Are you searching for the low spread forex brokers to start your trading journey?
Well, you are in luck!
In this guide, we will mention the top 10 low spread forex brokers, discuss each one of them and mention their pros and cons.
You will hopefully find the broker you need after reading this guide.
Before digging deeper, let's tell you what forex spreads are and why they matter.
Forex spreads
Forex spreads measure the difference between a currency pair's buy (bid) and sell (ask) prices.
When you acquire a currency, you often pay somewhat more than the seller earns when selling it. The spread is the change between the two prices, and it is paid to your broker as a fee for facilitating the deal. Because many forex brokers no longer charge commissions, the spread is the primary source of revenue for them when you trade currencies.
Why do you need a low spread broker?
Although the spread fee by brokers appears to be extremely little on the surface, typically only a few pips, there is a catch.
Traders' spreads may quickly build up to considerable operational costs, especially if they trade on margin and open huge forex holdings. As a result, choosing a forex broker with low spreads is always a smart idea, as it significantly lowers the cost of conducting business.
When the spread is low, there is a lower spread between the bid and ask price of a currency pair. This is because the lower the spread, the less money the broker gets to keep, which means you're paying closer to the real market price for a currency pair.
The EUR/USD currency pair, for example, is one of the most widely traded forex pairs in the world and is commonly used to compare broker spreads. The EUR/USD pair's industry average spread is about 1.0 pip. As a result, a low spread forex broker costs less than 1.0 pip for this trading pair.
Now that you understand what a low spread forex broker is let's look at the top ten low spread forex brokers.
1. Top1 Markets
Top1 Markets is a forex and CFD broker located in Australia and Vanuatu. This broker is licensed and regulated by ASIC, or the Australian Securities and Investments Commission.
Majors, minors, and exotics are among the forex pairings available at Top1 Markets. In addition to indices, equities, metals, and cryptocurrencies, the broker offers indices, stocks, metals, and cryptocurrencies.
ECN, premium leverage and an Islamic account are the three account types available. The spreads and charges for each account type are different. Top1 has made it simpler for you to navigate tradeable product spreads. The spread offered by the broker might change depending on market circumstances and volatility.
The broker offers floating spreads, which fluctuate based on the worldwide market's liquidity and market movements. The spread is modest when the global market is busy and not disrupted by key financial data. However, the spread may widen during the daily opening and closing periods or when the news and financial data are released.
On the EUR/USD, Top1 Markets offers a 0.8 spread. This is a very competitive market. Furthermore, the leverage of 1:100 is not excessively high, so you may experiment with it.
Feel free to establish an account with Top1 Markets since the broker offers expert services without hidden fees.
Pros
Cons
2. Pepperstone
Pepperstone is an online trading broker based in Melbourne, Australia, that was launched in 2010. It has multiple account options to fit every trading approach and is the best forex broker with the lowest spread ratio.
It's incredibly simple to get an account with Pepperstone. With a $200 minimum deposit, you may start trading on either their regular or ECN Razor account types, which provide the industry's highest spreads and execution speeds.
They also provide social trading capabilities for those interested and an excellent active trading program that may help you decrease your trading costs even more.
Pepperstone's pricing is razor-sharp, ensuring that you always obtain competitive bids and very low spreads when you trade with them. The minimum spread on major FX currency pairings starts at zero pip on the Razor account and on the regular account.
These are among the industry's lowest spreads, especially when considering the world-class trading environment, Pepperstone delivers to its worldwide clientele. In addition, the Pepperstone spread reduces to zero at periods of strong liquidity, which is common, while the average spread offered is 0.09 pips.
Pros
Cons
3. Vantage FX
Vantage FX is a registered online trading broker established in 2009 and provides institutional trading conditions to retail clients worldwide in a transparent genuine ECN/STP environment with no dealing desk interference.
Vantage FX has more than 40 currency pairs to choose from. Spreads start at 0 pips, and leverage up to 1:500 is offered. In addition, the broker provides a choice of trading accounts to meet your demands.
