Zero-spread accounts: what's the catch?

FTC Community TeamStaff17 Sept 202623 views

Zero-spread accounts offset the missing spread with commission per lot, and the total cost can be higher or lower than standard accounts depending on your trading.

Zero-spread accounts: what's the catch? — bid-ask spread diagram — The bid-ask spread on a currency pair

Have you compared?

the broker and account types you tested
the all-in cost per trade on each
which won for your style

Zero-spread accounts: what's the catch? — risk-reward diagram — A risk-reward ratio of 1 to 2

The trading costs guide has the comparison method.

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.

Read the full guide

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