Visit AvaTrade76% of retail investor accounts lose money
Visit EasyMarkets75% of retail investor accounts lose money
Visit FBS74-89% of retail CFD accounts lose money
Visit FxPro72.87% of retail investor accounts lose money
Visit City Index70% of retail CFD accounts lose money
Visit HYCM72% of retail investor accounts lose money
The best low fixed-spread Forex brokers, according to our research, are:
- Rakuten Securities
- City Index
- Fibo Group
A fixed-spread forex broker refers to a forex (Foreign Exchange) brokerage firm that offers a constant difference (spread) between the bid and ask prices of a currency pair, regardless of market conditions.
To compile this ranking the following points where taken into consideration:
- The account types offering fixed spreads
- The assets with fixed spreads
- The minimum fixed spreads on forex
- The minimum deposit
- The platform which accepts fixed spreads
What are the best fixed-spread forex brokers?
Here is a selection and review of fixed-spread forex brokers offering tight spreads, along with a description of their characteristics and features.
What does fixed spread mean?
Thinking about the spread in forex, you will typically encounter 2 types. Fixed spreads, and variable or floating spreads. The latter of these is usually more common and means that the spread can change (or float/vary) depending on the demand or volatility of a market. As mentioned above, this can provide some opportunity for a broker markup.
Fixed spreads on the other hand, as the name would imply, do not move. These are set by the broker and will almost never change, at least not in any short frame of time. Brokers who used fixed spreads can also be termed as market maker brokers.
Floating spread vs Fixed spreads
Looking at the spread in forex from a trader perspective, you may wonder which one is best as a forex trader. This simply depends on the market and on the moment. Some may say that floating spreads tend to be averagely lower, although this is not always the case and the fact they can change does provide you as a forex trader with some level of unpredictability.
If you’re interested in trading with extremely low floating spreads rather than fixed ones, check our top 10 featuring the forex brokers with the lowest spread.
Many in the forex trading industry like to eliminate this uncertainty and so they choose to deal with what may be a marginally higher fixed spread but they can understand the exact cost of their trade with ease.
With that said, when choosing a market maker broker for forex trading, you are relying a lot on the integrity and reputation of that broker to set the fixed spread in a fair and reasonable manner. Thus, you should always try to go with a very well-regulated broker like all that we have listed above. If you can do this, then in the long-term, depending on your forex trading style and the movements of the market itself, you may well find that you can save money and trade in a more economical manner with the fixed spread in place.
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