Amarkets Spread Guide, Covering Forex Trading Costs, Examples, and Risk Controls

What Is Amarkets?

Amarkets is an international online forex and CFD broker that was established in 2016. The broker offers access to a wide range of financial instruments, including forex, commodities, indices, shares, and cryptocurrencies. Amarkets is known for its competitive trading conditions, including tight spreads, fast execution, and a variety of account types to suit different trading styles.

Amarkets operates under the regulatory oversight of the Financial Services Authority (FSA) of St. Vincent and the Grenadines — a jurisdiction that does not regulate forex or CFD brokers. This lack of top-tier regulation (such as FCA, CySEC, or ASIC) is a significant consideration for traders evaluating the broker's safety and reliability. As of 2026, the broker's regulatory status remains a major concern, and traders should exercise extreme caution.

The broker offers the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, as well as a proprietary mobile app. Amarkets also provides a range of educational materials and trading tools, including economic calendars, market analysis, and copy trading functionality.

What Is a Spread in Forex Trading?

In forex trading, the spread is the difference between the bid price (the price at which you can sell) and the ask price (the price at which you can buy) of a currency pair. It represents the cost of executing a trade and is how many brokers earn their revenue. The spread is typically measured in pips — the smallest price movement in a currency pair.

For example, if the EUR/USD bid price is 1.1000 and the ask price is 1.1002, the spread is 2 pips. When you buy EUR/USD at the ask price (1.1002) and immediately sell at the bid price (1.1000), you would incur a loss of 2 pips — the cost of the spread.

There are two main types of spreads:

• Fixed spreads — Remain constant regardless of market conditions. These are typically offered by market makers and provide cost certainty.
• Variable (floating) spreads — Fluctuate based on market liquidity, volatility, and news events. These are typically offered by ECN/STP brokers and can widen significantly during volatile periods.

Amarkets offers variable spreads, which means the spread can widen during periods of low liquidity or high volatility, such as during major news releases or market openings. This is an important factor to consider when calculating your trading costs.

Amarkets Spread Types and Costs

Amarkets offers variable spreads across its account types, with the spread size depending on the account tier and the instrument being traded. Below is a breakdown of the typical spreads on major forex pairs for each account type.

The Standard account is commission-free and offers wider spreads, making it suitable for beginners and casual traders. The ECN account offers ultra-tight spreads starting from 0.0 pips but charges a commission per lot, making it ideal for scalpers and high-frequency traders. The Pro account offers a middle ground with tighter spreads and a lower commission.

It is important to note that these spreads are variable and can widen during periods of high volatility or low liquidity. For example, during major news releases like Non-Farm Payrolls (NFP), spreads on EUR/USD can widen significantly, sometimes reaching 5–10 pips or more.

Commission vs. Spread — The Total Cost

When comparing account types, it is essential to calculate the total cost of a trade, which includes both the spread and any commission charged. Amarkets offers commission-free Standard accounts and commission-based ECN and Pro accounts. Below is a comparison of the total cost for a 1-lot trade on EUR/USD for each account type.

As the table shows, the ECN account offers the lowest total cost at just $3.00 per lot, despite charging a commission. The Pro account is a close second at $6.50 per lot, while the Standard account is the most expensive at $15.00 per lot. This makes the ECN account the most cost-effective option for active traders who trade multiple lots per day.

However, it is important to consider that variable spreads can widen, which would increase the total cost. For example, if the spread on EUR/USD widens to 1.0 pip on the ECN account, the total cost would increase to $13.00 ($10 spread + $3 commission), making it less competitive than the Pro account in that scenario.

Real-World Spread Cost Examples

To better understand how spreads impact your trading costs, let's look at some real-world examples using Amarkets' spreads.

Example 1: Scalping on ECN Account

A scalper trades 10 lots of EUR/USD on the ECN account. The spread is 0.0 pips, and the commission is $3.00 per lot (round turn). The total cost for 10 lots is:

• Spread cost: 0.0 pips × $10 per pip × 10 lots = $0
• Commission: $3.00 × 10 lots = $30
• Total cost: $30

If the scalper makes a profit of 5 pips on each lot, the gross profit is 5 pips × $10 per pip × 10 lots = $500. After deducting the $30 total cost, the net profit is $470.

Example 2: Day trading on Pro Account

A day trader trades 2 lots of GBP/USD on the Pro account. The spread is 0.8 pips, and the commission is $1.50 per lot (round turn). The total cost for 2 lots is:

• Spread cost: 0.8 pips × $10 per pip × 2 lots = $16
• Commission: $1.50 × 2 lots = $3
• Total cost: $19

If the trader makes a profit of 20 pips on each lot, the gross profit is 20 pips × $10 per pip × 2 lots = $400. After deducting the $19 total cost, the net profit is $381.

