RoboForex is a popular online broker known for offering some of the tightest spreads in the forex trading industry. But just how low do RoboForex’s spreads go? In this comprehensive guide, we take an in-depth look at RoboForex’s spread offerings to help you understand exactly what you can expect as a RoboForex trader.
Overview of RoboForex Spreads
RoboForex offers variable spreads as low as 0 pips on certain currency pairs. Spreads will fluctuate based on market conditions, with tighter spreads available during active trading hours on major pairs like EUR/USD and USD/JPY. Less traded pairs like USD/SEK may have wider spreads.
RoboForex uses a hybrid liquidity model, combining leading liquidity providers with an in-house market maker on their ECN account offering. This helps RoboForex offer competitive spreads 24 hours a day, 5 days a week.
Let’s break down RoboForex’s spread offerings in more detail across their account offerings:
Spreads on ECN Accounts
RoboForex’s ECN accounts offer the lowest spreads available, starting from 0 pips on certain major currency pairs during active trading hours. Spreads on ECN accounts reflect interbank rates with low commissions per trade.
Here are some sample ECN account spreads:
|Currency Pair||Typical Spreads|
ECN spreads can widen during news events or periods of low liquidity. Overall, RoboForex ECN spreads are highly competitive compared to other brokers.
Spreads on PRO Accounts
RoboForex’s PRO accounts offer slightly higher spreads than ECN accounts, but still very competitive compared to the industry average. PRO accounts have no commissions per trade.
Here are typical PRO account spreads:
|Currency Pair||Typical Spreads|
Like ECN accounts, spreads may widen slightly during volatility. But overall, PRO account spreads remain very competitive for a standard account offering.
Spreads on Standard and Cent Accounts
For beginner traders, RoboForex offers Standard and Cent account options with slightly higher spreads, averaging 2-3 pips for major currency pairs. The minimum deposit is also lower on these accounts making them suitable for new forex traders.
While spreads are not as tight on these accounts, they remain well below the industry average for standard accounts. Traders can take advantage of micro-lots and minimum trade sizes as low as 0.01 lots on Cent accounts.
What Impacts RoboForex’s Spreads?
Several factors can influence the spreads offered by RoboForex at any given time including:
- Underlying market liquidity – During peak trading hours spreads tighten due to high liquidity. During off-peak hours or weekends, spreads may widen slightly.
- News and economic events – Volatility around news events, data releases, and holidays can cause spreads to widen temporarily as uncertainty increases.
- Pairs being traded – Major pairs like EUR/USD and USD/JPY tend to have the tightest spreads due to higher trading volume. Exotic pairs have lower liquidity so spreads are wider.
- Account type – Spreads will vary across RoboForex’s account offerings based on whether the account is ECN, PRO, Standard, or Cent.
- Broker risk management – RoboForex may widen spreads slightly during high volatility to protect against market risk. This helps them continue offering tight spreads during normal conditions.
How RoboForex’s Spreads Compare to Other Brokers
|Broker||Typical EUR/USD Spread|
|RoboForex ECN||0.4 pips|
|FP Markets||0.7 pips|
RoboForex either matches or beats the spreads from leading rivals. Their ECN account, in particular, stands out with spreads as low as 0 pips in ideal conditions.
Pros and Cons of RoboForex’s Low Spreads
There are several advantages to the tight spreads offered by RoboForex:
- Lower trading costs per trade
- Ability to profit from smaller price movements
- Allows scalping and high frequency trading strategies
- ECN accounts provide true institutional spreads
- Spreads competitive compared to rivals
- Spreads may widen during news events and volatility
- ECN accounts have higher minimum deposits
- Traders pay a small commission per trade on ECN accounts
Frequently Asked Questions
How are RoboForex’s spreads so tight?
RoboForex can offer ultra-tight spreads by operating an ECN/STP execution model and combining liquidity from top tier banks with their own in-house market making. This creates deep liquidity and interbank market pricing.
Do spreads really reach 0 pips on RoboForex’s ECN account?
Yes, under ideal market conditions spreads can reach 0 pips during liquid trading hours on certain major pairs. This usually occurs briefly during periods of low volatility.
What is the catch – is there a tradeoff for the low spreads?
The tradeoff is that spreads will widen during volatile news or events. Also, ECN accounts have slightly higher minimum deposits and commissions per trade to access the tightest spreads.
How often will spreads hit my stop loss unexpectedly?
Spreads widening should not prematurely trigger stop losses during normal market conditions. But during high impact news or events, spreads may widen rapidly so traders should be cautious trading near stops when volatility is expected.
Are spreads tighter on mt4 or mt5 platforms?
Spreads are essentially identical on Metatrader 4 and Metatrader 5 platforms. The platform itself does not impact spreads offered.
Should I trade when spreads are wider?
Wider spreads reduce potential profits, so avoid trading during low liquidity periods or news events if possible. Consider switching to more liquid pairs or reducing position sizes when spreads widen temporarily.
The Bottom Line
RoboForex stands out for offering some of the lowest spreads in the industry across various account types. Their ECN accounts truly reflect tight institutional spreads starting from 0 pips, great for high frequency trading. While variable, spreads remain competitive even during volatile markets.
Overall, RoboForex’s tight spreads can save traders money on costs and give an edge in executing precision short-term strategies. Just be sure to factor in the possibility of variable spreads when risk managing trades, particularly around major news events.
Best and Most Trusted Forex Brokers
Based on regulation, award recognition, mainstream credibility, and overwhelmingly positive client feedback, these six brokers stand out for their sterling reputations:
|No||Broker||Regulation||Min. Deposit||Platforms||Account Types||Offer||Open New Account|
|1.||RoboForex||FSC Belize||$10||MT4, MT5, RTrader||Standard, Cent, Zero Spread||Welcome Bonus $30||Open RoboForex Account|
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|5.||ICMarkets||Seychelles FSA||$200||MT4, MT5, CTrader||Standard, Zero Spread||Best Paypal Broker||Open ICMarkets Account|
|6.||XBTFX||ASIC, CySEC, FCA||$10||MT4, MT5||Standard, Zero Spread||Best USA Broker||Open XBTFX Account|
|7.||Vantage||ASIC, CySEC, FCA||$50||MT4, MT5||Standard, Cent, Zero Spread||20% Deposit Bonus||Open Vantage Account|
|8.||FXTM||FSC Mauritius||$10||MT4, MT5||Standard, Micro, Zero Spread||Welcome Bonus $50||Open FXTM Account|
|9.||FBS||ASIC, CySEC, FCA||$5||MT4, MT5||Standard, Cent, Zero Spread||100% Deposit Bonus||Open FBS Account|
|10.||Binance||DASP||$10||Binance Platforms||N/A||Best Crypto Broker||Open Binance Account|
|11.||TradingView||Unregulated||Free||TradingView||N/A||Best Trading Platform||Open TradingView Account|
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