Zero Spread Brokers?

[Henow1969]

I am just on Google for last few days to find the brokers with Zero Spread but could not find. So now I am here with my question can you suggest some brokers with Zero Spread?

 

[ironjaw]

Are you buying and selling regular shares or spread betting on forex, CFDs, etc. If it's the former, I would recommend IG, Interactive Brokers, Degiro, Saxo, Fineco. If it's the latter, then there's a multitude of low spread brokers though you're best asking other members here. Of course, these selections are UK and maybe Europe specific.

 

[Kevin FD]

i have a simple question , if broker offer 0 pip spreads for traders , how do they profit ? i know by means of spreads brokers bring their profit .

 

[ffsear]

i have a simple question , if broker offer 0 pip spreads for traders , how do they profit ? i know by means of spreads brokers bring their profit .

Sell their order flow to HF firms who then front run.

 

[DallasSteve]

Are you buying and selling regular shares or spread betting on forex, CFDs, etc. If it's the former, I would recommend IG, Interactive Brokers, Degiro, Saxo, Fineco. If it's the latter, then there's a multitude of low spread brokers though you're best asking other members here. Of course, these selections are UK and maybe Europe specific.

You mention IB. I have traded with IB in the past and they were my favorite for low commissions and spreads on Forex. However, my understanding is now you must have more than $1 million to trade Forex with IB. Has that changed? I think that change was because Congress decided we needed to be protected or prevented from making money in Forex after the Great Recession in 2009.

 

[ironjaw]

I am not sure about the US other than hearing that CFD's are not allowed. I don't trade fx

 

[Drekk]

I think there’s always some catch with the brokers who offer zero spread trading; mostly it pumps up the commission. Instead, going for low spread brokers is a better choice. Like I trade with turnkey forex, even though spreads aren’t zero but they are tight enough and that too for low commission. So I think that’s a much better option.

 

[ironjaw]

Yes there are pitfalls with zero commission brokers. The US have more brokers and competition is fierce so it is much easier to find reputable zero commission brokers, as the trend has been industry wide with the bigger brokers such as TD Ameritrade have gone the route as Robin Hood. But here in the UK it's a different story as it's not that available. It becomes much harder if you are in the UK and want to trade US stocks daily.

I know that brokers such as Freetrade (app), Trading 212 and eTorro exists but each presents a problem if you're willing to raise yourself from being a novice to trading frequently. Many don't allow you to set a stop loss in the same buy order. You'll have to set it up later which can be difficult if you're scalping with precision. In all it depends what type of trader you are, buy and hold, longer term, swing, or short, day trader, etc

My problem is the hidden cost. For example with eTorro, Apple was offered at $122 on their platform some time ago but if you checked market live data was $120, a difference of $2. If I bought 100 shares of AAPL I would have paid $200 in commission just for buying the shares, (most retail traders won't realise this the spread) which would be detrimental overall and a broker such as HL that charges £11.95 + 1% FX fee would seem at first much cheaper. The problem with HL is that if you are a lower volume retail trader, and have a small account, the broker fees takes a lot out of your profit. HL is more geared at high volume traders and with a small account you can't set a stop loss to protect yourself. You can only buy or sell if you already bought it before, in that you can't short (due to the PDT rule and capital req). Hence why I am trying to find another cheaper broker. I'm caught in the middle of a novice and an experience trader with a large account not having that §25.000. I'm trying to build my account up organically.

I've heard about zero commission broker Trading 212 but not too sure, whether they are alright or not. It's the Bulgarian connection and the terms and conditions that they can move your money without telling you I read that worry me. Yes they are FCA regulated but would you trust your savings with them? Maybe, maybe not.

I remember, but do correct me if I am wrong, IG charges £8 for the first 2 transactions and commission free afterwards, though they charge FX fee of 0.5%. The equation becomes even more difficult if you're trying to find a broker that supports ISA Stocks and Shares. I'm not interested in dealing with CGT - the calculation of each transaction, date, § and £ price and FX rate to send to HMRC, is just way above my daily administrative duties and I dislike Excels. Also my finances are not at the position to allow me to hire a PA to do these meagre calculations. If someone made this easier to track, I would just go for it.

 

[longle4395]

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[HeavLeighGill]

It's difficult to find a 0 spread broker and fixed spreads are often very high, so maybe you should consider an alternative? I have a 0 commission account and while I do pay spreads. they are pretty decent and overall it's cost effective. It can be difficult to find brokers out there like this but not impossible.

 

[washono]

A lot of brokers say that they offer zero spreads but they don’t do that in reality. They might offer tight spreads but not zero.

 

[AC007]

brokers are not charity shops. they are there to make money. why do you expect them to work for nothing?

 

[ForexxxExpert]

Keep in mind that if you have a truly zero spread (some brokers even advertise a negative spread), they should make money in another way, which is a commission per lot traded . So you pay one way or another. This list might help you: https://www.brokersome.com/forex-brokers/zero-spread, but as I said, if there's zero spread, you must probably need to pay commissions.

 

[Farm Yard Forex]

Brokers get paid via spreads and commissions. Generally the lower the spread the higher the commission and vice versa.

 

[Jungletrader]

True its either lower/0 commissions or higher wider spreads they gotta make money somewhere to be sustainable

 

[Smith2525]

No such thing as zero spread, if they claim it be wary

 

[Zerologic]

ECN brokers allow traders to get zero spread on the most traded pairs like EURUSD, but this is rarely found, always zero spread, but we can take the average spread, brokers with low spreads are more competitive because they benefit scalping traders. The spread value also depends on market liquidity, with low liquidity the spread may be higher.

 

[Zerologic]

My broker has a spread of 0.01-0.02 for EURUSD, which is very profitable and optimal for scalping trading. Here, even with very small price movements, you can earn money with this type of trading.

It's a good and very competitive spread for scalping traders, trading scalping on the range market could give some opportunity to catch profit even though the volatility is low.

 

[Zerologic]

When trading scalping or intraday trading, I also like that there is an opportunity to set small stop losses, with the possible activation of which the losses will also be small.

Small stop losses provide more trading opportunities. Using a small stop loss may have advantages and disadvantages, the advantage is that it provides many trading opportunities, and the weakness may be that it is easily exposed to volatility risk.