Competitive spreads

The spread is simply the difference between the sell price and buy price, also known as bid (sell) and ask (buy). A broker earns its money via the spread; essentially it’s a small fee that the trader pays to enter the market. Spreads can either be fixed or variable. Like the name implies, a fixed spread stays constant while a variable spread will change in value. How much or how little a variable spread changes depends on market conditions. When volatility in the market is high, spreads fluctuate more often and during important economic announcements sometimes widen out past their normal levels. For example, during normal market conditions, the spread on EUR/USD might average 0,9 but during an economic announcement it could briefly widen out several pips. Although it is normal for spreads to widen out around news events, they generally revert to their normal levels after only a few seconds. Finally, because Ace Markets is a 100% Straight Through Processing (STP) broker, traders enjoy the opportunity to execute directly on bank feeds, meaning that the spread the trader sees is the best offer made to Ace Markets by its many liquidity providers. If a price is available, traders will receive execution at the requested price level with no middleman or intervention whatsoever.