What are raw spreads?

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Tillo Jung Former Insurance Policy Processing Clerk at Galyan
Answered 4 months, 3 weeks ago
<p id="isPasted">In Forex trading, a raw spread refers to the difference between the bid and ask price of a currency pair, before any markup or commission is added by the broker. It represents the true cost of trading at the interbank level. Essentially, it's the bare minimum spread available, often very low or even zero, and fluctuates based on market conditions.&nbsp;</p><p><br></p>
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Bert Rogers
Answered 2 weeks, 3 days ago
<p id="isPasted">A "raw spread" is the difference between the bid and ask price of a financial asset, received directly from liquidity providers without any broker markup. This means traders see the actual, real-time market price, which is often very tight, typically from 0 pips. Instead of a markup, brokers that offer raw spreads usually charge a separate, fixed commission for each trade. This model is often favored by active traders like scalpers and algorithmic traders who prioritize transparency and lower direct trading costs. &nbsp;</p>
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