If you've noticed that your spread is higher than usual, you're not alone. Spreads can widen from time to time—and understanding why this happens is key to managing your trading costs and expectations.

At Eurotrader, we offer competitive, variable spreads across all account types and asset classes, including Forex, indices, commodities, cryptocurrencies, and share CFDs. But since spreads are dynamic, they can fluctuate. Here’s why.

What is a Spread?

The spread is the difference between the bid (selling) and ask (buying) price of a trading instrument. It represents a key cost of trading and reflects market conditions at any given moment. At Eurotrader, this also acts as part of our fee for executing your trade.

In addition to spreads, some account types or instruments may involve commissions, which are flat fees charged per trade.

Why does my spread sometimes increase?

Your spread may appear higher than normal for several common reasons:

1. Market Volatility

During major economic news releases, geopolitical events, or unexpected market movements, volatility increases. To reflect the added risk and uncertainty, spreads naturally widen.

2. Low Liquidity Periods

Outside of peak trading hours—like late nights, weekends, or public holidays—fewer participants are active in the market. This low liquidity can lead to wider spreads, especially on less-traded instruments.

3. Asset Type

Different instruments have different liquidity profiles. Exotic currency pairs, minor indices, and some cryptocurrencies typically have wider spreads than major pairs or mainstream assets like the S&P 500 or EUR/USD.

4. Account Type and Execution Model

At Eurotrader, we use market execution, which means prices and spreads are sourced directly from our liquidity providers. Unlike fixed spreads, variable spreads reflect real-time market supply and demand. That’s why you’ll occasionally see them widen.

5. Sudden News or Price Gaps

Events like central bank announcements, earnings reports, or political developments can lead to sudden price movements and temporary spread spikes.

How Eurotrader keeps spreads competitive

Despite these fluctuations, Eurotrader works hard to keep your trading costs low:

• Spreads from 0.0 pips on major Forex pairs

• Average 0.4-point spreads on top indices like the S&P 500

• No dealing desk—pure market execution with no re-quotes

• Institutional-grade liquidity from trusted providers

• Transparent commission structure where applicable

It’s important to remember that wider spreads aren't unusual, especially during volatile or low-volume periods. They’re a natural reflection of real-time market conditions. 

Need more details? Our support team is always here to help.

Open an account with Eurotrader today!