Best Zero Pip Spread Forex Brokers
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Everyone is always looking for the best trading conditions and lowest possible spreads. Ideally it would be great to choose a top 0 pip spread forex broker every time.
If you agree, then this is the perfect place for you. Here we will take a closer look at exactly what zero pip spread trading in forex is, how it can benefit you, and how you can get started if that is what you are looking for.
We will give you the lowdown on what many people consider to be the top 10 forex brokers in the world, and guide you through exactly what they have to offer in terms of zero spread trading so you can select the best broker to fit your needs.
Table of contents
Which forex brokers offer Zero pip spread trading?
While any forex broker has the freedom to offer zero pip spread as they see fit, zero pip trading is generally offered by three specific types of brokers who have certain execution styles in place. These three are, No Dealing Desk brokers (NDD), Straight Through Processing (STP), and Electronic Communication Network (ECN) type execution style brokers.
These styles give you as a trader both faster, and more cost effective access to the best prices on the market from many liquidity providers of the broker in most cases. This allows forex brokers to offer the most competitive trading environment when it comes to spreads.
Zero Pip Spread Trading: is it really without costs?
When it comes to trading with a 0 pip spread forex broker, this can be a great saving for you, though ultimately it does not mean you will have zero costs. Just like we have discussed in our top 10 low spread forex brokers article, this is typically the starting point for the spread. While it puts you in a very competitive position, the average spread will still generally be 0.1 pips which is still extraordinarily low.
Another cost you will have to factor in is commission. While trading with higher spreads, you often have a commission-free environment. For the most part though if you are trading from a zero pip spread, this is because you have opened a certain broker account type. These account types often charge a commission per lot traded. Additional fees such as an overnight fee if you are holding longer-term positions will still apply with brokers as well as other fees too.
Top 10 Best Forex Brokers with Zero Pip Spread
Here is a look at the 10 best 0 pip spread forex broker choices we could find available to choose from:
EUR/USD avg Spread: fixed 0.00 pips (FBS Zero Account)
FBS is the first forex broker to feature on our list of zero spread brokers. They are well-known and respected around the world by all types of traders, but particularly as one of the best ECN/STP brokers around.
When it comes to trading with FBS you will have a total of 35 forex pairs available to choose from, and a great environment for scalping if you wish to do so. In terms of the accounts, the best 0 pip account on offer is the ECN account. This account is unique in that the spreads actually start negative at -1 pip. The commission is $6 per lot with a $1,000 minimum deposit on this account type.
You will also have the choice of fixed 0 spread trading where the spread remains at 0 pips. This is available through the FBS Zero account, though the commission is higher at $20 per lot with the account needing a minimum deposit of $500.
EUR/USD avg Spread: floating 0.09 pips (FP Markets ECN Account)
The next broker to make our list is FP Markets. They are a top Australian ECN/STP broker with some of the fastest order execution in the world. They are also award-winning having picked up an award for the best quality of trade execution in 2019 given by Investment Trends. They are a very popular broker choice with over 60 forex pairs available to choose from.
The spreads when it comes to zero spread trading on the account at FP Markets start from 0 pips. Here you will have to pay a commission of $6 per lot on a round turn basis. This means $3 per lot when the trade is open, and $3 per lot when it is closed.
This has led many traders across the industry to choose FP Markets as their broker for no and low spread trading backed by their secure, and trusted worldwide reputation.
EUR/USD avg Spread: floating 0.10 pips (XM Zero Account)
Another award-winning broker to make our list of top zero spread brokers is XM. They are one of the biggest brokers in the industry and are well-known around the world for the top quality service they have provided for many years. They are also a firm favorite among those traders who require a very low starting spread.
What you will find here is exactly that. A very low spread with no requotes to worry about, and a good selection of more than 55 forex pairs to trade in. When it comes to actually trading, you can also look forward to some excellent conditions that are among the best in the sector. This includes a spread starting from 0 pips on an XM Zero account*.
This account type is available with a very reasonable minimum deposit starting at $100. The commission charged here is also very competitive. XM has a commission of $7 per lot traded on a round turn basis through this type of account.
*this account type may not be available under every XM entity
EUR/USD avg Spread: Floating 0.10 pips (IC Markets Raw ECN Account)
The next choice on our list of brokers if you are looking for 0 pip spread trading is IC Markets. They are another well-known Australian broker and a top choice for many traders of all levels in the industry regardless of trading style. They are also respected for providing one of the fastest execution methods of any broker and having no requotes for you to worry about.
Your Zero pip spread trading experience here works through their IC Markets Raw ECN account type. This account type again has a very strong selection of forex pairs available with more than 60 to choose from as well as other assets. You will find a commission here which is also competitive at $7 per lot traded on a round turn basis if you are trading through the Metatrader platform, and $6 per lot traded round turn if you are using their other trading platform choice in cTrader. A great environment for zero spread trading exists at IC Markets and for this reason, they are a popular choice among scalpers.
EUR/USD avg Spread: floating 0.13 pips (Pepperstone Razor Account)
One of the most recognized forex brokers in the entire industry is our next selection if you are looking for a great 0 pip spread forex broker. That choice is Pepperstone and they of course are known as a great ECN/STP execution style broker. On top of the lightning speed execution you can expect a no-requotes broker too.
