How to Read Forex Spreads: What 0.0 Pip Spreads Mean for Your Trading Costs in 2026
Learn how forex spreads work, the real meaning behind 0.0 pip spreads, and how to choose the right account to minimize your trading costs.
Learn how forex spreads work, the real meaning behind 0.0 pip spreads, and how to choose the right account to minimize your trading costs.
Every time you open a forex trade, you pay a cost before the market moves a single pip in your favor. That cost is the spread — quiet, automatic, and easy to ignore. But across dozens of trades a week, it adds up fast.
If you've been trading for a while, you've probably seen brokers advertising "spreads from 0.0 pips" and wondered what that actually means for your bottom line. This guide breaks down exactly how forex spreads work, what 0.0 pip spreads really cost you, and how to pick the account structure that keeps your costs as low as possible.
The spread is the difference between the bid price (what buyers will pay) and the ask price (what sellers will accept) for a currency pair.
Say you buy EUR/USD at 1.08503 and the bid is 1.08500 — that's a 0.3-pip spread. That gap is the broker's immediate cut on the trade. You start every position slightly in the red, and the market has to move in your direction before you even break even.
Spreads are quoted in pips. One pip equals 0.0001 for most major pairs (0.01 for JPY pairs). On a standard lot of 100,000 units, one pip is worth approximately $10.
A 1.0-pip spread on a standard lot costs you $10 per trade — before the market moves at all.
On MetaTrader 5, spreads are visible in the Market Watch window. Right-click the panel, select "Spread," and you'll see live values updating in real time.
The number shown is in points — tenths of a pip on MT5. A value of 3 means 0.3 pips; a value of 10 means 1.0 pip.
You can also check the spread directly on the trade ticket: it's the difference between the buy and sell price shown before you confirm an order. Make a habit of checking this before entering any trade, especially around news events when spreads can spike sharply.
| Spread Type | How It Works | Best For |
|---|---|---|
| Fixed | Stays constant regardless of market conditions | Predictable cost planning, news traders |
| Variable | Fluctuates with liquidity and volatility | Tight costs during calm sessions |
Most ECN/STP brokers offer variable spreads. During the London-New York overlap, major pairs like EUR/USD can trade at 0.1–0.3 pips. During low-liquidity periods — the Asian session on minor pairs, weekend gaps, major news releases — that same pair might widen to 2–5 pips or more.
Fixed spreads look stable on paper, but brokers typically price them wider than average variable spreads to cover their own risk. If you trade during peak liquidity hours, variable spreads almost always win on cost.
A 0.0 pip spread means the broker is passing the raw interbank price directly to you — no markup added to the spread itself. The bid and ask prices you see are essentially what the liquidity providers are quoting.
This is only possible when a broker connects to multiple liquidity providers and aggregates their best prices. At Spec Markets, the Raw Zero account pulls pricing from 15+ top-tier liquidity providers, which is what makes 0.0 pip spreads achievable even during active market conditions.
Here's the key nuance: 0.0 pip spreads don't mean zero trading cost. On a raw spread account, the broker earns through a fixed commission per lot rather than a spread markup. At Spec Markets, that's $3.50 per lot per side on the Raw Zero account.
Your total cost on a 1-lot EUR/USD trade at 0.0 pips is $7.00 round-trip (entry + exit), compared to $10+ on a 1.0-pip spread account with no commission. For higher-volume traders, the math clearly favors raw spreads.
Running 20–50 trades per week, spread costs compound quickly. Here's how the numbers stack up across a 20-trade week on standard lots:
| Account Type | Spread | Commission (RT) | Cost Per Trade | Weekly Cost (20 trades) |
|---|---|---|---|---|
| Raw Zero | 0.0 pips | $7.00 | $7.00 | $140 |
| Pure Spread | 1.0 pips | $0 | $10.00 | $200 |
| Typical wide-spread broker | 2.0 pips | $0 | $20.00 | $400 |
The gap between a 0.0 pip raw account and a 2.0-pip spread account is $260 per week on just 20 standard-lot trades. Annualized, that's a serious drag on your P&L — before a single trading decision is made.
Commission on a raw account is fixed and transparent. You know exactly what you're paying per lot. Spread markup, by contrast, is variable and invisible — it shifts with market conditions and never appears as a line-item cost.
