Best forex brokers with low Spread
At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.
We have collated the ten best major forex brokers with low spreads, with different features and functionality so you can choose the one that best suits your needs.
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
| Best low spread FX brokers | Minimum deposit | Spread type | Avg. EUR/USD spreads |
|---|---|---|---|
| Pepperstone | $0 | Floating | 0.09 pips |
| IC Markets | $0 | Floating | 0.10 pips |
| XM | $5 | Floating | 0.10 pips |
| FxPro | $100 | Floating/Fixed | 0.45 pips |
| FBS | $1 | Floating/Fixed | 0.50 pips |
| FXTM | $10 | Floating | 0.10 pips |
| FP Markets | $100 | Floating | 0.45 pips |
| Vantage | $100 | Floating | 0.50 pips |
| OctaFX | $100 | Floating/Fixed | 0.40 pips |
| Fusion Markets | $0 | Floating | 0.09 pips |
Table of contents
Top 10 low spread forex brokers: 2022 list
An Australian broker, Pepperstone offers sophisticated trading solutions for veteran traders while also targeting those less experienced. Pepperstone offers various account types to suit every trading style and tops the list for the best forex broker with low spreads. During high liquidity times, as is often the case, the Pepperstone spread drops to zero, while the average spread offered is 0.09 pips.
It is easy to get started with Pepperstone. You can do so with a minimum deposit of just £200 and begin trading on either their standard or ECN Razor account for the best spreads and execution speeds in the sector. They also provide social trading features for those who are interested, and a great active trading program that can help you further reduce their already low trading cost. These key features with traders in focus, help Pepperstone retain their popular reputation.
IC Markets is another Australian broker that offers access to over 230 tradable instruments, with no spreads whatsoever during certain market times. The broker has an average spread of 0.1 pips and their great spreads in addition to the fast ECN execution provided, makes them a popular choice particularly among scalpers.
IC Markets is suitable for both new and experienced traders. Those new to trading are typically attracted by the strong and long-standing reputation the broker has for being both transparent and trustworthy while allowing access with no minimum deposit needed. Experienced traders also find the low trading cost and range of available markets to be appealing. By appealing to a wide range of traders with various levels of experience, IC Markets continue to be one of the most popular choices in the industry.
With XM’s spreads as low as zero pips, plus their offer of over one thousand financial instruments for trading, XM.com maintains a strong reputation among other brokers in the industry. The average spread of 0.1 makes it one of the most competitive low spread brokers. Beyond keeping their costs as low as possible, XM also operates with a fantastically low minimum deposit of just $5 to get started. These features make them a great choice as a first broker for many new traders with all the educational help and support on offer. Traders can also benefit from access to an unlimited free demo account.
As a more experienced trader, the XM account types such as the Zero Spread are also some of the most accessible in the industry in terms of minimum deposit which stands at just $100. XM also executes over 99% of all trading orders in less than one second, with no re-quotes and no rejection. XM.com is also popular among Islamic traders thanks to their great conditions with the XM swap-free account.
Fusion Markets are another highly trusted Australian broker with regulations in place from both the VFSC in Vanuatu and ASIC in Australia. Though they have been around for a relatively short period, they have quickly grown to become a popular broker of choice in the industry.
This low-spread forex broker is well-known for keeping their trading costs and all-around fees as low as possible while maintaining accessibility. This is achieved by their no minimum deposit requirement, nor any deposit or withdrawal fees.
You will find spreads starting from 0 pips when trading forex with Fusion Markets and spreads average out at 0.09 pips on EUR/USD trading with some of the lowest round turn commissions in the industry. Fusion Market commissions are $4.50 per round turn lot trade depending on your choice of account type.
FxPro is a UK forex broker with the reputation of executing over 250 million orders so far. With spreads as low as zero pips on some pairs and an average of 0.45 pips, FxPro sits as one of the most efficient brokerage houses for the retail trader. Beyond their reputation for keeping trading costs low, they are also one of the most respected and awarded brokers in the industry. FxPro operates as a top NDD broker (subject to order execution policy) and is popular among all types of traders.
The minimum deposit to get started with FxPro is just $100 and their low cost spreads are offered as both fixed and floating.Their fixed spreads also start out from a competitive point at 1.2 pips trading through the MT4 platform.
