The Hidden Cost of Forex
How Low Spreads Maximize Your Profits in 2025
What is the Spread?
In Forex, the spread is the small cost on every trade, the difference between the buying price (Ask) and the selling price (Bid). A lower spread means a trade becomes profitable faster. It is the most critical cost factor for active traders.
Fixed Spreads
- Remains constant, regardless of volatility.
- Greater predictability (ideal for beginners).
- Tends to be higher on average.
Variable Spreads
- Fluctuate according to liquidity and news.
- Can reach 0.0 pips during active sessions.
- Essential for scalping and algorithmic trading.
The Impact on Your Profits
Let’s look at a case study for a trader who trades 50 lots per month. The difference in spread cost is drastic and accumulates quickly, directly impacting annual profitability.
Average Spread Trends in 2025
Competition among brokers keeps spreads low, but they vary by currency pair. EUR/USD remains the most liquid and has the lowest average cost, while other major pairs show slightly wider spreads.
The Most Competitive Brokers of 2025
These brokers stand out for their low costs, strong regulation, and reliable execution, making them the preferred choices for traders looking to optimize every trade.
| Broker | Spread (From) | Key Regulation |
|---|---|---|
| IC Markets | 0.02 pips | ASIC, CySEC |
| Pepperstone | 0.0 pips (Razor) | FCA, ASIC |
| Tickmill | 0.0 pips | FCA, CySEC |
| Exness | 0.0 pips | FCA, CySEC |
| Interactive Brokers | 0.1 pips (Low Commission) | FCA, NFA |
| FOREX.com | 0.2 pips | CFTC, NFA, FCA |
Key Factors for Choosing Your Broker
Not everything is about the spread. Your choice must balance costs, security, and performance. Follow this process to make an informed decision.