Forex Spreads Canada

Forex Spreads Canada
SPREADS

What is Spread in Forex? / What does Spread mean?

Trade with low spreads from 0.0 pips on
major currency pairs

Forex is the most traded market in the world offering numerous trading opportunities. One of the ways you pay for these opportunities is through the broker spreads, or the difference between the ask and bid prices of a tradable instrument. When the spread is tight, your trading cost reduces.

FP Markets has partnered with top-tier liquidity providers and major financial institutions to provide Canadian traders with consistently tight spreads. Our ECN Pricing model streams real-time prices directly from our liquidity providers which means no requotes and faster trader execution.

Click on a Product to View Our Typical Spreads

Commodities

VIEW SPREADS

Cryptocurrency

VIEW SPREADS

Spreads Affect Your Trades

The size of the spread plays a pivotal part in forex trading. This is particularly the case for those using trading strategies that conduct a large number of transactions in a single trading session. Trading volume, liquidity, market volatility, news, and time can all have an impact on spreads.

High Spreads

This is usually the case during periods of low liquidity or high market volatility. For instance, forex pairs that include the Canadian dollar (CAD) will have lower liquidity during overnight hours in Canada. The same applies to exotic currency pairs such as the NZD/MXN which have a significantly lower trading volume.

Low Spreads

It is not uncommon to see low spreads from as low as 0.0 pips. This is particularly the case with major forex pairs such as the USD/GBP as they have high liquidity and low levels of market volatility. Low spreads are most prevalent during the major forex sessions of a respective currency.

What is Spread in Forex?

Spread in Forex is the difference between the bid price and the ask price. The Spread cost is measured in 'pips' and is the cost of trading. Popular currency pairs such as the EUR/GBP and USD/AUD have lower spreads as a result of higher levels of liquidity. An in-depth explanation can be found in our Beginner's Guide To Forex Trading.


Spread in Forex is the difference between the two prices of a currency pair. The Bid is the quote price at which a trader is willing to buy an asset, and the Ask level is the quote price at which a trader is willing to sell an asset. Organised by way of a two-way quote, signify willing buyers and ask prices determine willing sellers. This concept is fundamental for traders to comprehend as they are the primary cost of trading forex and currency pairs.


For instance, if the bid/ask rate for the EUR/USD is 1.1251/1.1252. Here, EUR is the base currency and USD is the quote currency. This means that you can buy the EUR at a higher ask price of 1.1252 and sell it lower at the bid of 1.1251.


The difference between ask and bid price in forex is known as the spread. In the above example, the spread in pips would be (1.1252-1.1251) = 0.0001. The pip value on USD-based pairs is identified on the 4th digit, after the decimal. This means that the final forex spread is 0.1 pips.


To calculate the total spread cost, multiply this pip value by the total number of lots traded. So, if you are trading a EUR/USD trading lot of 10,000. In case you are trading a standard lot (100,000 units of the currency). Now, if your account is denominated in another currency, say GBP, you will need to convert that from US Dollars.


Given the bid and ask prices traders can engage with the market immediately or on the spot. The ask price is slightly higher than the underlying market price, whereas the bid price is slightly below the underlying market price. Traders sell the bid and buy the ask. A narrower bid-ask spread translated to lower trading costs.


The size of the spread plays a pivotal part in forex trading. This is particularly the case for those using trading strategies that conduct a large number of transactions in a single trading session. Trading volume, liquidity, market volatility, news, and time can all have an impact on spreads.


The spread affects profit, given that a currency pair reveals information about market conditions such as time, volatility and liquidity. For instance, emerging currency pairs have a greater spread than major currency pairs. Currency pairs involving major currencies have lower spreads.


Traders should also consider peak trading times for particular currencies. For instance, the cost of trading the Australian Dollar (AUD) will be higher during nighttime in Australia. This is because there are not as many market participants actively trading at this time. Similarly, other Australian financial markets that may influence forex are also closed at this time. A wider currency pair spread means that a trader would pay more when buying and receive less when selling.


High spread usually occurs during periods of low liquidity or high market volatility. For instance, forex pairs that include the Canadian dollar (CAD) will have lower liquidity during overnight hours in Canada. The same applies to exotic currency pairs such as the NZD/MXN which have a significantly lower trading volume.


Low spread in forex is the difference between the bid and the ask price. Traders prefer to place their traders when spreads are low like during the major forex sessions. Spreads are likely to be low when volatility is low and liquidity is high. When there is a bigger difference between the bid price (buy) and the ask price (sell), it means that traders are likely to spend more on wider spreads because of high volatility and lower market liquidity.

