The “Free Lunch” Lie: My $230 Hidden Fee Shock
“I thought I found a cheat code,” says Mark, a forex beginner from Texas. “My broker advertised ‘no spreads’ on EUR/USD. But after scalping 20 lots, I noticed my account was $230 lighter than it should be. Turns out, they charged $11.50 per lot in ‘commissions’—more than a 1.5 pip spread!”
Mark fell for one of the oldest tricks in forex: the “zero spread” illusion. Here’s what really happens behind the scenes.
How “No Spread” Brokers REALLY Make Money
1. The Commission Swap (The Bait-and-Switch)
- What They Claim: “Trade with 0 pips spread!”
- The Reality: Instead of spreads, you pay:
- $3–$12 per lot in commissions (per side!)
- Example: Trading 10 lots of EUR/USD? That’s $60–$240 in fees.
- Math Check: A 1-pip spread on EUR/USD = $10 per lot. “Zero spread” often costs more.
2. Slippage Shenanigans
No spread doesn’t mean no manipulation. During high volatility:
- A-Book Brokers: Show real market slippage (e.g., NFP moves 20 pips in 0.5 seconds).
- Shady “Zero Spread” Brokers: Artificially delay orders or fill at worse prices.
Real Story:
“During the ECB announcement, my ‘no spread’ broker filled my GBP/USD order 8 pips away from the price I clicked—while TradingView showed no spike!” – Sarah, UK trader (ForexPeaceArmy complaint).
3. The B-Book Trap
Many “zero spread” brokers are market makers (B-Book):
- They take the opposite side of your trade.
- No spread = more incentive to manipulate your fills.
Red Flag: If your broker offers huge bonuses with “no spread”, they likely want you to lose.
When “Zero Spread” CAN Be Good (With Examples)
✅ Legit ECN Brokers (True Zero Spread)
Example: Pepperstone Razor Account
- How It Works: Raw spreads (0.0 pips on EUR/USD) + $3.50/lot commission.
- Best For: Scalpers trading 50+ lots/day.
Pro Tip: Compare “all-in cost” (spread + commission) across brokers.
✅ News Trading (If You’re Fast)
During events like NFP:
- Normal spreads can hit 20+ pips.
- True ECNs may offer 0.1–1 pip spreads (even with commissions).
3 Signs Your “No Spread” Broker is Scamming You
1️⃣ Withdrawal Issues
- “You must trade 100x your bonus before withdrawing.” (Aka: “We’ll take your money back.”)
2️⃣ Requotes on Every Trade
- If your limit/stop orders constantly get “price adjusted,” they’re playing games.
3️⃣ Spread Widens RIGHT Before You Trade
- Check your platform vs. TradingView. Hidden spread spikes = manipulation.
Better Alternatives for Beginners
1. Hybrid Accounts (Raw Spread + Low Commission)
Example: IC Markets
- EUR/USD: 0.1 pip spread + $3/lot
- Actual Cost: 0.4 pips total (cheaper than most “zero spread” tricks).
2. Fixed Spreads for Stability
Example: OANDA
- 1.5 pips fixed on EUR/USD. No surprises during news.
Action Plan: How to Test Your Broker
🔍 Step 1: Compare Execution
- Open a TradingView chart and your broker’s platform side-by-side.
- Place tiny trades during London/NY overlap. Do prices match?
💰 Step 2: Fee Check
- Calculate total cost per lot (spread + commission) vs. other brokers.
📉 Step 3: Withdraw $100 Profit
- If they delay or demand “verification docs” you already submitted—run.
Key Takeaway: There’s No Free Trading
“Zero spread” is just marketing. What matters is total cost and execution quality.
Do This Today:
- Google your broker + “hidden fees” or “scam.”
- Switch to a true ECN broker if you’re serious about trading.
- Share this post—save other traders from the trap!
💬 Have you been burned by a ‘no spread’ broker? Share your story below!
Here is my best Recommended Forex broker of all time, FBS.
FBS Account types
FBS Broker is opened for all the participants, from newbie traders to participants with extensive experience on Forex market. Trader can choose one or several suggested account types for trading depending on his knowledge, experience and trading style.
Standard Account
The Standard Account is perfect for experienced traders testing or refining their strategies. It offers reduced spreads to maximize profits, supports all trading strategies (including EA trading), and provides rebates of up to $9 per lot via the FBS Rebate Service. Learn more about it [here].
| FBS minimum deposit (initial deposit) | 100$ |
| Spread | Floating spread from 0,5 pip |
| Commission | 0$ |
| Leverage | up to 1:3000 |
| Maximum open positions and pending orders | 200 |
| Order volume | from 0,01 to 500 lots (with 0,01 step) |
| Market Execution | from 0,3 sec, STP |
Zero Spread Account
The Zero Spread Account is ideal for traders who value fast execution and zero spreads on all currency pairs. Instead of spreads, a fixed commission is charged per trade. All strategies, including EA trading, are allowed. Plus, earn up to $9 per lot via the FBS Rebate Service. Learn more [here].
| FBS minimum deposit (initial deposit) | 500$ |
| Spread | Floating spread from 0 pip |
| Commission | from $20/lot |
| Leverage | up to 1:3000 |
| Maximum open positions and pending orders | 200 |
| Order volume | from 0,01 to 500 lots (with 0,01 step) |
| Market Execution | from 0,3 sec, STP |
Many ‘zero spread’ brokers operate as B-Book brokers—meaning they profit when you lose. If your trades never reach the real market, your ‘no spread’ account might just be a clever trap.
🔍 Want to dig deeper? Read our eye-opening guide:
A-Book vs. B-Book Brokers Exposed: How Forex Brokers REALLY Profit From Your Trades
(Learn how to spot if your broker is trading against you.)
