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The spread becomes more important the lower the timeframe you trade. And this is especially true for high frequency traders and scalpers.

For example, an intraday trader has a simple strategy that risks 10 pips per trade with a profit objective of 10 pips.

• In theory the reward to risk is 1:1, until we bring the spread into the equation.
• If the spread is 2 pips, the trader needs the position to move 2 pips in their favor to get to break even, leaving only 8 pips left on the table whilst technically risking 12 pips.
• This then means the actual reward to risk ratio has been lowered to 0.66:1.
• Had this intraday trader used raw price spreads from our Pro account, reward to risk ratio would not have been eroded so much by the spread.

This becomes less of an issue for traders of higher timeframes as the spread has less of an impact on their reward to risk ratio.

Another advantage of a tighter spread is that is keeps your stop further away from being hit.

By sourcing quotes from the top-tier liquidity providers, ThreeTrader can offer tighter spreads a faster service even during volatile news driven events. Of course, spreads will still be variable and dependent on underlying liquidity, but by going to the top of the food chain, we reduce unnecessary delays and unattractive pricing.

ThreeTrader simply do not provide requotes.

Requotes can be extremely frustrating as they can prevent traders from entering the market or closing a position. It is also a sign that the broker may not be all too honest.

Failure to enter could mean a missed opportunity, whereas being unable to exit a profitable position eats into a traders bottom line and erodes confidence in the broker.

For example, if a client is long 1 contract EUR/USD ($100,000 per contract), with 100:1 leverage the margin requirement would be $1,130. However, if they trader wanted to hedge their position as they were concerned volatility may rise over the weekend, they could short (sell) 1 contract of EUR/USD and the margin requirement would be reduced to $0. In doing so they trader has fully hedged their risk exposure and freed up margin for other trades.

Currently, the maximum level of leverage for each market is as follows:

• Forex (500:1)
• Metals (500:1)
• Indices (100:1)
• Oil (100:1)
• Cryptos (5:1)

ThreeTrader have a global reach, and with that comes the requirement to accept multiple currencies. To capitalize on our optimal trading conditions, overseas clients can fund their trading accounts in their domestic currency and alleviate some of the currency risk associated with overseas investing.