| Updated: January 15, 2025Forex trading, which stands for foreign exchange, is a decentralized global marketplace for trading national currencies. It’s known for its high liquidity, low barriers to entry, and the ability for traders to engage 24 hours a day across multiple time zones. Among the key features that determine the cost-effectiveness and profitability of forex trading is the spread.
Below we list the best Forex brokers with the lowest spreads:
Top 8 Low Spread Forex Brokers
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
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FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
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Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
-
Tickmill
- Classic and Raw accounts available to suit various trading needs and requirements.
- Popular trading platforms, such as MT4 and MT5.
- Regulated by reputable authorities: ASIC and CySEC.
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FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
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CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform)
- Spreads for EUR/USD from 0.5 pips
Trading Instruments- CFDs on Forex
- Indices
- Shares
- Commodities
- Treasuries
- Cryptocurrencies
- Share Baskets
- Investments on ETFs
- Managed funds
- Options
- and more
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IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| Global Prime | 0.96 avg (Standard) | $0 Standard Accounts; $7 round turn on Raw Accounts |
| Axi | 1.2 | $0 on Standard Account; $7 round trip on Pro Account |
| Tickmill | 0.1 | $0 on Classic Account; $3 per side on Raw Account |
| FxPro | 0.25 | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
| CMC Markets | 0.5 | $0.02 per share with a $10 minimum for US shares; 0.10% for other shares with a €/£9 minimum |
| IC Markets | 0.8 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| Global Prime | |
$0 |
| Axi |  |
$0 |
| Tickmill | |
$100 |
| FxPro | |
$100 |
| CMC Markets | |
$0 |
| IC Markets | |
$200 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| FP Markets | |
1:30 |
| Global Prime | |
1:500 (1:30 for ASIC entity) |
| Axi | |
1:30 |
| Tickmill | |
1:30 |
| FxPro | |
1:30 |
| CMC Markets | |
1:30 |
| IC Markets | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| FP Markets | |
70+ |
| Global Prime | |
56 |
| Axi | |
80 |
| Tickmill | |
62 |
| FxPro | |
70+ |
| CMC Markets | |
330+ |
| IC Markets | |
61 |
Comprehensive Comparison of the Best Forex Brokers with Low Spreads
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 |
|
0.96 avg (Standard) |
|
|
 |
$0 |
|
1.2 |
|
|
 |
$100 |
|
0.1 |
|
|
 |
$100 |
|
0.25 |
|
|
 |
$0 |
|
0.5 |
|
|
 |
$200 |
|
0.8 |
|
Understanding Spreads in Forex Trading
A spread is the difference between the bid price (the price at which a currency can be sold) and the ask price (the price at which it can be purchased). This difference is one of the primary ways forex brokers earn money. The tighter the spread, the less it costs traders to execute their orders, making low-spread brokers especially attractive for active traders.
Importance of Low Spread Forex Brokers
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Why Low Spreads Matter
Low spreads directly impact the cost-effectiveness of trading, especially for day traders and scalpers. These types of traders make multiple trades throughout the day, meaning the transaction costs can accumulate quickly. Lower spreads ensure they can trade frequently without their profits being eroded by high fees. The reduction of these costs translates into a more competitive and profitable trading experience.
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Types of Forex Spreads
- Fixed Spreads: The difference between the bid and ask price remains constant regardless of market volatility.
- Variable (Floating) Spreads: The spread fluctuates depending on the market conditions. During times of high liquidity, these spreads tend to be narrow. However, they can widen during periods of low market activity or high volatility.
Low spread brokers are attractive because they offer the opportunity for traders to enter and exit positions more efficiently, without excess costs.
Features of Low Spread Forex Brokers
- Tight Spreads Across Major Currency Pairs
Many low-spread brokers offer particularly narrow spreads on major currency pairs such as EUR/USD, GBP/USD, and USD/JPY. These are the most liquid pairs, and brokers tend to have more favorable conditions for these trades.
- Efficient Execution of Orders
Low spread brokers typically provide fast execution of orders. With tight spreads, any delay in executing a trade can result in unfavorable price changes, eating into potential profits. Therefore, brokers that promise minimal slippage are preferred by active traders. These brokers aim to ensure that orders are filled at the desired price with little deviation.
- Transparency and Low Fees
Some brokers provide transparent pricing structures and fees, meaning traders aren’t hit with hidden commissions or fees on top of the low spread. Transparent brokers allow traders to better understand the true cost of each trade, and they often detail how they derive their spreads.
