The main task of each trader in the foreign exchange market is to minimize costs while increasing profits. Here it is important to account for each invested cent, including the spread. Find out why you should have the minimum spread on Forex below.

Why should the spread be minimal?

In fact, the spread is the difference between the money invested in the purchase and the sales. Thus, the most profitable transaction will be if the profit is equal to the amount of the spread or exceeds the funds spent.

The amount of the spread depends on how many intermediaries separate the trader from the broker. The more there are stages of the sale, the higher the final price of the spread. That is why it will be most profitable for you to find a broker who would work with fewer intermediaries.

It is especially convenient to choose a broker with a minimum level of spread for those who work in the foreign exchange market according to the principle of scalping, that is, in a short time, conducts a huge number of transactions. Thus, subject to the minimum spread, it is possible to earn about 1–2 points from each transaction. Loss-making operations do not affect the overall result so bad.

The Avatrade customer review indicates that the most popular currency pair in the conditions of the minimum spread is the euro/US dollar. Brokers with 4-digit quotes, the spread amount is, on average, 2 points, 5-digit figures require a deduction of 0.5 points.