Key takeaway: Eightcap offers competitive spreads on forex and CFD trading, with the Raw account providing spreads from 0.0 pips. This guide explains how spreads work, compares account types, provides real-world cost examples, and outlines essential risk controls for traders.
What Are Spreads on Eightcap?
The spread is the difference between the Bid (sell) price and the Ask (buy) price of a financial instrument. It represents the primary trading cost for most forex and CFD traders and is typically measured in pips (for forex) or points (for other instruments).
Eightcap, a globally regulated forex and CFD broker, offers competitive spreads across its account types. The broker is regulated by the UK Financial Conduct Authority (FCA) under FRN 920058, the Australian Securities and Investments Commission (ASIC) under AFSL 391441, and the Cyprus Securities and Exchange Commission (CySEC) under Licence 424/22.
Eightcap's spreads are sourced from multiple tier-1 liquidity providers and are displayed in real-time on the trading platform (MT4, MT5, or TradingView). The broker operates a No Dealing Desk (NDD) execution model, ensuring transparent and competitive pricing.
📊 Market context: According to the Bank for International Settlements (BIS), the forex market has an average daily turnover of over $7.5 trillion. Spreads are a reflection of market liquidity, with tighter spreads generally available on major currency pairs during peak trading hours. Eightcap's spreads are competitive within the industry, particularly on the Raw account.
Important: Spreads are not fixed — they can widen during periods of low liquidity, high volatility, or around major economic news releases. Always check the current spread in your trading platform before entering a trade to ensure you understand the cost involved.
Account Type Comparison: Standard vs. Raw
Eightcap offers two main account types for forex and CFD trading: Standard and Raw. The table below compares the spread structures and associated costs for each account type.
Feature
Standard Account
Raw Account
Spread (EUR/USD)
From 1.0 pips
From 0.0 pips
Commission
None (0%)
$3.50 per side per standard lot
All-in Cost (per 1.0 lot)
$10 – $15 (spread only)
$3.50 – $10 (spread + commission)
Best For
Beginners, swing traders, lower-frequency traders
Scalpers, day traders, high-volume traders
Minimum Deposit
$100
$100
💡 Cost efficiency: The Raw account offers significantly tighter spreads but charges a commission. For a 1.0 lot trade on EUR/USD, the Raw account's all-in cost is typically $3.50–$10 (spread + commission), while the Standard account costs $10–$15 (spread only). The Raw account becomes more cost-effective for active traders who execute frequent trades.
According to Eightcap's official pricing, the Raw account spread for EUR/USD can be as low as 0.0 pips during favourable market conditions, but it typically averages around 0.2–0.3 pips. The Standard account spread averages 1.0–1.5 pips, making it simpler but more expensive for active trading.
Standard Account Costs
Spread: 1.0 – 1.5 pips (typical)
Commission: None
All-in cost: $10 – $15 per 1.0 lot
Best for: Traders who prefer simplicity and lower frequency
Raw Account Costs
Spread: 0.0 – 0.3 pips (typical)
Commission: $3.50 per side per lot
All-in cost: $3.50 – $10 per 1.0 lot
Best for: Active traders, scalpers, and high-volume traders
📋 Verification tip: Spreads are dynamic and can change based on market conditions. Always check the live spread for your instrument in your MT4, MT5, or TradingView platform before executing a trade. Eightcap provides real-time spread data in the platform's "Market Watch" window.
Calculating Trading Costs
Understanding how to calculate spread costs is essential for effective trading. Below is a breakdown of how spread costs are calculated on Eightcap.
Spread Cost Calculation
The spread cost for a trade is calculated as:
Spread Cost = Spread (in pips) × Pip Value × Position Size (in lots)
Pip Value: For a standard lot (100,000 units) of a USD-denominated pair, 1 pip = $10. For a mini lot (0.1), 1 pip = $1. For a micro lot (0.01), 1 pip = $0.10.
Position Size: The volume of your trade in lots (e.g., 0.01, 0.1, 1.0).
Example: A 1.0 lot trade on EUR/USD with a spread of 1.0 pip = $10.00 cost. A 0.1 lot trade with the same spread = $1.00 cost.
Commission (Raw Account Only)
On the Raw account, Eightcap charges a commission of $3.50 per side per standard lot. This means a round-turn trade (opening and closing a position) costs $7.00 in commissions. The commission is applied to forex, indices, commodities, and other CFD instruments.
All-in Cost Summary
Cost Component
Standard Account
Raw Account
Spread (per 1.0 lot)
$10 – $15
$0 – $3
Commission (round-turn)
$0
$7.00
Total Direct Cost (per 1.0 lot)
$10 – $15
$7 – $10
Swap (overnight fee)
Varies (check platform)
Varies (check platform)
Practical tip: For active traders, the Raw account is almost always more cost-effective due to the significantly tighter spread. However, if you trade infrequently (e.g., only a few times per month), the Standard account's simplicity may be more suitable. Calculate your expected monthly trading volume to determine which account is more cost-effective for your style.
Real-World Examples
The following scenarios illustrate how spread costs impact trades on Eightcap's Standard and Raw accounts.
