Is the EUR/USD spread low at Ally Invest as of July 2024?
See the table below for forex spreads used by Ally Invest for major currency pairs.
Currency pair | Spread at Ally Invest | Low / Average / High |
---|---|---|
EURUSD | - | - |
GBPUSD | - | - |
AUDUSD | - | - |
EURCHF | - | - |
EURGBP | - | - |
Data updated on July 22, 2024
Deposit features and brokerage service highlights
As a forex trader, you need a reliable broker with superb services at affordable costs. See the most important features of Ally Invest's services in the table below.
💰 Deposit fee | $0 |
💰 Withdrawal fee | $0 |
💳 Deposit methods | Bank transfer |
💸 Account base currency | USD |
💸 Minimum deposit | $0 |
🗺️ Country of regulation | USA |
🎮 Demo account provided | No |
📋 Read more | Check out the Ally Invest review for 2024 |
Data updated on July 22, 2024
Why are spreads important in forex?
The spread (also called bid-ask spread or buy-sell spread) is a crucial notion in forex trading. The spread marks the difference between the best (highest) purchase and the best (lowest) sell price on the market. Spreads are important when calculating the trading fees of a forex position.
When you open a forex position through your broker, you will have to pay a transaction cost (trading fee) and this is where spreads come into the picture.
Forex brokers make money in one of the following two ways:
- They pass on the market spread to their clients and add their own commissions/markups
- They provide their own spread, which includes their fees.
Some brokers work with their own spreads and incorporate their fees into them. On the other hand, they usually don't apply commissions. In this model, the spread tends to be higher/wider.
Others use market spreads without incorporating their fees into the spreads or by adding a small markup. In return, they apply commissions. This method typically involves lower/narrower spreads.
Many brokers advertise themselves as 0 spread brokers, however, this can be misleading. While there are indeed service providers out there whose minimum spread is 0 or close to 0, for the vast majority of the trades they charge higher spreads.
The best way to ensure you trade forex at low costs is to check average spreads, because those reflect the true costs charged by the broker.
Is there a commission at Ally Invest on forex trades?
Generally speaking, the lower/narrower the spread, the better for forex traders. But as explained above, you also need to consider whether your broker charges a commission. Brokers that charge a commission typically work with lower spreads but the final cost may still be higher. Do the math before making a decision.
Does Ally Invest charge a commission?
No, there is no FX commission at Ally Invest. All FX fees are built into the spread.
Why do financing rates matter?
If you trade forex, you need to be familiar with the concept of financing rates. A financing rate (or overnight rate) is a brokerage fee charged when you hold a leveraged position for more than a day.
A leveraged position means you borrow money from the broker to trade. Your broker will charge you an interest on this borrowed money. This interest is called the financing rate.
Forex traders that trade on a very short time horizon (i.e. scalping or intraday trading) pay close attention to spreads but do not need to worry about financing rates. If, with certain forex positions that are open for several days, the financing rate will become a more important cost factor than the spread.
In general, financing rates at Ally Invest are -.
The Fiber: the most traded currency pair in the world
Nicknamed “the Fiber,” the EUR/USD currency pair is generally considered the most traded currency pair in the world as it involves the currencies of two of the world’s largest and most reputable economies.
Due to its popularity, the EUR/USD is characterized by very low spreads, high liquidity and the ability to place large volumes of trade. The pair is a favorite among traders that engage in forex scalping.
Looking for the lowest EUR/USD spread FX brokers?
If you are looking for brokers with the lowest EUR/USD spread and FX fees, check our top list of the lowest EUR/USD spread brokers.
For more details on Ally Invest, read our comprehensive Ally Invest review for 2024.
Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.
Further reading
- Bid-ask spread - Learn what it is and why it is important
- Ally Invest GBP/USD spread explained
- Forex trading at Ally Invest: Discover the key features and highlights
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.