TradeProofer is a forex trader community where members can benchmark their broker’s quote and trade execution against other members’ brokers. TradeProofer release monthly reports on broker spreads to summarize how the community saw brokers’ spreads. This time we focus on May.
The charts show spread distribution of each broker for a selection of 10 currency pairs. The closer the curve is to 0 the more competitive the spread. All spread values are commission-adjusted spreads. View the detailed data.
Most interesting findings:
- Although forex trading is known for being extremely competitive, there is a 6-8x fold difference between the most and least competitive brokers. It’s like some McDonalds would sell BigMac for 10 dollars and others for 60-80.
- Fixed spread brokers are usually at the lower end of the rankings, steady spread comes at a price.
- 60-80% of top 10 brokers do charge commission, so paying commission does not necessarily mean you are ripped off.
And here are the charts. Click the images to enlarge:
EUR/USD
GBP/USD
USD/JPY
EUR/GBP
EUR/JPY
GBP/JPY
USD/CAD
USD/CHF
NZD/USD
EUR/AUD
