Widening of spreads happens permanently and has different reasons: high market volatility, high demand on the market, releases of important macroeconomic news, etc. However, the declared values of spreads appear quite rarely in real trading environment. As a rule, brokers state that spreads are lower on trading accounts with floating spreads. Moreover, spreads usually are non-constant. Then the broker adds its own profit to the price as a certain number of points and translates the final value of spread/ commission to the terminal, where clients actually trade. Spread and commissions the first and foremost depend on the price received by the broker from its liquidity provider. We will discuss if it is reasonable to consider them as a main orienting point. In this article we will help to realize how the spreads and trading commissions work. Such a variety makes the process of choosing the broker quite tough, mostly for the beginners. Brokers literally shower clients with the super beneficial offers: starting from appealing tight spreads along with bonuses and till competitions and prizes. It is when every broker is fighting for attracting new clients and keeping existing clients loyal to the brand. Nowadays the completion among brokers is extremely high.
