Plus500 GBP/USD spread

Quite on the contrary. The GBP/USD spread is high at Plus500.

The GBP/USD spread is 1.5 at Plus500 while the average spread is 1.0 for the same currency pair at 60 brokers reviewed by BrokerChooser.

My key findings in a nutshell

My key findings in a nutshell

Tamás Gyuriczki

Investments • Stock Market • Market Analysis

As a financial expert with BrokerChooser, I play an integral role in the analyst team by actively reviewing many of the 100+ brokers that are listed on our site. I personally open accounts with real money, execute trades, test customer services. My hope is that my first-hand experience with these brokers, incorporated in our reviews, helps users find the most suitable broker for their needs.

Learn about our methodology

Tamás Gyuriczki

Investments • Stock Market • Market Analysis

I've thoroughly tested Plus500 services with our analyst team by opening a real-money account and these are my most important findings:

• Spreads are super important for calculating trading costs and profitability
• Some brokers offer narrow spreads but charge a commission on top
• If the spread is high and the broker also charges a commission, you may want to look for another broker
• Financing rate levels are also important on certain forex positions that are open for several days

Brokerage service highlights at Plus500

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 Plus500 for major currency pairs.

The spreads in the table below were collected on Dec 7, 2023 between 2 pm and 4 pm CET.

Data updated on July 9, 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.

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 Plus500 charge a commission?

No, there is no FX commission at Plus500. 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 Plus500 are High.

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.

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 Plus500, read our comprehensive Plus500 review for 2024.