Compare Leading Variable Spread Brokers

Are you looking for a broker that offers variable spreads? Great – you have come to the right place. 

Spreads offered by brokers can either be fixed or variable, and the type of spread preferred by a trader will very much depend on an individual’s trading style.

Variable spreads are the difference between the buy and sell price of an asset, but more on that below. In this guide, we will explain what variable spreads are, the benefits of trading using a broker with variable spreads and list some of the best variable spread brokers.

Variable spreads, also known as ‘floating’ or ‘dynamic‘, are spreads that are constantly changing, depending on market conditions (i.e. volatility).

With variable spreads, there is a continual change in the bid (buy) and ask (sell) prices of a financial asset. At times, variable spreads can be significantly cheaper than fixed spreads.

A major benefit of using a variable spread broker, is that they get their pricing from a wide range of liquidity providers, which means they often have spreads starting at 0.1 pips.

Variable spreads are generally offered by DMA brokers (i.e. non-dealing desk) who run their businesses though an Electronic Communication Network (ECN).

Not Suitable For New Traders

When you are learning to trade, you need stability and complete transparency. In this regard, fixed spreads are better suited for beginner traders as they offer complete trading cost transparency. We would say that variable spreads are more appropriate for the more experienced trader.

Not For Scalpers

Due to the nature and strategy of scalping, variable spreads can add uncertainty to a scalper’s entry and exit price, making it a no-go for them.

Wide Spreads

Fixed spreads offer certainty, whereas variable spreads do not. Many brokers will claim to offer “spreads from 0 pips” but how often do you get 0 pip spreads; probably never!