What is the difference between fixed and variable spreads at forex brokers?

Fixed spreads stay the same under most market conditions, so the broker commits to a set bid‑ask difference regardless of volatility. This can help traders know their transaction cost in advance and avoid sudden spikes, though fixed spreads are often set higher on average than variable ones to compensate the broker for risk. Variable or floating spreads expand and contract based on market liquidity and volatility; they can be very tight in calm, liquid periods but widen during news events or thin trading sessions. Some brokers offer both types on different accounts. The best choice depends on your style: scalpers and high‑frequency traders often prefer tight variable spreads, while some news or algorithmic traders value the certainty of fixed spreads.