With over nine million traders opting to use FBS for their online trading operations, it is no wonder this brokerage house is present all over the world. FBS‘ spreads reach a minimum of zero pips, making for an attractive environment when it comes to reducing the associated trading costs. Their competitive spread that starts from rock bottom at 0 pips is available with a fixed zero spread account that you can open with a $500 minimum deposit.
FBS also makes a range of accounts available with a low minimum deposit that starts from only $1 for a cent account. Spreads also remain consistently low throughout all account types. The general spread offered is 0.5 pips, while within Europe they start from 1 pip. Overall, FxPro offer an unbeatable value and range of choice for traders while also providing their own proprietary copy trading platform for you to trade on if desired.
With a great choice of account types and multiple regulatory bodies under its umbrella, FXTM is a terrific low spread forex brokerage house. It offers low spreads starting with 0.1 pips. Headquartered in Cyprus, FXTM offers low spreads starting from 0.1 pips and gives access to over 200 markets, from foreign exchange to cryptocurrencies or ETFs. The extensive range of choice offered by this top ECN broker appeals to a wide range of traders from new to more experienced. There is a strong selection of markets to choose from in the shape of more than 48 forex pairs.
You can gain access to these very low spreads and start trading on one of two FXTM ECN Advantage account types offered with a low minimum deposit from just $500. This is attractive to the more experienced trader, while still being well within range for newer traders, with all trading done through the respected MT4 trading platform.
A true ECN forex broker with competitive spreads starting from zero pips and averaging 0.45 pips, FP Markets is another reputable low spread Forex broker. Regulated by ASIC, this Australian regulated broker claims to offer the ultimate trading experience to its customers. FP Markets were founded in 2005 and have grown to become a highly respected market maker broker in the sector offering high-speed ECN/STP execution at the best rates.
A further attraction to many traders, particularly those that are newer to the industry, is the low cost to get started with FP Markets. A minimum deposit of $100 is all that is needed to open up a Standard or Raw account type to begin trading on the MT4 platform. The low cost of trading provided also makes them a popular selection among scalpers.
Vantage is another prominent low spread forex broker who have established themselves as a major player in the industry since being founded in 2009. Vantage are now regulated by ASIC, the FCA, and CIMA. Forex traders can choose from two of their ECN account types to get the lowest spread which starts from 0 pips.
The startup cost is also low to attract all levels of trader. A standard account can be opened with a $200 minimum deposit, while the best value spreads on an ECN account come with a $200 minimum deposit. With this, traders get access to a wide range of tradable assets with more than 150 CFDs, including 40 forex currency pairs to choose from. The broker also caters well to Islamic trading with excellent value swap-free accounts available where needed.
On a mission to minimize costs and optimize their clients’ profits, OctaFX offers spreads ranging from a minimum of 0.4 pips all the way to 0.45. A multi-awarded low spread brokerage house, OctaFX’s mission is to ensure forex trading is accessible to all types of traders. Since being founded in 2011, they have become a well-known ECN/STP broker headquartered in Estonia. OctaFX also cater to all markets worldwide and retain a great following in each, though they are particularly popular among Asian traders.
Beginners and trading veterans alike are attracted by the low minimum deposit of $100 and availability of a range of 28 forex currency pairs. The choice of fixed or variable spreads is something not offered at the same value by many other brokers. In addition to the top value variable spread starting at 0.45 pips, the fixed spreads start at a competitive 2 pips and, with their own copy trading platform available, it is easy to see why OctaFX have become such an established forex broker.
What is a low spread in forex?
The spread is a mark-up commission applied by a forex broker to a forex pair.
Considering that the forex market’s average spread is between 1 and 3 pips on major forex pairs, a low forex spread is considered to be any value below that average.
Nowadays, the best low spread forex brokers offer extremely tight spreads with the lowest spread available on forex starting from 0 pips.
Are low spreads worth it?
Since the spread is effectively a commission from the broker, lower spreads are always to be preferred. Low spreads are also necessary if you want to employ trading strategies such as scalping.
With that said, while a lower spread is always better, it’s important to ensure you examine the broker offering closely to avoid any other types of commission put in place of a spread.
How are forex spreads calculated?
You will often hear mentions of spread in forex, and it is a key figure in determining your trading cost. The spread is the difference between the bid/sell prices of an asset.
This price difference is calculated in “pips” (Percentage In Points), where 1 pip is a 1 point movement in market value based typically on the fourth decimal place of a currency pair.
