Currency pairs and spreads
Aroon understands that spreads are the most important part of running a forex broker. It is important for traders to keep their costs down.
The competition for low spreads in the FX industry has intensified, and in fact, 0 spreads and the narrowest spreads are time to time hype, as if the spreads are significantly better than those of other firms, to attract traders and to repeat the various conditions and excuses, when in fact, traders cannot trade at those spreads. In some cases, the trust between the traders and the company has been severely eroded.
Aroon wants to be a balanced forex broker with average spreads, not pushing for the narrowest spreads or zero spread in order to build trust with traders.
Aroon operates under the principle of user-first, we respond to your inquiries and withdrawal requests in a timely manner.
In addition, we are able to trade in all currency pairs, and we will always provide services that meet the needs of our customers.Aroon is committed to supporting our clients with services that are not solely focused on short-term profits.
Industry-average spreads on standard accounts for major currency pairs
Eliminate requote and execution rejection
Honest trade with no hidden markup at all.
Good enforcement policy
Spread
The spread is the difference between the Bid and Ask in the financial trading market and is shown as pips.
This will be a trading fee charged to you. Spreads vary from one broker to the others, as each broker sets its own spreads, and although narrower spreads are generally more advantageous to customers, it is recommended that you take a comprehensive view of other services, costs and risks, and the reliability of the broker.
We are committed to presenting all costs to our customers clearly without any hidden markup.
Why Spreads Are Different For Each Currency Pair
FX spreads vary depending on the currency pair, and the size of the spread is mainly determined by the trading volume and trading method.
Trading Volume
The spread is determined by the financial institution that quotes the rate to the forex company, based on the number of orders to buy or sell.
The higher the volume, the greater the liquidity and the more stable the price will be.
Even if you set a narrow spread on one currency, it is assumed that the trade will be executed because of the large number of trading participants. On the contrary, in the case of one currency with low trading volume, the spread tends to be set wide since there are few participants in the trade.
Trading Methord
Forex is the buying and selling of currencies and currencies. If someone sells one currency, someone else will buy that currency.
For example,in case of buying dollar-yen (USD/JPY) currency pair. In that case, you would sell yen and buy dollar. If you buy Euro-dollar (EUR/USD) currency pair, you would sell the dollar and buy the euro.
Now let's consider a currency pair that does not include dollar, such as the Euro Yen (EUR/JPY). If you buy a currency pair of Euro-Yen, you must sell the Yen to buy the Dollar and then sell the Dollar to buy the Euro. This is because the dollar is the reserve currency, so you will be trading through the dollar. Any currency pair will always be traded through dollar.
Therefore, spreads are wider for currency pairs that trade through dollar.
spreads are determined by these factors.
In addition the spreads determined by the forex companies are different.