FxPro Spreads vs Competitors

Introduction

When choosing a forex broker, one of the key factors traders consider is the cost of trading, often reflected in the spread. The spread is the difference between the bid and ask prices of a currency pair, and it represents the cost of entering and exiting a trade. FxPro, known for its competitive conditions, offers various types of spreads depending on the chosen platform and account type. This article analyzes FxPro’s spreads, compares them with those of other brokers, and explains how spreads can impact your trading.

Spreads

FxPro provides different account types and platforms, each with its spread conditions:

• Standard Account: Floating spreads starting from 1.2 pips on MT4 and MT5 platforms. This account is suitable for traders who prefer simplicity and no commissions.
• Raw+ Account: Spreads close to zero (0 pips) on MT4 and MT5 with a commission of $3.5 per lot for opening and closing a position. This account is ideal for traders seeking minimal spreads and willing to pay a commission.
• Elite Account: Similar to Raw+, but with additional benefits, including up to 21% commission rebates. Designed for active traders looking for premium conditions.
• cTrader Account: Spreads from 0.2 pips with a commission of $35 per $1 million for opening and closing a position. It offers advanced features for professional traders.

FxPro vs Competitors: Spread Comparison

To evaluate how FxPro compares to other brokers, we’ll examine the spreads of well-known competitors:

Major Competitors

• IG Group: Offers spreads from 0.6 pips on major currency pairs. Known for fixed spreads, which may widen during periods of high volatility.
• OANDA: Offers spreads from 1.0 pips on major currency pairs. They are known for providing transparent pricing, but their spreads are higher than some other brokers.
• XTB: Offers spreads from 0.1 pips on standard accounts, but commissions apply, which increases the overall cost of trading.
• Interactive Brokers: Known for very low spreads, sometimes as low as 0.1 pips on major currency pairs. However, they charge a commission, which may result in higher overall trading costs for lower-volume traders.

Spread Comparison

From the table above, it’s clear that FxPro’s Raw Spread account offers some of the lowest spreads in the industry, particularly for the EUR/USD pair. However, brokers like IG Group and OANDA also provide competitive spreads, especially when market conditions are favorable.

Factors Influencing Spreads

Several factors can influence the spreads offered by forex brokers, including:

• Market Volatility: During periods of high volatility, spreads tend to widen as brokers adjust their pricing to account for increased risk.
• Liquidity: More liquid currency pairs, like EUR/USD, tend to have tighter spreads compared to less liquid pairs.
• Account Type and Platform: The choice between a standard account with fixed spreads and an account with floating spreads and commissions affects the overall cost of trading.
• Time of Day: The forex market operates 24 hours a day, but spreads may fluctuate depending on the time of day, especially during major news releases.

Conclusion

FxPro offers a variety of accounts and platforms with competitive spreads, making it an attractive option for traders who want to minimize trading costs. However, traders should consider other factors, such as commissions and account types, when evaluating the total cost of trading. Compared to competitors like IG Group, OANDA, and XTB, FxPro holds its own with some of the tightest spreads available in the market. For those focused on minimizing trading costs, FxPro is a strong contender in the forex broker space.

FAQ

1. What types of accounts does FxPro offer, and how do they affect spreads?

FxPro offers standard accounts with fixed spreads starting from 1.2 pips and Raw+ accounts with floating spreads from 0 pips with a commission. Elite accounts provide similar conditions to Raw+ but with additional benefits, and cTrader accounts offer spreads from 0.2 pips with a commission.

2. How do spreads affect the total cost of trading?

Spreads are a key component of the costs when opening and closing positions. Traders with active strategies or those sensitive to trading costs may prefer accounts with lower spreads and commissions, despite the additional charges.

3. Why do spreads widen during news events?

During important economic announcements, liquidity may decrease, leading to wider spreads as brokers adjust for increased risk and volatility.

4. How should I choose the best account type on FxPro based on my trading style?

Active traders or those using strategies sensitive to costs may prefer Raw+ or Elite accounts to minimize spreads and commissions. Beginners or those preferring predictable costs may opt for the standard account.

5. Does FxPro offer fixed spreads?

Yes, FxPro offers fixed spreads on standard accounts. However, for accounts with floating spreads, the spreads may change depending on market conditions.