Scenario 1 – Standard Account Trade: Emma opens a 1.0 lot buy position on EUR/USD using her Standard account. The current spread is 1.2 pips ($12.00 per lot). She holds the position for 2 hours and closes it when the price moves 20 pips in her favour.
Emma's net profit is reduced by the spread cost, but the Standard account's zero-commission structure simplifies the cost calculation.
Scenario 2 – Raw Account Trade: James opens a 1.0 lot buy position on EUR/USD using his Raw account. The current spread is 0.2 pips ($2.00 per lot). He holds the position for a few minutes and closes it when the price moves 20 pips in his favour.
Gross profit: 20 pips × $10.00 × 1.0 lot = $200.00 Spread cost: $2.00 Commission (round-turn): $7.00 Total cost: $9.00 Net profit: $200.00 – $9.00 = $191.00
James's net profit is higher than Emma's because the Raw account's tighter spread more than offsets the commission cost for this trade.
Scenario 3 – Impact of Trading Frequency: Michael trades 10 times per day on EUR/USD, each trade with a 1.0 lot position. He is comparing the Standard vs. Raw account over a 20-day trading month.
Standard Account: 10 trades × 20 days = 200 trades. Each trade costs ~$12.00 in spread. Total spread cost = $2,400.00. Raw Account: 200 trades × $9.00 (avg spread + commission) = $1,800.00.
The Raw account saves Michael $600 per month in trading costs. This example demonstrates how the Raw account becomes increasingly cost-effective as trading frequency increases.
Practical tip: Use the demo account to test both Standard and Raw account structures with your actual trading strategy. This will help you determine which account is more cost-effective for your specific trading style and frequency.
Factors Affecting Spreads
The spread on Eightcap is not static — it can widen or narrow based on several factors. Understanding these factors can help you anticipate spread changes and choose the best times to trade.
Market volatility: During periods of high volatility (e.g., major economic data releases, geopolitical events), spreads tend to widen as market makers adjust for increased risk.
Liquidity: During low-liquidity periods (e.g., weekends, holidays, or after-hours trading), spreads can widen significantly due to fewer market participants.
News announcements: High-impact news events such as US Non-Farm Payrolls (NFP), Federal Reserve interest rate decisions, and inflation reports can cause spreads to widen temporarily.
Time of day: Spreads are typically tighter during the overlap of the London and New York trading sessions (8:00 AM – 12:00 PM EST) when liquidity is highest.
Account type: As shown above, the Raw account consistently offers tighter spreads than the Standard account due to the different pricing model.
Instrument type: Major currency pairs (EUR/USD, USD/JPY, GBP/USD) typically have tighter spreads than exotic pairs or commodities due to higher liquidity.
Broker's liquidity providers: Eightcap sources pricing from multiple tier-1 liquidity providers. The depth and competition among these providers can affect the spreads offered.
📈 Expert insight: According to the Bank for International Settlements (BIS), the most liquid trading hours are during the London-New York session overlap (8:00 AM – 12:00 PM EST). During these hours, spreads are typically at their tightest, making it the most cost-effective time to trade. Conversely, spreads tend to widen significantly during the Asian session and on Fridays before the market close.
Pro tip: To minimise spread costs, consider trading during the most liquid hours (London-New York overlap) and avoid trading immediately before or after major news events. Check the economic calendar in your platform to stay informed about upcoming events.
Spread Management Strategies
While spreads are a cost of trading, there are several strategies you can use to minimise their impact on your profitability.
Checklist: Managing Spread Costs
Choose the right account type — if you are an active trader, the Raw account is almost always more cost-effective. For lower-frequency traders, the Standard account offers simplicity.
Trade during peak liquidity hours — spreads are tightest during the London-New York session overlap (8:00 AM – 12:00 PM EST).
Avoid trading around major news events — spreads can widen significantly before and after high-impact economic data releases.
Focus on major currency pairs — EUR/USD, USD/JPY, and GBP/USD typically have the tightest spreads.
Use limit orders — instead of market orders, use limit orders to enter trades at a specific price, which can help you avoid paying the spread.
Consider longer timeframes — if you are a swing trader, the spread cost is amortised over a longer holding period, reducing its relative impact.
Factor spreads into your risk-reward calculation — always include spread costs when calculating your potential profit and loss for each trade.
Monitor live spreads — check the current spread in your platform before entering a trade to ensure it is within your acceptable range.
Tip: In your MT4/MT5 platform, you can view the current spread for each instrument in the "Market Watch" window. The spread is displayed as the difference between the Bid and Ask prices.
📉 Limit Orders vs. Market Orders
Using limit orders allows you to set the maximum price you are willing to pay (for buys) or the minimum price you are willing to accept (for sells). This can help you avoid paying the spread on entry. However, limit orders are not guaranteed to be filled if the market does not reach your specified price.
📈 Swing Trading and Spreads
For swing traders who hold positions for days or weeks, the spread cost is relatively small compared to the overall profit target. In these cases, the choice between Standard and Raw accounts may be less critical, as the spread is amortised over a longer holding period.
