Low Cost Forex Brokers
- Written By thinkforexbrokers
- Updated:
While forex traders may differ in style, strategy, and risk appetite, they share one common goal — minimising trading costs to maximise the value of their investments. To help you find the most cost-efficient options, we’ve compiled a list of 14 top retail forex brokers known for offering competitive pricing. Each of these brokers provides account types designed for low-cost trading, whether through spread-only models, commission-based structures, or a combination of both, ensuring traders can choose the setup that best suits their needs.
74-89 % of retails CFD accounts lose money
73.85 % of retails CFD accounts lose money
59.57 % of retails CFD accounts lose money
Trading leveraged product is risky
75.5 % of retails CFD accounts lose money
74-89% of retails CFD accounts lose money
76 % of retails investors lose money
61 % of retails accounts lose money
Top 14 Brokers for Low-Cost Forex Trading
1. Fusion Markets
If you’re seeking a forex broker with highly competitive pricing, Fusion Markets is a strong choice. Regardless of the account type you select, trading costs remain impressively low. With a Standard Account, traders enjoy an average spread of 0.95 pips on the EUR/USD pair and pay no commission on trades. ZERO Account holders benefit from spreads starting at 0 pips and a minimal commission of just $2.25 per side for forex and metals. For traders requiring a swap-free account due to religious considerations, Fusion Markets offers interest-free trading on major currency pairs with a spread of 1.4 pips.
Gleneagle Asset Management Limited (ABN 29 103 162 278), trading as Fusion Markets, is the issuer of the products mentioned in this communication. Trading these products carries both the potential for profit and a significant risk of loss, which can exceed your initial deposit. These products may not be suitable for all investors. Before trading, you should carefully read the Financial Product Service Terms, Product Disclosure Statement (PDS), and Financial Services Guide available on our website. Consider your personal financial situation, investment needs, and objectives, and seek independent financial advice before deciding to invest.
2. Pepperstone
Pepperstone is another top choice on our list of low-cost trading brokers, well-regarded for delivering strong value to forex traders. The broker offers two main account types — Standard and Razor — each designed to cater to different trading preferences. Standard Account holders can trade popular currency pairs such as EUR/USD with a minimum spread of 1.0 pip and no commission fees. Razor Account traders benefit from ultra-tight spreads starting at 0.0 pips, paired with a fixed commission of $3.50 per side per standard lot. For clients who require swap-free accounts due to religious reasons, Pepperstone offers interest-free trading with average spreads between 1.0 and 1.2 pips on major pairs like EUR/USD and zero commission on trades.
CFDs are complex financial instruments that carry a high risk of rapid losses due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should carefully assess whether you fully understand how CFDs work and whether you can afford to take the high risk of losing your capital.
3. Eightcap
Eightcap allows traders to customise their trading experience with flexible and cost-effective account options. Clients can choose between a Standard Account — available on platforms including TradingView — or a Raw Account. Standard Account holders can trade major currency pairs with spreads starting from 1.0 pip and pay no commission on trades. Raw Account traders enjoy ultra-tight spreads from as low as 0.0 pips, with a fixed commission of $3.50 per side per standard lot. This structure ensures that Raw account users benefit from significantly reduced overall trading costs.
CFDs are complex instruments that carry a high risk of losing money quickly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
4. FP Markets
FP Markets offers traders access to a wide range of major, minor, and exotic currency pairs at highly competitive rates. With a choice between Standard and Raw accounts, traders can tailor their setup for maximum cost efficiency. Standard Account holders enjoy spreads starting from 1.0 pip with zero commission, while Raw Account traders benefit from spreads as low as 0 pips and a fixed commission of $3 per standard lot each way. For those seeking advanced features, FP Markets also supports trading 34 currency pairs on the Iress Trader platform, which includes innovative tools but may incur additional platform fees. Traders requiring an Islamic (swap-free) account can also benefit from low spreads and commissions on major pairs, aligning with religious requirements.
CFDs are complex instruments that involve a high risk of losing money quickly due to leverage. 72.92% of retail investor accounts lose money when trading CFDs with this provider. You should carefully assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
5. XTB
Another brand that has made our list of low-cost forex brands is XTB, a regulated, secure, and fair retail broker catering to the needs of traders at all experience levels. With a small surcharge built into the spread and no commissions, the standard spread applicable to major currency pairs starts from 0.5 pips. The trading costs are further reduced for Pro account users who will be charged a small commission but can benefit from spreads as low as 0.01 pips. For traders who cannot receive or pay swap fees for overnight positions, XTB also offers the option to open an Islamic (swap-free) account.
