Direct answer to the question
“Average spreads on forex.com” is not a single fixed number. In forex, the spread is the difference between the ask (sell) price and the bid (buy) price. The “average” spread is a statistical average of spreads observed over a chosen time window and for a chosen instrument under specific market conditions. Because spreads change with volatility and liquidity, any average will be conditional rather than universal.
If you are comparing “average spreads” across providers, you need the same instrument(s), the same time period(s), and the same definition of how the average was computed (for example, average of quoted spreads vs. effective execution spreads).
How “average spread” works
A spread can be measured in pips (or in price units, depending on the platform). The mechanics are:
- Bid/ask definition: The spread at any moment is ask − bid.
- Averaging: An “average spread” is produced by taking many observed spreads and computing a mean (or another statistic) over a chosen interval.
- Conditional inputs: The average depends on:
- the currency pair (e.g., majors vs. smaller pairs)
- market session (often different liquidity across trading hours)
- volatility (news and fast price moves can widen spreads)
- order size and execution context (quoted spread versus what you effectively receive)
So, when someone asks for “the average spreads on forex.com,” the actionable answer is: it is the average of spreads forex.com quotes (or reports) for a specific instrument and time period, under conditions that were present when the data was collected.
Example checks and comparison criteria
To independently verify or contextualize “average spreads,” use criteria like these:
- Match the instrument: Compare the same currency pair and, if relevant, the same contract/specification.
- Match the time window: A “daily average” can differ from an “hourly average,” and both can differ from a “news-day average.”
- Check the data type: Confirm whether the figure refers to quoted spreads (from the order book) or effective spreads (experienced cost after execution).
- Look at variability: A useful summary includes not only a mean, but also dispersion (for example, how much spreads widen during volatile periods).
A practical comparison often comes down to: two providers may have the same average but very different worst-case or news-time behavior.
Relevant limitations and risks
Even with careful definitions, there are important limits:
- No real-time guarantee from averages: An average spread describes past or sampled conditions; it cannot promise the future spread.
- Averages can hide extremes: Volatility spikes can widen spreads for short periods, raising actual transaction costs.
- Broker reporting differences: “Average spread” can be computed differently (quoted vs. effective), so you must align definitions before comparing figures.
- Execution depends on context: Slippage and execution quality can change the effective trading cost relative to a simple quoted spread average.
For an informational purpose, treat “average spreads” as a conditional metric that you must verify against the provider’s own methodology and the specific market conditions you care about.