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Spread

The gap between the bid and ask price — the built-in cost of every forex trade, measured in pips.

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32 of 49 in Costs & Fees

The spread is the difference between the bid price (what you can sell at) and the ask price (what you can buy at) for a currency pair. It represents the primary cost of trading with most brokers and is usually measured in pips. A tighter spread means lower trading costs. Spreads widen during low-liquidity periods — such as major news releases or market opens and closes — and are typically narrower on major pairs like EUR/USD than on exotic pairs.

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Trade Cost Calculator

Add up the spread, commission and overnight swap on one forex trade, and see how many pips it must move before you break even.

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