What is the spread?
The spread is the difference between the bid (sell) price and the ask (buy) price. If EUR/USD is quoted 1.10000 / 1.10010, the spread is 1.0 pip. You buy at the higher price and sell at the lower one, so a new position starts slightly negative by the size of the spread.
Spreads are variable. They are tightest on liquid pairs during busy hours — the London and New York sessions — and widen when liquidity is thin: around the daily rollover, on Sunday's open, and around big news releases. 'From' figures describe typical conditions on the most liquid pairs, not a fixed price.
Spread-only vs raw spread plus commission
- Spread-only accounts build the broker's charge into the spread. There is no separate commission line, which keeps costs simple to read.
- Raw spread (ECN-style) accounts pass through the spread from liquidity providers with no mark-up and charge a fixed commission per lot instead. Costs are more transparent and usually lower for frequent or larger traders.
| Account | Minimum deposit | Spread from | Commission |
|---|---|---|---|
| Standard | $100 | 1.0 pip | None |
| Pro | $1,000 | 0.6 pip | None |
| Raw ECN | $5,000 | 0.0 pip | $7 per lot |
Worked example: the cost of 1 lot of EUR/USD
On EUR/USD one pip on one lot is worth $10, so the spread converts straight into dollars. The table uses each account's 'from' spread; real spreads vary with market conditions.
| Account | Spread cost | Commission | Total for 1 lot |
|---|---|---|---|
| Standard | 1.0 pip × $10 = $10 | $0 | $10 |
| Pro | 0.6 pip × $10 = $6 | $0 | $6 |
| Raw ECN | 0.0 pip × $10 = $0 (plus any raw market spread) | $7 | $7 plus the raw spread |
At 0.10 lot every figure is one tenth: $1, $0.60 and $0.70 plus the raw spread. On gold, Raw ECN commission is $10 per lot.
Why trading costs matter more than they look
A few dollars per trade adds up. A trader who opens 100 one-lot EUR/USD trades a month pays around $1,000 a month in costs on a 1.0-pip spread, and around $600 on a 0.6-pip spread. For short-term strategies that aim for 10–20 pips, the spread can be a large share of each win.
- Short-term and high-frequency traders usually benefit most from tight spreads or raw pricing.
- Occasional, longer-term traders often care more about swaps (overnight financing) than about a fraction of a pip of spread.
- Everyone benefits from avoiding trading through news spikes and rollover, when spreads widen.
Other costs to check
- Swaps: a daily financing charge or credit on positions held past rollover, listed per instrument on the Markets page.
- Slippage: the difference between the price you asked for and the price you got, which can go either way in fast markets.
- Funding costs: network fees on USDT deposits and withdrawals depend on the blockchain you use (BEP20 or TRC20).
Frequently asked questions
What is a good forex spread?
On major pairs such as EUR/USD, spreads around 1 pip or below are typical for spread-only accounts in normal conditions. Compare total cost — spread plus any commission — rather than spread alone.
What does ECN commission mean?
On raw spread accounts the broker adds no mark-up to the spread and charges a fixed commission per lot instead. On AlphaFX Pro Raw ECN it is $7 per lot on EUR/USD.
Why do spreads widen?
Spreads widen when there is less liquidity — at the daily rollover, on the weekly open and around major economic news.
Which account is cheapest?
It depends on how much you trade. At a 0.6-pip spread the Pro account costs about $6 per EUR/USD lot, while Raw ECN costs $7 commission plus the raw spread, which can be cheaper when raw spreads are very tight.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This page is general information, not investment advice. Read the Risk Disclosure.