Everytime you enter a trade, the broker gets his piece of the action. This is called the spread. Each currency has a different spread. The higher the spread, the more the broker gets. The idea is we want a broker that will takes small spreads.A good rule of thumb is 2-5 pip spreads. Uusually, the spread on the EUR/USD is the smallest. The spreads for some of the exotic currencies can get quite high.
Beware of the broker who says we have spreads as low as…. This does not guarantee the spread. Try to find out what the typical spread is.
Low spread values are the BEST!