The main differences between the accounts are the minimum deposit spreads and commissions. Traders who desire direct market access, bigger spreads, and no fees should choose the Standard STP account. With variable spreads starting at 1.4 pips, a minimum deposit of $200 is required.
Traders that want deep liquidity and lower spreads should choose the RAW ECN account. The minimum deposit is $500, with variable spreads beginning at zero pips and commissions beginning at $3.
Vantage FX is an ECN broker that uses top tier liquidity providers to provide rapid transaction execution speeds and narrow RAW ECN spreads starting at zero pip.
Vantage FX account holders can trade the markets on a desktop, web, or mobile device utilizing various trading platforms, including the famous MetaTrader 4 and MetaTrader 5 platforms.
Pros
Cons
4. FxPro
FxPro is an online FX and CFD broker founded in 2006 and offering a wide range of products on cutting-edge infrastructure. With spreads as low as zero pips on some pairs and an average of 0.4 pips, FxPro is a reliable brokerage firm for retail traders.
They are one of the most renowned and awarded brokers in the industry and have a reputation for keeping trading expenses low. FxPro is a well-known NDD broker that caters to a wide range of traders.
MT4 traders can trade with 1.2 pip fixed spreads on the MT4 platform. For those interested in trading with fixed spreads, the minimum deposit is only $100.
On four trading platforms, including MT4, MT5, cTrader, and Edge, traders may trade over 260 instruments across six asset classes. In addition, traders from the United Kingdom can also participate in spread betting.
The cutting-edge trading platforms on offer are top-notch and ideal for traders of all abilities and types. In addition, each platform offers a mobile application that allows traders to trade on the go. FxPro has also developed mobile apps for FxPro tools and FxPro Direct.
Pros
Cons
5. IC Markets
IC Markets is an Australian trading broker with headquarters in Sydney, formed in 2007 and has since grown to become one of the world's largest trading brokers. They are an ASIC-regulated genuine ECN broker that caters to both retail and institutional clients worldwide.
Their ECN approach employs cutting-edge technology to provide low spreads and ample liquidity for quick transaction execution.
The genuine ECN account and the regular account are the two account types offered by IC Markets. The minimum deposit amount is $200. The genuine ECN account offers flexible spreads starting at 0.0 pips and a low commission cost of $3.5.
Although there is no fee on the basic account, variable spreads begin at 1.0 pips. Due to the 50+ distinct liquidity sources, spreads are narrow, and liquidity is deep 24 hours a day, seven days a week with the standard ECN account.
As a result, IC Markets' European and Australian businesses have a leverage of 1:30, while its worldwide company has a leverage of up to 1:500.
The basic account should be sufficient if you aren't concerned about distributed costs. On the other hand, a raw spread account is a good option if you want the narrowest spreads and the best bid/ask price quotations.
Pros
Highly regulated
Fast order execution
Applies an ECN model
Cons
6. XM
XM Group was created in 2009 and has since evolved to become a big worldwide trading broker with clients from 196 countries. They don't cut corners for trading performance, so they can provide some of the lowest spreads and fastest execution times while staying flexible.
The brokerage firm has the best execution policy in place to give traders the best possible trading circumstances. In addition, they can offer some of the lowest spreads with lots of liquidity because they collaborate with a variety of liquidity providers.
In addition to three unique account types, XM provides trading criteria tailored to meet the needs of both novice and experienced traders. For example, the minimum deposit is only $5, and you can select between no commission accounts with marked-up spreads or variable spreads starting at 0 pips for a $3.5 fee. Leverage varies depending on the financial item exchanged and the client's location.
On the Zero account, the group spreads are the narrowest, which may benefit clients who are scalping or running Expert Advisors (EAs). The micro and standard accounts are a good choice for novices who want the commission cost to be included in the spread.
Pros
Zero minimum deposit
Commission-free trading
Highly regulated
Cons
7. FXTM
With over 250 instruments to select from, FXTM allows traders worldwide to trade the markets. In addition, FXTM offers award-winning trading services, stringent regulation, deep liquidity for quick trade execution, flexible accounts/leverage, narrow spreads, and minimal minimum deposit requirements to forex traders.
