Fixed Spreads vs Variable Spreads
Which is better for you?
Last verified: April 2026
Quick Answer
Fixed spreads stay the same regardless of market conditions, making cost prediction easy; variable spreads fluctuate with market liquidity but are tighter most of the time, especially during high-volume London/NY sessions.
Based on our independent 2026 analysis of both options across cost, execution, regulation, and practical trader workflow.
Fixed Spreads
Fixed spreads are quoted at a constant width regardless of market conditions. Whether it is 3am Sydney time or the NFP release on first Friday, a fixed-spread broker will quote EUR/USD at, say, 1.2 pips no matter what is happening in the underlying market. The broker absorbs the cost when real spreads widen and pockets the difference when real spreads tighten.
Fixed spreads are a market-maker product — the broker is taking the other side of the trade and can offer artificial stability because they control the pricing. They are less common today than 20 years ago, but still exist at dealing-desk brokers and some retail-focused platforms targeting beginners.
Variable Spreads
Variable spreads (also called floating spreads) track real market liquidity. On EUR/USD at a top ECN broker during liquid London/NY overlap, spreads routinely touch 0.0–0.2 pips. During the Asian session they widen to 0.3–0.6 pips. Around major news events like NFP or ECB decisions, they can temporarily spike to 3–8 pips before snapping back.
Variable spreads reflect genuine interbank liquidity conditions. They are cheaper than fixed spreads 90% of the time — the trade-off is occasional widening during volatile moments. All ECN and STP brokers use variable spreads by default, and this is the dominant pricing model at every top-tier EU broker.
Side-by-side comparison
Key differences between Fixed Spreads and Variable Spreads across the factors that matter most.
| Aspect | Fixed Spreads | Variable Spreads |
|---|---|---|
| Typical EUR/USD spread | 1.5–3.0 pips (constant) | 0.0–1.0 pips (average 0.5) |
| Behaviour during London/NY | Same as all other hours | Tightest of the day |
| Behaviour during Asian session | Same as all other hours | Wider than day's average |
| Behaviour during news | Unchanged (but requotes likely) | Sharp widening possible |
| Broker model | Usually dealing desk / market maker | ECN, STP or true no-dealing-desk |
| Requote risk | High during volatile moves | Low — spread adjusts instead |
| Predictability | High — cost is constant | Lower — depends on session and events |
| Average cost over time | Higher | Lower |
Pros of Fixed Spreads
- ✓Completely predictable trading costs
- ✓No widening around scheduled news events
- ✓Easier for beginners to plan trade costs
- ✓Psychologically simpler — one number to remember
- ✓Works well for news traders in specific cases
- ✓Simpler backtesting assumptions
Pros of Variable Spreads
- ✓Genuinely tighter spreads most of the time
- ✓Reflects real interbank liquidity conditions
- ✓No markup hidden in the price
- ✓No requotes — broker always fills at the displayed price
- ✓Paired with commission-based pricing at ECN brokers
- ✓Industry standard for professional and algo traders
Final Verdict
Which wins? Variable Spreads
For anyone serious about minimising trading costs, variable spreads at an ECN or true STP broker win comfortably. The average cost per trade is lower, the broker's conflict of interest is reduced or eliminated, and the pricing reflects real market conditions. Fixed spreads are a niche product today — useful for beginners who want pricing certainty, or for news traders at brokers that maintain tight fixed spreads during event windows. The overwhelming majority of EU traders should use variable spreads with an ECN or true STP broker.
Recommended brokers for Variable Spreads
The top 5 EU-regulated brokers ranked specifically for this use case.
| # ▲▼ | Broker ▲▼ | Score ▲▼ | Min Deposit ▲▼ | EUR/USD ▲▼ | Max Leverage ▲▼ | Regulators ▲▼ | Platforms ▲▼ | Action |
|---|---|---|---|---|---|---|---|---|
| 1 | IC Markets | 9.4 | $200 | 0.0 pips (Raw), 0.6 pips (Standard) | 30:1 | CySECCyprusASICAustraliaFSASeychelles | MetaTrader 4, MetaTrader 5, cTrader, TradingView | Visit |
| 2 | Pepperstone | 9.3 | None | 0.0 pips (Razor), 0.69 pips (Standard) | 30:1 | BaFinGermanyCySECCyprusFCAUKASICAustralia | MetaTrader 4, MetaTrader 5, cTrader, TradingView | Visit |
| 3 | Exness | 8.8 | $10 | 0.0 pips (Raw), 0.3 pips (Pro), 1.0 pips (Standard) | 30:1 | CySECCyprusFCAUKFSASeychelles | MetaTrader 4, MetaTrader 5, Exness Terminal, Exness App | Visit |
| 4 | FP Markets | 8.7 | $50 | 0.0 pips (Raw), 1.0 pips (Standard) | 30:1 | CySECCyprusASICAustralia | MetaTrader 4, MetaTrader 5, cTrader, IRESS | Visit |
| 5 | Eightcap | 8.4 | $100 | 0.0 pips (Raw), 1.0 pips (Standard) | 30:1 | ASICAustraliaFCAUKCySECCyprus | MetaTrader 4, MetaTrader 5, TradingView | Visit |
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This website is for informational purposes only. The content does not constitute investment advice. Trading leveraged products carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. EU retail leverage limits apply (ESMA): up to 30:1 on major FX pairs, 20:1 on minor FX, 20:1 on major indices, 10:1 on commodities, 5:1 on equities, 2:1 on crypto.