One of the big challenges we traders face with all types of trading is commission costs , gaps and in the case of forex (fx) trading “Forex Pip Spreads” Fluctuations which of course becomes our brokers cost per trade that they are effectively charging us to cover their cost of doing business and to make a profit dependant on the fx markets volatility at that moment in time
The problem with most forex brokers is they don’t offer a fixed pip spread but they offer various degrees of fluctuating spreads that “SPIKE” from time to time so if your stop loss is close by it is very likely to be taken out
Now these fluctuations vary from broker to broker and are very hard to get a handle on
Take a look here at Oandas recent spreads showing the their Pip Spikes and how big they where and when it makes for interesting viewing don’t you think
Oandas Recent Forex Pip Spread History
Most brokers don’t seem to be able to or wan’t to be this transparent with what has happened on their books it’s one of the things we really like about Oanda