Usually, day traders and scalpers prefer the tighter spreads because it is easier to take small profits as the market needs less ground to cover to get over transaction costs.
Meanwhile, wider spreads tend to be insignificant to longer term swing or position traders.
To make your decision-making easier, here's a summary of the major differences between Market Makers, STP brokers, and STP+ECN brokers:
See Below For an Example:
Dealing Desk (Market Maker)
Fixed Spreads
Take the opposite side of your trade
Artificial quotes
Orders are filled by broker on a discretionary basis
No comments:
Post a Comment