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Ally Invest GBP/USD spread

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Adam N.
Updated
Jul 2024
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Is the GBP/USD spread low at Ally Invest as of July 2024?

Brokerage service highlights at Ally Invest

💰 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
Overall score
4.5/5
Minimum deposit
$0
Stock fee
Low
Options fee
Low
Inactivity fee
no
Account opening
1-3 days

The spread is a cornerstone of forex trading

The spread is the difference between the best (highest) purchase and the best (lowest) sell price on the market. Also referred to as bid-ask spread or buy-sell spread), spreads are super important when calculating the costs of a forex transaction.

If you have a brokerage account at a forex broker and you open a position, you will need to pay a transaction cost (trading fee). Brokers also need to make money, right? Spreads are one way for brokers to make a pretty buck.

There are two distinct ways in which they do it:

  1. They offer the market spread to their clients but add their own commissions/markups. This method typically involves lower/narrower spreads.
  2. They offer their own spread, which includes their fees and they usually don't apply commissions. In this model, the spread tends to be higher/wider.

See the table below for forex spreads used by Ally Invest for major currency pairs.

Spreads for major FX pairs at Ally Invest
Currency pair Spread Low / Average / High
EURUSD - -
GBPUSD - -
AUDUSD - -
EURCHF - -
EURGBP - -

Data updated on July 22, 2024

There are so-called 0 spread brokers, which claim to work with the lowest possible minimum spread: zero. Sounds great, right?

Except it’s often misleading because they actually charge higher spreads for the vast majority of the trades. The best way to ensure you trade forex at low costs is to check average spreads as 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.

Make sure you check financing rates at your broker

The financing rate or overnight rate is a fee you will have to pay when you hold a leveraged position for more than a day. When you open a leveraged position, you are trading with money borrowed from your broker.

This doesn’t come free, you will need to pay an interest on this borrowed money. This interest is called the financing rate.

If you trade on a very short time horizon (i.e. scalping or intraday trading), the spread will be your most important consideration and you won’t need to worry about financing rates. If, however, you keep your forex position open for several days, the financing rate will become a more important cost factor than the spread on certain trades.

In general, financing rates at Ally Invest are -.

The Cable: one of the most popular currency pairs in the world

The GBP/USD currency pair is often called “the Cable” in forex trading circles. It is one of the most traded currency pairs globally, which means high liquidity and relatively low spreads.

The best time for trading GBP/USD is when both the UK and US markets are open for trading. This is from 8:00 AM to 10:00 AM GMT and from 12:00 pm to 15:00 PM GMT.

Looking for the lowest GBP/USD spread FX brokers?

If you are looking for brokers with the lowest GBP/USD spread and FX fees, check our top list of the lowest GBP/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

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.

author
Edith Balázs
Author of this article
I bring 20+ years of experience as a correspondent having worked for Bloomberg, Dow Jones and The Wall Street Journal covering macroeconomics, stock, currency and fixed-income markets. I hold a Master's degree in American Studies and Journalism.
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