Spreads

[beginner_trader]

Hi all,

Am I right in thinking that spreads are the same amount no matter how much money you are trading, so the smaller the amount you are trading with, the smaller your profits will be and the more the spread will eat into your profits?

Also, how do the Metatrader spreads compare with other brokers such as Oanda?

Thank alot.

 

[Masquerade]

The spread is a uniform amount so if you have a ftse spread of 2 points it'll always be 2 times whatever your stake/pip is. So if you're £1/pip you pay £2 in spread and if you're £100/pip you pay £200 in spread.

There are ways to trade elsewhere with lower spreads but this is keeping it simple. Oanda beats Metatrader for a few pairs, but Metatrader don't change the spread much over high volatility so it's your choice really. If you're trading eur/usd then Oanda is probably a better place to trade.