The FXPro spreads are the differences between the buy and the selling price of an instrument, and the spread commission and the FXPro commission are the percentages of traded values which the company takes for itself. These are added to trades that are established when there is an opening or a closing position.
FXPro spreads are going to vary according to the predominant market conditions and the liquidity that is available at that moment for the instrument that is going to be traded. The clients receive the FXPro spreads and the FXPro commission from the interbank network that can be as low as 0.2 pips. So the spreads you can see in the FXPro cTrader is the minimum spread that can be offered by the liquidity of FXPro.
What is FxPro?
FXPro is a trading platform that has web and mobile services. It was created in 2006 in Cyprus by Denis Sukhotin. In 2010 FXPro got its license from the Financial Conduct Authority, and it built its office in London.
The FxPro spreads can be averaged as follows:
- 1 pip variable spread on average for instant operations.
- 6 pips on average for variable spreads in market execution.
- Fixed spreads vary depending on the time. During 8am and 8pm in both US and UK time, the spreads average 2 pips with the GBP/JPY breaking at 3 pips in the UK time. Between 9pm and 11pm (UK), the spreads are distributed between 2.5, 3, and 4 pips. In abnormal market conditions, they may reach 4.5 pips.
If we take it to the FxPro spreads per platform for EUR/USD, we get:
- MT4: 1.4 for instant average and 1.2 for market average variable spreads.
- MT5: 1.4 variable spreads on average.
- cTrader: 0.3 on average for variable spreads.
- FxPro Edge: Minimum average of 0.9 on variable spreads.
The trading commissions of FXPro are similar to the “mar up spread” or the “maintenance fees”, the thing is that the FXPro commissions are charged when opening and closing positions.
You can also have an extra commission charged that could be: 45 USD per million.
The commission and the spreads are definitions that should not be confused.
Commissions are either fixed dollar amounts or percentage of trade values; these ones are added to trades that are established when there is an opening or a closing position.
Some firms are going to charge only spreads, and others only commissions, and in some weird cases firms may charge both, the overall sum of charges should be noted.
Now, it is evident that the two principal costs of trading are spreads and commissions, and this trader should establish from their broker what the spreads are if some tradable instrument offered by their firm.
When it comes to FxPro commissions, trading costs only apply for FOREX and metals on spread mark-up for MT4, MT5, and FxPro Edge. In cTrader, there is a 45 USD commission per 1 million USD traded.
Types of spreads of FxPro
- Variable spread:changes in correlation with the market conditions. This type of spread is generally low in times of market inactivity, but during the volatile market, this spread can expand to 40 or 50 pips (having in mind that when there is market inactivity the spreads are in 1 or 2 pips).
- Fixed spread:this spread is set by some dealings companies for automatically traded accounts.
But, what is a pip?
There is a unit of dimension to express the change in value between one currency and another in the FOREX market and that is what is called a Pip or Price interest point. A pip is defined as the fourth digit after the decimal.
It is traduced as the smallest price move that can be given in an exchange percentage.
And usually is the last decimal lace of quotation.
How does spread work?
Let’s say we had a USD bid price of 120.00 (the price at which the broker is willing to BUY the USD) and ask of 120.07 (that is the price at which the broker is willing to SELL the USD). In that case, the spread is equal to 0.07, or $0.0007, or 7 pips, and that is the money that goes straight into the broker’s pockets, that is the money that the broker wins.
It is pretty clear that the two principal costs of trading are spreads and commissions, and this trader should establish from their broker what the spreads are if some tradable instrument offered by their firm.
Another thing to have in mind is that the FXPro broker definitely takes in the count when calculating spreads is the type of FxPro account in which you are trading. That is just because the Mini accounts are normally associated with the higher spreads(which thing is obvious). This is because the broker needs to recompense the reasonably small amount of the capital that is being traded with a higher spread, to make any of their profits.
It actually doesn´t matter where is the spread at any given time, because it symbolizes the cost that would be suffered to open and close a position in that instrument, at that moment, by marking-to-the-market (MTM) the trade at the moment it is recognized (even if the spread changes at the next moment).
It is crucial to know that the foreign exchange market is all about the supply and demand, just like any other market. The thing is that if there is a higher demand for dollars, the value of the dollar will obviously go up in comparison to other currencies.
The FXPro cTrader is an unfailing broker with amazing bonus system; and what is more significant (truly speaking) is that it owns some trading appropriate facilities for beginners in the broker and trading world (that also means that has opportunities and facilities to the advanced traders).