Pips and spreads

 

However, with ECN brokers clients will have actually lower spreads when activity in the market rises and trading volume increases - during those times variable spreads can drop to 1/10 of a pip = pip and even be quoted at zero.

In general, smaller spreads are better for Forex investors because a smaller movement in exchange rates lets them profit from a trade more easily. The spread is where the market maker will make their money.

BREAKING DOWN 'Pip'

However, with ECN brokers clients will have actually lower spreads when activity in the market rises and trading volume increases - during those times variable spreads can drop to 1/10 of a pip = pip and even be quoted at zero.

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