Live forex spreads are the difference between the bid price and ask price of a currency pair in real time. The bid price is the price at which you can sell a currency pair, and the ask price is the price at which you can buy a currency pair. The spread is how forex brokers make money, and it is one of the most important factors to consider when choosing a forex broker.
How to find live forex spreads
There are a number of ways to find live forex spreads. One way is to visit the website of a forex broker. Most forex brokers will have a live spread table on their website that shows the current spreads for all of the currency pairs that they offer.
Another way to find live forex spreads is to use a forex trading platform. Most forex trading platforms will have a live spread indicator that shows the current spread for the currency pair that you are trading.
What factors affect live forex spreads?
There are a number of factors that can affect live forex spreads, including:
- The liquidity of the currency pair: The more liquid a currency pair is, the tighter the spread will be. This is because there are more buyers and sellers for liquid currency pairs, which means that forex brokers can offer tighter spreads.
- The volatility of the currency pair: The more volatile a currency pair is, the wider the spread will be. This is because forex brokers need to build in a larger cushion to protect themselves from losses if the price of the currency pair moves suddenly.
- The time of day: Live forex spreads can also vary depending on the time of day. Spreads are typically wider outside of normal trading hours, when there is less liquidity in the market.
How to choose a forex broker with tight spreads
When choosing a forex broker, it is important to compare the spreads that they offer on different currency pairs. You should also look for a forex broker that offers consistent spreads, and that does not widen spreads during periods of high volatility.
Some forex brokers also offer ECN (electronic communication network) accounts, which offer tighter spreads but charge a commission on each trade. If you are a high-volume trader, then an ECN account may be a good option for you.
Top 10 live forex spreads:
| Broker | EUR/USD | GBP/USD | USD/JPY | AUD/USD |
|---|---|---|---|---|
| Pepperstone | 0.0 pips | 0.1 pips | 0.2 pips | 0.4 pips |
| IC Markets | 0.0 pips | 0.1 pips | 0.2 pips | 0.4 pips |
| Tickmill | 0.1 pips | 0.2 pips | 0.3 pips | 0.5 pips |
| Exness | 0.1 pips | 0.2 pips | 0.3 pips | 0.5 pips |
| FP Markets | 0.1 pips | 0.2 pips | 0.3 pips | 0.5 pips |
| RoboForex | 0.1 pips | 0.2 pips | 0.3 pips | 0.5 pips |
| XTB | 0.1 pips | 0.2 pips | 0.3 pips | 0.5 pips |
| Capital.com | 0.1 pips | 0.2 pips | 0.3 pips | 0.5 pips |
| Trade Nation | 0.1 pips | 0.2 pips | 0.3 pips | 0.5 pips |
| AvaTrade | 0.1 pips | 0.2 pips | 0.3 pips | 0.5 pips |
| Libertex | 0.2 pips | 0.3 pips | 0.4 pips | 0.6 pips |
Conclusion
Live forex spreads are an important factor to consider when choosing a forex broker and when trading forex. By understanding what live forex spreads are and how they are affected, you can make sure that you are getting the best possible spreads on your trades.
