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Best forex brokers with variable spread

Variable Spread Forex Brokers offer spreads that fluctuate based on market conditions, providing traders with potentially lower costs during periods of low volatility. This type of spread is particularly appealing to traders who seek the most competitive pricing, although it can also lead to wider spreads during high volatility.

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51Solus FinanceBonusRefer a Friend & Earn with SolusFinance24/7 Trading CompetitionsRegulated by NoAdd to compare listRating 4.1 / 5Start trading
Pros, cons & fees
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Pros

  • Gamified Trading: Solus gamifies the complex trading experience which is great for new traders with limited complex trading knowledge.

  • Proprietary Mobile App (Android): The company has a proprietary mobile trading app available on PlayStore.

  • Multiple Online Payment Options: Traders (or players) can fund their accounts via Crypto, PayPal, Volet, and Cryptic.

Cons

  • Unclear Regulatory Framework: ITU Financial Services Inc. is registered in Delaware, US but not as a financial services provider. According to the company, they do not identify as a brokerage and therefore do not need to be regulated.

  • No Visa or Mastercard Payment Options: The company does not accept Visa or Mastercard payment options.

  • No iOS App: Solus lacks an iOS mobile app. Currently, the app is only available for Android devices and all mobile devices through mobile web.

Our ranking methodology and selection process

Variable spreads, also known as floating spreads, change dynamically with market conditions. Unlike fixed spreads, which remain constant regardless of market activity, variable spreads widen or narrow depending on factors such as liquidity, volatility, and trading volumes. During times of low market volatility, variable spreads can be narrower, offering traders more cost-effective trading. However, in times of high volatility or low liquidity, spreads can widen, increasing trading costs.

Key Metrics to Consider with Variable Spreads

Average Spread

The typical spread a broker offers during normal market conditions. This can give traders a good idea of the usual trading costs they can expect.

Minimum Spread

The lowest possible spread a broker can offer, usually seen during periods of high liquidity.

Maximum Spread

The highest spread that might occur during periods of extreme market volatility, which is crucial for risk management.

Commission

Some brokers charge a commission on top of variable spreads, particularly with ECN accounts. It’s important to factor in both spread and commission to calculate the total trading cost.

Execution Speed

The speed at which orders are executed can impact the effectiveness of trading with variable spreads, especially during fast-moving markets.

Conclusion

Variable spread brokers offer a flexible trading environment, adapting to market conditions to provide the best possible pricing. However, traders must be aware of the potential for spread widening during volatile periods, which can impact trading costs.