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Lowest Spread Forex Brokers For EUR/USD

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In trading platforms, each financial instrument has two prices: the Bid and Ask. Traders use the Ask Price for buying and the Bid Price for selling, with the difference known as the spread – a fee for brokers and a cost for traders. A narrower spread is preferable. Brokers usually offer the lowest spread for popular pairs like EUR/USD, representing about 20% of forex market trading volumes, with daily price fluctuations of up to 120 pips. If you're seeking brokers with the best EUR/USD spread, the list below can aid in finding a suitable option.


May 7 2024

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In forex trading, the spread is the difference between a currency pair's Bid and Ask prices. The bid price is the price at which a broker is willing to buy a currency, and the Ask price is the price at which a broker is willing to sell a currency. The spread is the cost a trader pays the broker to enter or exit a trade.

The lowest spread for EUR/USD varies depending on the broker, but it can be as low as 0.1 pips. It is important to note that the spread is not the only factor to consider when choosing a forex broker. Other factors should also be considered, such as the fees charged by the broker, the trading platform offered, and the customer support available.

A good spread for EUR/USD typically ranges between 0.1 to 1.0 pip. However, the definition of a "good" spread can vary depending on market conditions, the broker's policies, and your trading strategy. Lower spreads are generally more favorable for traders as they reduce trading costs. Still, it's essential to consider other factors, such as execution speed, reliability, and the broker's overall reputation, when evaluating your best trading option.

The average spread for EUR/USD varies depending on the broker, but it is typically around 1.0 pips. However, the spread can be as low as 0.1 or 2.0 pips, depending on the broker and the market conditions. 

Low spreads can affect trading EUR/USD in several ways.

  • Smaller trading costs: A lower spread means you pay less to enter and exit trades. This can be a significant advantage for traders scalping or taking other short-term trading strategies, as it can help them maximize their profits.
  • Increased liquidity: A lower spread can indicate that the currency pair is more liquid. This means more buyers and sellers are in the market, making it easier to trade the pair without affecting the price.
  • Reduced risk: A lower spread can also reduce the risk of losses. This is because you are paying less to enter and exit trades, so you have less money at risk.
Additional FAQ

Historically, it appears that central bank policies dominate the movement of the EUR/USD. It can be said that the more accurate your prediction of the Fed's actions, the easier it is to predict the movement of the EUR/USD pair. The following is a little summary of EUR/USD and its relation to central bank policies:

  • September 18, 2007 - The Fed cut interest rates by 50 basis points; EUR/USD strengthened.
  • December 18, 2013 - The Fed announced that tapering would begin in January 2014; EUR/USD weakened until February 2014.
  • July 14, 2014 - ECB President Mario Draghi prepared the market for QE by stating "falls squarely in our mandate"; EUR/USD weakened.
  • January 22, 2015 - The ECB introduced "full-blown QE"; EUR/USD weakened.
  • December 13, 2015 - The Fed raised interest rates for the first time in a decade; EUR/USD strengthened.
  • October 26, 2017 - The ECB divided its bond purchase program worth EUR60 billion; EUR/USD strengthened.
  • December 13, 2018 - The ECB ended the EUR2.5 trillion stimulus program; EUR/USD weakened.

Continue Reading at 5 EUR/USD Facts Every Beginner Should Know

As the US Dollar Index puts its biggest weight on Euro, it often moves in a different direction than the EUR/USD. For a better understanding, check out this DXY and EUR/USD chart:

dollar index vs eur/usd

In the DXY chart, it is shown that the market is currently on a downward trend. But it's slowly moving upwards. It's proving that the US dollar is growing weaker compared to its rival, but it is starting to gain strength again. On the other side, EUR/USD is going upwards and slowly going down towards the end. It is the exact opposite of the DXY chart.

Continue Reading at How to Use US Dollar Index (DXY) for Analysis

In August of 2015, Asian and European stock market indices fell on average by 5 percent, while American indices fell around 3.5 percent. Following the fall, EUR/USD gained 300 points and EUR/JPY rose up to 138.60 from around 137.50. At a glance, the winner overall seemed to be the Euro.

As a matter of fact, the Eurozone was unsatisfactory at that time and there was no significant improvement after the ECB launched their brand of QE in March. On the other hand, uncertainties surrounding US the Fed rate hike plan were indeed alarming, but not enough to say that they definitely will not hike as expected in September 2015.

In short, even though the Euro rallied, it was definitely not because it is considered safe haven. It is more likely that the speculative side of the market tried to get some advantage amid the turmoil.

Continue Reading at Beware Of Pseudo Safe Haven During Market Turmoil

Let's take a look back at the movement of EUR/USD during the global financial crisis of 2007. At that time, the economy was under pressure and central banks were forced to unite in loosening their monetary policies. However, what happened was that their responses were not uniform.

Monetary policy divergence between the Federal Reserve (the Fed) and the European Central Bank (ECB) was especially prominent. The Fed took aggressive steps to stimulate the US economy with three different quantitative easing (QE) tranches. In contrast, the ECB refused to implement QE for a long duration. When government bond purchases were finally taken, the ECB's progress lagged behind the Fed for several years.

Continue Reading at 5 EUR/USD Facts Every Beginner Should Know


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