Compare The Best Fixed Best Brokers in 2023

Finding a broker that offers low, fixed spreads can be a critical factor to becoming a profitable trader.

Never forget – the lower or tighter the spread, the cheaper it is to trade. And the cheaper it is to trade, the better chance you have of turning a profit.

Fixed spread brokers are different to variable spread brokers, in that they do not change their spreads throughout the trading day. This can be viewed as a massive competitive advantage.

Below, we list some of the best fixed spread brokers available, and also list the benefits of using fixed spreads.

To those new to online trading, the spread is the difference between the buy and sell price on a broker’s trading platform. For instance, if a broker is quoting the Wall St 30 index as 30,005 – 30,007, the spread is 2 points.

Every time you open a trade, you will pay ‘the spread‘ – this is the cost or commission that a broker earns from your trading activity. Always remember that the lower the spread, the cheaper it is to trade. The wider or bigger the spread, the more expensive it is to trade.

Moving on; there are two types of spread, fixed spreads and variable spreads.

Fixed Spreads

A fixed spread, as the name implies, means the spread charge remains constant throughout the trading day, i.e. it is fixed and does not change, even in times of volatility.

With a fixed spread, you will always know how much you are going to pay when opening a trade. This means there will be no surprises as you will know (or be able to find out) the spread before you start trading.

Variable Spreads

A variable spread, again as the name implies, will vary depending on market conditions. Unlike fixed spreads, variable spreads do not remain constant and change all day long depending on market volatility and some other factors.

At certain times, variable spreads can be far cheaper than fixed spreads, however in times of extreme volatility, the opposite is more likely to be true (fixed spreads will be cheaper).

It is reasonably accurate to assume that most CFD brokers offer variable spreads.

There are many benefits in trading with a broker with fixed spreads, some of these are mentioned below.

Requotes

It is possible for your trade to be requoted with a fixed spread broker. Unfortunately, the faster the movement of pricing, the more common requotes become.

Slippage

Another common issue is slippage. Again, this can be common when the markets are moving quickly due to volatility.