Eightcap EUR/USD spread

Good news! The EUR/USD spread is low at Eightcap.

The EUR/USD spread is 0.1 at Eightcap while the average spread is 0.6 for the same currency pair at 60 brokers reviewed by BrokerChooser.

My key findings in a nutshell

My key findings in a nutshell

Bence András Rózsa

Bence is a former broker analyst for BrokerChooser. Having an MSc in international economy and finance, he focused on equities, cryptos and newcomer financial services. He also gained years of experience within the brokerage industry, specializing in stock and CFD/forex brokers, crypto providers and robo-advisors.

Learn about our methodology

Bence András Rózsa

I've thoroughly tested Eightcap services with our analyst team by opening a real-money account and these are my most important findings:

• The spread is one of the most important cost factors when trading forex
• Even if the spread is low/narrow, other costs/fees may be high at a broker
• Always check whether a broker charges commission on forex trades
• Keep an eye on financing rates for certain positions that are open for several days

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

Data updated on September 19, 2024

As a forex trader, you need a reliable broker with superb services at affordable costs. See the most important features of Eightcap's services in the table below.

Data updated on September 19, 2024

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:

1. They pass on the market spread to their clients and add their own commissions/markups
2. 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.

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 Eightcap charge a commission?

Yes, Eightcap charges commission on forex transactions as per the following table.

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 Eightcap are Low.

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.

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 Eightcap, read our comprehensive Eightcap review for 2024.