Broker creates different spreads per region is a practice where a broker offers varying spread sizes to traders based on their geographic location. While minor differences due to liquidity or regulatory factors are normal, significant and unexplained spread variations often disadvantage traders in certain regions. This tactic can lead to higher trading costs and unfair treatment without traders even realising it.

A reputable broker ensures fair and transparent pricing across all client regions, providing a level playing field for every trader.

How brokers create different spreads per region

There are several methods brokers use to vary spreads unfairly across regions.

IP-based spread adjustments

Some brokers track client IP addresses and apply different spreads based on the detected location, often widening spreads for traders in regions with less regulatory protection.

Different account types per country

Brokers might offer tighter spreads in regions where competition is fierce but wider spreads in less competitive or less regulated areas.

Liquidity access manipulation

A broker may claim that regional differences in liquidity justify spread changes, even if the real reason is profit maximisation at the trader’s expense.

Regulatory compliance excuses

Some brokers cite local regulatory costs as the reason for wider spreads, but in many cases, these costs do not justify the large discrepancies observed.

Impact on traders

Regional spread manipulation can significantly harm traders’ performance and profitability.

Higher trading costs

Traders in disadvantaged regions pay more per trade, reducing their overall returns and making strategies like scalping unviable.

Unfair competitive disadvantage

Traders in different regions do not have the same trading conditions, making it harder for some to compete on equal footing.

Loss of trust

Discovering that spreads are unfairly widened based on location damages trust in the broker’s integrity and transparency.

How to protect yourself

Traders can take important steps to defend against brokers creating different spreads per region.

Choose brokers with global pricing standards

Work only with brokers regulated by authorities like the FCA, ASIC, or CySEC. Trusted brokers such as Intertrader, AvaTrade, TiBiGlobe, Vantage, and Markets.com provide consistent and transparent pricing across all regions.

Use VPNs to compare spreads

Test the broker’s spreads using a VPN to simulate access from different countries. Large, unexplained differences could signal unfair practices.

Review account type offerings

Check if the broker offers the same account types, spreads, and trading conditions across regions. Avoid brokers that discriminate based on location.

Request full fee disclosures

Demand that the broker provides a detailed spread and commission table that applies to all clients, regardless of country.

Report unfair practices

If you suspect unfair spread manipulation based on your region, report the broker to their regulatory authority with evidence.

Reliable brokers for fair trading conditions

Top-tier brokers ensure that all clients have equal access to competitive spreads and fair trading conditions, no matter where they are located.

By staying informed and vigilant, traders can protect themselves from brokers that create different spreads per region unfairly. Always prioritise transparency, fairness, and professionalism when choosing a broker.

If you want to learn how to trade successfully and protect yourself from hidden broker practices, explore our expert-led Trading Courses today.