How forex spreads actually work — and why two published numbers rarely match
Fazit
- The spread is the gap between the bid and ask price, and it is the cost you pay the instant you open a position, before the market has moved at all.
- A spread quoted as "from" a figure describes the best moment observed, not a typical one — a broker can publish "from 0.0 pips" honestly while your average fill sits well above it.
- A spread quoted as an "average" describes typical conditions over a measured period, which is a more usable number for estimating real cost but still varies by time of day and volatility.
- Raw or ECN accounts usually pair a near-zero spread with a separate per-lot commission; Standard accounts usually fold that cost into a wider spread instead — comparing spread alone between the two account types is misleading.
- Spreads widen during low liquidity — around rollover, thin Asian-session hours, and in the seconds around high-impact news — regardless of what the headline figure advertises.
Spread comparisons are the most common broker marketing claim and the easiest to misread, because "lowest spread" can describe either a rare best case or a genuine average, and the two are not the same number. This page explains what a spread actually is and how to read the figures brokers publish.
What the spread actually is
Every tradeable instrument has two prices: the bid, which is what you receive to sell, and the ask, which is what you pay to buy. The spread is the difference between them, usually quoted in pips. It is a cost you incur the instant a position opens, because a position bought at the ask is immediately worth the (lower) bid if closed straight away.
- On EUR/USD, a spread of 1.0 pip costs roughly $10 per standard lot at typical pip values.
- The spread is paid once, on entry — it is not a recurring charge like an overnight swap.
- A tighter spread lowers cost per trade, which compounds for frequent or short-term strategies.
"From" versus "average" — read the label, not just the number
This is the single most misread figure in broker marketing. A "from" spread is the tightest level the broker has observed or is capable of quoting — a real number, but one that may occur rarely and only in the calmest market conditions. An "average" spread is a measured typical value over a stated period, which is far more representative of what you will actually pay across ordinary trading hours. The two are not interchangeable, and a table that mixes them produces a misleading comparison.
Raw/ECN spread plus commission versus Standard spread only
Many brokers offer two account structures for the same underlying liquidity. A Raw or ECN account typically shows a spread close to zero and adds a separate commission per lot traded. A Standard account usually removes the commission and widens the spread to cover the same cost internally. Comparing the Raw account's near-zero spread against a Standard account's wider one, without adding the commission back in, makes the Raw account look artificially cheaper than it is.
- Raw/ECN: near-zero spread + fixed commission per lot, typically $3-7 per side.
- Standard: no separate commission, spread widened to fold the cost in.
- For most retail volumes the all-in cost between the two structures ends up closer than the headline spread suggests.
When spreads widen regardless of the headline figure
Published spreads describe typical or best-case conditions, not every moment. Liquidity thins during the Asian session on many pairs, around the daily rollover, over weekends approaching Friday close, and in the seconds surrounding high-impact economic releases — and spreads widen correspondingly in all of those windows. A strategy that trades through those periods should plan for the wider, not the advertised, number.
What is a good spread for EUR/USD?
There is no universal answer, because it depends on account type and time of day, but a genuine average spread of roughly 0.6-1.2 pips on a Standard account, or near-zero plus commission on a Raw/ECN account, is typical among regulated brokers during liquid hours. Always check whether a published figure is an average or a best-case minimum.
Why is the spread wider than what the broker advertises?
If the advertised figure is a "from" minimum, it describes the tightest level observed, not a typical one — your actual spread will usually sit above it. Spreads also widen mechanically during low liquidity, around news releases, and near market close, regardless of the headline number.
Is a zero-spread account actually free?
No. A near-zero spread on a Raw or ECN account is paired with a separate commission per lot, which is a real cost that has to be added back in to compare fairly against a Standard account's wider, commission-free spread.
Does the spread matter more than commission?
Neither matters in isolation — what matters is the all-in cost per round trip, spread plus commission combined, compared consistently across the account types and brokers you are evaluating.