Hi traders and welcome to last week’s spread wrap. It’s never been better to be a forex trader, with forex brokers competing extremely competitively on spreads and commissions in 2021.
Why Do Spreads Matter?
It’s essential for traders to know the spread in the forex market. The spread is a key cost in each forex transaction, and minimising your trading costs is a foolproof way to improve your trading account’s bottom line. Factoring spreads (the difference between the price you buy and sell a forex symbol at) is critical for forex traders to maximise their forex profits.
Last Week’s Best Spreads
TradeProofer’s average spreads cover are composed of all the market data from each week. This includes illiquid hours, also known as roll-over. The roll over is where brokers close out and re-open all client positions, allowing them to settle financial accounts. The client will not see the position re-opening & closing, however they will see a wider spread during this period. This is because forex brokers are protecting themselves from price changes whilst closing and reopening transactions.
Accurate, Reliable and Trustworthy Data With TradeProofer
Before we get into the numbers, a little bit about TradeProofer’s data for those of you who are new here. TradeProofer’s community of forex traders use our MT4 software, all contributing to our data quality. Every month we monitor over 2B+ spread ticks across 50+ broker feeds, along with swap, commission and trade execution data. This means that our data is independently, verified and trustworthy.
TradeProofer’s spread data is backed by our forex trading community and is reflective of the live trading environment, as opposed to target spreads that forex brokers may show on their websites.
Best AUDUSD Spreads – The Top 3
- Go Markets – 0.192 pips
- Tickmill – 0.213 pips
- Global Prime – 0.221 pips
Those are some very tight spread averages! Let’s have a look at what the spreads looked like during a typical trading day last week.
Best EURUSD Spreads – The Top 3
- Tickmill – 0.038 pips
- TMGM Edge – 0.095 pips
- FP Markets – 0.095 pips
All EURUSD spread averages for last week’s top 3 were below 0.0 pips. It doesn’t seem that long ago when spreads were all wide during the 2020 crash – how things have changed!
Best GBPUSD Spreads – The Top 3
- IC Markets – 0.360 pips
- Vantage FX – 0.393 pips
- Go Markets – 0.398 pips
In recent weeks we’ve noticed that Vantage FX has improved spreads across all their major FX pairs. Let’s have a look at typical spreads through a trading day.
Best USDCAD Spreads – The Top 3
- Go Markets – 0.246 pips
- IC Markets – 0.309 pips
- TMGM Edge – 0.347 pips
The Loonie (USDCAD) has been popular in 2021. The CAD is a commodity based currency, heavily correlated with Oil prices. The rise in oil prices has seen the CAD appreciate throughout the year so far. Let’s look at last weeks spreads throughout a typical trading day.
Best USDCHF Spreads – The Top 3
- Tickmill – 0.378 pips
- IC Markets – 0.386 pips
- Go Markets – 0.428 pips
Quite competitive spreads! On the widget below try clicking and dragging to zoom in on certain hours!
Best USDJPY Spreads – The Top 3
- Tickmill – 0.040 pips
- FP markets – 0.099 pips
- IC Markets – 0.121 pips
The dollar yen has seen some big moves so far this year. This is a great pair for forex scalpers and EA traders, with high volatility and very low spreads. Check out the chart below to see the USDJPY spreads through a typical trading day of last week.
Best Forex Spreads Overview
IC Markets, Go Markets and Tickmill seem to be consistent in offering great spreads across forex major pairs. There are a lot of factors that traders should consider when choosing a forex broker, however spreads are an important part of that equation.
Sign up for TradeProofer’s free MT4 software to join our community and monitor the slippage on your forex trades!