CFDs are complex instruments that involve a high risk of losing money quickly due to leverage. 72.92% of retail investor accounts lose money when trading CFDs with this provider. You should carefully assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
6. AvaTrade
If you’re looking for low-cost forex trading, AvaTrade is a well-established and highly reputable global broker worth considering. AvaTrade’s pricing model is simple — the broker is compensated through the spread on each currency pair, with no additional trading fees. For example, the EUR/USD pair carries an average spread of just 0.8 pips, providing traders with a competitive rate for their positions. The broker also offers Islamic (swap-free) accounts, enabling clients to trade without paying or receiving swap fees. This account type provides ultra-low spreads on major currency pairs and allows positions to be held for up to five days without incurring overnight charges.
CFDs are complex instruments that involve a high risk of losing money quickly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
7. BlackBull Markets
BlackBull Markets is a reputable low-cost forex broker known for its competitive spreads and flexible account options. With Standard, ECN Prime, and ECN Institutional accounts, the broker caters to a wide range of trading needs. The Standard Account offers spreads starting from 0.8 pips with zero commission, making it an ideal choice for beginners. Traders seeking ultra-tight pricing can opt for the ECN Prime Account, which provides raw spreads from 0.1 pips and a commission of $6.00 per lot. For clients requiring Islamic (swap-free) accounts, BlackBull offers interest-free trading on major currency pairs with competitive spreads and no commissions. With leverage of up to 1:500, BlackBull Markets is an attractive choice for traders aiming to keep costs low while maximising trading opportunities.
8. IC Markets
IC Markets offers one of the most cost-effective trading environments for forex traders, accommodating a wide range of investor preferences with both Standard and Raw Spread accounts, available on MetaTrader and cTrader. Standard Account holders trade with zero commission and spreads starting from 0.8 pips. Raw Spread Account users benefit from ultra-tight spreads starting at 0 pips, with commissions of $3.50 per side per lot on MetaTrader and $3.00 on cTrader. For traders requiring Islamic (swap-free) accounts, IC Markets provides interest-free trading with spreads from 0.0 pips. While swap fees are waived, a small administrative charge applies to positions held overnight.
CFDs are complex instruments that carry a high risk of losing money quickly due to leverage. 70.64% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
9. Tickmill
Tickmill is a reputable retail broker offering competitive pricing on forex trades, making it a cost-effective choice for all types of traders. The broker provides two main account types — Classic and Raw — each designed to deliver tight spreads and low overall trading costs. Classic Account holders can trade currency pairs with spreads starting from 1.6 pips and no commission fees. Raw Account users benefit from spreads as low as 0.0 pips and a low commission of $3 per side per lot. For traders who require Islamic (swap-free) accounts, Tickmill offers interest-free trading on major currency pairs with ultra-low spreads and up to six days of overnight positions without swap charges.
CFDs are complex instruments that carry a high risk of losing money quickly due to leverage. 70% of retail investor accounts lose money when trading CFDs with Tickmill Europe Ltd. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
10. IG
IG is a trusted retail forex broker known for delivering cost-effective trading solutions. With a standard IG account, traders can access major currency pairs with spreads starting from just 0.6 pips and no commission on trades. Positions held overnight are subject to an overnight funding charge, which is calculated based on the duration the position remains open, the trade size, and the applicable tom-next rate, rather than a fixed fee. However, IG does not currently offer Islamic (swap-free) accounts for traders who cannot pay or receive swap fees on overnight positions.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
11. Global Prime
Global Prime delivers a low-cost trading environment with tight spreads, competitive commissions, and over 20 fee-free deposit and withdrawal options, making it an attractive choice for cost-conscious forex traders. With no minimum deposit requirements, clients can start trading with any amount they are comfortable with.
The broker offers two account types: a Standard Account with zero commission and spreads from 0.9 pips, and a Raw Account with spreads from 0.0 pips and a commission of $3.50 per side. Overnight financing charges apply to leveraged positions held open overnight, with rates updated daily and viewable directly within the MetaTrader platform.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017), which is regulated by the Australian Securities and Investments Commission (ASIC) and holds Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited, trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) regulated by the Vanuatu Financial Services Commission (VFSC). The Global Prime website is owned and operated by FMGP Trading Group Pty Ltd (ABN 74 146 086 017).
