A Question about Spread - page 3

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dextormason707
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dextormason707  
It's totally depends on Broker's terms and condition. And another factor which effect spread value is account type for which you are register. 
NELODI
299
NELODI  
dextormason707:
It's totally depends on Broker's terms and condition. And another factor which effect spread value is account type for which you are register. 

In general, there are two ways for Brokers to make money. One is to charge a fixed commission for opening and closing a trade, the other is to widen the Bid/Ask spread. Normally, you would either pay the fixed commission to the Broker, or you would pay the Broker through the Spread. Most reputable Brokers offer Accounts with a fixed commission, where the Spread depends entirely on their Liquidity Providers, which includes a number of Banks, as well as a "Dark Pool" consisting of Hedge Funds and some large investment firms. The more Liquidity Providers a Broker has, the better the Spread.

PS. I'm only talking about regulated Brokers with a good reputation.
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