Spreads can widen considerably when the financial markets are volatile: a phenomenon known as slippage. It is also important to understand the difference between fixed and variable spreads. Fixed spreads remain the same, no matter what the market conditions are. Variable spreads keep on changing, based on the supply and demand of the instruments and the overall market volatility. Choosing the optimal spread type is important to keeping trading costs to a minimum. Retail traders who trade less frequently could benefit from fixed spreads while those who trade frequently and during peak market hours (when the spreads are the tightest), might prefer variable spreads. Variable spreads tend to be lower than fixed spreads, especially in calmer markets. Explore our wide range of forex account types.

The spread of a given currency pair reveals information about market conditions such as time, volatility and liquidity. Emerging currency pairs have a greater spread than major currency pairs. There are 8 major currencies which account for approximately 85% of the forex market turnover. With more market makers, real-time pricing and higher trade volumes, pairs involving major currencies have lower spreads. In addition, there are peak trading times for particular currencies. For instance, the cost of trading the AUD will be higher when it is night time in Australia. This is as there are not as many market participants actively trading at this time. Similarly, other Australian financial markets that may influence forex are also closed at this time.

Forex Broker Spreads

Currency pairs are quoted in terms of two different prices: bid and ask price. Bid price (sell price) is the price at which you can sell the base currency, while ask price is the price at which you can purchase the base currency.

For example, if the bid/ask rate for the EUR/USD is 1.1251/1.1252. Here, EUR is the base currency and USD is the quote currency. This means that you can buy the EUR at a higher ask price of 1.1252 and sell it lower at the bid of 1.1251.

The difference between ask and bid price in forex is known as the spread. In the above example, the spread in pips would be (1.1252-1.1251) = 0.0001. The pip value on USD-based pairs is identified on the 4th digit, after the decimal. This means that the final forex spread is 0.1 pips. New and inexperienced Canadian traders can use the forex calculator to assist with computing trading costs.

To calculate the total spread cost, multiply this pip value by the total number of lots traded. So, if you are trading a EUR/USD trading lot of 10,000

In case you are trading a standard lot (100,000 units of the currency)

Now, if your account is denominated in another currency, say GBP, you will need to convert that from US Dollars.

It is important for forex traders to be familiar with forex spreads, since they represent the primary cost of trading. It is an important parameter to consider when choosing a forex broker.

Forex traders in Canada can access some of the lowest spreads in the markets with an FP Markets RAW ECN live account. Our liquidity is sourced from some of the largest and best liquidity providers which includes major tie-one financial institutions. This gives us the ability to offer retail Canadian traders spreads starting as low as 0.0 pips during the most liquid times. New traders can explore our trading platform by opening a demo account and experiencing real-time market conditions.

Understanding High and Low Forex Spreads

Forex spreads can fluctuate throughout the day. This is because spreads are influenced by several factors including liquidity, volatility and market data. Major currency pairs such as EUR/USD, GBP/USD or USD/JPY have lower spreads than emerging currency pairs such as the CHF/NOK.

Most notably, liquidity can decline in the days or hours leading up to major economic news events and between trading sessions. The release of critical market data relating to capital flows, central banks, consumption, inflation, interest rates, and more can be monitored using the economic calendar.

It is also important to understand the difference between fixed and variable spreads. Fixed spreads remain the same, no matter what the market conditions are. Variable spreads keep on changing based on a number of factors including supply, demand, and overall market volatility.

Choosing the optimal spread type is important to keeping trading costs to a minimum. Retail traders who trade less frequently could benefit from fixed spreads while those who trade frequently and during peak market hours (when the spreads are the tightest), might prefer variable spreads. Variable spreads tend to be lower than fixed spreads especially in calmer markets. Explore our wide range of forex account types.

Industry Leading Low Forex Spreads

At FP Markets we pride ourselves on being able to provide a combination of tight spreads and trade execution. Real-time price quotes and deep liquidity across a range of 10,000+ tradable instruments makes us a leading forex broker. This allows us to offer forex spreads as low as 0.0 pips on RAW ECN accounts and 1.0 pips on Standard accounts.

FP Markets Forex Trading Accounts

Spreads

From 1.0 pips

Commission

Zero

Minimum Deposit

$100 AUD or equivalent

Maximum Leverage

30:1

Spreads

From 0.0 pips

Commission

$3.0

Minimum Deposit

$100 AUD or equivalent

Maximum Leverage

30:1

MetaTrader RAW ECN Account
Commission Charges

Check our commission charges for the RAW ECN account, based on the currency denomination of your trading account. The table has been split, based on commission per lot, to make it easier for you to calculate your costs, based on trading volume.

