Glossary

What is the spread?

In one sentence

The spread is the gap between the highest price buyers will pay and the lowest sellers will accept. It is a real cost, even on "zero fee" platforms.

At any moment there is a best bid and a best ask, and the difference between them is the spread. Buy at the ask and immediately sell at the bid, and you lose that difference — before any commission.

This matters because it is where “commission-free” platforms usually make their money. A service advertising no trading fee may quote a spread several percent wide, costing you considerably more than a platform charging a visible 0.1% commission on a tight spread.

To compare honestly: check the buy price and the sell price for the same asset at the same moment on each platform. The round-trip difference is your true cost, and it frequently bears no relation to the advertised fee.

For example

A platform showing "0% commission" alongside a 3% spread is more expensive than one charging 0.2% on a tight one.

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