As the name suggests, the broker offers this type of spread and it remains stable for a certain period, usually in the long run. It definitely would not change your trading day. Fixed spreads are usually presented in the major and most popular currency pairs such as EUR/USD, USD/JPY, and other foreign currency pairs that are seen as very stable currencies with only slight fluctuations and a fixed trading volume.

Variable spread, is the opposite of fixed spread in the sense that it is subject to change and can move smoothly throughout the trading session depending on the size and volatility of the market. Most of the major forex brokers will offer variable spreads, especially in high-risk or less popular financial markets that can see a lot of price changes. This includes small foreign currency pairs, foreign exchange trading, and some commodities.

Fixed and variable spreads are terms commonly associated with financial markets, particularly in forex trading. The primary distinction lies in how the cost of trading is determined. A fixed spread remains constant regardless of market conditions, providing traders with predictability in transaction costs. This stability can be advantageous during times of market volatility when variable spreads may widen.

On the other hand, variable spreads fluctuate based on market conditions and liquidity. During periods of high volatility or low liquidity, variable spreads tend to widen, potentially increasing trading costs. Traders who prefer flexibility and are comfortable with potential cost variations may opt for variable spreads.

Choosing between fixed and variable spreads depends on individual trading strategies, risk tolerance, and market conditions. Fixed spreads offer consistency, while variable spreads offer potential cost savings in favorable market conditions but may lead to higher costs during volatile periods. Traders often assess their preferences and market expectations to decide which spread type aligns best with their trading objectives.