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A zero spread forex broker refers to a forex (Foreign Exchange) brokerage firm that facilitates trades without adding any mark-ups to the raw bid-ask spread, but charges volume commissions instead.

This type of broker is also referred to as “zero spread forex broker”. Others refer to them as “zero spread accounts”.

A “mark-up” refers to an additional spread added by the broker to the bid and ask prices they receive from their liquidity providers. Essentially, it’s a way for brokers to earn revenue from trades without charging a fixed commission.

Those considered ‘0 pips spread brokers’, on the other hand, offer forex traders the exact same prices they receive from liquidity providers, thus called raw-prices, or raw spreads.

Instead of earning from the mark-up (which is not applied), they earn from a fixed percentage commission that is charged based on trade volume.

You can read all the insights in this post to fully understand how this type of forex broker works.

First thing, we have put together some of the best 0 pip forex brokers for you to find out which are effectively the best ones.

We have taken into consideration:

  • The account or accounts with 0 spread provided
  • The round-turn commission associated with the account or accounts
  • The minimum deposit to open the account or accounts
  • The number of forex pairs
  • The average spread on forex
Table of Content

What are the best 0 pip spread forex brokers?

Below our curated list of the best 0 pip spread forex brokers and platforms, with details of features and characteristics.

Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

1. FBS : best 0 pip broker overall

  • FBS provides two account types with spreads from 0 pips.
  • The FBS Zero Spread Account charges spreads from 0 pips with a commission of $20 per lot.
  • While the ECN Account has spreads from -1 pips with a commission of $6 per lot
  • The Zero Spread account requires a $500 amount to start, while the ECN requires a $1000 minimum deposit.
  • Both the accounts have the access to MT4, MT5 and FBS Proprietary platform.
  • With FBS, you can trade among 35 forex pairs with an average spread of 0.3 pips.
74-89% of retail CFD accounts lose money

2. FP Markets : best execution order

  • FP Markets offers spreads from 0 pips on the Raw ECN Account.
  • The Raw ECN account at FP Markets has spreads from 0 pips with a $3 commission per lot.
  • The minimum deposit FP Markets requires to open the Raw ECN account is $100.
  • MT4 and MT5 are both available to be used with the FP Markets Raw ECN account.
  • FP Markets provides over 70+ forex pairs with an average spread of 0.3 pips.
74-89% of retail CFD accounts lose money

3. XM : best with no-requotes

  • XM Zero Account is provided to clients depending on your location. European clients will be able to have access to it, while global clients may not.
  • The spreads on the XM Zero account start from 0 pips with a $3.50 commission per lot traded.
  • 5$ is the minimum deposit XM requires to open the Zero Account.
  • MT4 and MT5 platforms are made available by XM with the Zero Account.
  • The XM Zero Account offers more than 55 forex pairs with an average spread of 0.2 pips.
77,37% of retail investor accounts lose money

4. IC Markets : best for algo-trading

  • The Raw Spread Account at IC Markets provides 0 pip spread trading.
  • The spreads start from 0 pips with a $3.50 per lot traded commission if you are using MetaTrader, and $3 per lot traded via cTrader.
  • The minimum deposit you need to make in order to start trading with the IC account is $200.
  • IC Markets MetaTrader platforms, such as MT4 and MT5, as well as cTrader are all enabled to be used with the Raw ECN account
  • 60+ forex pairs can be traded at IC Markets, with an average spread of 0.3 pips.
74-89% of retail CFD accounts lose money

5. Pepperstone : best for scalping

  • Pepperstone is a 0 pip spread forex broker because of the presence of the Razor Account in their offer.
  • The Pepperstone Razor Account charges spreads from 0 pips with a $7 round turn commission.
  • No minimum deposit is requested by Pepperstone, though a $200 minimum amount is suggested by the broker.
  • MT4, MT5 and cTrader are all available with the Pepperstone Raw ECN account.
  • A selection of 60+ forex pairs are provided by Pepperstone, with an average spread of 0.25 pips.
74-89% of retail investor accounts lose money when trading CFDs

6. FxPro : best cTrader account

  • FxPro offers 0 pip trading via their cTrader account.
  • Spreads at FxPro cTrader account start from 0 pips with a commission that stays competitive at $9 per lot traded on a round-turn basis.
  • The minimum deposit is very accessible to open a cTrader account, with only $100 required by FxPro.
  • The cTrader platform allows for 0 pip trading with the FxPro cTrader Account.
  • 70+ currency forex pairs can be traded with the FxPro Account, with an average spread of 0.7 pips.
72.87% of retail investor accounts lose money

7. Vantage : best Pro ECN account

  • The Vantage Raw ECN and Pro ECN Accounts allows 0 pip trading.
  • Spreads at Raw ECN account start from 0 pips with a commission of $6 per lot traded round-turn.
  • Spreads at Pro ECN start from 0 pips with a commission of $3.50 per lot traded.
  • The minimum deposit Vantage will need from you to open a Raw ECN and a Pro ECN account is respectively $500 and $20.000.
  • Vantage provides the MT4 platform alongside the MT5 platform for the use of those 2 ECN accounts.
  • At Vantage, 40+ is the number of forex pairs available, with an average spread of 0.3 pips.
74-89% of retail CFD accounts lose money

8. Axiory : best low minimum deposit

  • Axiory offers 2 account types with 0 pip trading. The Nano Account and the Tera Account.
  • Both the Axiory Nano Account and the Axiory Tera Account have spreads from 0 pips with a $6 commission per lot.
  • Both The Nano Account and the Tera Account have a minimum deposit of $10 requested by Axiory.
  • The Nano Account is available at Axiory with the MT4 and cTrader platforms, while the Tera Account is available with the MT5 platform.
  • Over 60 Axiory forex pairs are available to be traded, with an average spread of 0.45 pips.
(Your capital is at risk)

