Low Spread Forex Brokers
- Written By thinkforexbrokers
- Updated:
Before entering the forex market, traders should understand several key concepts, with the spread being one of the most important. The spread determines the trading costs you will face, which is why seasoned traders often prefer brokers offering narrow spreads. If you are new to forex trading and still searching for a broker with low spreads, you may want to explore our list of brokers providing some of the tightest spreads available.
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
74-89% of retails CFD accounts lose money
75.5 % of retails CFD accounts lose money
The vast majority of retail client accounts lose money
82 % of retails CFD accounts lose money
69% of retails accounts lose money while trading CFDs
eToro
61 % of retails CFD accounts lose money
Forex Brokers Ranked by Spread Commission
Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
0.1 | 0.1 | 0.4 | 0.3 | |
1.2 | 1.4 | 1.4 | 1.5 | |
1.01 avg (Classic) | 1.17 avg (Classic) | 1.29 avg (Classic) | 1.14 avg (Classic) | |
0.96 avg (Standard) | 1.47 avg (Standard) | 1.19 avg (Standard) | 1.12 avg (Standard) | |
0.85 av.spread | 1.97 av.spread | 1.40 av. spread | 1.40 av.spread | |
0.8 | 0.8 | 0.00 (Raw) 1.00 (Standard) | 0.8 | |
0.8 | 1.3 | 1.2 | 1.2 | |
1.00 (min) | 1.0 | 1.2 | 1.00 (min) | |
0.0 (Raw ECN) | 0.4 (Raw ECN) | 0.3 (Raw ECN) | 0.5 (Raw ECN) | |
1.0 | 1.0 | 1.5 | 2.0 |
Top 12 Brokers Offering Competitive Spreads
1. Fusion Markets
Fusion Markets enjoys strong popularity among traders, backed by mostly positive reviews on Trustpilot. Many clients highlight the broker’s diverse market selection, responsive customer support, and competitive spreads. With the Zero account, traders can access spreads starting from 0.0 pips plus a commission of $2.25 per side on a standard-lot trade. Alternatively, the Standard account offers spreads that include a 0.9 pip mark-up compared to the Zero account, but with no commission fees.
Gleneagle Asset Management Limited (ABN 29 103 162 278), trading as Fusion Markets, is the issuer of the Fusion Markets Products referenced in this communication. Trading these products carries both the potential for profit and the risk of losses that may significantly exceed your initial deposit. Such trading is not suitable for all investors. Before proceeding, you should carefully read the Financial Product Service Terms, the Product Disclosure Statement (PDS), and the Financial Services Guide—available on our website. It is important to consider your personal financial situation, needs, and investment objectives, and to seek independent financial advice where appropriate.
2. FP Markets
Whether you are a retail trader or a professional, FP Markets offers trading conditions tailored to meet your needs. The broker is well-regarded for its competitive spreads, with the Standard account featuring spreads starting from as low as 1 pip. For traders seeking even tighter pricing, the Raw account offers spreads from 0.0 pips, with a low commission of \$3 per lot per side. Regulated by two highly respected authorities—ASIC and CySEC—FP Markets upholds strong compliance and security standards. Additionally, its customer support team is available 24/7, ensuring traders can access prompt and reliable assistance whenever required.
CFDs are complex financial instruments that carry a high risk of rapid losses due to leverage. Statistics show that 72.92% of retail investor accounts lose money when trading CFDs with this provider. It is essential to assess whether you fully understand how CFDs work and carefully consider if you can afford to take the high risk of losing your capital before engaging in such trading activities.
3. Pepperstone
Pepperstone operates in over 160 countries, making it one of the most globally accessible brokers. Regulated by ASIC, CySEC, the FCA (UK), and other reputable authorities, it offers traders a secure and trustworthy trading environment. Standard accounts feature spreads starting at 1.00 pip, while Razor accounts offer spreads from 0.0 pips plus a €2.60 commission per lot per side.
For beginner traders, Pepperstone provides extensive educational resources, including a wide range of trading guides and regular webinars, helping users enhance their knowledge and trading skills.
CFDs are complex instruments and carry a high risk of losing money quickly due to leverage. 75.5% 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 money.
