WikiFX

Sagot

In my experience analyzing United Securities Co., the broker offers different spreads based on the account type, but the most important factor here is transparency and risk. According to the details available, the Standard account starts with spreads from 1 pip, while the higher-tier Professional account advertises spreads from 0 pips with a commission per trade. This generally implies they offer variable spreads, since fixed-spread brokers ordinarily state a consistent, unchanging number. Variable spreads, in my practical experience, will usually widen during major news events or heightened market volatility—potentially by several pips—because liquidity can evaporate and pricing becomes less stable. This is a well-established industry norm and presents a potential risk for any trader not anticipating sudden costs. In volatile periods, especially with a broker that lacks robust regulation such as United Securities Co., I am particularly cautious. The absence of clear regulatory oversight can mean less transparency on spread widening or potential slippage. While a variable spread starting from zero or one pip can appear advantageous in normal conditions, during events like interest rate decisions or geopolitical headlines, spreads may expand unexpectedly, affecting trade costs significantly. For me, that unpredictability is a major consideration, and I would monitor trade execution carefully or set strict limits during news periods to control potential losses.