Well, let’s figure it out.

Today we will talk about commissions, and more specifically about the spread that exists in the forex market. I will answer the following questions: Forex spread, what is it? Does forex exist without a spread? Are there forex brokers with a minimum spread? What is a forex spread return? Forex brokers without spread, myth or reality? To these and many other questions, you, as usual, will find the answers in my article.

Let’s go :) Let’s analyze the concept of forex spread.

Any action must be paid. This is the case in the financial markets. When we make a regular bank transfer, we pay the bank for the fact that it performs this operation. If we pay for services through payment terminals, we also charge a commission. In the exchange world, everything is exactly the same. We are consumers of services, and the exchange provides us with these services. We are interested in the services of buying and selling financial instruments, and these services can be provided to us by banks that have these instruments, or rather, the prices of these instruments. For each action performed, we must pay a commission to the one who performs this action for us. After all, when making a transaction on the exchange, you are not making it yourself. You just send an order to your broker to make it. The transaction itself is made by the broker, for which he takes part in this transaction. As I already said, There are several types of services on the exchange, and therefore several types of commissions. We will talk about the most common form of commission – commission for the fact of the transaction. If we want to buy a currency pair, then for this we will give back part of the value of this currency pair, expressed in a spread. The price of an instrument or currency pair is a quote. This commission will be deducted from the quote and called the spread. In other words, we can see this commission in the quote itself, or rather, in the difference between the quotes. This commission will be deducted from the quote and called the spread. In other words, we can see this commission in the quote itself, or rather, in the difference between the quotes. This commission will be deducted from the quote and called the spread. In other words, we can see this commission in the quote itself, or rather, in the difference between the quotes.

Thus, the spread is the difference between the purchase price and the sale price of the same asset.

When we change the currency in a bank or exchange office, we see two quotes. There is a purchase price – the price at which the bank is ready to buy your currency from you, and the sale price – the price at which the bank is ready to sell your currency to you. If you compare these prices, then the price at which the bank is ready to buy the currency from you is always less than the price at which the bank is ready to sell this currency to you. This is the spread or the difference between the purchase price and the sale price. The value of this commission is regulated by the financial organization that provides the exchange service.

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