{"version":"1.0","provider_name":"For overseas forex cashback services, try Money Charger","provider_url":"https://money-charger.com/en/","author_name":"iguchi","author_url":"https://money-charger.com/en/author/iguchi/","title":"Overseas Forex Spread and Commission Comparison List | Introducing Zero Spread Accounts and Brokers with Narrow Spreads - Money Charger (Overseas Forex Cashback Service)","type":"rich","width":600,"height":338,"html":"
Overseas Forex Spread and Commission Comparison List | Introducing Zero Spread Accounts and Brokers with Narrow Spreads
\n","thumbnail_width":2048,"thumbnail_height":1076,"description":"When choosing an overseas forex broker, narrow spreads are a crucial factor that directly impacts not only trading costs but also whether you can enter and exit trades at favorable prices. Spread widths vary significantly depending on the broker and account type, and trading conditions can differ greatly even for the same currency pair. In this article, we measure the spreads of major currency pairs and thoroughly compare multiple overseas forex brokers. Furthermore, we explain recommended brokers with low spreads and how to reduce trading costs by utilizing cashback programs. By reading this article, you will find overseas forex brokers that offer low actual costs and enable efficient trading. Based on the results of a survey of over 20,000 users, the MoneyChager editorial team has analyzed the safety and trading environment of overseas forex brokers and can introduce truly recommended overseas forex brokers with narrow spreads, so please look forward to it. We have also considered safety by referring to the Financial Services Agency and the Financial Futures Trading Act. It goes without saying that the difference in savings becomes more significant as the number of trades increases when comparing accounts that offer cashback for each trade with accounts that do not. If you want to trade profitably with overseas forex, it is recommended that you make full use of cashback. If you prioritize bonuses over spreads when choosing an overseas FX broker, please refer to the \"Overseas FX Account Opening Bonus/Deposit Bonus Comparison Ranking.\" What are Overseas FX Spreads? What exactly are \"spreads\" in overseas FX? In fact, a correct understanding of spreads is essential for trading at favorable prices. Here, we will explain specifically what spreads are, important points in actual trading, and trends among brokers. What are Spreads? A spread refers to the difference between the buying price (Ask) and the selling price (Bid). This spread is almost always fluctuating, and how wide it is depends on the trading conditions of the FX broker you are using and the market conditions. FX brokers secure their own profits by adding a markup to the spreads of their partner financial institutions, or by securing their own revenue from trading fees. The narrower the spread, the easier it is to trade at favorable prices When choosing an overseas FX broker, traders prioritize the narrowness of the spread. This is because the narrower the spread, the more favorable the price at which they can trade. The market is always moving with the buying price higher than the selling price. The direction of the trade Price when entering a trade Price when closing a trade Impact of the spread New buy (long position) Ask price Bid price The narrower the spread, the lower the ask price and the higher the ask price New sell (short position) Bid price Ask price The narrower the spread, the higher the ask price and the lower the ask price The advantage of a low spread For example, when you take a position (when you take a dollar if you buy USD/JPY), the spread is an unrealized loss. However, the narrower the spread, the smaller that unrealized loss becomes. Naturally, a narrower spread means that you will make a profit faster, so \"a narrow spread = a favorable rate\" allows you to trade. The difference between brokers with wide and narrow spreads There is a considerable difference between brokers with wide and narrow spreads among overseas FX brokers. The spread is a key factor in choosing a broker. However, brokers with wide spreads have other advantages. Item Wide spreads Narrow spreads High/Low maximum leverage Many/Few bonus campaigns Trends in spreads and brokers Brokers with wide spreads tend to be more proactive in offering bonus campaigns and higher maximum leverage because they can secure a larger profit from spreads. On the other hand, brokers with narrow spreads tend to be less proactive in offering bonuses because they have less profit from spreads. Differences in spreads between overseas FX and domestic FX There are differences between overseas FX and domestic FX, such as the mechanisms for presenting spreads. You often hear people say that \"overseas FX has wider spreads than domestic FX,\" but you cannot actually compare the spreads of the two without knowing the differences in spreads between overseas FX and domestic FX. Mechanism of spreads First of all, there is a major difference between the mechanisms of overseas FX and domestic FX: \"variable spreads\" and \"principally fixed spreads.\" Item Variable Spreads Fixed Spreads Characteristics Spreads are always fluctuating The basic principle is that a predetermined spread is offered High volatility markets Spreads widen Spreads widen Low volatility markets Spreads narrow Fixed low spreads are common among overseas FX brokers Common among domestic FX brokers Differences in spread mechanisms Domestic FX often offers very narrow spreads with fixed spreads in principle. One reason why domestic FX brokers can offer fixed spreads in a market where prices are constantly fluctuating is that over-the-counter (OTC) trading is the mainstream in domestic FX. In OTC trading, the FX broker settles customer orders themselves, making it easier for the FX broker to set the spread. The adoption of this OTC trading is one of the factors that allows domestic FX to offer low spreads with fixed spreads in principle. Account types and execution methods Overseas FX is characterized by the fact that trading conditions differ depending on the account type, even for the same account. Depending on the account type, there are no spread markups by the broker, and you can trade with very narrow spreads. On the other hand, domestic FX brokers do not have account types; only one account can be used per account holder. Spread Units: The spread units for \"cross-yen currency pairs\" that include the Japanese yen differ between overseas and domestic FX. In domestic FX, it is common to list cross-yen spreads in sen (Japanese yen). Price Difference: Overseas FX pips, Domestic FX sen. 1 yen 100 pips 100 sen, 0.1 yen 10 pips 10 sen, 0.01 yen 1 pip 1 sen. Cross-Yen Spread Notation: Pips is a unit indicating the price difference. Even in domestic FX, pips are used for currency pairs other than cross-yen. Important Points When Comparing Overseas FX Spreads: There are two important points when comparing spreads in overseas FX: Overseas FX spreads differ from domestic FX, and trading conditions vary depending on the account type. Differences between STP and ECN Accounts: Overseas FX offers two main account types: STP accounts and ECN accounts. […]"}