moonchild
VIP Contributor
One of the biggest costs of trading is the spread – the difference between the bid and ask price of a currency pair. The lower the spread, the more profitable your trades can be. But how can you have lower spreads in your forex trades?
Choose a broker that offers tight spreads. Look for a broker that has a reputation for offering low spreads and doesn't charge high commissions or fees. I do not want to recommend brokers but there a lot of good ones out there you just to check brokers review websites
You should also trade during the most active hours of the day. The more liquidity there is in the market, the tighter the spreads tend to be. So, consider trading during peak hours when the market is most active, this solely depends on the time zones you trade in.
Lastly, avoid trading during times of market volatility. High volatility can cause spreads to widen, which means you'll pay more to enter and exit trades. this happens especially during news releases or during war like the ukraine-russia unrest or the monthly NFP news releases, you should not trade during these hours, make sure you have a news outlet that you get your news from.
Choose a broker that offers tight spreads. Look for a broker that has a reputation for offering low spreads and doesn't charge high commissions or fees. I do not want to recommend brokers but there a lot of good ones out there you just to check brokers review websites
You should also trade during the most active hours of the day. The more liquidity there is in the market, the tighter the spreads tend to be. So, consider trading during peak hours when the market is most active, this solely depends on the time zones you trade in.
Lastly, avoid trading during times of market volatility. High volatility can cause spreads to widen, which means you'll pay more to enter and exit trades. this happens especially during news releases or during war like the ukraine-russia unrest or the monthly NFP news releases, you should not trade during these hours, make sure you have a news outlet that you get your news from.