Spread, also known as the bid/ask spread is the difference between the price you sell a base currency and the price you buy a base currency. This amount is paid by you to the broker as a charge for their services. Some brokers advertise themselves as ‘Zero commission’ brokers but understandably they do need to make a profit somehow, which is where spread comes in. It is of course in your best interest to work with a broker that provides ‘low spreads’, where the difference between bid prices and ask prices are small, and you pay less for the ability to trade.
So a good Forex Spread is a low one, but it is also important to remember that brokers can offer ‘Fixed Spreads’ which never change in amount, ‘Variable or Floating Spreads’ which go up and down variably throughout the day, or a combination of both depending on the currency or time of the day. Make sure you know which one the broker offers so you can take into consideration the cost of fees you’ll be paying.
With Spread usually being measured and quoted in pips, (the smallest unit of price movement), you’ll normally see FX brokers state their lowest spreads as a whole number or decimal number in pips. We’ve listed some of the best deals with low spreads offered by some of the most reputable brokers today. Take a look at the table below to start trading today in a low spread broker.
Best Spread Brokers
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