Exness Spread and Commission Explained

The spread in trading is the difference between the Bid and Ask prices of an instrument, typically measured in pips. For example, a Bid price of 1.11113 and an Ask price of 1.11125 results in a spread of 1.2 pips. Exness, among other brokers, generates revenue from this spread. They offer dynamic spreads which fluctuate based on market conditions, and stable spreads that remain mostly fixed, providing predictable costs for traders. Exness also charges a commission for trading on their Zero and Raw Spread accounts, with the exact fee varying based on the traded instrument and account type.

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Introduction to Spread

The spread is essentially the difference between the bid (buy) and ask (sell) prices of a trading instrument. This difference is commonly measured in pips. For instance, if the bid price is 1.11113 and the ask price stands at 1.11125, the spread would be 1.2 pips.

Exness, like many other brokers, generates revenue through spreads. The spread values provided under the Contract Specifications on Exness’s website represent the average values from the previous trading day, and these might differ from real-time spreads on trading platforms.

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Spread Types at Exness

Dynamic Spread

This is a floating spread that changes based on market conditions. A dynamic spread can either be wider or narrower than the average depending on market volatility.

Stable Spread

Stable spreads remain mostly constant, offering traders predictable costs. Such spreads are calculated using a weighted average of spread and ticks within a given timeframe. Some of the currency pairs that offer a stable spread for approximately 90% of the time include EURUSD, XAUUSD, GBPUSD, among others.

Traders can view the exact spread of an instrument in real-time by enabling the Spread column on their chosen terminal.

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Factors Influencing Spread

Several factors can affect the spread:

• Market volatility
• News releases
• Unexpected economic events
• Market opening or closing hours
• The trading instrument itself

It’s essential to keep an eye on the economic calendar to anticipate potential spread changes.

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Spread Display on MT4 and MT5

On the MT4 and MT5 platforms, the spread is shown in points. For clarity, a spread value might be shown as 1.4 pips on the Exness website but 14 points on the MT4/MT5 platforms.

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Commission on Zero and Raw Spread Accounts

For those trading on the Zero and Raw Spread accounts, the commission is determined by the traded instruments and the partner level. For instance, if a client trades 2 lots of USOIL under a partner link on a Raw Spread or Zero account with a commission rate of USD 4 per lot, the total commission would be USD 8.

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Instrument Suffixes

Instruments on Zero accounts might have the suffix ‘z’ or none, e.g., EURUSDz or EURUSD. Similarly, those on Raw Spread accounts can have the suffix ‘r’ or none.

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Trading Instruments

On Zero and Raw Spread accounts, traders have access to:

• Forex currency pairs and metals
• Indices
• Stocks
• Energies
• Cryptocurrencies

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Commission Calculation

Commission on these accounts is calculated based on the trading volume for both order directions (opening and closing). For Raw Spread accounts, the commission rate can be up to USD 3.5 per lot for each direction. For instance, if a trader opens a 1 lot position with GBPUSD, a USD 7 commission would be charged.

For Zero accounts, the commission starts from USD 0.2 for one side per lot. It’s important to check the Contract Specifications for detailed commission rates for each instrument.

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Commission-free Accounts

Exness offers several accounts, such as Standard, Standard Cent, and Pro, where trading commissions aren’t applied.

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Key Differences Between Raw Spread and Zero Accounts

Both these accounts are categorized as Professional accounts. While they both feature ultra-low spreads, the commission charged varies. Zero accounts can offer zero spread for the top 30 trading instruments for 95% of the day. In contrast, Raw Spread accounts offer stable ultra-low spreads ideal for experienced traders.

Raw Spread accounts charge up to USD 3.5/lot per side, while Zero accounts start from USD 0.2/lot per side.

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Commission in One Direction

The term “one direction” means commission is charged for both opening and closing an order. For example, if the commission is USD 3.5/lot in one direction, a total of USD 7/lot would be charged when the order is opened.

In conclusion, understanding the spread and commission structure at Exness is vital for traders to ensure cost-effective trading. Always refer to Exness’s Contract Specifications for up-to-date information on spreads and commissions.

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FAQs to summarize the article

What is a spread in trading?

Spread is the difference between the Bid and Ask prices of a trading instrument, typically expressed in pips. For instance, if the Bid is 1.11113 and the Ask is 1.11125, the spread equals 1.2 pips.

What is the difference between dynamic and stable spreads?

Dynamic (or floating) spreads fluctuate based on market conditions, influenced by factors such as volatility. Stable spreads remain mostly fixed, providing predictable trading costs. They’re calculated using a weighted average over a certain timeframe.

Which instruments offer stable spreads?

Instruments such as EURUSD, XAUUSD, GBPUSD, USDJPY, and a few others offer stable spreads about 90% of the time, barring periods of high market volatility.

How can I view the exact spread for an instrument on Exness?

To view the exact spread live on platforms like MT4 and MT5, you need to find the Market Watch window, right-click, and select the Spread option. The spread is showcased in points on MT4/MT5, but in pips on Exness Terminal and the Exness Trade app.

What are the primary factors that affect the spread?

Key factors include market volatility, new releases, unexpected economic events, and market opening or closing times. Additionally, the type of instrument can also influence the spread; for example, major currency pairs typically have narrower spreads than exotic pairs.

How is trading commission calculated in Zero and Raw Spread accounts?

The commission is based on both the opening and closing of an order. For instance, if a trading instrument has a commission of USD 3.5/lot for one direction (either opening or closing), then the total commission for the whole transaction would be USD 7/lot.

What are the main distinctions between the Zero and Raw Spread accounts at Exness?

Zero accounts offer a minimum spread of 0.0 for the top 30 instruments about 95% of the day, while Raw Spread accounts provide ultra-low spreads. In terms of commission, Zero accounts start from USD 0.2/lot per side, while Raw Spread accounts can charge up to USD 3.5/lot per side. The exact rate might differ based on the instrument and account type.