Example 3: Trading during high volatility (Standard Account)

A trader using the Standard account trades 1 lot of EUR/USD during a high-impact news event. The spread widens from 1.5 pips to 5.0 pips. The total cost for 1 lot is:

• Spread cost: 5.0 pips × $10 per pip × 1 lot = $50
• Commission: $0
• Total cost: $50

If the trader makes a profit of 10 pips on the trade, the gross profit is $100. After deducting the $50 spread cost, the net profit is only $50. This example highlights how important it is to consider spread widening during volatile periods.

Risk Controls for Spread Costs

Managing spread-related risks is essential for protecting your trading capital. Below is a practical checklist of risk controls you can implement when trading with Amarkets or any other broker.

• Choose the right account type — If you trade frequently (scalping or day trading), an ECN account with tight spreads and a transparent commission may be more cost-effective than a commission-free Standard account.
• Avoid trading during high-impact news releases — Spreads often widen significantly before and after major news events (e.g., NFP, CPI, central bank meetings). Consider using pending orders instead of market orders to avoid paying the widened spread.
• Monitor spread fluctuations — Use the market watch window in MT4/MT5 to monitor live spreads. Avoid trading when spreads are abnormally wide.
• Calculate total cost per trade — Always calculate the total cost (spread + commission) before entering a trade to ensure it fits within your risk-reward ratio.
• Use limit orders — Limit orders allow you to enter a trade at a specific price, potentially avoiding paying the spread at the time of entry. However, they may not be filled if the market moves away.
• Trade during liquid sessions — Spreads are typically tighter during the London and New York sessions when liquidity is highest. Avoid trading during the Sydney session or holiday periods when spreads may be wider.
• Adjust your take-profit and stop-loss levels — Account for the spread when setting your take-profit and stop-loss levels. For example, if you are buying, your take-profit should be above the ask price plus the spread.

Common Mistakes to Avoid

Here are some common mistakes that traders make regarding spreads on Amarkets. Avoiding these will help you reduce your trading costs and improve your profitability.

• Ignoring spread widening during news events — Many traders fail to account for spread widening during high-impact news releases, resulting in higher-than-expected trading costs.
• Choosing the wrong account type — Beginners often choose a Standard account because it is commission-free, but the wider spreads can make it more expensive than commission-based accounts for active traders.
• Not calculating total cost — Some traders only look at the spread or commission in isolation, without calculating the total cost of the trade.
• Trading during low-liquidity periods — Spreads are typically wider during the Sydney session and holiday periods. Avoid trading during these times if you are concerned about spreads.
• Using market orders during volatile periods — Market orders executed during high volatility may be filled at a wider spread, increasing your cost. Consider using pending orders instead.
• Not monitoring spread changes — Traders who do not monitor live spread changes may be surprised by wider spreads, leading to unexpected costs.
• Overlooking swap rates — While spreads are the main trading cost, swap rates (overnight financing) also impact profitability. Ensure you consider both when calculating costs.
• Trading illiquid instruments — Exotic currency pairs and less liquid instruments typically have wider spreads. Stick to major pairs if you are concerned about spread costs.

Forex Trading Risks to Consider

Trading forex and CFDs on margin carries significant risk. Even with competitive spreads from Amarkets, it is essential to understand the following risks before you start trading.

Leverage and margin risk

Amarkets offers leverage up to 1:1000 on certain accounts. While leverage can amplify profits, it can also magnify losses. A small adverse price movement can result in substantial losses that may exceed your initial deposit. Without regulatory protection (due to Amarkets' unregulated status), you may have no recourse if your account goes into negative balance.

Spread widening risk

Variable spreads can widen significantly during periods of high volatility, low liquidity, or major news events. This can increase your trading costs unexpectedly and impact your profitability. The ECN account's tight spreads can widen just as much as the Standard account's spreads during extreme volatility.

Market volatility

The forex market is subject to sudden price swings driven by economic data releases, central bank announcements, geopolitical events, and changes in market sentiment. High volatility can trigger rapid price movements that affect your open positions, sometimes leading to stop-loss orders being triggered at unfavourable levels (slippage).

Counterparty risk

When you trade CFDs, you are entering into a contract with the broker, not the underlying market. With an unregulated broker like Amarkets, there is a higher risk that the broker may not have sufficient capital to cover its obligations, or that it may refuse to pay out your profits.

Platform and execution risks

Technical issues such as internet outages, server downtime, or software glitches can affect your ability to trade. Unregulated brokers may also manipulate prices or execute orders at unfavourable levels to increase their own profits.

FAQs About Amarkets Spreads