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With spot forex the spread is only an issue if you are scalping or day trading forex.
If you are swing trading or holding positions for days / weeks then the spread is not really an issue as your stops should be wide enough to cope with slippage, news events etc.
some of the micro currencies are liquid enough.I used to watch the british pound, and the euro is good.The spreads with fxcm are so much better.Also, you can trade oil and gold in Europe.
What about the swap? To hold, you are either getting payed or you are paying, and this needs to be factored when swing trading.
And how is spread a problem for day traders? EURUSD offers less than a pip majority of the time and if a trader cant handle that then their are issues that need to be addressed. If youre trading an instrument that frequently suffers slippage and large spreads and the trader is unhappy with that, simply find a more suitable instrument. There is something for everyone.
I agree with you on the swaps. Even though they might not look like much but lets consider an example. You hold an EU short for 7 days using a standard lot size. For whatever reason you decide to exit for 50 pips. You net $500, and according to the dukascopy rates your rollover will be approx $50.
Not significant but still represents 10% of your total gain on that trade. If you were holding a long you would be paying approx $60 and thats all before the cost of spread or commission is factored in.
Spread for a scalper is an issue no matter what market you trade. FX or futures. On EU I only need to overcome 0.75 of a pip before Im in profit... all in. Liquidity has never been a problem for me. I stand by what I say, if a trader cant handle a 1 or 2 pip spread then they need to reconsider what they are doing.
On futures I need to pay the commission but also need price to advance and clear the next price level before I could close for profit using a market order. And depending on the instrument, you could still be underwater because of the commission so yeah, people need to learn to hold trades and let them run for a bit.