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BlogHow do forex broker spreads work?
The spread is the difference between the bid (sell) and ask (buy) price of a currency pair. It represents the broker’s primary cost to you for executing a trade. Tighter spreads mean lower trading costs, making it easier to reach profitability on a trade.
What this looks like across the brokers we track
Across the 42 brokers BrokerAnalysis tracks, the median EUR/USD spread is 0.5 pips, ranging from 0.0 to 1.5 pips, with 36 figures taken from the broker's own published specification.
Measured across 42 entities in the BrokerAnalysis dataset. See the full broker comparison
Answer
The spread is the difference between the bid (sell) and ask (buy) price of a currency pair. It represents the broker’s primary cost to you for executing a trade. Tighter spreads mean lower trading costs, making it easier to reach profitability on a trade.
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