TRADING COSTS / GUIDE

Forex spreads and commissions: how to compare trading costs

Learn why the lowest advertised spread is not the entire cost and what to compare across account types.

A spread is a trading cost that can change with market conditions. A lower spread does not automatically mean a lower total cost if a commission applies separately.

Compare the account type, instrument and the way costs are quoted before deciding.

Spread and commission are different costs

The spread is the difference between bid and ask prices. Some account types also charge a separate commission per lot.

Use the current contract specification and account schedule for the instrument you plan to trade.

Advertised figures need context

Minimum or average spreads may not apply at all times. Costs can widen around news, market opens or low-liquidity periods.

Do not compare a commission-free standard account with an ECN-style account by spread alone.

Match cost comparison to your use

Frequent trading, holding overnight and trading different instruments can produce different cost profiles. There is no single best account for every trader.

Frequently asked questions

Q. Is a zero-spread account free to use?

A. No. A separate trading commission may apply. Check the full cost schedule.

Q. Are spreads fixed?

A. Many brokers use variable spreads, which can change with market conditions.

Sources and conditions

How this guide is maintained

FX Textbook is edited from official platform documentation, broker-published information and applicable terms where available. Account conditions, services and rules can change. Confirm the current terms in the broker's registration flow before you act.

Important risk information

FX Textbook is an independent information site, not a broker or provider of personal investment advice. Forex and CFDs involve risk. You may lose some or all of your invested capital. No trading result is guaranteed.

NEXT STEP

Next: compare account types

Review account-specific spreads, commissions and platform availability.

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Apply this checklist to broker information

BROKER INFORMATIONXS: account options and conditionsBROKER INFORMATIONHFM: account options and conditionsBROKER INFORMATIONDecodeFX: account options and conditions

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