12. Plus500
Plus500 is a reliable choice for traders seeking low-cost CFD trading, thanks to its zero-commission model where the broker’s earnings come solely from the spreads applied during trades. These are floating spreads, which adjust according to market buy-sell conditions. Retail traders can access a wide range of instruments, including Forex, Indices, Shares, Commodities, Cryptocurrencies, Options, and ETFs.
Plus500 applies a modest markup of 0.01% to 0.02%, resulting in typical spreads of 1.1 pips on EUR/USD, 1.6 pips on GBP/USD, and 1.5 pips on EUR/GBP. The minimum deposit to open an account is $100 — a reasonable entry point that allows traders to start small and scale their positions over time. Additionally, most supported payment methods offer fee-free deposits and withdrawals, making Plus500 a budget-friendly option for effective bankroll management.
Risk Warning: 82% of retail investor accounts lose money when trading CFDs with this provider. Consider carefully whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
13. Axi
Axi offers multiple account types, all designed with one core advantage in mind — low trading costs.
Forex traders can choose a Standard Account, which carries zero commission and features spreads starting from 0.7 pips. Those seeking tighter pricing can opt for the Pro Account, where spreads start from 0.0 pips and a small $7 round-trip commission per standard lot applies.
For Professional UK and EU traders, as well as clients registering under the FSA-regulated entity in St. Vincent and the Grenadines, there is also the Elite Account. This premium option offers a further reduced $3.50 round-trip commission per lot, making it highly competitive for high-volume traders. However, the Elite Account comes with a $25,000 minimum deposit requirement.
CFDs are complex instruments and involve a high risk of losing money rapidly due to leverage. A significant majority of retail investor accounts lose money when trading CFDs. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your capital.
14. ActivTrades
Founded in 2001, ActivTrades offers a premium trading experience to clients in over 170 countries, providing access to markets such as Forex, Commodities, Shares, Indices, and Cryptocurrencies. The broker stands out for its competitive pricing, with spreads on major currency pairs starting from just 0.5 pips and all trades commission-free, helping traders minimise costs. While card deposits may incur a small fee, multiple fee-free funding methods are available, and with no minimum deposit requirement, traders can start with any amount they feel comfortable investing.
CFDs are complex financial instruments that involve a high risk of losing money quickly due to leverage. Statistics show that 75% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you fully understand how CFDs work and whether you can afford to take the high risk of losing your capital.
Comprehensive Comparison of the Top 10 Low Cost Forex Brokers
Forex Broker | Min Account Balance | Spread | Commission | Inactivity Fees | Funding Fees | Conversion Fees | FX Pairs | Regulators | Platform |
$50 (AU$100) | 1.0 pips Standard; 0.0 pips Raw | $0 Standard Account; $6 round turn on Pro Account | No | 0.50% to 5.75% on certain withdrawal methods | No | 70+ | ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines), SCB (Bahamas) | MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView | |
$200 | 0.8 pips Standard, 0.0 pips Raw Accounts | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT | No | No | No | 62 | FSA (Seychelles), CySEC (Cyprus), ASIC (Australia), SCB (Bahamas), CMA (Kenya) | MetaTrader4, MetaTrader5, cTrader, ZuluTrade | |
$0 | from 0.9 pips Classic; from 0.0 pips Zero | $0 Classic Account, $4.50 round turn on Zero Account | No | No | Standard rates | 80+ | ASIC, FSA (Seychelles), VFSC (Vanuatu) | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView | |
$100 | From 0.9 pips (retail), 0.6 pips (pro) | $0 | After 2 consecutive months - $/€/£10 | No | None on AvaTrade's side | 50+ | FFAJ (License No.1574), CySEC (No. 347/17), ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC (No.406684), JFSA (No. 1662) | MetaTrader4, MetaTrader5, WebTrader, AvaTade App, AvaSocial, AvaOptions, DupliTrade | |
