Best Brokers With Variable Spreads

Chart analysisAre you looking for a broker that offers variable spreads? Great – you have come to the right place. 

Spreads offered by brokers can either be fixed or variable, and the type of spread preferred by a trader will very much depend on an individual’s trading style.

Variable spreads are the difference between the buy and sell price of an asset, but more on that below. In this guide, we will explain what variable spreads are, the benefits of trading using a broker with variable spreads and list some of the best variable spread brokers.

Recommended Brokers With Variable Spreads:

Broker     Official Site   Max. Leverage Regulations Min. Deposit    Spreads From Review
See Deal >
500:1 $100 From 0 pips
Review
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500:1     $200 From 0.1 pips
Review
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400:1 $100 From 0.9 pips
Review
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400:1   $100 From 0.5 pips
Review

What is a Variable Spread?

Variable spreads, also known as ‘floating’ or ‘dynamic‘, are spreads that are constantly changing, depending on market conditions (i.e. volatility).

With variable spreads, there is a continual change in the bid (buy) and ask (sell) prices of a financial asset. At times, variable spreads can be significantly cheaper than fixed spreads.

A major benefit of using a variable spread broker, is that they get their pricing from a wide range of liquidity providers, which means they often have spreads starting at 0.1 pips.

Variable spreads are generally offered by DMA brokers (i.e. non-dealing desk) who run their businesses though an Electronic Communication Network (ECN).

The Benefits of Variable Spreads

Check markNo Requotes

Dynamic (variable) spreads take away the issue of price requoting when trading. This is a major advantage over fixed spreads, when requotes can occur a lot of the time. With variable spreads, what you want is what you get.

Check markTransparency

Trading with variable spreads can result in better pricing transparency. This is particularly true when considering that pricing comes from several liquidity providers, making for far greater flexibility.

Check markCheaper

Variable spreads can be cheaper at certain times of the day, making them a better option than fixed spreads (at times).

Negatives of Variable Spreads

GraphicsX markNot Suitable For New Traders

When you are learning to trade, you need stability and complete transparency. In this regard, fixed spreads are better suited for beginner traders as they offer complete trading cost transparency. We would say that variable spreads are more appropriate for the more experienced trader.

X markNot For Scalpers

Due to the nature and strategy of scalping, variable spreads can add uncertainty to a scalper’s entry and exit price, making it a no-go for them.

X markWide Spreads

Fixed spreads offer certainty, whereas variable spreads do not. Many brokers will claim to offer “spreads from 0 pips” but how often do you get 0 pip spreads; probably never!

Recommended Variable Spread Broker

BlackBull Markets is an award-winning forex broker based in New Zealand and regulated by the FMA. Since its launch in 2014, BlackBull has exploded in growth and is now considered a top-tier FX broker.

This broker offers incredibly tight variable spreads and high leverage of 500:1. BlackBull Markets can accept clients from all around the world.

  • Leverage: 500:1
  • Regulation: FMA (NZ)
  • Opening amount: $100
  • Spreads: Variable
  • Trading platform: MT4 and MT5