Forex market trade can only be done with the services of Forex broker. Therefore your profitability of the currency trade lies in the fact that how you find the right Forex broker for you. Your Forex broker will never charge any fees for the services you render but he earn his profit by asking you commissions for every trade that he does for you. The commission is called as the spreads. Also, the brokers offer you the Forex charts that claim to help you enter the right trade at the right time. However, every Forex broker claims that he is offering you the tightest spread rates and the perfect profitable Forex charts. But the truthful fact is that every broker has a different spread and Forex charts and hence no one can guess which is providing with the services that he claims to.

In the currency trade the first thing you must learn is reading the quotes. You must have seen the quote Euro / USD = 1.222 or anything else. It is the exchange rate between the two currencies. This means that if you have to buy a unit of Euro (the base currency) then you need to pay 1.222 units of the USD (quote currency). This quote represents the market rate of the exchange but you get your desired currency at a higher price then the quote. This difference in the price is actually the Spread which your broker charges you as his commission for trade. Thorough the spreads the Forex brokers earn their pockets. The unit for measuring the spreads used in the Forex market is pip. And it is very common that you can see in the market that a broker is charges 2 pips or 5 pips spread and so on. You must always remember that higher pips eats up your profits and perhaps most of the brokers represents the traders that higher the pip the better the trade will be. There are two terms ask/bid that are associated with spreads. Ask price is the price of the currency that you buy while bid is the price of the currency that you sell. Therefore the broker that has wider spreads and  Forex charts more will he eat your profit by asking you to purchase at higher and selling the currency at lower price (high ask and low bid).

You a smart trader should always intend to look out for the Forex broker that has tighter spread rates and Forex charts. Even a half pip difference can potentially be more profitable to you. There are brokers available in the industry that even provides you with fixed spread rates. However, it is the personal choice of an individual trader to go for the fixed spread rate or variable spread rates.