TOOLS • CALCULATOR

Spread cost calculator

Turn bid/ask spreads into a real cost per buy. This makes “cheap” ETFs and brokers comparable using your actual order size.

Spread cost calculator hero banner showing a tool that estimates the hidden bid-ask spread cost for an ETF or stock trade, with inputs for buy/sell amount, price, and spread percentage, and a results panel showing the immediate spread cost and how spreads add up over many trades.

Fast decision rules

  • Thin listing + wide spread: use a limit order or pick a more liquid listing.
  • Monthly investing: spread is paid repeatedly — it can matter more than a tiny TER difference.
  • Best fix: reduce bad execution (spread + FX) before obsessing over small fund fees.
Limit orders & spreads → Read a quote page →

Educational content only. Not personalized investment advice.

TL;DR

The spread is a trading cost you pay when you execute. If you buy often (monthly), spread drag can dominate tiny TER differences. Use this calculator to estimate entry cost (half-spread) and round-trip cost (full spread).

CALCULATOR

Compute spread cost for your order

Inputs

Estimated shares = order value ÷ ask price.

Definitions: Entry cost ≈ half-spread (buy at ask, mark to mid). Round-trip ≈ full spread (buy at ask, sell at bid).

Results

Mid price

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Spread (per share)

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Spread (%)

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Estimated entry cost (half-spread)

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Estimated round-trip cost (full spread)

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Interpretation

  • Monthly buyers: if spread % is non-trivial, it repeats every buy and can outweigh tiny TER differences.
  • Thin listings: spreads widen off-hours and around market open/close. Execution timing matters.
  • Fix hierarchy: spread + FX workflow first, then tracking difference, then TER.

Educational content only. Not personalized investment advice.

What the spread is (in plain English)

The bid is what buyers are currently paying. The ask is what sellers are currently charging. The gap is the spread. If you place a market buy, you typically buy at the ask.

That gap is a real cost. It’s not printed as a broker fee, but it behaves like one. It is usually worst on thin UCITS listings, off-hours trading, and around market open/close.

If you invest monthly, you pay spread repeatedly. This is why execution quality often matters more than tiny TER differences.

FAQ: spread cost

What is the bid/ask spread? +
The bid is what buyers pay, the ask is what sellers charge. The spread is the gap between them. If you use a market order, you typically buy at the ask and “pay” that gap as a cost of execution.
Is the spread a broker fee? +
Not exactly. It is a market/exchange liquidity cost. You may not see it as a line item, but it behaves like a fee because it reduces your effective return at the moment you trade.
Why are spreads wider on some UCITS listings? +
Liquidity differs by exchange and listing currency even for similar ETFs. Thin listings, low volume, and off-hours trading typically widen spreads. Market volatility can widen them too.
Should I always use limit orders? +
When spreads look wide or liquidity is thin, yes. Limit orders are the simplest protection against bad fills. For very liquid ETFs with tight spreads, the difference may be small, but limits keep your process consistent.
Does spread matter if I hold long-term? +
Yes, because you pay spread when you enter (and again when you exit). If you invest monthly, you pay it repeatedly on every buy, which can compound into meaningful drag even with long holding periods.
What matters more: spread or TER? +
For many investors, spread + FX (execution) matters first because you control it and you pay it at each buy. TER matters too, but tiny TER differences can be dominated by repeated wide spreads and sloppy execution.

If you want one execution upgrade

Make your default: buy liquid listings + use limit orders when spreads look wide. Then optimize the rest.

Execution guide → Cost stack guide →

Educational content only. Not personalized investment advice.

Notes: This tool estimates spread cost using bid/ask and mid-price approximations. Real outcomes depend on order type, market conditions, slippage, partial fills, and broker execution quality.

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