$0 | From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts) | $0 (Standard Account), $7 round-turn (Razor Account) | No | No | None on Pepperstone's side | 90+ | ASIC (No. 414530), UK FCA (No.684312), CySEC (No. 388/20), BaFin (No.151148), DFSA (F004356), CMA (128), SCB Bahamas (SIA-F217), FSA (SD108) | MetaTrader 4, MetaTrader 5, cTrader, TradingView | |
$100 | From 0.0 pips (Raw Account), 1.6 pips (Classic Account) | $0 on Classic Account; $3 per side on Raw Account | No (archives dormant accounts after 60 days) | No (covers fees on bank transfer withdrawals over $5,000) | No | 62 | CySEC (No. 278/15), FCA (733772), CONSOB (No.4310), BaFin (No.146511), ACPR (No.75473), CNVM (No.4082), FSA Seychelles (SD 008), FSCA (FSP 49464), DFSA (F007663) | MT4, MT5, WebTrader, ZuluTrade, TradingView | |
$100 | 0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts | No | Crypto withdrawals attract blockchain fees | No | 50+ | SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296), SCA | MetaTrader4, MetaTrader5, WebTrader, TradingView, Capitalise.ai, FlashTrader | |
$0 | From 0.1 pips (Pro Account), 0.5 pips (Standard Account) | $0 for Standard accounts, $3.50 per side for Pro accounts | $/€10 after 12 months of inactivity | No fee for withdrawals above $50 (XTB International) | 0.50% added to current exchange rate (for transactions on weekdays) | 70+ | FCA (License No. FRN 522157), CySEC (License No.169/12), FSC (FSC License No.: 000302/438), IFSC (License No.: 000302/46.), KNF (N/A), CNMV (N/A), BaFin (registered), FSCA (N/A), FSA Norway (registration ID - FT00118162), DFSA (License No. F006316), CMF (Chile) | xStation 5, xStation Mobile | |
$0 | from 0.6 pips Forex trading; 0.165 pips av. spread DMA trading | $0 | Yes, varies based on entity | Some withdrawal methods attract fees | 0.50% added to current exchange rate | 100+ | ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda) | MetaTrader4, L2 Dealer, ProRealTime, IG proprietary software, TradingView, | |
$0 | From 0.1 pip | From 0.08 to 0.20 bps x trade size | No | 1 free withdrawal per month ($10 for wire transfer, $4 for checks, $1 for other withdrawal methods) | 0.03% added to exchange rate | 100+ | CFTC, CIRO, FCA, CBI, Central Bank of Hungary, ASIC, SFC (Hong Kong), SEBI, JSDA, MAS | IBKR Desktop, IBKR Trader Workstation, IBKR Mobile, IBKR GlobalTrader, IBKR ForecastTrader, IMPACT Mobile, Proprietary |
Low-Cost Forex Brokers Ranked by Trustpilot Score
Forex Broker | Trustpilot Reviews | |
9043 | ||
3904 | ||
290 | ||
12956 | ||
28,170 | ||
16,594 | ||
2,065 | ||
7,367 | ||
3,324 | ||
870 | ||
Low-Cost Forex Brokers Pricing Models
To choose a broker that offers the most budget-friendly trading conditions, it is important to understand the different pricing models used by reputable forex brokers. One popular approach is the spread-only pricing model, where the only fee attached to your trades is the spread. In this case, no commission is charged, and a small surcharge is built into the spread itself. This structure is attractive to traders because it eliminates hidden fees, making it a straightforward and low-cost option for trading preferred currency pairs. Another common model is commission-based pricing, which can often be even more cost-effective than spread-only accounts. While zero-commission accounts may seem appealing, they often include a small fee within the spread, increasing the overall trading cost. By contrast, a fixed low-rate commission paired with a low spread can provide traders with better overall value and more transparent pricing.
What Are Spreads and How They Work in Forex Trading
When evaluating the cost of trading currency pairs, one of the most important concepts to understand is the spread and its role in forex trading. Every currency pair is quoted with two prices — the buy (bid) price and the sell (ask) price. The difference between these two prices is called the spread, which represents a small fee built into the cost of each trade.
To calculate the spread, subtract the sell price from the buy price. The difference in the fourth decimal place typically indicates the spread in pips. For example, if a currency pair has a buy price of 0.85548 and a sell price of 0.85533, the spread would be 1.5 pips (48 – 33 = 15 tenths of a pip).
A tighter (lower) spread means a smaller surcharge on the trade, offering better value to traders. However, lower spreads can also be associated with higher trading volumes and greater leverage, which increase the overall risk in forex trading.