4. BlackBull Markets
BlackBull Markets offers an extensive range of over 26,000 tradable instruments, including 70 currency pairs, ensuring abundant trading opportunities. Licensed by the FMA, the broker delivers competitive trading conditions, with spreads starting from 0.0 pips for institutional clients. Retail traders can enjoy commission-free forex trading with ECN Standard accounts, featuring spreads from 0.8 pips.
For traders seeking even tighter spreads, ECN Prime accounts offer spreads from 0.1 pips, with a $3 commission per side. The broker is highly regarded for its ultra-fast order execution, averaging 0.01 seconds. Pricing comes directly from leading liquidity providers, including Citibank, Goldman Sachs, and Barclays, and with its true ECN model, BlackBull Markets ensures orders are processed without an in-house dealing desk, enhancing transparency and execution quality.
5. Global Prime
Global Prime is a fully licensed broker, meeting the regulatory standards of both Australia and Vanuatu, as confirmed by its official licenses. The broker also enjoys strong client satisfaction, reflected in its 4.5 rating on Google Reviews and 4.4 score on Trustpilot.
Its Standard Account offers a minimum spread of 0.9 pips with no commission, making it suitable for traders who prefer simplified pricing. For those seeking tighter spreads starting from 0.0 pips, the Raw Account is available, carrying a $3.5 commission per lot per side, catering to more cost-conscious and high-volume traders.
Global Prime operates under the trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by the Australian Securities and Investments Commission (ASIC), holding Australian Financial Services License No. 385620. Additionally, Gleneagle Securities Pty Limited, trading as Global Prime FX, is a registered Vanuatu entity (Company Number 40256) regulated by the Vanuatu Financial Services Commission (VFSC). The company’s website is fully owned and managed by FMGP Trading Group Pty Ltd.
6. AvaTrade
Founded in 2006, AvaTrade provides traders access to a wide range of financial instruments, including currency pairs, stocks, and bonds. Its forex spreads are competitive, with EUR/USD averaging around 0.9 pips and most other major pairs staying below 2.0 pips. AvaTrade supports both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, alongside a mobile app compatible with Android and iOS devices. Customer support operates 24/5, and the broker has earned positive feedback on platforms like Trustpilot for the quality of its service.
CFDs are complex instruments and carry 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 assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
7. eToro
Launched in 2007, eToro allows users to trade over 50 currency pairs, including popular options like EUR/USD, AUD/CHF, and GBP/JPY. The broker offers competitive spreads, with EUR/USD averaging around 1 pip. While eToro does not support MT4 or MT5, it provides a proprietary trading platform that is widely praised for its innovative social trading features, making it suitable for both beginners and experienced traders. The platform is available in many countries and supports multiple languages, including English, French, Polish, and Vietnamese.
CFDs are complex instruments and carry a high risk of rapid financial loss due to leverage. 61% 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 money.
8. IG
Headquartered in the UK, IG offers traders access to the forex market along with other financial instruments such as shares, indices, and cryptocurrencies. The broker provides dozens of currency pairs with competitive spreads—for example, EUR/USD averages 0.6 pips.
For beginners, IG offers a wealth of educational resources, including guides, online courses, and webinars. Additionally, traders can reach IG’s customer support via live chat, email, or phone for any account-related assistance.
CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. 69% of retail client accounts lose money when trading CFDs with this provider. You should ensure that you understand how CFDs work and carefully consider whether you can afford to take the high risk of losing your money.
9. Tickmill
Founded in 2005, Tickmill has been a popular choice for traders seeking reliable online brokerage services. The broker offers two primary account types: the Classic account, featuring minimum spreads from 1.6 pips with no commissions, and the Raw account, offering spreads starting at 0.0 pips plus a commission of $3 per lot per side. Tickmill supports both MT4 and MT5 platforms, and users can fund their accounts via bank transfers, Visa, Mastercard, and various digital wallets.
CFDs are complex instruments and carry a high risk of rapid financial loss 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 money.
