The trouble with most broker spreads analysis is that it’s rarely comprehensive, and usually or at least quite often, done by amateurs. The following post is derived from a submission by Tradeproofer, who many of you will know from a recent post entitled “Do Trading Robots Really Make a Profit?“
The full coverage of the broker spreads analysis and comparison can be seen at the Tradeproofer website. The following is a brief explanation, introduction and foretaste of all the data that can be mined at that site.
Tradeproofer has requested any feedback, questions etc. that you may have with regards to enhancing or understanding the reports. Just go to the end of this post to leave such feedback in the comments section. There is a lot of hard work here in this data analysis, so if you have anything to say, even just “well done”, please don’t hold back 🙂
Finally, we just finished with the January spread comparison analysis I promised. We created a set of papers covering 60+ brokers in 10 fx crosses. Please find attached the EURUSD paper as a sample.
I am also eager to get your feedback on how to develop this analysis, I think there’s a great potential in crunching this data.
PS: Some of the key findings:
- 9 out of top10 EURUSD brokers charge commission, so a commission broker is not necessarily an expensive broker.
- fixed spread brokers are usually totally out of range, they are just not in the same league with floating spread brokers
- commission adjusted spreads shows that there is a huge gap between minimum and maximum spreads. There are brokers selling the same hamburger at 4-11x fold price when compared to the cheapest broker.
Below are screen dumps of the EURUSD January analysis that Peter refers to above. Just click on any of the images to enlarge to readable format (browser back button will return you to this page):
Hope you enjoyed this post, and don’t forget to leave feedback below!