---
title: What Is a Spread Markup? How Forex Brokers Set Spreads
description: What a spread markup is, how brokers add it to liquidity prices, markup vs commission pricing, and how to set markups by account type.
url: https://www.brokerwhitelabelsolution.com/blog-what-is-spread-markup-forex-broker
language: en
publisher: Broker White Label Solutions
---

# What Is a Spread Markup? How Forex Brokers Set Spreads and Commissions

By Broker White Label Solutions Team · Published 2 November 2026 · 7 min read

**Quick answer**

A spread markup is the extra amount a broker adds to the raw bid and ask prices it receives from liquidity providers, so the client sees a wider spread than the raw market price. The difference is part of the broker's revenue. Brokers usually offer either a standard account with a markup and no commission, or a raw (ECN-style) account with a tight spread plus a commission per lot. Markups are set by symbol and trading group in the liquidity bridge or trading server.

**Key takeaways**

- Markup = client spread minus raw liquidity spread.
- Standard accounts earn through markup; raw accounts earn through commission.
- Markups are set per symbol and group in the bridge or MT5 server.
- Markups should be disclosed clearly in trading conditions.
- Too wide a markup costs clients; too narrow may not cover costs.

**Looking for a liquidity bridge?** Markups, commissions and routing per symbol and group, with execution reports.

[Explore liquidity bridge](https://www.brokerwhitelabelsolution.com/liquidity-bridge)

Every price a client sees on a broker's platform starts as a price from a liquidity provider. The broker then decides what spread to show. That decision, the spread markup, is one of the main ways brokers earn revenue. Here is how it works.

## A simple example

|  | Bid | Ask | Spread |
| --- | --- | --- | --- |
| Raw price from liquidity provider | 1.08500 | 1.08506 | 0.6 pips |
| Markup added by broker | −0.3 pips | +0.3 pips | +0.6 pips |
| Price shown to client | 1.08497 | 1.08509 | 1.2 pips |

The numbers are illustrative. The broker earns the markup on every trade the client opens and closes.

## Markup vs commission pricing

| Account type | Spread | Commission | Suits |
| --- | --- | --- | --- |
| Standard | Raw spread plus markup | None | Beginners who want simple pricing |
| Raw / ECN-style | Raw or near-raw spread | Fixed per lot | Active and algorithmic traders |
| Hybrid | Small markup | Smaller commission | Brokers balancing both |

## Where markups are set

Markups are configured per symbol and per trading group, usually in the [liquidity bridge](https://www.brokerwhitelabelsolution.com/blog-what-is-a-liquidity-bridge) or on the MT5 server. That lets you offer different conditions to different account types, countries or IB groups. See [liquidity bridge](https://www.brokerwhitelabelsolution.com/liquidity-bridge) and [liquidity aggregation](https://www.brokerwhitelabelsolution.com/blog-what-is-liquidity-aggregation).

## How to set markups sensibly

- Know your costs: liquidity, platform, payments and IB rebates per lot.
- Compare your spreads with competitors in your target markets.
- Widen carefully around news and low-liquidity hours, and say so in your terms.
- Leave room for IB rebates if partners are paid per lot.
- Review profitability by symbol and group with [reporting](https://www.brokerwhitelabelsolution.com/reporting-bi).

## Transparency

Publish typical and minimum spreads, commissions and swap rates for each account type. Regulators expect clear cost disclosure, and traders compare brokers on it. Read [how forex brokers make money](https://www.brokerwhitelabelsolution.com/blog-how-do-forex-brokers-make-money) and [STP vs ECN vs market maker](https://www.brokerwhitelabelsolution.com/blog-stp-vs-ecn-vs-market-maker).

*General information reviewed November 2026, not legal, tax or investment advice. Figures and rules change; confirm with the regulator or qualified counsel before relying on them. MetaTrader is a trademark of MetaQuotes Ltd.*

## Frequently asked questions

The extra amount a broker adds to the raw bid and ask prices from its liquidity providers, so clients see a wider spread and the broker earns the difference.

No. A markup is built into the spread; a commission is a separate fee per lot. Standard accounts usually use markup, raw accounts usually use commission.

In the liquidity bridge or on the trading server, per symbol and trading group.

Brokers should publish their typical spreads, commissions and swaps, and regulated brokers must disclose costs clearly.

If IBs are paid per lot, the broker's markup or commission must cover the rebate as well as its own costs.

## Related services

### Liquidity Solutions

[Explore service](https://www.brokerwhitelabelsolution.com/liquidity)

### MT4/MT5 Liquidity Bridge

[Explore service](https://www.brokerwhitelabelsolution.com/liquidity-bridge)

### Reporting & Business Intelligence

[Explore service](https://www.brokerwhitelabelsolution.com/reporting-bi)

[Book a free consultation](https://www.brokerwhitelabelsolution.com/contact)[More articles](https://www.brokerwhitelabelsolution.com/blog)

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Source: https://www.brokerwhitelabelsolution.com/blog-what-is-spread-markup-forex-broker
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Broker White Label Solutions is a technology provider only. It does not provide brokerage, investment or payment services and does not hold client funds. General information, not legal, financial or tax advice.
