About Minimum Spread on EURUSD
The EUR/USD currency pair is the most commonly used pair in the Forex market. Studies suggested that more than 50% of the volume in the retail Forex comes from this specific pair. It is for this reason that many Forex Brokers compete to offer an attractive spread so they can convince more traders to register with them.
The Forex market has evolved a lot and we had Brokers in the early days offering a spread of 10 pips on EUR/USD. However, the large number of new traders as well as the high amount of new Brokers coming in the Forex market made Brokers to think that they need to lower down their spreads in order to become more competitive than the rest of the Brokers.
The good thing is that in nowadays you can easily find a Broker that offers a spread which is lower than 1 pip or even a Broker than offers 0 spread on EUR/USD but charges commissions. However, you need to take into account that in most of the cases the spreads are floating and they tend to get widen so you may ended up trading with a spread of 1.2 or 0.4, when you are trading with Raw spreads. In addition, Brokers offer Raw (0 pips spread) or their minimum spread spreads usually through on an ECN account or on a VIP account that requires a large deposit to activate such an account.