FXTM offers various trading accounts with adjustable leverage, powerful trading platforms across many devices, competitive trading conditions, and low minimum deposits starting at just $10.
All traders may profit from the FXTM basic account, which includes a variety of features and perks. The minimum deposit is $100, with a maximum transaction volume of 30 lots. This account has no commission; however, the floating spreads start at 1.3 pips since they are marked to pay costs.
Spreads for ECN accounts start at only 0.1 pips, with a modest commission fee of $2 per lot. The necessary minimum deposit is $500. Professional traders may benefit from FXTM's substantial liquidity, directly from tier-1 liquidity providers with spreads as low as zero pip.
FXTM spreads are variable, and depending on market circumstances, they may increase at different times of the day.
Pros
Cons
8. Forex.com
Since 2001, Forex.com has provided traders worldwide with access to 4,500+ worldwide markets, including 80+ currency pairs, 220+ stocks, commodities, equities, indices, and cryptocurrency.
The fact that Forex.com has been around for so long gives traders peace of mind that they are dealing with a reputable broker with years of expertise in the trading business.
Excellent trade execution speeds and lower spreads can help you keep your trading costs low while providing good value and increasing your trading dependability.
Forex.com has spent more than a decade investing in developing a large network of liquidity providers, allowing the broker to provide traders with narrow spreads and speedy execution times in various market circumstances.
Depending on your trading style and geo-location, Forex.com UK offers a variety of account options. For example, commission Accounts or DMA Accounts will charge you commissions when you trade forex pairs. Furthermore, there is a $100 minimum deposit.
Depending on the market you choose to trade, Forex.com offers fixed and variable spreads. Fixed spreads are unaffected by market factors like volatility and liquidity. Variable spreads can change during the day depending on various factors like underlying liquidity and market volatility.
Pros
Cons
9. FP Markets
FP Markets has provided award-winning ECN trading conditions since 2005, with direct market access prices, narrow spreads starting at 0 pips, and adjustable leverage up to 1:500.
In addition, FP Markets has a wide range of minor, major, and exotic currency pairings to choose from. These are available five days a week, 24 hours a day. Spreads start at zero pip, and leverage goes up to 1:500.
They work with some of the world's top liquidity providers to provide clients with more liquidity and competitive spreads. Order execution is quick and trustworthy, thanks to a transparent pricing feed.
FP Markets offers a wide range of accounts for both beginners and experts. All accounts have adjustable leverage up to 1:500 and use NY4 Equinix servers in New York to execute the ECN pricing methodology. This tries to provide the narrowest spreads and quickest transaction execution speeds feasibly. In addition, there are no penalties for inactive accounts.
The basic account offers a modest minimum deposit of $100, spreads starting at 1.0 pips, and no trading commission. The ECN RAW account has a minimum deposit of $100 and offers spreads as low as zero pip but charges a relatively low $3 fee for each lot.
Pros
Cons
10. FXCM
FXCM (Forex Capital Markets) is a well-known online brokerage that provides forex, CFDs, and spread betting services. The broker stands out for the wide range of currency pairings available for trading.
There are more than 500 major, minor, and exotic currency pairs offered by the platform. In addition, FXCM also offers "forex baskets," which allow you to hedge your bets by investing in various currencies simultaneously.
Brokerage services are provided through a No Dealing Desk (NDD) approach. According to FXCM, the sophisticated trading technology used is responsible for the company's fast execution times and minimal spreads.
The spread is variable, and it is determined by liquidity and volatility. For the EURUSD, the usual spread starts at 0.7 pips for UK websites and 1.3 pips for global users.
Pros
Cons
Final thoughts
Trading forex allows you to participate in the vast global currency market. For forex trading, most firms charge spreads rather than commissions. As a result, it's key to ensure that you're obtaining the best spreads possible so that you can keep more of your profits.
Real-time News