10. Vantage FX
Vantage supports multiple trading platforms, including MT4, MT5, TradingView, and cTrader, providing clients with flexibility across both desktop and mobile devices. New traders can take advantage of a demo account along with a wide range of educational resources.
For live accounts, Standard users can trade with spreads starting from 1.0 pip and no commission, while Raw account holders benefit from spreads as low as 0.0 pips with a commission of $3 per side on standard-lot trades.
11. Axi
When searching for a forex broker that provides competitive spreads and cost-efficient trading, Axi is worth considering. Regulated by top-tier authorities such as CySEC, FCA, ASIC, and FSA (St. Vincent and the Grenadines), Axi accommodates traders with diverse preferences while ensuring access to low trading costs.
For retail traders, the Standard account offers spreads starting from 0.9 pips on major currency pairs with no commission, providing transparent and fair pricing. Traders can also choose to pay a small round-trip commission of $7 to reduce spreads to 0.0 pips on major pairs. Additionally, those eligible for Elite accounts can trade with spreads as low as 0.0 pips and a reduced round-trip commission of $3.50 per lot.
CFDs are complex financial instruments that carry a high risk of rapid losses due to leverage. Most retail client accounts lose money when trading CFDs. It is essential to understand how CFDs work and to carefully consider whether you can afford the high risk of losing your investment.
12. ActivTrades
ActivTrades offers a cost-effective trading environment across more than 1,100 financial markets, with minimum spreads starting from 0.5 pips on major forex pairs. The broker provides spread-only retail accounts to traders in over 170 countries, allowing clients to start trading with any deposit amount they choose. Beyond forex, traders can access a diverse range of assets, including over 900 global stocks, commodities, indices, exchange-traded funds, and bonds.
For clients under the offshore and EU entities, ActivTrades also offers competitively priced cryptocurrency trading, with average spreads of 55 points for Bitcoin and 4 points for Ethereum. While trading costs are generally low, several non-trading fees apply. Currency conversion incurs a 0.5% fee, card deposits may carry processing fees between 0.5% and 1.5% depending on the issuer, and a \$10 monthly inactivity fee is charged after one year without account activity.
CFDs are complex instruments and carry a high risk of rapid financial loss due to leverage. Around 75% 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 the high risk of losing your money.
Best Low Spread Forex Brokers Ranked by Trustpilot Score
Forex Broker | Trustpilot Reviews | |
9043 | ||
3904 | ||
290 | ||
10146 | ||
296 | ||
3072 | ||
8590 | ||
1072 | ||
28200 | ||
8058 | ||
Low-Spread Broker | Min. Deposit |
IC Markets | $200 |
FP Markets | $50 |
Fusion Markets | $0 |
AvaTrade | $100 |
Global Prime | $0 |
Pepperstone | $0 |
eToro | $100 ($50 in some countries) |
IG | $50 for cards ($0 for bank transfers) |
Vantage FX | $50 |
Tickmill | $100 |
What is Spread in Forex Trading?
Each forex pair has both a buy (bid) price and a sell (ask) price, which typically do not match. The difference between these two prices is called the spread, measured in pips (percentage in points), with a pip representing the smallest possible price movement for that currency pair.
Spreads are influenced by various market factors, and brokers can also adjust them by adding a markup, making the spread wider or narrower. This is why it’s crucial for aspiring traders to carefully evaluate brokers and select one that offers favorable trading conditions.
What is Considered Low/High Spread?
The spread is the difference between the buy (bid) price and the sell (ask) price of a forex pair, and its size directly affects the cost of a trade. A larger difference results in a higher or wider spread, which increases trading costs. Typically, the widest spreads are found in exotic currency pairs, such as EUR/TRY, which can exceed 100 pips.
On the other hand, major currency pairs usually feature the lowest spreads. For example, the EUR/USD pair often averages around 1 pip or lower, making it a cost-effective option for traders.
While trading calculators can help estimate total trade costs, a simple and effective approach is to compare a broker’s spreads against industry averages for the instruments you wish to trade. Our curated list of low-spread brokers provides such comparisons for major currency pairs, allowing traders to quickly gauge how competitive a broker’s spreads are.