They are favored not only for their secure, trusted reputation and the great services they provide around the world, but also for the rewarding environment they create for traders. There are several excellent benefits to be had if you are an active trader at Pepperstone with a selection of more than 60 forex pairs and more available.
The zero spread trading environment takes place through the reputed Pepperstone Razor account, again it is one of the most well-respected in the sector. Here you can expect the lowest spreads always, and a competitive commission from $7 per lot traded on a round turn basis.
EUR/USD avg Spread: floating 0.1 pips (FxPro cTrader Account)
Another top international broker who has been around and established a trusted reputation in the industry over many years, FxPro is next to feature as one of the best no spread forex brokers available.
The execution speed and consistency are both second to none. This fact is well highlighted by a figure of just 0.68% which details the total percentage of orders to have received a requote with the broker in 2019. This is remarkable over such a huge number. You will also have a broad range of more than 70 forex pairs available to trade in.
On top of everything, the FxPro zero spread cTrader account is very accessible with a minimum deposit of only $100 required, and a commission that stays competitive at $9 per lot traded on a round turn basis.
EUR/USD avg Spread: floating 0.10 pips (Vantage ECN Account)
Another Australian broker is next to feature in the top considerations when you are looking for 0 pip spreads. They are Vantage who also provide for ECN/STP execution to ensure the fastest and most efficient trading environment. They are a very popular broker choice with many traders around the world, and in terms of forex, they provide 40 forex pairs for you to select from along with many other assets.
If you want to get started trading from 0 pips, then you will have to have a $500 minimum deposit ready to get started with an ECN account. Here of course you will find spreads from 0 pips, and a highly attractive commission of $6 per lot traded round turn.
Added to that, if you have a minimum deposit of $20,000, you can open a Vantage Pro ECN account. This account has real zero spreads that do not go over 0 pip, and a reduced commission of $3.50 per lot traded on a round turn basis.
EUR/USD avg Spread: floating 0.10 pips (XTB Pro Account)
XTB are the next top broker to make our list, and one to consider if you are looking for a broker with trading from a spread of 0 pips. They are a market maker broker who provide DMA (Direct Market Access). This direct access can allow you to get some really great prices on particular assets for trading of which there are more than 5,200 available and all with no requotes.
Another appealing point is the broker has no minimum deposit required, and a strong range of 49 forex pairs to trade on. You can also take the opportunity to open up an XTB demo account as a new user or just for checking the service. The account is valid for 30 days.
EUR/USD avg Spread: floating 0.1 pips (HF Zero Spread Account)
Another award-winning top broker to make our listing of the best zero spread brokers is HotForex. When it comes to top brokers, they feature in almost every category and that is no surprise given the top range of services they offer.
With a minimum deposit starting from just $200 you will be able to open a HotForex Zero Spread account* where you will find the lowest spreads from 0 pips accompanying this accessible minimum deposit. The broker offers a total selection of 45 forex pairs for you to choose from and each with an excellently low spread starting from 0.1 pips with this account type.
The commission charged here is also among the most competitive as it is only $6 per lot traded and is charged on a round-turn basis. All of this backed by the experience and credibility of one of the top brokers in the world.
*this account type may not be available under every HF Markets entity
EUR/USD avg Spread: floating 0.3 pips (FXTM ECN Account)
Last but certainly not least to feature on our listing of top 0 pip forex broker choices is FXTM. They are another global presence offering excellent access to great trading conditions and the lowest spreads through their FXTM ECN account type. They are a renowned NDD (no dealing desk) broker and have a wide range of tradable assets available with more than 50 forex pairs in total.
If you do want to open an ECN account here, you will need to make a minimum deposit of $500, though you can be sure not only of a very efficient trading environment where there are no requotes thanks to the NDD execution style, but that you will also have access to some of the best, low commission rates.
These rates are very appealing and among the lowest we have seen at just $4 per lot traded round turn, and with spreads starting at 0.1 pips it is clear to see why FXTM remains a trader favorite.
Forex commission per lot: What is it?
The commission you will find with a 0 pip spread forex broker is usually fixed and charged per lot. Taking an example, if the broker applies a commission of $10 per lot traded, and you open a position for 1.5 lots, then your commission on that trade would be $15. This kind of commission is typically on zero spread forex accounts as you will make back the difference, and more from the reduced spread.
How are these forex commissions applied?
This type of commission can be applied in a couple of ways by the broker. The first of these is to charge it as a one-time fee per trade at opening or closing only, or the most common method is actually to apply the commission on a round-turn basis.
This means that if the commission is $10 per lot round-turn, then $5 will be charged at the opening of the trade, and $5 at closing.
Who must look for a zero pip spread forex broker?
There are a few groups of traders for whom a 0 pip spread forex broker is a great choice. Typically, those who have some experience in trading forex and are trading higher volumes as you need to monitor both a commission and spread. Also, those who rely on the low spread and fast execution to implement their trading strategy. The perfect example here is scalpers.
Pros and cons of trading without spreads
As with all types of trading, there are good and bad points connected with trading on a zero spread. Here are a few of the things you should be mindful of on both sides.
Pros
- You will rarely have to deal with any requotes if you are using these execution methods.
- Trading costs can be calculated very precisely.
- The execution speeds typically associated with these zero spread accounts are very fast.
- The high speed, low-cost trading is perfect for scalpers.
Cons
- There are more things to monitor than in standard trading with spread and commission.
- There is typically no commission-free trading at a 0 pip spread.
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