I phoned up IG and told the guy on the phone that in the last 3 days I have not once seen the spread of the AUD/USD on IG's site less than 4 pips. So I asked him at what time of the day can we trade the AUD at 2 pips as advertised. He said, when the volatility is high or when the volume is low the spread goes wide (4 pips). When the opposite happens the spread goes narrow (2 pips).
So I guess the reason why its staying at 4 pips is because no one is trading it which makes the volume low (4 pips). So its sort of like a positive feedback loop. Traders boycott it because its 4 pips and it needs more traders to get it to 2 pips. So its kind of stuck there now at 4 pips. Yuck!
Is anyone still doing AUD forex? Or have the wider spreads (4 pips) turned you right off forex and back onto equities or someting. Or have you switched to the EUR/USD (2 pips)? Or are you just cheesed off and undecided?
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