Originally Posted by itguy

I've been with Ikon for a long time and have no complaints. The spreads you see widening and fluctuating wildly are a result of the market not Ikon, they are just relaying price. You can look at any of the spreads on other brokers and they are the same if not worse.

Spreads are a function of overall market liquidity. Right now because of the world economy there isn't as many traders who are buying and selling.

In general, during non-standard trading hours such as weekends, spreads are widened to reflect illiquidity in the market. Likewise, during periods of high volatility, such as news events, spreads may be widened temporarily to respond to liquidity issues in the market.

Ultimately, forex prices today are dictated by the forex interbank market, where spreads are variable depending on current liquidity, volume and ticket size.

Definition of Liquidity: The ability of a market to accept large transactions. A function of volume and activity in a market. It is the efficiency and cost effectiveness with which positions can be traded and orders executed. A more liquid market will provide more frequent price quotes at a smaller bid/ask spread.