What is a Spread?
A spread is the difference between the buy price (Ask) and sell price (Bid). This is the broker's main income from each trade.
Types of Spreads
- Fixed spread — remains constant regardless of market conditions
- Floating spread — changes depending on liquidity and volatility
Broker Commissions
Some brokers charge additional commission per trade besides the spread. This usually applies to ECN accounts with minimum spreads.
What is a Swap?
A swap is a fee for carrying a position overnight. The swap amount depends on the interest rates of the currencies in the pair.