What is Spread in Forex? Complete Beginner Guide 2026
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Every time you open a forex trade, you pay a cost you might not even notice — the spread. It's invisible, automatic, and it comes out of your position the moment you enter. Understanding spread is essential for choosing the right broker, the right account type, and the right EA strategy. Here's everything you need to know in 2026.
⚡ PMotive EAs are optimised for low-spread brokers like Exness Raw Spread accounts — minimising trading costs and maximising net returns. One-time purchase, trades 24/7 on MT5. Browse PMotive EAs →
What is Spread in Forex?
The spread is the difference between the bid price (what you can sell at) and the ask price (what you can buy at). It is measured in pips and represents the broker's primary cost of executing your trade.
Example:
- EUR/USD Bid: 1.08500
- EUR/USD Ask: 1.08503
- Spread: 0.3 pips
When you buy EUR/USD, you immediately start 0.3 pips in the negative. The market must move 0.3 pips in your favour before you break even. This is why spread matters enormously for EA trading — especially scalping strategies.
Bid vs Ask — The Simple Explanation
- 🟢 Bid price: The price the broker will buy from you (you sell at this price)
- 🔴 Ask price: The price the broker will sell to you (you buy at this price)
- 🟡 Spread: Ask − Bid = your entry cost on every trade
Types of Spread
Fixed Spread
The spread stays the same regardless of market conditions. Predictable but usually wider than variable spreads. Common on standard accounts.
Variable (Floating) Spread
The spread widens and narrows based on market liquidity and volatility. Tightest during London and NY sessions. Widens during news events and off-hours. Common on Raw Spread and ECN accounts.
Raw Spread (Zero Spread)
The broker passes the interbank spread directly to you — sometimes as low as 0.0 pips — and charges a small commission per trade instead. This is the most cost-efficient account type for EA trading.
Spread Comparison — Why It Matters for EA Trading
For manual traders making 2-3 trades per day, spread is a minor consideration. For EAs making 10-50+ trades per week, spread is a major cost factor:
| Account Type | Typical Spread (EUR/USD) | Cost per 0.1 lot trade | Cost per 100 trades |
|---|---|---|---|
| Standard account | 1.5-2.0 pips | $1.50-$2.00 | $150-$200 |
| Pro account | 0.5-1.0 pips | $0.50-$1.00 | $50-$100 |
| Raw Spread account | 0.0-0.3 pips + commission | $0.30-$0.60 | $30-$60 |
Over 100 trades, a Raw Spread account saves $90-$170 compared to a Standard account — pure additional profit for the EA trader.
Spread on NAS100, Gold, US30 and V75
PMotive EAs trade indices and commodities. Here are typical spreads on Exness Raw Spread accounts:
| Instrument | Typical Spread (Exness Raw) | Impact on EA Performance |
|---|---|---|
| NAS100 (US100) | 0.5-2.0 points | Low — EA targets 20-100+ point moves |
| Gold (XAU/USD) | $0.10-$0.30 | Very low — EA targets $1-$10+ moves |
| US30 (DJIA) | 1.0-3.0 points | Low — EA targets 20-80+ point moves |
| Volatility 75 (V75) | Fixed synthetic spread | Consistent — no news widening |
✅ V75 synthetic indices on Deriv have fixed spreads — they never widen during news events. This is one of the biggest advantages of VigoRL V75 EA — consistent, predictable trading costs 24/7.
When Does Spread Widen?
Variable spreads widen significantly during:
- 🚨 Major news events: NFP, CPI, Fed rate decisions, GDP releases
- 🚨 Market open/close: First and last 15 minutes of sessions
- 🚨 Low liquidity periods: Asian session, weekends (for non-synthetic instruments)
- 🚨 Market gaps: Monday open after weekend
PMotive EAs include session filters to avoid trading during high-spread periods — protecting your returns from spread spikes.
How to Minimise Spread Costs
- ✅ Use a Raw Spread account — Exness Raw Spread offers the tightest spreads globally on NAS100 and Gold
- ✅ Trade during London and NY sessions — highest liquidity = tightest spreads
- ✅ Avoid trading during major news — PMotive EAs have built-in news filters
- ✅ Use synthetic indices for 24/7 fixed spreads — VigoRL V75 EA on Deriv never faces spread widening
Spread vs Commission — Which is Cheaper?
On Raw Spread accounts, you pay a commission instead of (or in addition to) spread. Here's how to compare total cost:
- Standard account: 1.5 pip spread on 0.1 lot EUR/USD = $1.50 cost, no commission
- Raw Spread account: 0.1 pip spread + $3.50 commission per lot = $0.10 + $0.35 = $0.45 total cost
Raw Spread wins by $1.05 per trade. Across 500 EA trades per year = $525 saved — pure additional profit.
Frequently Asked Questions
What is a good spread for forex trading?
Under 1.0 pip for major pairs (EUR/USD, GBP/USD). Under 0.5 pips on Raw Spread accounts. For NAS100 and Gold, under 1.0 point and $0.20 respectively on Raw Spread accounts.
Does Exness have low spreads for EA trading?
Yes — Exness Raw Spread accounts offer some of the tightest spreads globally on NAS100, Gold, and US30. This is why Exness is the recommended broker for all PMotive EAs.
Do PMotive EAs work on high-spread accounts?
PMotive EAs work on any MT5 broker, but performance is optimised for Raw Spread or Pro accounts. High-spread standard accounts reduce net returns significantly over time.
What about spread on synthetic indices?
Deriv synthetic indices (V75, Boom, Crash) have fixed spreads that never widen — making them ideal for 24/7 EA trading with consistent, predictable costs.
Open a Low-Spread Account and Deploy Your EA
👉 BullyMax Pro Gold EA — NAS100 + Gold ($105) →
👉 US30 Scalper EA — US30 ($99) →
👉 VigoRL V75 EA — Fixed Spread Synthetic Indices ($110) →
👉 PMotive Trading eBooks — Master Forex Fundamentals →
👉 Senior Algo Pro — 24/7 Cloud Hosting →
👉 Open Exness Raw Spread MT5 Account — Tightest Spreads Globally →
Disclaimer: Spread values are indicative and vary by broker, account type, instrument, and market conditions. This content is for educational purposes only. This article contains affiliate links.