Wide spreads, like those seen with exotic pairs, usually indicate low liquidity and higher market volatility, whereas narrow spreads generally signal high liquidity and lower volatility, offering more stable trading conditions.
Is Copy Trading Suitable for Beginner Traders?
For beginners stepping into the dynamic world of forex, choosing a broker with intuitive and easy-to-navigate software is essential. Two standout platforms that meet this need are MetaTrader 4 (MT4) and cTrader.
MetaTrader 4, developed by MetaQuotes, is widely regarded as one of the most beginner-friendly platforms available. It’s free to download and can be easily connected to your trading account. MT4 was designed with forex traders in mind, offering a simple, clean interface that helps new users quickly understand the available features and tools. Despite its simplicity, MT4 is loaded with advanced charting and analytics tools to support skill development. It also supports copy trading, a valuable feature for beginners who want to learn by mimicking the trades of more experienced investors. Additionally, MT4 includes key risk management tools like stop-loss and limit orders, helping users protect their capital and secure profits.
cTrader is another excellent option for novice traders. Known for its sleek design and intuitive layout, cTrader is accessible on both desktop and mobile devices. It supports a variety of trading styles—including manual, algorithmic, and copy trading—allowing beginners to experiment and find what suits them best. Those using brokers that offer cTrader also benefit from level-two pricing and fast order execution, giving them a more professional trading experience without the steep learning curve.
How to Calculate Spread Movements?
Calculating the spread is straightforward: simply subtract the sell (bid) price from the buy (ask) price. For example, consider the EUR/USD pair with a sell price of 1.07977 and a buy price of 1.07983. The calculation would be:
1.07983−1.07977=0.000061.07983 – 1.07977 = 0.00006
This result represents the spread. In forex trading, pips are usually identified by the fourth digit after the decimal, meaning the EUR/USD spread in this case is 0.6 pips. It’s worth noting that for certain currency pairs, the pip may correspond to a different decimal place, such as the second digit.
However, most brokers display the current spread directly on their trading platforms, so while understanding the calculation is useful, you typically won’t need to compute it manually every time you place a trade.
How Can Traders Enjoy Lower Spreads?
One effective way to trade with lower spreads is to select a broker whose standard spreads are narrower than those offered by competitors. This ensures that your trading costs are minimized from the outset.
Another option is to choose a zero-spread account. In these accounts, the bid and ask prices are identical or nearly identical, resulting in spreads that can start at 0.0 pips and usually average below 1.0 pip. However, zero-spread accounts are not free of cost; traders typically pay a commission on each trade when using this type of account.
Raw-spread accounts are another option, where the spreads are unmarked and commissions are generally lower than those of zero-spread accounts. Like zero-spread accounts, raw-spread accounts often provide spreads that are typically below 1.0 pip.
Finally, professional accounts are designed for traders who meet specific criteria, such as significant trading activity, a sizable portfolio, or experience with leveraged financial instruments. These accounts generally offer low spreads and the advantage of high leverage. For example, in regions like the UK and Australia, retail traders are limited to a maximum leverage of 1:30, whereas professional accounts can provide leverage up to 1:500. It’s important to note, however, that professional accounts usually do not include negative balance protection, so traders should exercise caution.
Is It Always Better to Trade with Zero Spread Accounts?
While a zero-spread account can help reduce or even eliminate the spreads on your trades, there are several factors to consider before choosing this type of account.
Standard accounts usually have no commissions, with the trading cost fully incorporated into the spread. This often results in slightly higher spreads for each trade. In contrast, zero-spread accounts typically charge a commission on both the opening and closing of a trade. Additionally, zero-spread accounts often come with higher minimum deposit requirements, making them less suitable for traders with smaller budgets.
Although the commissions on zero-spread accounts may appear as an extra cost compared to standard accounts, choosing an account with tighter spreads and a reasonable per-lot commission can frequently result in lower overall trading costs.
It is also important to note that zero or raw spread accounts often apply reduced spreads primarily to forex pairs and a limited range of CFD instruments. If a broker maintains similar spreads across commodities, cryptocurrencies, and other assets regardless of account type, a no-commission account might be a more cost-effective choice to avoid additional trading fees.
