Speculative trading on the global Forex involves exchanging one currency for another in anticipation of a price change in your favor. As you know, there is a slight difference between the bid and ask prices for any given currency pair traded on the Forex. This difference is called the spread, and it is where the profit potential lays.
There are spreads between all currency pairs, and they average between 3 to 6 price interest points, or pips, on the major world currencies. eFOREX offers spreads as low as 2 pips in some cases. Pips are usually expressed in decimals, with the pip quoted as the last numbers of that decimal. A Forex trader's financial gain or loss is measured in pips, which are then converted into money.
Your first step to Forex trading is to open an eFOREX margin account. This is the account into which funds are deposited when you make a profit, or from which funds are deducted if your trades result in a loss. Opening a live Forex trading account at eFOREX is quick and easy, and you can begin trading in a matter of minutes, not hours.
Currency Pair Spreads
If you already trade on the Forex, you know that there is a slight difference between the bid and ask prices all currency pairs. This difference is called the spread, and is commonly expressed as pips, or price interest points. eFOREX offers competitive spreads, often as low as 2 pips.
The following chart displays typical eFOREX spreads. Please note: eFOREX reserves the right to revise the following spreads with no prior notice.**
| EUR/USD |
Euro / U.S. Dollar |
2-3 |
| USD/JPY |
U.S. Dollar / Japanese Yen |
2-3 |
| GBP/USD |
British Pound / U.S. Dollar |
4-5 |
| USD/CHF |
U.S. Dollar / Swiss Franc |
3-4 |
| USD/CAD |
U.S. Dollar / Canadian Dollar |
4-5 |
| AUD/USD |
Australian Dollar / U.S. Dollar |
4-6 |
| EUR/GBP |
Euro / British Pound |
4-7 |
| EUR/JPY |
Euro / Japanese Yen |
3-4 |
| GBP/JPY |
British Pound / Japanese Yen |
8-9 |
| CHF/JPY |
Swiss Franc / Japanese Yen |
6-8 |
| EUR/CHF |
Euro / Swiss Franc |
4-6 |
| NZD/USD |
New Zealand Dollar / U.S. Dollar |
4-6 |
| GBP/CHF |
British Pound / Swiss Franc |
8-10 |
| AUD/JPY |
Australian Dollar / Japanese Yen |
7-8 |
| EUR/AUD |
Euro / Australian Dollar |
8-10 |
| EUR/CAD |
Euro / Canadian Dollar |
8-9 |
| AUD/CAD |
Australian Dollar / Canadian Dollar |
8-9 |
| NZD/JPY |
New Zealand Dollar / Japanese Yen |
6-7 |
| CAD/JPY |
Canadian Dollar / Japanese Yen |
6-7 |
| GBP/AUD |
British Pound / Australian Dollar |
12-17 |
| AUD/NZD |
Australian Dollar / New Zealand Dollar |
10-20 |
| USD/MXN |
U.S. Dollar / Mexican Peso |
Variable |
| USD/HKD |
U.S. Dollar / Hong Kong Dollar |
6-8 |
| USD/SGD |
U.S. Dollar / Singapore Dollar |
7-8 |
| USD/ZAR* |
U.S. Dollar / South African Rand |
Variable |
| CAD/MXN |
Canadian Dollar / Mexican Peso |
Variable |
| EUR/HKD |
Euro / Hong Kong Dollar |
Variable |
| EUR/SGD |
Euro / Singapore Dollar |
Variable |
| SGD/JPY |
Singapore Dollar / Japanese Yen |
10-12 |
| SGD/HKD |
Singapore Dollar / Hong Kong Dollar |
Variable |
| USD/HUF* |
U.S. Dollar / Hungarian Forint |
Variable |
| EUR/HUF* |
Euro / Hungarian Forint |
Variable |
* The noted currency pairs may only be traded Monday through Friday during the following Greenwich Mean Time (GMT) 7.00 to 15.00+
+GMT equates to 3:00 A.M. DST to 11:00 A.M. DST
+GMT equates to 2:00 A.M. EST to 10:00 A.M. EST
eFOREX may accept Market Orders outside of the noted trading times. However, eFOREX will not be held liable for any losses due to potential price volatility between the stated market close and the stated market open the following trading day.
The standard industry practice for currency dealers regarding the noted currencies is to set market levels and execute orders manually without the use of automated systems or services. eFOREX reserves the right to re-quote prior to trade execution.
** In the event that market conditions become uncertain, spreads may increase or decrease to accommodate the market. For a comprehensive overview, please refer to the eFOREX Client Agreement.
Disclaimer: Forex trading involves significant risk of loss and is not suitable for everyone.