IG related knowledge: Spread, Commission, and Fee Terminology Explanation - Forex Academy
Knowledge organization: Foreign Exchange College | Terminology verification date: November 4, 2026
Spread and commission are two different concepts of fees. When understanding platform related information, one should first distinguish between quotation differences, separate billing items, and other holding costs. This page explains these terms and calculation relationships, without listing specific discounts or real-time rates for IG products.
What is the spread: the difference between buying and selling quotes
Spread usually refers to the difference between the buying and selling quotes at the same time. The buying and selling direction, quotation unit, and time here must be consistent. The minimum price change units for different varieties may be different, so it is not possible to directly compare the spread numbers of two varieties without conversion.
Give a pure mathematical example: Suppose a certain subject displays a selling price of 100.00 and a buying price of 100.02, with a difference of 0.02 quotation units between the two. This example only illustrates the subtraction relationship, not IG's real-time prices, charging standards, or executable quotes.
What is commission: a fee item charged according to the agreement
Commission is a fee charged based on product documentation or service agreements, which may be calculated in terms of the number of transactions, quantity, amount ratio, etc. When reading the instructions, it is necessary to simultaneously check the billing base, billing unit, single charge, minimum charge, and whether different stages are calculated separately.
Commission and spread cannot be confused. One is reflected by the difference between the buying and selling quotes, while the other is calculated according to a clear billing agreement. Different products can adopt different cost structures, and the billing method of a certain product cannot be extended to a unified rule applicable to the entire brand.
Why is zero commission not equal to zero cost
Zero commission "only describes one fee item. Price differences, overnight financing, currency conversion, or other applicable service fees still need to be viewed separately. The occurrence of expenses may also depend on the holding time, pricing currency, and specific service conditions.
| Fee Name | Conditions that need to be understood separately |
|---|---|
| Spread | Quotation direction, variety unit, market status and time. |
| commission | Billing base, calculation method, and minimum charging conditions. |
| Overnight financing | Applicable products, whether holding spans settlement time, and calculation rules. |
| Currency Conversion | Pricing currency, settlement currency, and applicable conversion agreements. |
How to read a complete expense statement
Firstly, identify the product and legal entity, then identify the cost items and triggering conditions, and finally unify the measurement unit. Comparing only one rate name or a quote at a certain point in time cannot lead to a conclusion on the full cost. Historical examples cannot be considered as fixed costs that will occur every time in the future.
IG's publicly available fee information separates basic fees from other potential fees. When citing such materials, the applicable scope of the corresponding product and region should be retained to avoid treating individual numbers in the advertising summary as a complete cost table.
Common Q&A on Spread and Commission
Does the same spread mean the same actual cost?
Cannot make a direct judgment. We also need to consider whether the quotation unit, quantity, and other cost conditions are consistent.
Does the commission include all holding costs?
Not necessarily. Overnight financing and currency conversion projects may apply separately, and the complete fee document should be read.
Can cost knowledge be used to determine future returns?
No. The expense statement only explains the cost structure and cannot predict price changes or guarantee results.
Source and update date of terminology
Terminology reference: Classification of spreads, commissions, and other fees in the "Our Fees" section of IG Chinese website. Verification date: November 4th, 2026. The numerical examples in the text are fictional teaching data and do not represent any platform conditions.