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What is Spread?

The gap between an exchange's buy and sell price — a hidden cost on top of the stated fee.

The spread is the gap between the price you can buy at and the price you can sell at — and on crypto platforms' instant-buy screens it's routinely the largest cost of the trade, dwarfing the advertised fee. A platform quoting "1% commission" with a 1.5% spread costs more than one quoting "2% commission" with a tight spread; only the all-in number matters.

Spreads are also how "zero-fee" trading works: the cost moves from the receipt into the price, where most customers never look. Our $1,000 study measured real spreads across Australian exchanges, and the fee calculator includes them in every comparison. The reliable rule: on platforms offering both, the order-book interface prices better than the instant-buy screen — same venue, same coin, different cost.

Related terms: Maker/taker fees · Market cap · Custodial · full glossary

FAQ

Why don't exchanges advertise their spreads?

Because spreads are variable, unflattering, and legally easier to leave unquoted than fees. The absence is informative: platforms with tight spreads tend to mention them; platforms with wide ones talk about "zero commissions" instead.

How do I see the spread before I buy?

Compare the platform's quoted buy price against a reference mid-market price (our AUD coin pages work). The difference, doubled, approximates the round-trip cost of buying and immediately selling.

General information only, not financial advice. Definitions are maintained in our fact database and reviewed with the daily rebuild.