Variable forex spreads are the latest addition to WorldWideMarkets’ full range of tradable instruments. We offer variable rate trading in spot forex, metals and CFDs on our MetaTrader platform as well as Currenex.
WorldWideMarkets’ historical focus on fixed spreads, where the bid ask spread is the same at all times, even during extremely volatile markets, is rooted in the preferences of professional traders. The certainty of fixed spreads eliminates the risk of being executed at a much wider price than normal and protects a trader’s stop or limit order from being executed due solely to a widened spread. Our core customers highly value the reliable fixed spreads that our price discovery technology has enabled in all market conditions over the years.
Now, with the launch of our variable spreads product, traders that strongly prefer variable spreads can access the unequaled quality of execution that WWM customers have always enjoyed. Variable spread trading is popular with many forex traders because spreads tend to be narrower during strong liquidity. Depending on market conditions and trading style, variable spreads can sometimes result in lower overall transaction costs. However, most trading is done during volatile markets where spreads, and with it transaction costs, tend to increase.
Choice of one versus the other can be dictated by many factors including trading strategy, familiarity, cost perceptions or just personal preference. WorldWideMarkets’ proprietary price feeds and risk management technology allow us to offer superior execution quality on both.