What is the spread in forex trading?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related
What is the cheapest forex broker in Europe?
The cheapest forex broker in Europe for EUR/USD is Pepperstone via its Razor account (0.0 pip raw spread + $7 round-turn), matched by Tickmill Pro at $6 round-turn. Both onboard EU clients under EU regulation with ICF or EdW compensation. Exness quotes comparable raw pricing globally but closed EU/EEA retail onboarding in 2019, so it is not an option for EU residents.
Standard vs Raw Spread account — which should I choose?
Choose a Raw Spread account if you trade more than 5 standard lots per month or use automated strategies. Choose a Standard account if you trade occasionally or prefer a single all-inclusive cost number. Raw accounts cost less per trade above that volume threshold; Standard accounts are simpler below it.
What is a pip in forex trading?
A pip (percentage in point) is the smallest standard price movement in a forex pair — typically the fourth decimal place (0.0001) for most pairs, or the second decimal place (0.01) for JPY pairs. On a standard lot (100,000 units) of EUR/USD, one pip is worth approximately $10.
Article: How to Read Forex Broker Spreads: A Complete Guide
Spreads are the primary trading cost for most forex traders, but broker marketing makes them confusing. Learn the difference between raw, typical, and average spreads, and how to calculate your actual trading costs.
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