9. HF Markets : best liquidity

  • HF Markets provides the HF Zero Spread Account with spreads from 0 pips.
  • The Zero Spread Account is offered by all HF Markets entities with the exception of the UAE, though clients under that regulation can use a VIP account with a minimum deposit of 74,000 AED and spreads from 0 pips alongside a 44 AED commission per lot.
  • This HF Markets Account charges a commission of $6 per lot alongside the spreads from 0 pips.
  • HF clients who want to open the HF Zero Account need to make a minimum deposit of $0.
  • Both HF Markets MT4 and MT5 platforms are compatible with the Zero Spread Account.
  • 45 forex pairs with an average spread of 0.4 pips can be found on the HF Zero Spread Account.
70.51% of retail investor accounts lose money

10. GO Markets : best educational service

  • GO Markets offers the GOPlus+ and GO Pro Accounts to engage in 0 pip forex trading.
  • The Go Plus+ Account is not available under the FSA and SVG regulations, while the GO Pro Account is available only under the FSA regulation.
  • The GO Plus+ Account has spreads from 0 pips with a $3 per lot commission.
  • The GO Pro Account provides spreads from 0 pips with a $7 per lot commission.
  • In order to open a GO Plus+ account, a minimum deposit from $100 to $500 depending on your location will be requested by GO Markets, while The GO Pro Account needs a $3000 minimum deposit to start.
  • MT4 and MT5 are both available with those 2 GO Markets accounts, though availability may depend on your location.
  • More than 50 forex pairs are offered by GO Markets, with an average spread of 0.23 pips.
62% of retail CFD accounts lose money

How do zero spread forex brokers work?

Zero spread forex brokers do not charge commissions on the bid-ask price difference, but they charge fixed commissions on the trading volumes generated by the trader.

You should know that forex brokers’ main income comes from customers-generated trading commissions, and as a result, zero spread brokers have to charge other fees in order to generate revenue.

Thus, zero spread brokers offer their traders a variable market spread starting at zero pips, and to offset the absence of mark-up on the spread they charge a commission per each lot traded.

Per-lot commissions are fees that range from $4 to $8, and are calculated on the trading volume (expressed in lots) generated by the user.

If the trader opens an order of 1 standard lot, no mark-up will be applied on the spread but on the volume of 1 standard lot, which will range between $4 and $8 depending on the broker.

On the other hand, if the trade is 1 micro lot (which is 1/100th of a standard lot), the commission per lot will be 100 times smaller or between $0,04 and $0,08.

Zero Spread vs Spread Mark-up

Both forex broker types have pros and cons, however zero spread brokers are more suitable to highly speculative forex trading strategies such as scalping, while forex brokers with mark-up spreads are more suitable for standard day trading or multi day forex trading strategies.

In fact, brokers that do not charge mark-ups generally have much more efficient order execution than other brokers because they often offer direct market access (DMA) without interfering with the trader’s order.

What does 0 pip spread actually mean?

When a forex broker offers spreads of 0 pips, it means that on its trading platforms it offers raw spreads varying from 0 pips.

The raw spread is the natural spread in the forex market, and it is defined that way because it is not manipulated but is offered as is to traders.

However, the market spread (or raw spread), while starting at 0 pips can be slightly higher depending on the market situation.

This is data taken from the Raw Spread account of IC Markets (August 2023), one of the best zero spread brokers in the market.

Currency pair Minimum spread Average spread
EURUSD 0 0.06
GBPUSD 0 0.26
USDCAD 0 0.23
USDCHF 0 0.34
USDJPY 0 0.22

As you can see, the minimum spread starts at zero pips, however the historical average spread is slightly higher than the minimum spread.

However, the increase in the average spread is not caused by IC Markets, but is the natural spread of the market that can increase or decrease depending on the international laws of supply and demand for currencies.

Is zero pip forex spread actually commission free trading?

Zero pip spread doesn’t mean there are no commissions nor fees, but rather that the forex broker offers raw spreads from 0 pips.

When trading with a forex broker you may still run into some fees such as:

  • Market spread
  • Fixed commissions per each forex lot traded
  • Overnight commissions

The market spread starts at zero pips, however it can increase if market conditions change. In other words, the spread may increase slightly from 0.00 pips, to 0.01 pips for a fraction of a second. This change, while imperceptible, is still an additional trading cost if a trade is executed at that time.

Forex per-lot commissions are the main income of forex brokers who offer raw spreads. These commissions range from $4 to $8 per every $100000 traded

Overnight commissions are ubiquitous when it comes to forex and CFD trading. These commissions (generally a few cents), are charged in multi-day positions, that is, when the trader does not close the forex position before the market closes.

Are zero spread forex brokers worth it?

When it comes to trading commissions, zero spread forex brokers are cheaper than other forex brokers.

Typically, forex brokers that charge a mark-up on the spread, have spreads as low as 1 pip. In contrast, forex brokers that do not charge a mark-up on the spread, have commissions per lot ranging from $4 to $8.

So typically commissions are measured in pips, but zero spread forex brokers calculate them in USD. To fully understand what we are talking about, here is a practical example.

Let’s consider a trade on the EUR/USD pair of a standard lot, that is, with volume of $100000, a change of 1 pip will be worth about $10.

This means that for each lot traded, on average, a classical broker will charge commissions of about $10, while a zero-pip broker will charge commissions ranging from $4 to $8

This makes zero spread brokers cheaper when it comes to trading costs.

 


filippo ucchino

About The Author

Filippo Ucchino
Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.
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