Remember: Spreads are just one component of your trading costs. Commissions, swap fees, and slippage can also impact your profitability. Always consider the total cost of each trade when planning your strategy.
Common Mistakes When Trading with Spreads
Ignoring the spread: Many traders focus only on the price movement and overlook the spread cost. For active traders, spread costs can accumulate and significantly reduce net profits.
Choosing the wrong account type: Beginners often choose the Raw account for tighter spreads but fail to account for the commission, which can make the Standard account more cost-effective for their trading volume.
Trading during low-liquidity hours: Trading outside peak hours can result in wider spreads, increasing your trading costs unnecessarily.
Trading during news events: High-impact news can cause spreads to widen dramatically and trigger stop-losses on slippage. Avoid trading during these periods unless you have a specific strategy for volatility.
Not factoring spreads into stop-loss placement: If you set a stop-loss too close to your entry price, the spread may cause your stop to be triggered prematurely. Always account for the spread when placing stops.
Assuming spreads are fixed: Spreads are dynamic and change based on market conditions. Relying on average spreads can lead to inaccurate cost estimates.
Overlooking commission costs on Raw account: The Raw account's commission ($3.50 per side) is a significant cost that must be factored into your cost analysis. For smaller trades, the commission can be a higher percentage of the total cost.
Not comparing account types regularly: Your trading style and volume may change over time. Periodically reassess whether your current account type remains the most cost-effective for your strategy.
Risk Warning and Trading Risks
Important Risk Disclosure
Forex and CFD trading carry a high level of risk and may not be suitable for all investors. According to ESMA and ASIC data, a significant proportion of retail investor accounts lose money when trading CFDs. Eightcap reports that approximately 70–75% of retail investor accounts lose money trading CFDs with the firm.
Key risks associated with spreads and trading costs:
Spread cost accumulation: For active traders, spread costs can accumulate and significantly reduce net profits. The Raw account's commission structure is designed to mitigate this, but it is not a guarantee of profitability.
Leverage risk: Leverage amplifies both profits and losses. Even with tight spreads, using high leverage increases the risk of rapid account depletion.
Market volatility: Currency prices can be affected by economic data, geopolitical events, and central bank policies. Sudden price movements can trigger stop-loss orders or margin calls unexpectedly.
Liquidity risk: During low-liquidity periods, spreads may widen and order execution may be less favourable, increasing costs.
Slippage risk: During volatile market conditions, your order may be filled at a different price than expected, increasing your effective spread cost.
This guide is for educational and informational purposes only. It does not constitute financial, legal, or trading advice. Always verify current terms, fees, leverage limits, and regulatory status directly with the official Eightcap website or the relevant regulator before making any trading or investment decision. Consider seeking independent financial advice before trading forex or CFDs.
References: FCA Financial Services Register, ASIC Professional Register, CySEC Public Register, and Eightcap's official risk disclosure documents.
Risk Management Best Practices
Use stop-loss orders: Always set a stop-loss to limit potential losses on each trade.
Manage position sizes: Risk no more than 1–2% of your trading capital on a single trade.
Monitor margin levels: Keep track of your margin utilisation to avoid margin calls and forced liquidations.
Stay informed: Use the economic calendar to avoid trading during high-impact news events.
Keep a trading journal: Record your trades, including spread costs, to identify patterns and improve your strategy.
Factor all costs into your strategy: Spreads, commissions, and swap fees should all be considered when calculating your risk-reward ratio.
FAQs About Eightcap Spreads
What is the typical spread on Eightcap for EUR/USD?
On the Standard account, the typical spread is 1.0–1.5 pips. On the Raw account, the spread typically ranges from 0.0–0.3 pips, with a commission of $3.50 per side per lot.
Does Eightcap charge commission on spreads?
No commission is charged on the Standard account. The Raw account charges a commission of $3.50 per side per standard lot (round-turn $7.00).
What is the best Eightcap account for trading forex?
For active traders and scalpers, the Raw account is generally more cost-effective due to tighter spreads. For beginners or lower-frequency traders, the Standard account offers simplicity with no commissions.
How is the spread calculated on Eightcap?
The spread is the difference between the Bid and Ask prices. For example, if the Bid is 1.1050 and the Ask is 1.1052, the spread is 2.0 pips.
Does the spread change during the day on Eightcap?
Yes. The spread can widen during periods of low liquidity, high volatility, or around major news events. Spreads are typically tighter during the London-New York session overlap.
Are there swap fees on Eightcap?
Yes. Swap fees (overnight financing charges) apply to positions held overnight. Swap rates for forex pairs are based on interest rate differentials and can be checked in your MT4/MT5 platform.
Is Eightcap a regulated broker?
Yes. Eightcap is regulated by the FCA (UK) under FRN 920058, ASIC (Australia) under AFSL 391441, CySEC under Licence 424/22, and the SCB (Bahamas) under SIA-F217. Always verify the regulatory status of the entity that holds your account.
Can I trade on Eightcap with a demo account to test spreads?
Yes. Eightcap offers demo accounts on both Standard and Raw account structures, allowing you to test your strategy and compare spread costs without financial risk.