- Choose the Account Type of LMFX
- Should you choose Variable spread or Fixed spread?
- Fixed Spread is not available for some markets
- Fixed account is especially suited for EA traders
- Why the spread is wider in Fix account?
- Condition of Fixed spread
Choose the Account Type of LMFX
LMFX offers both type of spread, Fixed and Variable.
You can choose the spread type by choosing the account type.
Please refer to the below table.
|Minimum Spread||1 pip||1.8 pip||0 pip|
|Required Deposit Amount||50 USD||250 USD||100 USD|
Extra Trading commissions for Zero account type
There is no extra trading commissions to Premium and Fixed account, but only the spread which you will need to pay while trading.
For Zero account, you need to pay $4 per 1 lot for trading.
The minimum spread would be 0 pip for the Zero account, but you need to consider the trading commissions at all times.
LMFX does not charge fees for deposit nor trading.
Should you choose Variable spread or Fixed spread?
Before selecting any account types, you will need to see if you prefer the variable spread or fixed spread.
There are merits for both spread types.
Characteristics of Variable Spread
- Usually the spread is tighter than the variable one
- Spread could go wide and low at any moments
- No re-quotes or no order rejections
Characteristics of Fixed spread
- Usually the spread is wider than the variable one
- Spread is fixed at most of the time
- If the market volatility is high, there could be re-quotes or order rejections
Fixed Spread is not available for some markets
LMFX offers about 47 different Forex currency pairs with Premium and Zero account, but not the Fixed account.
You can find the full spread conditions and available Forex currency pairs in LMFX official website.
If you like to trade Forex currency pairs, CFDs and Precious Metals along with the Forex currency pairs, you can trade them with one account.
You do not need to open several accounts to trade several kind of financial instruments.
Fixed account is especially suited for EA traders
Fixed account is one ideal option for EA traders, as it is more simple for programming(setting up) an EA for fixed spread.
But as fixed spread offers wider spread than the normal spread, it is not for scalping traders.
So generally speaking:
- Premium account is for high leverage(1:1000) traders
- Fixed account is for EA traders
- Zero account is for scalping traders
Why the spread is wider in Fix account?
In the case of fixed spread type, normally you will need to pay for premiums(extra spread) for the broker
STP brokers make money from spread and they will make a loss if they offer tighter spread than the actual available spread from inter-bank market.
But this does not mean that the variable spread is always tighter as it could get wider at any times.
Condition of Fixed spread
When you are going to trade in Fixed account of LMFX, you need to be careful that the spread is not necessarily fixed at all times.
The fixed spread can get wider when the market volatility is extremely high.
For example some News time to release important economic data, you may want to expect this situation and prepare to have enough margin to support all your positions in your account.