Many of my trading friends were urging me to review FxPro spread and commission for them since a lot of its advertisements appear when they’re on the Internet. They saw that FxPro advertised itself as one of the brokers who offer the lowest spread rate. So is FxPro spread really low? How much is its commission? Today I will answer all those questions and also compare FxPro to other brokers such as Exness, XM, and HotForex to see how good it actually is. For more information, you can check my FxPro reviews here.
FxPro is proud of itself by claiming it has the tightest spread, a point which I don’t agree. The average spread of FxPro for the most common currency pair, EURUSD, is 1.7 pip. This spread rate is relatively high compared to the spreads of other brokers. One reason is because FxPro is an European broker, and most European brokers have high spreads.
Compared to FxPro, Exness, XM, and HotForex all have tighter spread.
Exness has Mini and Classic account, whose spreads are only around 0.7 pip. Check Exness spreads.
In the past, XM was one of the brokers that have really high spread. However, in December 2018, XM introduced the Ultra Low account. This account offer a very competitive spread rate, at about 0.8 pip. So now, XM can confidently claim that they are among the top lowest spread brokers. Check XM Ultra Low account.
HotForex’s spread has always stayed at an acceptable rate, at around 1.1 pips. Yet, it is still surely lower than that of FxPro. Check HotForex spreads.
Types of spread in 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.
How does spread work?
Let’s say we have a USD bid price of 1.12345 (the price at which the broker is willing to BUY the USD) and ask of 1.12356 (that is the price at which the broker is willing to SELL the USD). In that case, the spread is equal to 0.00011, or 1.1 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 keep 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. 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.
When you trade with regular accounts, you’re paying the brokers with spread. When you trade with ECN accounts, the spread is really low, almost zero, so the brokers will now charge you commission. So obviously, it is better to have a broker who charges the least. When you trade FxPro ECN account, the commission charged is 90 USD per a million traded.
And the $90 rate for commission is quite high. Exness only charge you $50 when you open an Exness ECN account. Check Exness ECN account.
HotForex offers you a reasonable commission rate, which is $60 for every million traded, when you trade with its Zero Spread account. Check HotForex Zero Spread account.
XM doesn’t have a true ECN account so I will not mention it here.
Is FxPro reliable?
OK, so we know that FxPro’s spread and commission are high, but that doesn’t mean this broker is bad. FxPro is a good broker with great trading platforms and credibility.
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 (FCA), and it built its office in London.
To know whether a broker is reliable or not, we should look at its regulation. If that broker can acquire the hard-earned regulation from trusted and famous financial organizations, you can know that it is trustworthy. FxPro obtains an FCA regulation, which makes it as reliable as others like Exness, XM, and HotForex.
- See FxPro regulations here.
- See Exness regulations here.
- See XM regulations here.
- See HotForex regulations here.
FxPro is also a member of the Financial Services Compensation Scheme (FSCS). This scheme is great because it guarantees the clients’ right to claim compensation in case the broker goes bankrupt.
One feature that I love about FxPro is that they upload the executions data quarterly which demonstrate the quality of their executions in that period and how much the slippages were from every order. This is a big step to show how great and transparent they are.
Check FxPro reports here.
Overall, FxPro provides the full suite of MetaTrader and cTrader platforms, giving traders a diverse selection of trading options depending on their trading style. FxPro platforms have many advantages, such as:
- FxPro offers all MetaTrader platforms, including web and desktop, for MT4 and MT5.
- Traders on the MT4 or MT5 platforms who use automated trading systems and are known as “expert advisors” (EAs), can choose between the desktop or mobile versions of both platforms with either floating or fixed spreads, and instant execution.
- The cTrader HTML5 web-based platform at FxPro packs advanced charting tools within a smooth design layout that is easy to navigate and features narrows spreads with commission-based pricing.
- For traders interested in cryptocurrency, bitcoin trading as a CFD under the cryptocurrency pair BTC/USD is available on both MT4 and cTrader, along with several other cryptocurrency pairs, such as BCH/USD, ETH/USD, and XRP/USD. This cryptocurrency CFDs offering is initially available to clients who hold an account with FxPro’s UK and/or Bahamas entity.
In conclusion, FxPro is a reliable forex broker from the UK. It is safe to trade with. However, due to having one of the most prestige regulations, FxPro has to charge wide spread and high commission rate. To traders in Asia, Africa, or Australia, I recommend trading with Exness, XM, or HotForex, three of the best forex brokers.