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.
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
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?
Background: The real cost of a forex trade: spread, commission and swap
Every trade has costs, and they are easy to underestimate. Here is how to add up the spread, commission and overnight swap on a position.
What is a spread in forex?
The difference between the bid (sell) and ask (buy) price. You pay it every time you open a trade, and it widens when the market is less liquid.
Is a raw spread account cheaper?
Not automatically. Add the spread and the round-trip commission together and compare the total with a spread-only account's typical spread on the pairs you trade.
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