Spreads
Spreads
Enjoy low, razor-thin spreads when you trade with Activ-Xtrade.
What are Spreads?
In trading, traders will be offered a ‘bid’ (sell) and an ‘ask’ (buy) price, which mark the selling and buying points of the base currency, respectively. The difference between the bid and ask price is the ‘spread’.
Trades involve facilitators such as banks or liquidity providers to ensure orderly transaction flows, where they pair every buyer with a seller. These facilitators bear trade risks and, as compensation, retain a portion of each trade, known as the spread.
Activ is committed to keeping our spreads competitively low for all clients.
How are spreads calculated?
Spread is usually expressed as a percentage, and can be calculated using the formula below:
Spread % = [(Ask Price – Bid Price) / Ask Price] x 100
Where:
Ask Price – Refers to the lowest price that a currency dealer is willing to sell units of the currency for
Bid Price – Refers to the highest price that a currency trader is willing to buy units of the currency for
Low, industry-leading forex spreads
Leveraging fees from a network of banks and liquidity providers, Activ-Xtrade is able to offer our clients ultra-competitive spreads starting at 0.0 pip for RAW ECN accounts, and 1.0 pip for Standard STP accounts. For major forex currencies, you can enjoy spreads under 1 pip during high-liquidity periods.
Get a taste of our industry-leading forex spreads outlined below.
