As a forex dealer, one of the most significant aspects of the trade is spreads. It is for this sole reason that we at Etoro Index are committed to providing you with the possible tightest spreads throughout the day.
Our Forex Spreads
At Etoro Index, we would like to provide our forex traders with the tightest conceivable Forex spreads round the clock. We trust that the perfect way to provide the tightest forex spreads is through the use of a mixture of fixed spreads for the currency pairs that are most popular and most traded in the busiest times of the forex market, that is between 8 am and 6.30 pm (United Kingdom time) and also Capped Variable Spreads that lie outside the above specified hours. In the case of exotic and minor currency pairs, we provide Capped Variable Spreads around the clock.
After opening an Etoro Index trading account, you will be able to trade GBP/USD and EUR/USD currency pairs with a fixed spread of 1.5 pips and 1 pip respectively in the course of the busiest trading times.
Tight Fixed Spreads
In regards to our top-most traded forex pairs including JPY/USD, GBP/USD, and EUR/USD, we provide tight fixed spreads from 8 am to 6.30 pm (U.K time). This is during to what we refer to as fixed spreads hours. During this period, you can trade in the forex market with peace of mind, as you would be trading in the equivalent tight spread irrespective of how unstable the primary market spreads are. For instance, during economic data or major news announcement, the underlying forex spreads may become wider. Irrespective of this, at Etoro Index, you can still relish the equivalent tight fixed spreads.
We provide fixed spreads of 1.5 pips for USD/GBP, 1 pip for JPY/USD, and 1 pip for USD/EUR. Apart from our normal fixed spread hours, one of our most common markets run as Capped Variable Spreads.
Our Capped Variable Spreads
Outside the limits of our fixed spread hours and also for all our forex markets- exotic and minor pairs included, we run Capped Variable Spreads, also known as CVS. With this type of spreads, we put a ceiling or a cap on the maximum amount that our forex spread can reach, therefore you will have a distinctive advantage. For instance, beyond the normal fixed spreads hours, our spread is capped at 4 pips on USD/GBP. This fact means that in case the primary USD/GBP market spread is 5 pips, the spreads will still be fixed or capped at 4 pips till the basic market spread goes back over our capped 4 pips limit. During this point, the market spreads will then start to follow the primary markets spread once more,in case the forex capped upper limit is broken through once again.
The Advantages of Our Forex Spreads
We at Etoro Index believe that our forex spreads provide our traders with a competitive edge over other forex traders. With us, you can easily trade some of the most popular forex pairs with spreads that are tight and fixed during the hectic trading hours of the forex market and profit from the Capped Variable Spreads in the times of distinctive low market liquescence.
1. Tight-Fixed Forex Spreads
We provide some of the tautest fixed spreads in the market for the most popular currency pairs. This includes 1 pip for JPY/USD and USD/EUR. Therefore, even if the primary forex market widens, you can still be able to trade with the same tight spread that you use during the normal fixed spreads hours, providing you with a rare advantage among other many retail forex traders.
2. Inexpensive To Trade Around Vital Economic Events
Trading around and in events like the GDP and Non-Farm Payrolls figures can easily trigger very sharp fluctuations in prices of forex and can lead to wider primary market spreads. The tight spreads that we have for major currency pairs in the course of Capped Variable Spreads and fixed spreads hours for exotic, and minor pairs enable you to trade the events in a more efficient manner and with much cheaper spreads when compared to the primary market.
3. Gives You Peace of Mind
The tight fixed spreads for the most popular currency pairs in the market means that you can trade peacefully, having full knowledge that during even the most volatile conditions of the market, where market spreads can excessively widen, you can still be able to enjoy the same fixed spreads. Similarly, if you trade in exotic or minor currency pairs, you will trade with the knowledge that these forex pairs will have spreads that will be capped at certain levels. This applies even in times of extremely low market fluidity.
4. Price Improvement Technology
In forex markets, slippage is very common, especially when the prices are quickly moving. The downside of slippage is that in case the price moves before you can place your trade in the market, you execution price will end up being much lower.
What is Slippage?
Slippage refers to the variance between the projected opening price of a particular trade and the amount at which the trade will actually be executed at. Slippage can also be referred to as market gapping. It typically takes place in times of higher unpredictability, when the market orders are utilized, and also in cases where extremely large orders are effected when there may not be adequate interest at the preferred price level to sustain the projected trade price.
Capitalizing on Slippage
At Etoro Index, our Price Improvement Technology makes it conceivable for us to provide you with a much better price, where it is possible, so you can maximize your use of slippage to your benefit whenever it arises. With Price Improvement Technology, our traders can now effect trades at much better levels in case the prices change in your favour before you place your trade. For instance, in case the USD/EUR bid price is at 1.3235 when executed and the price change to 1.3236 (1 pip improvement), this means that the trade shall be executed at the new price of 1.3236 to provide you with another distinct benefit over other forex traders.
Interested in a Trading platform?
The Etoro Index Advantage Web-online forex trading platform, trading applications for tablets and Android devices, and Advantage Trader downloadable platform have all been made to provide you with a fighting advantage over other foreign currency dealers.