In the dynamic world of forex, most traders are familiar with floating spreads and variable pricing. However, some brokers offer an alternative: fixed rate trading. This model ensures that the spread between bid and ask prices remains constant, regardless of market conditions. For many traders—especially beginners or those trading during high-volatility periods—this can offer significant advantages. In this guide, we break down what to know about forex brokers that offer fixed rate trading, including benefits, limitations, and how to evaluate them properly.

What Is Fixed Rate Trading?

Fixed rate trading refers to:

• Fixed spreads: The difference between buy and sell prices stays constant (e.g. EUR/USD fixed at 1.5 pips), regardless of market conditions.
• Price certainty: Traders know their transaction cost upfront, which can simplify risk management.
• No widening during news: Unlike variable spreads, fixed spreads do not expand during news releases or volatility spikes.

This model is particularly common on standard accounts or non-ECN platforms.

Benefits of Fixed Rate Trading

1. Predictable Trading Costs

• With fixed spreads, you always know how much you’ll pay to enter or exit a position.
• Makes budgeting and strategy building easier, especially for scalping or high-frequency trades.

2. Protection During Volatile Events

• Fixed rate accounts maintain their spread even during news events or market gaps.
• Reduces the chance of getting caught in sudden spread spikes or slippage.

3. Ideal for Beginners

• Easier to understand and plan trades without constantly monitoring live spreads.
• Useful for demo trading and early-stage strategy development.

4. Helpful for Manual and Short-Term Trading

• Traders using manual execution or tight stop-loss strategies benefit from stable pricing.
• Fixed spreads offer peace of mind during fast-paced sessions.

Limitations of Fixed Rate Trading

1. Typically Higher Than Variable Spreads

• Fixed spreads are usually slightly wider than the average floating spread under normal market conditions.
• This can increase costs during calm markets compared to ECN or raw spread accounts.

2. May Involve Requotes

• Brokers using dealing desk models to offer fixed spreads may occasionally issue requotes during volatility.
• This can impact execution if not managed correctly.

3. Limited to Major Pairs and Lower Volatility Instruments

• Fixed rate trading is usually only offered on major forex pairs like EUR/USD, GBP/USD, USD/JPY, etc.
• Less common for exotics, indices, or commodities.

What to Look for in a Fixed Rate Forex Broker

1. Spread Transparency

• The broker should clearly publish fixed spreads for each instrument.
• Look for consistency and disclosure of when spreads might change (e.g. after-hours or holidays).

2. Execution Quality

• Fast order processing with minimal slippage and no requotes
• Stable execution during high-impact news releases
• Real-time trade confirmations and instant feedback on orders

3. Platform Integration

• Ensure fixed rate pricing is fully reflected in the trading platform (e.g. MT4, proprietary apps).
• Chart prices, quotes, and spreads should match the account settings.

4. Regulation and Trust

• Choose brokers regulated by authorities like FCA, ASIC, FSCA, or CySEC
• Ensure they offer negative balance protection and segregated client funds
• Avoid offshore or unregulated brokers promising unrealistic fixed rates

5. Support for Your Strategy

• If you’re scalping, hedging, or trading news events, confirm the broker allows such strategies on fixed rate accounts.
• Ask about minimum trade duration rules, if any.

Top Forex Brokers Offering Fixed Rate Trading

1. Intertrader

• FCA-regulated with true fixed spread accounts across major pairs
• Transparent fee model with no spread widening during news
• Ideal for traders who prioritise stability and predictability

2. AvaTrade

• Offers fixed and floating spread options
• EUR/USD fixed as low as 1.3 pips depending on account tier
• Strong regulation and beginner-friendly platform integration

3. TiBiGlobe

• Customisable fixed pricing models for retail and institutional clients
• Risk-focused features and stable execution for short-term traders
• Suitable for discretionary traders and semi-automated strategies

4. Markets.com

• Offers fixed spreads during defined market hours
• Includes sentiment and educational tools within a fixed-cost environment
• Excellent for newer traders and those who avoid trading outside peak sessions

How to Compare Fixed Rate Brokers

1. Check the spread table for consistency and clarity
2. Open a demo account to test execution and visibility
3. Trade during a news release to observe slippage and order fills
4. Ask support about account restrictions or conditions
5. Review platform accuracy—does the pricing match the fixed promise?

Red Flags to Avoid

• Brokers with unclear spread conditions or pricing tiers
• Frequent requotes or order rejections during fast-moving markets
• Lack of regulation or transparency on execution model
• Fixed spreads that are significantly higher than industry norms (e.g. 3.0+ pips on EUR/USD)

These signs suggest either poor infrastructure or a lack of trading transparency.

Conclusion

Fixed rate trading offers simplicity, stability, and protection during volatility—ideal for newer traders, scalpers, and those who value consistency over ultra-low spreads. By understanding what to know about forex brokers that offer fixed rate trading, you can choose a broker that aligns with your risk profile and trading style.

To learn how to incorporate fixed spread models into structured trading plans, explore professional strategy courses at Traders MBA.