Do spreads depend on the account base currency? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Account base currency 6 replies

Base Currency of Trading Account 3 replies

Broker with Mini account + Base Currency in AUD? 1 reply

Base currency account funding outside of the US 4 replies

USA Account base currency question 1 reply

Do spreads depend on the account base currency?

  • #1
  • First Post: Sep 1, 2021 2:14am Sep 1, 2021 2:14am
I am not very much into deep theory understanding... Sorry...
Let's say I have 2 accounts with the same broker, both of them MT4 or MT5; one account has a base currency in AUD and the other in GBP. Since the AUD is "cheaper" than GBP, will the spreads for all currencies in the AUD account appear larger (maybe twice larger) than the spreads in the GBP account? More generally, the question is whether the spreads depend on the account base currency or not... Are they calculated using the base currency of the account? Thanks!
  • #2
  • Sep 1, 2021 4:26am Sep 1, 2021 4:26am
Quoting rosspetX
I am not very much into deep theory understanding... Sorry... Let's say I have 2 accounts with the same broker, both of them MT4 or MT5; one account has a base currency in AUD and the other in GBP. Since the AUD is "cheaper" than GBP, will the spreads for all currencies in the AUD account appear larger (maybe twice larger) than the spreads in the GBP account? More generally, the question is whether the spreads depend on the account base currency or not... Are they calculated using the base currency of the account? Thanks!
The spread is simply the difference in points between Bid and Ask prices for any given instrument. The values in different a/c currencies are also the same if you convert AUD to GBP ( or GBP to AUD) before comparing them. An exception may be if they are actually different types of accounts where you might see one has tighter (smaller) spreads than the other or one has higher commissions than the other (for example).

Regards, Paul.
  • #3
  • Sep 3, 2021 2:23pm Sep 3, 2021 2:23pm
Quoting rosspetX
Do spreads depend on the account base currency?

No. They don't.

Exactly as pah explains in his reply to you, the spread is simply the difference in points between Bid and Ask prices for any given instrument.

You should ignore "williamhall"'s reply just above this post: he's totally misunderstood what you're asking about.
  • #4
  • Sep 4, 2021 1:59am Sep 4, 2021 1:59am
Thank you guys (@pah and @Quickly) for your explanations. Clear now. Safe and profitable trading.
  • #5
  • Last Post: Sep 6, 2021 6:50am Sep 6, 2021 6:50am
I don`t think spreads depends on the account base currency.
0 traders viewing now