Spread prices tend to be something many traders overlook or view as negligible within the larger context of a trading plan. These traders would argue that a 1, 2 or 3-point spread is insignificant when viewed in the context of a trade that looks to capture 50, 60 or even more than 100 points.
But the fact remains that spreads are charged on every single trade and these charges will accrue over time. A spread difference of 1 or 2 points might seem negligible on its own, but when viewed in the context of a larger trading career (where perhaps tens of thousands of trades are placed) these charges start to look more and more significant.
Luckily, traders have options and providers are competing with each other to attract new traders by keeping fee charges low. This is something new traders need to pay special attention to when applying for a trading account. The main factors to watch are trade reliability (making sure trades are executed at the exact price and time) as well as low costs per trade. One of these should not be sacrificed for the other, as there are many suitable providers that can provide quality in both areas.
InterTraderm offers a highly competitive range of trading spreads, from 1 point on the UK 100, Wall Street, Germany 30 and France 40 (all Rolling Daily), to Silver and Gold (both Rolling Daily) at 3 and 0.3 points respectively, and Brent and US Crude Futures at 4 points. In forex, spreads range from 1 point for USD/JPY to 1.2 points for EUR/USD, and 1.8 points for GBP/USD.