EUR/USD Spread Hits Record Low at Dukascopy Bank

On Wednesday, Swiss brokerage Dukascopy Bank announced that the average spread on the EUR/USD currency pair has hit a record low at 0.16 pips during the European trading session.

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Usually, the higher the Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, the lower the volatility, and therefore the tighter the spread. Dukascopy was among the first forex brokers to create its own ECN model and provide it to retail traders. As such, the ECN-marketplace model and the big number of Dukascopy’s Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term, more than 25 leading banks, helped the company provide its clients today with some of the best trading conditions.

According to the Dukascopy announcement, during European session, 46.1% of EUR/USD quoted prices have the spread of 0.1 pips, while 44.7% have the spread of 0.2 pips. Looking at other brokers’ platforms, FXCM for example, the EUR/USD best spreads were around 0.3 pips.

Dukascopy offers on its website a widget that shows the average spreads for different trading sessions. It is possible to view spreads for different time periods (daily, monthly or quarterly) and see distribution of spreads for respective time frame.