For scalpers and day traders, the predictability of a fixed commission plus near-zero spreads is almost always cheaper than a spread-only account at comparable volume.
Brokers monetize your trades in one of two ways:
1. Spread markup model — The broker adds pips on top of the raw interbank price. No explicit commission, but the spread is wider. This is how Pure Spread accounts work.
2. Commission model — The broker passes raw prices through with no markup, then charges a fixed fee per lot. This is how Raw Zero accounts work.
Neither model is inherently better. The right choice depends on your trading volume, style, and how much you value cost predictability.
At Spec Markets, both account types start with a $50 minimum deposit and offer leverage up to 1000:1. You can compare the full pricing breakdown at specmarkets.com/en-us/trading/spreads/.
Want to see what 0.0 pip spreads look like in practice? Open a Raw Zero account at Spec Markets and start trading with $50.
Even on a raw spread account, spreads aren't guaranteed to stay at 0.0 pips. Liquidity conditions drive spread width, and a few situations cause reliable widening:
If you scalp around news events, check live spread conditions before entering. A 0.0 pip spread at 2:00 PM can become a 3.0 pip spread at 2:00:01 PM during a high-impact release.
Choose Raw Zero if you:
Choose Pure Spread if you:
For most active traders, Raw Zero wins on total cost. For lower-frequency traders, Pure Spread keeps things simple without giving up too much on pricing.
Both accounts at Spec Markets include the zero cut system (negative balance protection), full EA support on MT5, and access to social trading — the infrastructure is identical regardless of which pricing model you choose.
What is a forex spread in simple terms?
A forex spread is the difference between the buy price and the sell price of a currency pair. It's the primary cost you pay when entering a trade. A 1.0-pip spread on a standard lot costs approximately $10 before the market moves.
Does 0.0 pip spread mean free trading?
No. A 0.0 pip spread means there's no markup on the raw interbank price, but brokers using this model charge a commission per lot instead. At Spec Markets, the Raw Zero account charges $3.50 per lot per side — $7.00 round-trip per standard lot.
Which is cheaper: a spread account or a commission account?
For active traders executing multiple standard lots per week, a raw spread plus commission account is almost always cheaper. The math shifts at very low volumes, where a fixed commission per lot can outweigh a slightly wider spread.
Why do spreads widen during news events?
Liquidity providers pull back or widen their quotes during high-uncertainty moments like economic data releases. With less liquidity available, the gap between bid and ask prices increases — even on raw ECN accounts.
What is a pip and how does it relate to spread?
A pip is the smallest standard price movement in a currency pair — 0.0001 for most pairs, 0.01 for JPY pairs. Spreads are quoted in pips. On a standard lot (100,000 units), one pip is worth approximately $10 for USD-denominated pairs.
What does it mean when a broker has 15+ liquidity providers?
More liquidity providers mean the broker can aggregate better prices from a wider pool of market participants. That competition between providers results in tighter spreads, especially during active market hours. Spec Markets connects to 15+ top-tier liquidity providers to keep spreads as tight as possible.
Is leverage related to spread costs?
Leverage amplifies your position size — and with it, both potential gains and losses — but it doesn't directly change the spread in pips. That said, higher leverage means you can control larger positions with less capital, which makes the per-pip cost of a spread more significant relative to your margin. Always factor spread costs into your position sizing when trading with high leverage.
Spreads are one of the most direct levers you have on your trading costs. Understanding the difference between spread markup and commission pricing, knowing when spreads widen, and choosing the right account for your trading style can save you hundreds of dollars a month.
For active traders running multiple trades per week, 0.0 pip spreads on a raw account almost always deliver a lower total cost than a no-commission spread account — once you run the numbers.
Spec Markets offers both models with a $50 minimum deposit, 0.028-second execution, and 15+ liquidity providers keeping prices tight. See the full spread and commission breakdown at specmarkets.com.
CFD trading involves significant risk and is not suitable for all traders. Leverage can amplify both profits and losses. You may lose more than your initial deposit. Please ensure you fully understand the risks involved before trading. Spec Markets is a regulated broker — see legal documents for full regulatory details.
