Forex Pips & Spreads

The pip is the smallest measure of price move used in forex trading. For instance, if the currency pair EUR/USD is trading at 1.3000 and then changes to 1.3010, the pair is said to move by 10 pips. It is an acronym for Percentage in Point (pip).

In the wholesale market, currencies are quoted out to four decimal places, with the last placeholder called a point or a pip. A pip in most currencies is one/10,000th of an exchange rate or in USD/JPY, it is one/100th, likewise you can find for others.
Spread on the other hand is the difference between buy (long) or sell (short) for a currency pair. The bid/offer spread is the difference between the buying (bid) and selling (offer) price. The ask prices are the immediate execution prices for quick buyers or traders and bid prices are for quick sellers.

In Forex market you will find brokers who generally do not charge any commission from you. But they get their money by charging you a spread. As spread is the difference between the bid price and the ask price for any currency being traded, the broker will add this spread onto the price of the trade and keep it as their fee for trading.

Lower Pips & Spreads = Higher Forex Profits

Wider spreads will result in a loftier asking price versus a slashed bid price. The consequence is that you have to pay more when you buy and get less when you sell. This spread is charged only on one side of the transaction, usually on the "buy" side of the trades. To find out which brokers offer the best pips and spreads read our Forex broker reviews.

If the quote between EUR/USD is said to be 1.2222/4, the spread equals 2 pips as the difference between 2 and 4 is 2. But if the quote is 1.22225/4, the spread is 1.5 pips. So spread is the primary cost of trading for you and in differences in them makes a big impact.
Although it may not seem like much of a difference to be trading with a 5 pip spread vs. a 4 pip spread, it can add up very quickly when you multiply it with how many trades you make and how much money you're trading. You will find the difference to be as high as 25% on your trading costs.

Spreads affect the return on your trading strategy in a big way. As a trader your sole concern is buying low and transaction high. Wider spreads mean buying higher and having to sell lower. A half-pip lower spread can even affect your profitability.
Low, Fixed Forex Pips and Spreads.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.