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tradingjules
Mar 03 at 02:42
2 posts
Hello everyone,
I'm pretty new in the game and I have a question about spreads.
When I look here on myfxbook -> Brokers -> Spreads the spreads a very low compared to these my brokers offer.

For example here on this site for IC Markets GBPAUD 1.5. But in my MetaTrader4 the Spread is 24.
Also on the GKFX Account: here on this site 6.8 for GBPAUD but in my MT4 45.

Do I misunderstand anything or what's wrong here?



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Staff (Staff)
Mar 03 at 07:21
1388 posts
@tradingjules the spreads showing in your account are in points while the spreads in our spreads page show in pips. Points simply show the decimal difference between bid and ask taking into account that the last digit of the price is equal to 1 point. When comparing spreads, a pip is usually referred to the figure in the 2nd or 4th decimal, depending on the currency.


For example,
EURUSD 1 pip is the 4th decimal.

From your image:
EURUSD ask price of 1.20843 and bid of 1.20854 would mean (1.20854-1.20843)*10000=1.1 pip however in points that is (1.20854-1.20843)*100000=11 points.

Zipp7
Mar 03 at 07:27
9 posts
Yea, just like the above user said, the one you are talking about are points which is pipettes, if I am not wrong.
Do remember the spreads are fluctuating, so if IC Markets GBPAUD is 1.5, which is pips, so for, points are basically 15.

tradingjules
Mar 03 at 12:50
2 posts
Make sense, thank you both!

Charlespeterson
Mar 11 at 11:11
6 posts
You need to learn to differentiate between the spreads in points and pips. Once you know the difference between the two, you are good to go.

LyudmilLukanov
Mar 11 at 11:49
419 posts
Zipp7 posted:
Yea, just like the above user said, the one you are talking about are points which is pipettes, if I am not wrong.
Do remember the spreads are fluctuating, so if IC Markets GBPAUD is 1.5, which is pips, so for, points are basically 15.

Thanks for the explanation. It’s very helpful.

eekpillar
Mar 24 at 10:53
24 posts
You can keep collecting information from this platform to get better at your trades. Good luck.

SofieAndreasen
Mar 24 at 18:00
441 posts
Charlespeterson posted:
You need to learn to differentiate between the spreads in points and pips. Once you know the difference between the two, you are good to go.

I also didn’t know about the point. But I know now. Thanks for the explanation.

UweMoench
Mar 25 at 13:16
412 posts
Spreads varies from broker to broker and account type to account type. In zero spreads account you get very low spreads but you have to pay commission and standard account spreads will be high but won't be any commission. Choose according to your comfort.

Femilas
Mar 25 at 14:58
30 posts
But usually the fixed spread is larger than the lower limit of the floating one.

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