Posted by Timing is everything in forex. Not just when you enter and exit a position, but also when you decide to engage with the market in the first place. One of the most overlooked aspects of timing? How spreads behave during the weekend versus weekdays.
Let’s examine whether the best Forex spreads occur during weekdays, how weekends change the picture, and what traders should know to avoid paying unnecessary costs.
What happens to spreads during weekdays
During the week, especially during the main trading sessions, forex spreads are typically narrow. This is when liquidity is at its highest. The London and New York overlap is considered the golden hour of trading, especially for major pairs.
Brokers compete to offer the best Forex spreads during this time to attract high-volume traders. You’ll often see EUR/USD with spreads as low as 0.1 to 0.3 pips on ECN accounts. Execution is fast, order depth is deep, and costs are predictable.
How weekends change everything
Technically, the forex market is closed on weekends. Most retail platforms shut down after 5 PM EST on Friday and reopen Sunday evening. But price gaps and early-week volatility begin before the official open, especially in Asian markets.
During these reopening hours, spreads are at their widest. Liquidity is low, and brokers adjust their pricing to reflect the uncertainty. This is not the time to expect the best Forex spreads. In fact, spreads on even liquid pairs like GBP/USD can widen to 5 pips or more during this period.
Why weekend gaps affect spreads
Gaps happen when the market reopens at a different level than where it closed. Since no trading occurs between these times, brokers prepare for risk by widening spreads. This protects them from price shocks as liquidity returns and quotes begin flowing again.
If you place trades during the weekend open, expect slippage and less control over your entry price.
Should you ever trade around the weekend?
There are reasons some traders target Sunday evening:
- They want to catch price gaps
- They hold long-term positions and expect minimal impact
- They are trading off fundamental news that broke over the weekend
But for most short-term strategies, the risk of poor fills and wide spreads outweighs any potential upside. If your strategy depends on fast entries, low cost, and accurate execution, the best Forex spreads will always be during regular weekday trading hours.
Tips for better spread control based on the calendar
- Close trades before Friday’s market close to avoid weekend risk
- Avoid placing pending orders before Sunday night’s open
- Focus your trading sessions during the London open, New York open, or the overlap between them
- Use your trading platform’s spread tracker to compare spread width across days of the week
The forex market is open nearly 24 hours during the week but not all hours are created equal. The difference in spreads between weekday trading and weekend transitions can be dramatic.
To get the best Forex spreads, align your trades with periods of peak liquidity, and steer clear of the thin, volatile windows that bookend the weekend. Timing your trades this way could save you dozens, even hundreds, of pips over the course of a year without changing anything about your strategy itself.