Having information about spreads when analysing any currency trading platform is integral to stay ahead in your trading.

‘Spread’ is the difference in pips between the BID price and the ASK price quote (also called buy/sell) in a currency pair like the EUR/USD.

When trading Forex it is necessary to understand that the ASK price needs to be higher than the bid price all the time, and that difference is banked by the broker, obviously as a profit. That is the main reason why the spread has such a significant impact on your work as a Forex trader. 

Basic Understanding of ‘PIPs’ 

As a trader, you want to bank as much profit as possible and depending on what strategy or style you trade what spread you have to pay out to the broker is very important. For example, If you execute many traders or plan to have many open trading positions then one pip or two pips spread difference could mean saving pounds per trade.

This is incumbent to the size of your trades, one pip spread on a standard lot trade (100k) will mean the difference in ££s to one pip spread on micro-lot trade.

The spread is nothing more than the cost of each of the transactions performed by you as a trader in the market; of course, the price varies from broker to broker.

All spreads quoted below for each broker are fixed spreads.

Check Overnight Trading Fee’s

Analysing and assessing the overnight carry rate and swap rate analysis when choosing a trusted forex broker. For those who are in search of Swap-Free i.e. Overnight Interest-Free Accounts (see Islamic Broker Accounts) where your broker will not charge interest fees for having overnight open trading positions. 

This applies to Swing Traders and Long-term Position traders that must consider and factor this into their trading.