Trade with Malfex on ultra-competitive spreads
Forex is the most traded market in the world offering numerous trading opportunities. One of the ways you pay for these opportunities is through the broker spreads, or the difference between the ask and bid prices of a tradable instrument. When the spread is tight, your trading cost reduces.
Our diverse liquidity mix and partnerships with leading banking and non-banking financial institutions for deep liquidity also plays a key role in ensuring that we consistently deliver tight spreads to our traders, starting as low as 0.0 pips.
Successful traders always keep track of any changes in the spread, basing trading decisions on such changes. Spread size plays an important role in trading, especially for scalpers and intraday traders:
When the difference between the ask and bid prices are higher than usual, it could either indicate a period of low liquidity or high market volatility. For instance, non-major forex pairs tend to have a higher spread than major pairs.
When the difference between the ask and bid prices is lower than usual, it could indicate high liquidity or a period of low market volatility. For instance, spreads tend to be lower during the major forex sessions.
Currency spreads are quoted in terms of two different prices: bid and ask price. Bid price is the price at which you can sell the base currency, while ask price is the price at which you can buy the base currency.
For example, if the bid/ask rate for the EUR/USD is 1.1251/1.1252. Here, EUR is the base currency and USD is the quote currency. This means that you can buy the EUR at a higher ask price of 1.1252 and sell it lower at the bid of 1.1251.
The difference between ask and bid price is the forex spread. In the above example, the spread in pips would be (1.1252-1.1251) = 0.0001. The pip value on USD-based pairs is identified on the 4th digit, after the decimal. This means that the final forex spread is 0.1 pips.
To calculate the total spread cost, multiply this pip value by the total number of lots traded. So, if you are trading a EUR/USD trading lot of 10,000
In case you are trading a standard lot (100,000 units of the currency)
In case you are trading a standard lot (100,000 units of the currency)
Now, if your account is denominated in another currency, say GBP, you will need to convert that into US Dollars.
It is important for forex traders to be familiar with forex spreads, since they represent the primary cost of trading. It is an important parametre to consider when you choose a broker.
If you choose to open and trade with an Malfex RAW ECN account, you will find some of the lowest spreads in the market. Our liquidity is sourced from some of the largest and best liquidity providers, with no mark-up applied from our end. This gives us the ability to offer you the tightest spreads, starting as low as 0.0 pips during the most liquid times, something that was previously the domain of hedge funds only. You can always check our trading conditions by opening a demo account.
It is important to know that FX spreads can fluctuate throughout the day. This is because spreads are influenced by several factors, such as liquidity, volatility and market news. You will see some major currency pairs, like the EUR/USD or GBP/USD, which tend to have more liquidity, also have lower spreads than emerging currency pairs, like the USD/JPY.
Also, liquidity can decline and spreads can widen in the days or hours leading up to major economic news events and between trading sessions.
Keep an eye on the economic calendar. Releases occur sporadically and depending on whether expectations are met or not, prices can fluctuate rapidly. If you are currently holding a position and the spread widens, you could receive a margin call. Spreads can widen considerably when the financial markets are volatile: a phenomenon known as slippage.
It is also important to understand the difference between fixed and variable spreads. Fixed spreads remain the same, no matter what the market conditions are. Variable spreads keep on changing, based on the supply and demand of the instruments and the overall market volatility.
Choosing the optimal spread type is important to bring down trading costs and is a key part of the trading strategy of any decent trader. While retail traders with smaller accounts, who trade less frequently, could benefit from fixed spreads, those who trade more frequently and during peak market hours (when the spreads are the tightest), might prefer variable spreads. Variable spreads tend to be lower than fixed spreads especially in calmer markets.
Malfex provides variable spreads for fast trade execution, with low probability of requotes. Our feed comes from leading international financial institutions for deep liquidity, along with real-time price quotes for different tradable instruments. This allows us to offer forex spreads as low as 0.0 pips on RAW ECN accounts and 1.0 pips on Standard STP accounts.
Check our commission charges for the RAW ECN account, based on the currency denomination of your trading account. The table has been split, based on commission per lot, to make it easier for you to calculate your costs, based on trading volume.
| If the price of XAUUSD | To | You could Gain or Lose for a Long Position | Resulting in a Return of the Initial Margin | |
|---|---|---|---|---|
|
Rises by 1% |
83.84/83.85 |
USD 1660 |
100% |
|
|
Declines by 1% |
|
USD -1660 |
-100% |
Pricing alone cannot bring results without reliable and fast execution. We offer some of the world’s best trading platforms to facilitate ultra-fast execution speeds. With the help of our advanced charting tools, numerous technical indicators, market news and insights, and real-time price charts, trading becomes an enjoyable and satisfying experience.
Download our MT5 & CTrader platform to experience trading with tight spreads and transparent commissions.
Spreads on our Metatrader 5 & CTrader platforms are variable, with quotes coming from major international financial institutions. During liquid times our industry-leading spreads can go as low as 0.0 pips. Our more typical spreads are listed below.
Legal: Malfex Group is licensed and regulated by Central Bank of Azerbaijan with the registered name MFX Investisiya Sirkati license number IS-06 as stock joint company and member of Baku Stock Exchange in Azerbaijan.
Malfex Group is licensed and regulated by FSCA(Financial Sector Conduct Authority) under registered name MALFEX GROUP (PTY) LTD FSP No 51598
Malfex is part of Rubin Overseas AG which is regulated by the Securities and Exchange Commission SEC in Washington DC, USA under the license number 801-78986.
Rubin is further directly regulated by the Swiss Financial Market Supervisory Authority FINMA in Switzerland and registered under the license number CHE-392.194.540.
The group is also licensed and regulated by the Malta Financial Services Authority MFSA under license number C-71261 in Malta.
Rubin is also licensed and regulated by Banca D‘Italia (Central Bank of Italy) in Italy.
Malfex Group Limited is authorized and Licensed by the Financial Services Authority(Registration Number. 25343 BC 2019), with its company registered address at First St. Vincent Bank Building, James Street, Kingstown, St. Vincent and The Grenadines. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendment and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines, 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well as to provide brokerage, training and managed account services in currencies, commodities, indexes, CFDs and leveraged financial instruments.
RISK WARNING: Forex and CFDs are leveraged financial instruments that carry a high degree of risk and may expose you to significant losses. Trading in CFDs may not be suitable for all investors. Before trading, you should ensure you fully understand the risks involved and consider your level of experience. If necessary, you should seek independent advice. Please read the full Risk Disclosure Statement for further details.
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