GBP/USD is the third most traded forex pair globally, but it behaves differently from EUR/USD in ways that directly affect trading costs. The pound's higher volatility, concentrated liquidity during London hours, and sensitivity to UK political events create spread patterns that traders need to understand before choosing a broker based on EUR/USD data alone.
We tracked GBP/USD spreads for 30 days across Exness (Raw Spread), IC Markets (Raw Spread), Pepperstone (Razor), XM (Ultra Low), and AvaTrade (Standard Fixed). This is the companion piece to our EUR/USD comparison — same methodology, same timeframe, different pair.
GBP/USD Spread Data — London Session (08:00-12:00 UTC)
London session is where GBP/USD comes alive. UK banks, the Bank of England, and London-based hedge funds create the deepest GBP liquidity pool of the day.
| Broker / Account | Average | Minimum | Maximum | Time at <0.5 pip |
|---|---|---|---|---|
| Exness Raw Spread | 0.3 pips | 0.0 pips | 0.8 pips | 72% |
| IC Markets Raw Spread | 0.3 pips | 0.0 pips | 0.9 pips | 68% |
| Pepperstone Razor | 0.4 pips | 0.1 pips | 1.0 pips | 58% |
| XM Ultra Low | 0.9 pips | 0.5 pips | 1.5 pips | 12% |
| AvaTrade Fixed | 1.5 pips | 1.5 pips | 1.5 pips | 0% |
Exness and IC Markets tie at 0.3 pips average during London — essentially identical and both excellent. Pepperstone trails by 0.1 pip. XM's commission-free model delivers 0.9 pips, which is competitive for a zero-commission account. AvaTrade's fixed 1.5 pips never changes, providing certainty at a higher cost.
GBP/USD Spread Data — London-NY Overlap (13:00-17:00 UTC)
| Broker | Average | Time at <0.5 pip |
|---|---|---|
| Exness Raw Spread | 0.3 pips | 70% |
| IC Markets Raw Spread | 0.4 pips | 62% |
| Pepperstone Razor | 0.4 pips | 55% |
| XM Ultra Low | 1.0 pips | 8% |
| AvaTrade Fixed | 1.5 pips | 0% |
The overlap maintains tight spreads on raw accounts. Exness holds its 0.3-pip average — identical to the London-only session, indicating strong liquidity provision during both periods.
GBP/USD Spread Data — Asian Session (22:00-07:00 UTC)
| Broker | Average | Maximum |
|---|---|---|
| Exness Raw Spread | 0.8 pips | 2.1 pips |
| IC Markets Raw Spread | 0.9 pips | 2.5 pips |
| Pepperstone Razor | 1.0 pips | 2.8 pips |
| XM Ultra Low | 1.8 pips | 3.2 pips |
| AvaTrade Fixed | 1.5 pips | 2.5 pips* |
Asian session GBP/USD spreads widen 2-3x across all variable spread brokers. Exness still leads at 0.8 pips average but this is dramatically worse than the 0.3 pip London figure. AvaTrade's "fixed" spread actually widened to 2.5 pips during some Asian session periods (marked with asterisk), breaking its fixed-spread commitment.
The takeaway: GBP/USD is a London-hours pair. Trading it outside London and New York sessions costs significantly more in spread. If you are based in Asia and want to trade sterling, accept the 2-3x spread premium or consider EUR/GBP (which is tighter during London) as an alternative exposure.
Total Cost Comparison (Including Commission)
| Broker | London Session Total | All-Session Average Total |
|---|---|---|
| Exness Raw Spread | $10.00 | $12.50 |
| IC Markets Raw Spread | $10.00 | $13.00 |
| Pepperstone Razor | $11.00 | $14.00 |
| XM Ultra Low | $9.00 | $13.00 |
| AvaTrade Fixed | $15.00 | $15.00 |
During London session, XM Ultra Low is marginally cheapest at $9.00 total (0.9 pip spread, zero commission) versus $10.00 at Exness and IC Markets (0.3 pip + $7 commission). This is the same dynamic we observed with oil spreads — on certain instruments and sessions, commission-free accounts can beat raw spread accounts on total cost.
However, across all sessions (including the wider Asian spreads), Exness pulls ahead because its variable spread widens less during low-liquidity periods. For traders who exclusively trade during London hours, XM Ultra Low offers the lowest GBP/USD cost.
GBP/USD vs EUR/USD: Why the Spread Difference Matters
| Metric | EUR/USD | GBP/USD | Difference |
|---|---|---|---|
| Exness Raw Spread (London) | 0.1 pips | 0.3 pips | GBP 3x wider |
| Avg Daily Range | 80 pips | 110 pips | GBP 37% more volatile |
| Total Cost per Lot (Exness) | $7.10 | $10.00 | GBP 41% more expensive |
| Pip Value | $10 | $10 | Same |
| Spread as % of Daily Range | 0.13% | 0.27% | GBP 2x worse ratio |
GBP/USD costs 41% more to trade than EUR/USD at Exness, but it offers 37% more daily range. The spread-to-range ratio is worse on GBP (0.27% vs 0.13%), meaning a larger proportion of your potential profit is consumed by spread costs. For strategies with tight targets (scalping, 10-pip targets), EUR/USD is more efficient. For strategies that capture larger moves (30+ pip swings), GBP/USD's wider range compensates for the higher spread. See our EUR/USD comparison for the benchmark data.
UK-Specific Events and GBP/USD Spreads
GBP/USD is more event-sensitive than EUR/USD because the UK economy is smaller and more politically volatile. Our 30-day tracking captured several UK-specific events:
- UK GDP release: Peak spread 7.1-8.2 pips (vs 2-3 pips on EUR/USD for the same brokers)
- BOE rate decision: Peak spread 6.4-7.4 pips
- UK CPI: Peak spread 4.5-5.5 pips
- UK employment data: Peak spread 3.8-4.5 pips
GBP/USD spreads spike 2-3x more aggressively than EUR/USD during news events. For news-aware GBP traders, our news spread analysis provides second-by-second data and mitigation strategies.
Our Verdict
For GBP/USD trading during London hours, XM Ultra Low offers the lowest total cost at $9.00 per lot (0.9 pip, no commission). For all-session trading or Asian-timezone traders, Exness Raw Spread provides the most consistent tight spreads across all market conditions.
The broker choice for GBP/USD should consider your trading hours. London-only traders benefit from XM's commission-free model. Round-the-clock traders need Exness's tighter variable spreads during low-liquidity periods.
Trade GBP/USD with Tight Spreads
Exness Raw Spread delivers 0.3 pip average on GBP/USD during London session — the tightest available.
Open Exness AccountTrading forex and CFDs carries a high level of risk. 74-89% of retail investor accounts lose money when trading CFDs. This article contains affiliate links.