Trading Cost Explainer

What Is Spread? BrokerIntro Guide

The spread is the difference between the buy price and sell price of a financial instrument. It is one of the most common trading costs to understand.

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Important: BrokerIntro content is informational and educational only. Nothing on this page is financial advice, investment advice, trading advice or a recommendation to use any specific broker.

Key Research Points

Visual summary for faster scanning.

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Bid and ask

Platforms usually show two prices for the same instrument.

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Cost impact

A wider spread can increase the cost of entering and exiting trades.

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Variable spreads

Spreads may widen during news or low liquidity.

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Broker comparison

Compare average spreads, not only headline minimums.

Overview

What Is Spread? Spread is one of the most important trading costs to understand before choosing a broker or opening a trade. In simple terms, the spread is the difference between the buy price and the sell price of a financial instrument. When you look at a trading platform, you will usually see two prices for an instrument. One price is used when buying, and the other price is used when selling.

SpreadBid priceAsk priceTrading costForexCFDbid and ask pricebroker spreadCFD spreadforex spread

How to use this page

  • Use this guide as a starting point, not as a final decision source.
  • Compare the topic with broker profiles, fees, platforms and risk disclosures.
  • Verify current broker information directly on official broker websites.
  • Review your own needs, region, account type and risk tolerance.

Research Lab

Open the sections for structured details.

1. Simple definition

The spread is the gap between the price at which you can buy and the price at which you can sell.

  • Review: Review spread context before making decisions.
  • Review: Review bid price context before making decisions.
  • Review: Review ask price context before making decisions.
  • Review: Review trading cost context before making decisions.

Spreads can affect short-term traders and frequent trading more strongly than long-term users.

Risk reminders

  • Broker information may change without notice.
  • Trading leveraged products can result in losses.
  • Popularity, low costs or platform tools do not guarantee suitability.
  • Users should verify legal documents and current terms.

Useful checks

  • Legal entity and regulator.
  • Fees, spreads and commissions.
  • Platform access and account conditions.
  • Deposit, withdrawal and verification rules.

Compare spreads together with commissions, swaps, execution and account conditions.

  • Step 1: Read this educational overview.
  • Step 2: Compare relevant broker profiles.
  • Step 3: Verify information on official sources.
  • Step 4: Consider whether the product or broker type is suitable.

BrokerIntro provides general information only. Trading forex, CFDs and leveraged products involves risk. Users may lose part or all of their deposited funds. Always read official risk disclosures, terms, fee schedules and regulatory information before making broker-related decisions.

Quick checklist

  • Compare regulation and legal entity.
  • Review fees, spreads, commissions and funding rules.
  • Check platform availability and product restrictions.
  • Read risk warnings and official documents.

Not a recommendation

This guide is designed for education and research. It does not tell users which broker to choose and does not replace independent due diligence.

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