- Excellent Liquidity
Top-tier low spread brokers rely on large liquidity pools from major banks, providing competitive pricing and the ability to handle large orders without significantly impacting the market price. This liquidity is essential for keeping spreads narrow, especially during volatile market conditions.
How Low Spread Forex Brokers Benefit Traders
- Cost Efficiency
By cutting down on spreads, traders can significantly reduce transaction costs. For day traders, scalpers, and even swing traders who tend to trade large volumes, the accumulation of low-cost trades can result in greater overall profits.
- Better Scalping Opportunities
Scalpers, who aim to capitalize on tiny price movements, benefit immensely from low-spread brokers. Since they enter and exit trades within seconds or minutes, lower spreads allow them to operate effectively by minimizing the spread’s drag on their profits. A scalper would much rather trade in an environment where they can move in and out of the market quickly with little cost
- Market Access
With lower spreads and tighter execution, traders can access deep, liquid markets with minimal delays. Traders can enter a position quickly when prices are favorable or exit when they see the opportunity to take profits, thus increasing the chances of success in volatile markets.
- Reduced Risk of Losses Due to Slippage
Slippage occurs when the execution price differs from the price at which a trade was expected to be placed. Tight spreads coupled with fast order execution minimize the occurrence of slippage and reduce the risk of unexpected losses that may arise due to market volatility.
Choosing the Best Low Spread Forex Broker
Factors to Consider
When evaluating which low spread forex broker to choose, consider the following aspects:
- Spreads
Naturally, the spread offered on specific currency pairs is the main criterion for selecting a broker. Look for brokers that offer consistent, competitive spreads in both standard market conditions and times of volatility.
- Liquidity Provider Network
A key factor in determining how low a broker can offer their spreads is their access to liquidity. Brokers with strong relationships with liquidity providers (large global banks and financial institutions) tend to provide tighter spreads. Check if the broker sources liquidity from tier-one financial institutions or uses a market-making system that could lead to wider spreads.
- Account Types
Many brokers offer multiple account types with varying minimum deposit requirements, leverage ratios, and spread policies. Low-spread brokers often have premium account options tailored to experienced traders who prioritize cost-effectiveness over other features. It’s important to find an account that best aligns with your trading goals, risk tolerance, and trading volume.
- Regulation and Reputation
The broker should be regulated by reputable financial authorities such as the FCA (Financial Conduct Authority) in the UK or the NFA (National Futures Association) in the U.S. Traders should research brokers to ensure their safety, transparency, and compliance with industry standards.
- Trading Platforms
Choosing a broker with a user-friendly, feature-rich trading platform that complements your trading style is key. Leading brokers often offer platforms like MetaTrader 4 or 5, which feature advanced charting tools, technical indicators, and automated trading capabilities, as well as mobile platforms for trading on-the-go.
- Customer Support
Low-spread brokers should also provide comprehensive customer service, including support for troubleshooting technical issues, questions on fee structures, and assistance with withdrawal and deposit processes. Look for brokers with 24/7 customer support, preferably in multiple languages.
- Additional Fees and Costs
Make sure to investigate all additional costs associated with your trading. While the spread may be low, some brokers charge hidden commissions, overnight financing costs (swap rates), or withdrawal fees. Be sure you understand the complete fee structure before opening an account.
Advantages and Challenges of Low Spread Forex Brokers
Advantages
- Reduced Trading Costs: For active traders, low spreads mean cost savings over a large number of trades.
- Favorable for Scalpers: These brokers are well-suited for scalpers who require quick executions and narrow spreads.
- Increased Profit Potential: By minimizing trading costs, traders are able to see greater profit retention after trades.
Challenges
- Higher Minimum Deposit: Some low spread brokers require higher minimum deposits or have commission-based accounts that offset lower spreads.
- Slippage during Volatile Times: Even with tight spreads, slippage can still occur during periods of high volatility, such as during economic reports or geopolitical events.
Conclusion
Low spread forex brokers play an essential role in creating a trading environment that is efficient, cost-effective, and lucrative for active traders. Choosing a low-spread broker can significantly reduce transaction costs, particularly for strategies that involve frequent trading, such as scalping or day trading. Traders should carefully evaluate broker offerings based on spreads, liquidity, regulation, customer support, and additional fees. Though low spread brokers come with advantages, traders must be mindful of their unique risks, such as slippage or account types, and select a provider that aligns with their trading style and objectives.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.