Having looked at the spread on my platform (25 pips) I just have to ask...why on earth would you want to even consider trading that pair. A quick analysis tells me it moves about 100 pips / day. Unless you have a special requirement look for some volume. Just my humble but somewhat biased opinion.
nine
Senior member
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Lets be real here.
Things that have a low spread have high liquidity ... take eurusd.
Things with low liquidity must have a high spread because thats the nature of markets. If there isn't someone to cover the other side the players will let the spread drift to pay them for their risk. They are taking a risk with poor liquidity contracts whether they be nzdaud or lumber or palladium - and you must get paid for the risk (or you'll be a loser). If you find someone with an unnaturally low spread then look carefully - because everyone has to make their money somewhere and if what they offer is too good to be true then there will be a reason. Typically in this game it will either be to suck someone in or manipulation of the displayed price vs the underlying.
If you must trade low liquidity contracts then a) go for a trustworthy broker even if the price seems high; and b) make sure you get paid enough in trading it to make the low liquidity risk worthwhile.
Things that have a low spread have high liquidity ... take eurusd.
Things with low liquidity must have a high spread because thats the nature of markets. If there isn't someone to cover the other side the players will let the spread drift to pay them for their risk. They are taking a risk with poor liquidity contracts whether they be nzdaud or lumber or palladium - and you must get paid for the risk (or you'll be a loser). If you find someone with an unnaturally low spread then look carefully - because everyone has to make their money somewhere and if what they offer is too good to be true then there will be a reason. Typically in this game it will either be to suck someone in or manipulation of the displayed price vs the underlying.
If you must trade low liquidity contracts then a) go for a trustworthy broker even if the price seems high; and b) make sure you get paid enough in trading it to make the low liquidity risk worthwhile.
Tom Richards
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I found Low Spread by using Google. Very good overview on the spreads from different brokers.
The lowest spread on AUD/NZD is 4.5 pips.
It's really important finding the right broker, it makes us save big money other than "donating" it to brokers that overcharge.
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