OctaFX Offers Fixed Spreads for Select Trading Accounts

FX and CFD broker OctaFX, has announced that it has enabled trading on fixed spreads for USD denominated Micro accounts trading on the MetaTrader 4 platform.

Trading on fixed spreads carries both benefits and disadvantages, depending on the type of trader and the associated strategy for each portfolio.

Some of the benefits of trading with fixed spreads include having a set fee for each transaction, which cannot be influenced based on market conditions or Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term levels.

Clients can easily decipher trends and critical levels on charts, as part of their strategy for both entry and closing of their positions.

Conversely, when trading with floating spreads, there is often the possibility of benefiting from lower spreads during times of high liquidity, thereby leading to lower fees paid by traders.

However, trades could be negatively influenced, as the spread could be widened to reflect changing market conditions, even while a position is already open, leading to a less appealing close price.

For this reason, trading on fixed spreads is often recommended for long-term trading in order to assure that market conditions cannot alter the fee paid on any trade.

Moreover, there are often times when short-term traders can also benefit from fixed spreads. The simple benefit of easily calculating the point of entry and exit from a position, can lead to easier strategic assessments for short-term traders, including scalpers, who tend to incur a very high trading volume turnover.

According to the OctaFX announcement, traders who do not currently have a micro account with a base of USD can open a new account for trading on the MT4 platform.

It is interesting that OctaFX has opted to incorporate the fixed spreads on the MT4 platform, as the FX space continues to shift toward the upgraded MT5 platform, following Metaquotes’ decision to stop selling and offering support for MT4.

Since OctaFX has already added access to the MT5 Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, it is always a possibility that fixed spreads will be added to other platforms at some point in the future, although this is pure speculation and the broker has yet to address its future plans regarding this matter.

OctaFX has also enabled trading on cryptocurrency CFDs, further diversifying its clients’ options and adhering to the rising global demand for digital currencies.