How do you actually compare spreads between brokers?

Two brokers can both claim "low spreads" and charge very different amounts in practice, because spreads change minute to minute and differ between account types and pairs.

How do you actually compare spreads between brokers? — bid-ask spread diagram
The bid-ask spread on a currency pair

When you compare brokers, it helps to share:

  • the pair you checked, and the account type (standard, raw, zero-spread)
  • the spread you saw during your usual session, not just the advertised minimum
  • whether a commission applies on top
How do you actually compare spreads between brokers? — trading sessions clock diagram
The four forex trading sessions across a 24-hour day

The arithmetic behind the total cost of a trade is in spread, commission and swap. What does your current spread look like, and did the advertised numbers match it?

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…