Another factor to watch out for is requotes. While many brokers advertise “no requotes” execution, some may still send a notification if the requested price is unavailable. In such cases, the broker will offer a new (requoted) price, which can sometimes be higher than the one you initially intended to trade at — affecting your cost and potential profitability.
Broker Commissions in Forex Trading
When searching for a forex broker with the most cost-effective trading conditions, many traders initially focus on brands that advertise zero commissions. However, lower commission rates combined with tight spreads can often result in better pricing than brokers offering “commission-free” trading. The key is understanding the different types of commissions so you can determine when a broker is truly providing a low-cost trading experience.
Forex brokers typically offer various account types, each with its own spread structure and commission rate. Standard accounts usually come with wider spreads and little to no commission. In contrast, zero accounts feature ultra-tight spreads—sometimes as low as 0.0 pips—but charge a fixed commission per trade. While zero accounts may seem less appealing to inexperienced traders, they often deliver lower overall costs, making them a better choice for active investors.
One common fee structure is the commission per lot (also called round-turn commission). Here, a broker charges a set amount for every standard lot traded (1 lot = 100,000 units of the base currency). For example, if your broker charges $6 per lot round-turn, you’ll pay $3 when opening a trade and $3 when closing it. Depending on the broker’s policy, commissions may be charged only at entry, only at exit, or at both stages. Understanding these variations will help you choose the broker with the most transparent and reasonable pricing.
Other Costs Associated with Forex Trading
In addition to the standard commissions and spreads charged by brokers, traders should be aware of potential extra fees when using a forex broker’s services. Considering these surcharges is essential when comparing brokers, as they can significantly impact your overall trading costs.
One common additional expense is financing costs. When you hold a position overnight, you may either pay or earn a rollover fee—also known as a financing charge. This fee varies daily and depends on whether you hold long or short positions. It is calculated using the swap rate, which reflects the difference between the interest rates of the two currencies in a pair.
Another possible surcharge is the currency conversion fee. If your trading profits are in a currency different from your account’s base currency, the broker will convert the funds before crediting them to your balance. This conversion is usually based on standard commercial exchange rates.
Many retail brokers also impose an inactivity fee if your account remains unused for a certain period, typically 12 consecutive months. Once the inactivity period is reached, a monthly charge may apply until you resume trading. To avoid this, you should place at least one trade or maintain an open position during the stated period. Simply placing an unexecuted order may not count as activity.
To avoid surprises, always review the broker’s fee policy before opening an account, and reach out to their support team for clarification on any charges. Being fully informed ensures there are no hidden costs once you begin trading.
Other Factors to Consider When Choosing Low-Cost Forex Brokers
While trading costs may be a top priority when choosing a forex broker, other crucial factors must also be considered to ensure a secure and fair trading environment. Always verify that the broker is licensed by a reputable regulator such as ASIC, FCA, CySEC, CIRO, CFTC, or an EU/EEA authority, as these bodies enforce investor protection, negative balance safeguards, fund segregation, and AML practices. Depending on your trading experience and budget, review the account types offered, with demo accounts being a valuable tool for practice. Also, assess the range of tradable assets, as some brokers provide only major and minor currency pairs, while others offer access to exotic pairs—sometimes with restrictions for standard retail clients. Finally, check whether the broker provides quality educational resources, since ongoing learning can enhance trading skills and decision-making, benefiting both new and experienced traders.
Are There Disadvantages to Trading with Low-Cost Brokers?
Besides the obvious advantage of trading currency pairs at a lower cost, there might be a few hidden disadvantages to choosing low-cost forex brokers. It is advisable to carefully check every type of charge that may be applied to your account before you start trading with low-cost brokers. While many brands offer retail traders to trade currency pairs with zero commission, a small fee is usually built into the spread. Often, zero accounts that offer tighter spreads starting at 0 pips and a small commission offer a better overall price per trade than zero-commission accounts.
Trading with zero commission might seem like an attractive option at first glance, but it’s important to remember that it can sometimes come with higher deposit requirements and hidden costs. Many brokers who advertise zero-commission trading may instead charge wider spreads, inactivity fees, withdrawal charges, or other administrative costs that can increase your overall trading expenses. This is why traders should look beyond the marketing headline and carefully assess the real cost of trading. Calculating all potential fees—including spreads, overnight financing, and transaction charges—before committing to a broker ensures that you fully understand the financial implications and can make a more informed decision about whether the deal is truly as cost-effective as it appears.