Instrument Standard Account Raw Account
Forex & Metals Zero (Built into the spread)
Account CCY Per side Round Trip
AUD CAD SGD $3.5 $7
USD $3 $6
EUR €2.75 €5.5
GBP £2.25 £4.5
HKD $20 $40
JPY ¥250 ¥500
Commodities Zero (Built into the spread) Zero (Built into the spread)
Zero (Built into the spread) Zero (Built into the spread)
Zero (Built into the spread) Zero (Built into the spread)
Cryptocurrencies Zero (Built into the spread) Zero (Built into the spread)

Trade Execution Matters

Reliable and fast execution is just as important as competitive pricing. Traders in Canada can access some of the most advanced trading platforms to facilitate ultra-fast execution speeds. With the help of advanced charting tools, technical indicators, and live market news we are able to provide an exceptional trading environment.

Choose from MetaTrader 4, MetaTrader 5 or IRESS and begin trading with tight spreads and transparent commissions.

How to Check Live Forex Spreads
on the FP Markets MT4 Platform

Right click anywhere on your chart and select “Properties”


Click on the “Common” tab and check the “Show Ask Line” box


Click on “OK”

Now You Can See the Bid/Ask
Price for Any Instrument

Click on “View” and choose “Market Watch”


To see the spread for a particular symbol, right-click anywhere on the Market Watch window and select “Spread"


You can now see an additional column, displaying the spread for each currency pair, commodities or indices


Note that MT4 quotes spreads in 4 points. To find the spread in pips, you will need to divide the number by 10.

Spreads

(Feb 2022)

Spreads on our MetaTrader 4 platform are variable, with quotes coming from major international financial institutions. During liquid times our industry-leading spreads can go as low as 0.0 pips. Our more typical spreads are listed below.

Forex Spreads Canada

Symbol Product Standard A/c Raw ECN A/c
  Avg Min Avg
AUDCADAustralian Dollar vs Canadian Dollar201
AUDCHFAustralian Dollar vs Swiss Franc1.800.7
AUDJPYAustralian Dollar vs Japanese Yen1.700.6
AUDNZDAustralian Dollar vs New Zealand Dollar2.401.3
AUDSGDAustralian Dollar vs Singapore Dollar2.901.4
AUDUSDAustralian Dollar vs US Dollar1.400.3
CADCHFCanadian Dollar vs Swiss Franc200.9
CADJPYCanadian Dollar vs Japanese Yen2.101
CHFJPYSwiss Franc vs Japanese Yen2.601.5
CHFSGDSwiss Franc vs Singapore Dollar4.91.54.9
EURAUDEuro vs Australian Dollar2.401.3
EURCADEuro vs Canadian Dollar2.801.2
EURCHFEuro vs Swiss Franc1.800.7
EURCZKEuro vs Czech Koruna174.423.4157
EURDKKEuro vs Danish Krone18.8912.8
EURGBPEuro vs Great Britain Pound1.500.4
EURHUFEuro vs Hungarian Forint55.53.534.1
EURJPYEuro vs Japanese Yen1.600.5
EURMXNEuro vs Mexican Peso82.310.262.3
EURNOKEuro vs Norwegian Krone85.523.678
EURNZDEuro vs New Zealand Dollar3.102
EURPLNEuro vs Polish Zloty37.34.934
EURSEKEuro vs Swedish Krona87.126.481.6
EURSGDEuro vs Singapore Dollar2.901.8
EURTRYEuro vs Turkish Lira515.5103.7512.4
EURUSDEuro vs US Dollar1.300.2
EURZAREuro vs South African Rand128.623.5117.1
GBPAUDGreat Britain Pound vs Australian Dollar2.501.4
GBPCADGreat Britain Pound vs Canadian Dollar2.801.7
GBPCHFGreat Britain Pound vs Swiss Franc3.10.32
GBPDKKGreat Britain Pound vs Danish Krone33.412.627.4
GBPJPYGreat Britain Pound vs Japanese Yen2.401.3
GBPMXNGreat Britain Pound vs Mexican Peso113.129.293.1
GBPNZDGreat Britain Pound vs New Zealand Dollar4.202.7
GBPPLNGreat Britain Pound vs Polish Zloty50.411.548.9
GBPSEKGreat Britain Pound vs Swedish Krona127.356.4122.6
GBPSGDGreat Britain Pound vs Singapore Dollar4.90.73.7
GBPTRYGreat Britain Pound vs Turkish Lira618.3123.8611.3
GBPUSDGreat Britain Pound vs US Dollar1.500.4
NZDCADNew Zealand Dollar vs Canadian Dollar2.601.5
NZDCHFNew Zealand Dollar vs Swiss Franc2.401.3
NZDJPYNew Zealand Dollar vs Japanese Yen2.201.1
NZDSGDNew Zealand Dollar vs Singapore Dollar3.40.62.3
NZDUSDNew Zealand Dollar vs US Dollar1.800.6
USDCADUS Dollar vs Canadian Dollar1.500.4
USDCHFUS Dollar vs Swiss Franc1.700.5
USDCNHUS Dollar vs Chinese Yuan1.700.6
USDCZKUS Dollar vs Czech Koruna12014.2102.6
USDDKKUS Dollar vs Danish Krone16.7310.7
USDHKDUS Dollar vs Hong Kong Dollar7.236.1
USDHUFUS Dollar vs Hungarian Forint49.72.628.3
USDINRUS Dollar vs Indian Rupee0.220.10.12
USDJPYUS Dollar vs Japanese Yen1.400.3
USDKRWUS Dollar vs Korean Won0.70.40.68
USDMXNUS Dollar vs Mexican Peso57.84.447.8
USDNOKUS Dollar vs Norwegian Krone69.5361
USDPLNUS Dollar vs Polish Zloty32.24.228.5
USDSEKUS Dollar vs Swedish Krona76.520.467.8
USDSGDUS Dollar vs Singapore Dollar2.401.3
USDTHBUS Dollar vs Thai Baht280.8178.8260.8
USDTRYUS Dollar vs Turkish Lira256.736.3254.2
USDZARUS Dollar vs South African Rand70.3057.4

