What is a trading spread, and how much does it cost?
The bid–ask spread is the gap between the quoted selling and buying prices. It is one component of trading cost. IG explains the bid–offer spread. A spread quoted in pips must be converted using the position's pip value to estimate its monetary effect.
A spread calculation
Suppose EUR/USD is quoted at 1.1000 bid and 1.1002 ask. The spread is 0.0002, or 2 pips when a pip is 0.0001. For a hypothetical 10,000 EUR position, one pip is USD 1. Buying at 1.1002 and immediately selling at an unchanged 1.1000 gives a gross loss of USD 2 before other charges.
Is spread the same as commission?
No. Spread is reflected in the quote; a commission is a separate charge. At Antos Pinnacles, the published comparison lists no commission for Standard accounts and a USD 10-per-lot commission for ECN and VIP. See the account comparison. This wording does not specify a per-side or round-trip basis.
How do I compare total costs?
Write down spread cost, applicable commission, financing and any other charges separately. If a hypothetical trade incurred USD 2 of spread cost and USD 3 of other charges, the total would be USD 5. Those illustrative charges are not an Antos Pinnacles quotation.
A starting spread is not a guaranteed spread for every trade. Check the current quote and read about overnight swaps when considering a position held across rollover.
Educational information only. Examples exclude costs unless stated and do not describe a recommended trade or guaranteed outcome.