Spreads

Fixed spreads are a way for an FCM to markup or markdown the best bid or offer. FCMs do this to hide their fee into the price of the currency pair instead of displaying their best quote. Common sense tells you that no one works for free, so when you see an FCM claim they have “no commission” that should be a red flag. So how are they getting paid? It's simple... they are making money with the built-in markup/markdown in the spread.

Our FCM, MB Trading Futures, Inc., has nothing to hide. They offer tighter spreads with no markups/markdowns and openly display a low commission rate.

Currency Pairs

In the Forex market, trading is always in currency pairs, such as EUR/USD or USD/JPY. The base currency (the first currency listed in the currency pair) is the basis for the buy or the sell. As an example, the US Dollar is the base currency for USD/JPY (US Dollar/Japanese Yen). The current bid/ask price for USD/JPY could be 107.20/107.23, which means you could buy $1 US for 107.23 Japanese Yen, or sell $1 US for 107.20 Japanese Yen.

View all currency pairs

What is a pip?
A "pip" is the smallest price unit in any currency pair. For example, a movement from .8941 to .8942 in EUR/USD is one pip, making a pip equivalent to .0001. On the other hand, a movement from 130.45 to 130.46 in USD/JPY is also one pip, making a pip equivalent to .01.