Commissions and SpreadsÂ
A spread is the difference between the Bid and Ask price of any Forex pair, and is considered the commission a broker may charge the client on every executed transaction.Â
The Spread in any Forex pair can be either Fixed (e.g 3 pips) or Dynamic (floating), meaning that it depends on the market volatility.Â
Look at the following example: A certain Broker quotes an EUR/USD sell price of 1.12257 and a buy price of 1.12260. Obviously, this quote has a 3 pip spread.Â
As you can see in the Forex Brokers comparison table above, each broker offers a different spread to the currency pairs mentioned. Bear in mind that wider Spreads makes it more difficult for the client to turn a profit. Remember to take that into account when choosing your Forex Broker.Â
By: D-DISH