Metal Spreads

Symbol Product Standard A/c Raw ECN A/c
    Min Avg
XAGAUDSilver vs Australian Dollar0.040.020.03
XAGEURSilver vs Euro0.020.020.02
XAGUSDSilver vs US Dollar0.0200.01
XAUAUDGold vs Australian Dollar0.650.290.49
XAUEURGold vs Euro0.460.140.28
XAUUSDGold vs US Dollar0.3100.13

CFD Indices Spreads

Symbol Product   Standard A/c
    Min Avg
AUS200Australia 200 Index vs Australian Dollar Cash1.21.4
CHINA50China A50 Index vs US Dollar Cash17.7
EURO50Euro 50 Index vs Euro Cash22
FRA40CAC 40 Index vs Euro Cash3.83.9
GER30German 30 Index vs Euro Cash0.41.8
HK50Hang Seng Index vs Hong Kong Dollar Cash16.8
JP225Japan 225 Index vs Japanese Yen Cash5.56.8
UK100UK100 Index vs Great Britain Pound Cash1.11.5
US100US Tech 100 Index vs US Dollar Cash1.51.7
US30US 30 Index vs US Dollar Cash01.9
US500US 500 Index vs US Dollar Cash00.6
USDXUSD Index Basket vs US Dollar Future0.050.05
VIXVIX Index Cash vs US Dollar Future0.10.1

CFD Commodities (MT4/MT5)

Symbol Product   Standard A/c
    Min Avg
WTIWest Texas Intermediate Crude Oil vs US Dollar Future0.040.04
XBRUSDBrent Crude Oil vs US Dollar Cash0.030.05
XNGUSDNatural Gas vs US Dollar Cash0.0240.03
XPDUSDPalladium vs US Dollar Cash15.922.94
XPTUSDPlatinum vs US Dollar Cash5.156.67
XTIUSDWest Texas Intermediate Crude Oil vs US Dollar Cash0.020.04
COCOACocoa vs US Dollar Cash0.632.48
COFFEEUS Coffee vs US Dollar Future2.252.33
CORNCorn vs US Dollar Cash1.672.09
SOYBEANSSoybeans vs US Dollar Cash1.382.12
WHEATWheat vs US Dollar Cash1.392.12

Cryptocurrency Spreads

Symbol Product   Standard A/c
    Min Avg
ADAUSDCardano vs US Dollar0.01990.0206
BCHUSDBitcoin Cash vs US Dollar4.044.24
BTCUSDBitcoin vs US Dollar9.1320.33
DOGUSDDogecoin vs US Dollar0.00210.0021
DOTUSDPolkadot vs US Dollar0.03820.048
EOSUSDEOS vs US Dollar0.00380.0197
ETHUSDEtherium vs US Dollar44.68
LNKUSDChainlink vs US Dollar0.03270.0387
LTCUSDLitecoin vs US Dollar0.32.83
RPLUSDRipple vs US Dollar0.00260.0034
XLMUSDStellar vs US Dollar0.00230.0023
Start trading with the lowest spreads available!


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