY, MM, NZ, MP, PA, PG, PH, PR, RU, SG, KR, SD, SY, TW, TH, TR, UG, VI, VU, USA, VN, YE.

Part 3

A Comparison of Markets.com vs. vs.


Want to see how Markets.com stacks up against and ? 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.
Markets.com
Fixed Spreads
Variable Spreads
EUR/USD Spread 2.0
GBP/USD Spread 2.0
USD/CAD Spread 3.0
USD/JPY Spread 3.0
DAX Spread 2
FTSE 100 Spread 2
S&P500 Spread 1

Comparison of account & trading features

Markets.com
Spread type Fixed
EUR/USD Spread 2008
EUR/GBP Spread CySEC, Financial Services Board
Crude Oil Spread
Gold Spread Public Private Private
DAX Spread

Part 4

What is Slippage?

Slippage is the difference between the price a trader places their trade at and the price at which the trade is executed. This can either be to the trader’s advantage (positive slippage) or disadvantage (negative slippage).

Slippage can occur both when a trader enters a market or exits the market. When a market order is placed via a no dealing desk broker, the trader is provided with a bid/ask price on their trading platform and uses this to place the trade. If, however, this price is not available for their order at the time it is executed, it will be filled at the next available price in the market; or part of the trade may be filled at their requested price, but the remainder filled at the next best available price.

Slippage can be a symptom of high market volatility, which can occur immediately after a news opening, for example; or low market liquidity, which can occur when trading currency pairs that are rarely traded. Execution speeds play a major role in slippage. Any delays between the initiation of the order and the execution of the order can result in a price change. Delays can be caused by the trader using a poor internet connection or by placing the trade through a broker that does not offer the most advanced technology, affecting the speed at which they are capable of executing orders.

A trader will want to maximise positive slippage and reduce or avoid negative slippage where possible.

Minimising Negative Slippage

Slippage can be avoided by using brokers who offer instant execution rather than market execution. This is because the trade is guaranteed to be executed at a specific price. The issue here, however, is that if the price that the trader requests becomes unavailable due to the time lag between the placement of the order and its execution, a requote from the broker will be necessary, causing further delays. Successive requotes, particularly during fast-moving markets, can mean that a good trading opportunity is lost; whereas a market execution order would have been filled at the next best available price.

One way of controlling the price at which the order is executed is to set a market range. This will allow a trader to limit slippage as the order will cancel rather than be filled at a price that has slipped outside of their specified range. Where a trader authorises partial fills, only part of the order will cancel if the remainder can be filled at a price within the trader’s market range.

Another way to mitigate the risk of negative slippage is to use a broker with proven low slippage rates. Brokers using advanced technology who can offer fast execution speeds are preferable for traders wanting to reduce the impact of slippage on their trades. ECN (Electronic Communication Network) / STP (Straight Through Processing) brokers offer automatic rather than manual execution, which means trades can be processed at very high speeds.

Avoiding trading in highly volatile markets is another way to reduce slippage, however this will also limit the trader’s opportunity to benefit from positive slippage when the market moves in their favour.

Maximising Positive Slippage

If a broker offers price improvements, this means that when an order is to be filled at the best available price in the market, if a better price becomes available at the time the order executes, this will be the price that the trader receives.

When limit orders and limit entry orders are used by a trader, this means that the trade can only be affected by positive slippage as the requested price or a better price is guaranteed.

Finding a Low Slippage Broker

Choosing a no dealing desk, ECN / STP broker, with up-to-date systems and fast execution speeds, is the best way to reduce the impact of slippage on an order.

Brokers with fast execution speeds such as XM publically state on their website regarding the execution policy and speed.


xm-execution-policy

It is also beneficial to look for a broker that offers price improvements as this means that the trader can receive positive slippage on their order if the price rises sharply past a set limit. Brokers such as FXCM offer clients positive slippage.

Using a regulated broker is always recommended, as it will mean that the broker is working to standards that assure a client’s interests are protected.


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