A spread-only price and a per-trade charge are different bills

platformPublished 20 October 20261 min readmulti asset

Key points

• Spread-only and commission-plus-spread are different presentations of cost.
• A raw or tighter quote with a commission is not automatically cheaper.
• Holding the position can add a financing charge that the spread does not include.

What is going on

Retail currency accounts commonly show a bid and an offer. The distance between them is a cost of crossing the market. Some accounts add a commission per unit and show a narrower quote. The FCA and ESMA have published retail-intervention materials that treat these products as contracts with the firm, with costs that must be described, including where positions are held overnight. Those materials are not a survey of today’s quotes.

Why it matters

A comparison that looks only at the commission will miss a wide quote. A comparison that looks only at a typical spread will miss the commission and any conversion into the account currency. The relevant document is the cost disclosure for the entity and the account type, at the size you intend to trade.

What to watch

Record whether the spread is variable, whether a commission is per side, and whether an overnight charge applies. Do not treat a marketing minimum spread as the spread you will receive.

Risks

Quotes widen when liquidity thins. This note does not state a firm’s current spread or commission.