Understanding Forex Spreads: Standard vs. VIP Account Comparison at MarketsAll

In forex trading, every fraction of a pip matters. One of the biggest factors that influences your trading cost, and ultimately your profit, is the forex spread. Whether you’re a beginner opening your first forex account or an advanced trader looking for zero forex spreads, understanding how spreads work is critical.

This guide explores forex spreads in detail, explains how they are calculated, highlights what influences them, and shows how MarketsAll’s Standard and VIP accounts compare.

What is Forex Trading?

Before we dive into spreads, let’s first revisit what forex trading means.

Forex, short for “foreign exchange,” is the world’s largest and most liquid financial market. Traders buy and sell currency pairs like EUR/USD, GBP/USD, or USD/JPY to profit from price movements. With more than $6 trillion traded daily, the forex market surpasses even stocks and commodities in trading volume.

Whether you choose to trade majors, minors, or exotics, your costs are tied to spreads, making them one of the most important factors in your trading strategy.

What Are Forex Spreads?

A spread is the difference between the bid price (what buyers are willing to pay) and the ask price (what sellers want to receive).

For example:

• EUR/USD is quoted at 1.1000 / 1.1002
  
• The spread here is 0.0002, or 2 pips
  

Spreads are the main way most forex brokers earn revenue. Instead of charging a commission directly, they often include it in the spread. The tighter the spread, the lower your trading cost.

What is a Good Spread in Forex?

A “good” spread depends on the currency pair and your trading style.

• Majors (EUR/USD, GBP/USD, USD/JPY): 0.0-2.0 pips is considered competitive.
  
• Minors (AUD/JPY, GBP/CAD): 2.0-4.0 pips is typical in the industry.
  
• Exotics (USD/TRY, EUR/ZAR): Spreads can be 10+ pips due to lower liquidity.
  

For scalpers and day traders, tight spreads (even 0.0 pips) are ideal. Swing traders or position traders may be more comfortable with slightly wider spreads since they hold trades longer.

How Forex Spreads Are Calculated

Spreads are measured in pips, the smallest unit of price movement in forex.

• 1 pip = 0.0001 for most pairs (e.g., EUR/USD moves from 1.1000 to 1.1001)
  
• For JPY pairs, 1 pip = 0.01 (e.g., USD/JPY moves from 110.10 to 110.11)
  

If you trade one standard lot (100,000 units) of EUR/USD with a 2-pip spread:

• 1 pip = $10
  
• Spread = 2 × $10 = $20 trading cost
  

This means every time you open a position, you start slightly in the negative until price moves beyond the spread.

Factors That Influence Forex Spreads

Spreads are not fixed, they expand and contract depending on market conditions. Key factors include:

1. Liquidity – Major pairs like EUR/USD have tighter spreads due to high trading volume.
   
2. Volatility – During big news events (e.g., Non-Farm Payrolls), spreads widen.
   
3. Time of Day – Spreads are tighter during the London–New York overlap when liquidity is highest.
   
4. Broker Type – ECN/STP brokers often offer raw spreads plus commission, while market makers build fees into wider spreads.
   
5. Account Type – Standard accounts usually have slightly higher spreads; VIP or professional accounts may offer zero forex spreads.
   

MarketsAll Forex Spreads

Now let’s take a closer look at MarketsAll’s account offerings.

Standard Account

• Designed for beginners or smaller traders.
  
• Spreads start from 1.0 pip on major pairs.
  
• Commission is built into the spread.
  
• Lower deposit requirement.
  
• Best for new traders seeking simplicity.
  

VIP Account

• Designed for high-volume or professional traders.
  
• Spreads start from 0.0 pips on certain pairs.
  
• May include a small commission per trade.
  
• Higher deposit requirement.
  
• Comes with VIP support and extra perks.
  

Comparison Table

Note: In addition to Standard and VIP, MarketsAll offers several other account types. Each is tailored to different trading habits and preferences, ensuring that every trader, from beginner to professional, finds the right fit.

Why Do Tight Spreads Matter?

Tight spreads are crucial for active traders. Imagine scalping 50 trades a day:

• With a 2-pip spread, your cost might total $1,000+ in a month.
  
• With a 0.0–0.5 pip spread, costs shrink dramatically, leaving more profit in your pocket.
  

This is why many professionals upgrade to VIP accounts once they increase their volume and consistency.

Frequently Asked Questions (FAQ)

1. What does forex spread mean?

It’s the difference between the bid (buy) and ask (sell) prices of a currency pair, representing the trading cost.

2. How to find tighter spreads?

Look for a regulated forex broker offering tight spreads or zero forex spreads, and trade during high-liquidity hours.

3. Why is forex spread important?

Because spreads are a built-in trading cost, they directly impact profitability. Lower spreads = lower costs.

4. Do VIP accounts always have better spreads than Standard accounts?

Generally yes. At MarketsAll, VIP accounts can start from zero pips, while Standard accounts remain very competitive for beginners.

5. Can spreads change during the day?

Yes. They often widen during news events and tighten during high-liquidity trading sessions.

6. What is the difference between fixed and variable spreads?

Fixed spreads remain constant regardless of market conditions, while variable spreads fluctuate with volatility and liquidity.

7. How does leverage relate to spreads?

Leverage doesn’t change spreads directly, but brokers often link account types with both leverage options and spread structures. Higher-tier accounts may combine tighter spreads with flexible leverage.