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Fixed Spreads vs. Variable Spreads
#1
When looking for a prospective broker, it is important to research how they price their spreads. Over time, the spreads that a trader pays ends up costing a significant amount, and should be a key consideration when choosing a Forex broker.


Forex brokers generally offer two types of trade spreads, variable or fixed. So, which is the better option? Opinions differ among traders and it does depend on individual trading styles. First, let’s look at the difference between the two spread structures.

With variable spreads, the difference between the buy and sell price of a particular currency pair fluctuates in a range. A variable spread for the EURUSD pair generally differs between 1 to 4 pips for most brokers, but during volatile market conditions can actually widen to as much as 8 or even 10 pips. A variable spread widens in correlation with increased liquidity in the market and is really only low during times of market inactivity.
On the other hand, fixed spreads are predetermined and remain constant throughout all trading conditions. A fixed spread will usually fall within the range of a variable spread, and is commonly set at either 2 or 3 pips for EURUSD. Though traders essentially pay a small premium during quiet market hours, when a variable spread may be lower, the broker ensures that the spread will not widen during even the most volatile market conditions. Fixed spreads allow traders to better strategies without factoring in an unpredictable variable that inflates transaction costs during times most critical to traders.
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#2
Variable spread is the real market reading spread, In real market spreads definitely spreads varying. if you want to trade in forex real market choose variable spread platform..
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#3
Fixed Spread +ve
  • Trading costs known in advance.
  • Spreads don’t widen during news releases and periods of high volatility.

Fixed Spread -ve
  • In general spreads will tend to be wider during periods of standard or low volatility.
  • Dealing Desk Execution, this can lead to delayed execution and numerous re-quotes.  
  • Potential conflict of interests.

Variable Spreads +ve
  • Generally tighter spreads.
  • Availability of ECN/STP accounts.  
  • Market execution with ECN/STP accounts.
Variable Spreads -ve
  • Trading costs not known in advance.
  • Spreads widen during news releases and periods of high volatility.
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#4
Fixed Spread:
Spread or Brokerage know already, this value won't vary based on market price moving or volatility.

Variable spread:
Variable spread means to spread or Brokerage value varying depends on market volatility, at the time of major news hour spread will increase 

which one will choose fixed or variable spread's in real trading?
In real market, spreads should be varying depends on market move and also you can make orders at any time with the best price, suppose if you choose fixed spread you could not make order at high volatility time
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