Compare Spreads for EURO/USD

By mosesbet · Filed Under Uncategorized Comments Off on Compare Spreads for EURO/USD 

EUR/USD

Due to the fact that the EUR/USD is one of the most popular currency pairs to trade on, you will find that all of the spread betting brokers offer extremely tight spreads. It is estimated that the daily volume of forex trading is now an astonishing $4 trillion per day with the EUR/USD pair accounting for 28% of that figure.

It should be noted that the greatest volatility when trading the EUR/USD usually occurs in the morning Eastern Standard Time, which is early to mid afternoon UK time, which means that UK spread bettors are ideally placed to take advantage of this particular market.

Number One Company For Trading The EUR/USD

When it comes to trading the EUR/USD, the number one company in the eyes of many experienced traders would have to be IG Index. Their pure deal trading platform lends itself perfectly to trading this market, and when the pressure is on itis really reassuring to be able to trade on such a stable platform and to be able to navigate your way around it quickly and easily.

There dealing spreads for EUR/USD starts at 0.8 pips but is should be remembered that the spreads that IG as well as all of the other brokers use on the Forex markets can vary, it depends on what the spreads are like on the underlying markets from the banks in which the financial spread betting brokers trade.

Even the most experienced spread bettors would do well to take advantage of the controlled risk bets that IG offers when trading the EUR/USD.  It is in fact possible to trade this market with a controlled risk with a spread of only 4 pips.

IG boast that over 99% of forex orders placed with them are executed within 0.1 seconds and in the fast moving trading environment that goes hand in hand with betting on the EUR/USD, this kind of speed is invaluable.

Comparison Of Different Spreads For The  EUR/USD

The spreads on all forex markets can vary depending on those that are offered by the banking institutions to the spread betting companies but a guide to the spreads cab be viewed below.

IGindex.co.uk – minimum spread 0.8 points

CapitalSpreads.co.uk – 1 point

CityIndex.co.uk – 0.8 points

WorldSpreads.co.uk – zero points

ETXCapital.co.uk – .002 points

Tips For Trading EUR/USD

It is highly recommended that anyone who is spread betting the EUR/USD considers taking advantage of the guaranteed stop loss facility that the brokers offer. With IG Index it is known as controlled risk and when you take into consideration that a controlled risk bet with them can have a spread of only pips, you will surely agree that it is a small price to pay for the peace of mind that goes with it.

As with many of the other markets that a financial spread bet can be made on, the EUR/USD does react to any important news announcements and it is widely considered to be most volatile just after  opening of the NYSE in the early afternoon, UK time.

A common mistake that many new forex spread bettors make is that they try to have a dabble on several different currency pairs but the reason that this is not such a good idea is that if you take a look at the EUR/USD charts against the GBP/USD for example you will see that they often mirror one another. Therefore if you are betting on both and the markets do not move in the way that you intended it could very well be a case of doubling your loss as both bets will probably lose you money.

The opposite is obviously true if your instincts prove correct but it is far better to be safe rather than sorry and trading on just one pair will keep you busy enough anyway.

Be Sociable, Share!