Good morning. During major news events like NFP or CPI, spreads on some pairs can jump from 0.5 pips to 10+ pips in seconds. That means a single standard-lot trade can suddenly cost over $100 just to enter.

It’s not just the candle that bites on news days, the spread does too.

-Shaun A, Jonathan Kibbler, Jordon Mellor

MARKETS

Prices supplied by Google Finance as of 4:00am ET - stock prices as of close. Here is what the prices mean.

TRADER INSIGHTS

Is it just me, or are you also picky when it comes to spreads?

I’ll be honest, I don’t like giving away “free pips” to the market. It’s one thing to lose on a bad setup, but it’s another to bleed money on costs you can control. The spread might look tiny on the screen, but over weeks and months it’s one of the biggest silent killers of performance.

Take EUR/USD with a 0.5 pip spread. On a standard lot, that’s $5 per trade. Now imagine trading the same pair at a 2.0 pip spread, that’s $20 per trade. Make 100 trades in a month, and you’ve just paid $2,000 in spread versus $500. That’s $1,500 gone, not because of bad analysis, but because of cost.

The bid–ask spread is the direct cost of entering and exiting a trade, and wider spreads make it harder to break even, especially in volatile or thin markets. (source:Investopedia)

Every extra pip means you need a bigger move just to break even. A 10-pip scalp isn’t really 10 pips if the spread takes two off the top. Suddenly, your strategy needs higher accuracy just to keep the same profit level. It’s like running with a weight vest you didn’t choose.

For retail traders running modest accounts, spread costs hit harder. You’re not just paying more per trade, you’re shrinking your ability to scale. Wide spreads quietly lower your effective risk-to-reward, making it feel like you’re always one step behind.

This is why majors like EUR/USD, USD/JPY, and GBP/USD dominate. They’re not just liquid, they’re cheaper to trade. Exotic pairs may look exciting, but when the spread is 30–50 pips wide, your edge is gone before you even click. It reminds us traders that “spreads are how brokers earn on no-commission accounts,” so ignoring them is like ignoring a permanent fee. (source:babypips)

Spreads are the hidden tax of trading. Ignore them, and you bleed edge every single trade. Respect them, and you immediately put yourself ahead of most retail traders. Tight spreads aren’t about saving pennies, they’re about protecting your strategy’s foundation.

In this game, every pip counts, especially the ones you don’t see.

-Shaun A

TRADER INSIGHTS

One of the biggest advantages we have as retail traders is flexibility. We’re not tied down, we don’t have to answer to clients, and we can switch between strategies whenever the market demands it. We should be grateful for this.

I also think that different assets require different tools. 

To Trade or Invest?

I have always considered trading as the short term tool to use when looking to capture market volatility over minutes, hours or days. I align macroeconomic events with sentiment and technical opportunities with the goal to profit from short term movements. I feel that FX, Indices and commodities are great for these short term movements.

On the other hand investing is about holding positions for weeks, months or even years based on the bigger picture. You don’t really look at the technical movements in the market because the goal is to benefit from longer term appreciation. Stocks are my go to for investing, but you can also think about physical commodities such as gold and silver. 

The truth is you don’t have to pick one or the other. As a retail trader, you can adapt.

Sometimes the market screams for short-term trading.

Other times, the setup favors longer-term investing

Think of it like having two different tools in your kit. You wouldn’t use a hammer when you need a screwdriver, and you don’t need to trade when the market is better suited for investing.

Don’t box yourself in. The best traders I know aren’t “just day traders” or “just investors.” They’re flexible. They read the environment, pick the right tool, and manage risk accordingly.

Trading and investing aren’t rivals. They’re two sides of the same coin, and knowing when to switch between them can give you the edge.

-Jonathan Kibbler

WATCH

GAMES

SHARE

{{rp_personalized_text}}

Copy & paste this link: {{rp_refer_url}}

GET TO IT

🦖 Do a super quick challenge that will have missive impacts on your results.

🦖 Check out these recommended trading tools.

🦖 Get funded as a trader with up to $4,000,000.

🦖 Understand how Market Makers work

🦖 Watch Professional Traders trade live in London

ANSWER

Answer: The Federal Reserve (The Fed)