Gold spreads lower than ECN?

March 2nd, 2016, 06:05 AM

I'm looking to trade gold intraday and therefore looking for a minimal avg spread. Through Dukascopy which is an ECN broker the spread seems to avg out around 30 pips, at least through Europe session. However other brokers seem to offer a spread down to around 10 pips. Can anyone explain how these would be able to 'beat' the ECN spread?

March 2nd, 2016, 06:19 AM

The futures contract is where most of the liquidity is, so matching the futures spread of 10 cents would be pretty straight forward.

March 2nd, 2016, 06:21 AM

Interesting. So you think they just make a CFD or similar based on the futures? though the futures moves in 10pips increments right? if so I guess the spread should never move under 10 for derivates of the future

Gold spreads lower than ECN?

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Gold spreads lower than ECN?