E8 Markets Spreads
Introduction
Spreads are one of the most important factors in any trading strategy. Even minor differences in spreads can affect profitability, especially for active traders. E8 Markets claims to offer “raw spreads or commission-free trading” across its simulated environments. This article examines how E8 Markets structures its spreads, what choices are available to traders, and what to expect when trading through its evaluation and funded phases.
All data in this article is sourced directly from e8markets.com. The goal is not to promote, but to provide a thorough analysis.
Trading Environment and Account Types
E8 Markets provides evaluation and funded (simulated) accounts. These are designed to mimic real trading conditions. Traders operate in a demo environment using fictitious funds, but with market-based execution and spreads.
There are two main account tracks:
- E8 Account: Standard evaluation with traditional objectives.
- E8 Track: Designed for traders who prefer a two-phase process.
Both options simulate live market conditions. The actual pricing—whether raw or commission-inclusive—is determined by the trader's account settings and platform choices.
Spread Configuration Options
On their official site, E8 Markets states that they offer either raw spreads (with separate commissions) or commission-free trading (where the cost is included in the spread). This dual structure allows users to choose between:
- Tighter raw spreads with added per-lot commission
- Wider spreads without a separate commission
This flexibility may help traders align their cost preferences with their strategies. However, it also places the responsibility on the trader to analyze which option will be cheaper over time.
Understanding Raw vs Commission-Free Spreads
| Model Type | Spread Width | Commission per Lot | Suitability |
|---|---|---|---|
| Raw Spreads | Low (e.g., 0.0-0.3) | Yes | Scalping, high-frequency strategies |
| Commission-Free | Higher (e.g., 1.0+) | No | Long-term trades, fewer positions |
It’s important to note that E8 does not provide a fixed or public list of typical spread values for specific instruments on its website. All spread examples must be derived from live usage within the platform.
Platform and Broker Integration
E8 Markets connects traders to MetaTrader 4 and 5. While the trades are placed in a simulated environment, the pricing and spreads are based on real-time market feeds. The spread values will thus vary depending on:
- Instrument traded
- Market volatility
- Session times (e.g., Asian vs London open)
Traders should expect to see dynamic spreads rather than fixed values. This is consistent with how institutional liquidity feeds work.
Asset Classes and Spread Variability
E8 Markets supports a range of instruments including:
- Forex (e.g., EUR/USD, GBP/JPY)
- Commodities (e.g., Gold, Oil)
- Indices (e.g., US30, NAS100)
- Cryptocurrencies
The spreads on these instruments vary considerably. For example, major forex pairs typically have narrower spreads compared to exotic pairs or crypto assets. E8 doesn’t publish exact average spreads per asset class, so users must test these inside the dashboard during the evaluation phase.
When Spreads Can Change
While spreads are often stable during liquid market hours, they can widen significantly during:
- Market open and close
- Economic news releases
- Low-volume sessions (e.g., post-New York, pre-Tokyo)
As E8 simulates real-world market feeds, traders will encounter spread variability under such conditions. This makes it necessary to time trades carefully or risk higher entry and exit costs.
What Affects the Real Cost of Spreads
Even with a narrow spread, the actual cost to the trader can increase due to:
- Slippage in high volatility
- Overnight holding fees (swap)
- Instrument-specific markups
E8’s model includes commissions only if the raw spread option is selected. Otherwise, users pay indirectly via spread markups. These differences can affect strategies like scalping or news trading more than others.
Execution Quality vs Spread Size
Spread size alone is not enough to determine cost-efficiency. Execution quality also matters. While E8 doesn’t guarantee live execution (since all trading is simulated), its platforms reflect current market conditions with tight or floating spreads depending on account settings.
If spreads widen during execution due to volatility, traders are still subject to the adjusted price, just as in real markets. There is no price protection or guaranteed spread range.
How to Evaluate Spreads in Real Time
During the evaluation phase, traders can:
- Monitor spreads in the terminal window
- Compare spreads across different pairs
- Switch between raw and inclusive models (if permitted)
Because E8 does not publish average spreads, traders must collect their own benchmarks to understand actual costs.
Spread Awareness Checklist
- Check spread values before opening a position
- Note any difference between displayed and executed price
- Track spread behavior during volatile market times
- Record spread costs for major vs minor pairs
These practices help build realistic expectations when planning live strategies.
Transparency and Information Gaps
One area of critique is the lack of publicly listed spread data. Traders must fund an evaluation account before gaining full visibility into spreads. Unlike some brokers that publish average spreads by instrument, E8 leaves this to platform observation.
Also, there is no mention of guaranteed minimum spreads or maximum limits. This uncertainty may pose a challenge for those comparing E8 with other firms.
Final Observations
Spreads on E8 Markets reflect real market dynamics, not artificial settings. This gives traders realistic conditions but also introduces pricing risk. The lack of fixed information requires each trader to independently verify spread behavior during their trial.
The choice between raw and commission-free models can influence long-term profitability. Those who use frequent-entry strategies will likely benefit more from raw spreads, while position traders may prefer simplicity via commission-inclusive models.
FAQ
- 1. Does E8 Markets use fixed or floating spreads?
- All spreads are floating and depend on market conditions. There are no fixed spread guarantees.
- 2. Can I see average spreads before purchasing an account?
- No, E8 does not publish average spreads per instrument. This information becomes accessible only after account activation.
- 3. Are spreads tighter on MT4 or MT5?
- There is no difference mentioned by E8. Both platforms connect to the same pricing feed.
- 4. How does E8 handle spread widening during news?
- Spreads may widen due to real-time market dynamics. This is part of the simulation and not controlled by E8.
- 5. What if I prefer raw spreads over commission-free pricing?
- E8 allows selection of either model, depending on the program and broker feed you choose.