What is Forex Spread?
The forex spread is the difference between the buy price and sell price of a currency pair. It represents the trading cost charged by brokers.
Example
If EUR/USD is quoted at 1.1050 / 1.1052, the spread is 2 pips.
Why Spread Matters
- Lower spreads reduce trading costs
- Important for scalpers and day traders
- Affects profitability
Best Brokers With Low Spreads
- Exness
- IC Markets
- Pepperstone
Related Terms
FAQ
What is a good spread?
Anything below 1 pip on major pairs is considered competitive.