For example in the case of EUR/USD:
- bid/ask of 1.08335/1.08340 (0.5 pips spread)
- bid/ask of 1.08335/1.08345 (1 pip spread)
- bid/ask of 1.08335/1.08485 (5 pips spread)
JPY forex pairs: the exception to the rule
The Japanese Yen (JPY) doesn’t follow the same rules. Spreads on JPY forex pairs are measured on the second decimal place instead of on the fourth.
Here’s how to calculate the spread on USD/JPY:
- bid/ask of 110.099/110.109 (1 pip spread)
- bid/ask of 110.102/110.114 (1.2 pips spread)
- bid/ask of 110.094/110.108 (1.4 pips spread)
Forex spreads and commissions per lot: what you should expect?
In many cases, where you see a regulated forex broker offering a 0 pips spread, what they are in fact offering, is a spread that starts from 0 pips. This is still desirable, although you should be prepared for it to vary depending on the volume and volatility of the forex market at any given time. These variations can mean that your spreads can be significantly higher so it is something to look out for.
Since the spread is the main revenue for a broker, you should also take care to note any commission that may apply to low spread, or zero spread trading. If such commissions do apply, this will typically be calculated on a per lot ($100,000) of currency traded basis and is usually below $5 depending on the market.
How to estimate forex trading fees when opening a trade
Choosing a forex broker with the best spreads to offer can be valuable, however you should also consider and be able to estimate how much the spread will cost you overall. Despite a broker having the lowest forex spreads, you should also be mindful of any commission in place.
Here’s how you can calculate currency trading commissions easily:
Forex spread
So, let’s take an example. The lowest spread forex broker you can find is offering a spread of 0.1 pips. This number translated onto a currency pair price would take effect as 0.00001.
This means that you could be looking at a situation for example, where the bid/ask would look something like, 1.08335/1.08336.
Here you can see the 0.1 pip spread has moved the ask price up to 1.08336. With a higher spread, of course this price will climb further in the same way.
Translating this number into an actual percentage, and real cash value shows us just how small it really is. In this example case, a 0.1 pip spread is equal to just 0.00092% (0.00001 / ask price), or $0.92 per standard lot traded.
Forex commission per lot
Another point you need to consider when looking at forex brokers with low spreads and low deposit minimums, is to double check any commission per lot charges they have in place.
This typical commission charge, even for brokers with the lowest forex spreads, is usually around $7 per lot. Using this as our benchmark, it means that if you open a position for 0.5 standard lots, you will have a commission of $3.50 on opening. This is one way to charge the fee which is sometimes referred to as “per-side, per lot” commission.
In other cases with some brokers you may see commission written as “round turn”. In these cases, a round turn commission of $7 means $3.50 on opening of the trade, and $3.50 on closing. These are important details since you need to check beyond just the lowest forex spreads with all brokers.
Best low spread brokers for scalpers
Finding low spread forex brokers can be great for many traders, however for day trading forex traders like scalpers, a forex broker with low spreads and commissions is not quite enough.
Scalpers will also need fast order execution and the ability to harness leverage to make money due to their style of trading relying on a high number of trades.
You should also remember that within the EU and UK, as well as under ASIC regulation, the highest leverage available to retail traders from any regulated forex broker is 30:1. Among these brokers, one regulated forex broker offering high leverage is IC Markets.
IC Markets, along with some others mentioned in our high leverage forex brokers top ten, can offer 500:1 leverage to some traders outside the EU, UK and Australia. If you are a professional trader in these countries, there are also many brokers offering high leverage and lowest forex spreads.
Which broker offers the lowest forex commissions per lot?
In addition to seeking forex brokers with low spreads, traders should also look out for those offering low commissions.
One broker offering this is FXTM through their ECN account. This account charges traders just a $4 round turn commission, which means you pay a $2 commission on opening and when closing a trade.
In addition to low commissions, FXTM is a popular choice for their low forex spreads, which start from a highly competitive 0.1 pips. Again, the trusted MT4 and MT5 platforms are available for you to trade with, and the minimum deposit on this account type is $500.
Forex brokers with zero pip spreads: which is the best one?
If you are looking for the best broker with a zero fixed spread, the FBS Fixed Zero Spread account type remains fixed at 0 pips and does not increase. Despite this, FBS is only available under IFSC regulation in Belize and is not accessible to Europeans regulated within Europe. The only downside of this account type is the huge $20 commission per lot traded.
Forex broker with the lowest fixed spread
The broker offering the lowest fixed spread in the market currently is AvaTrade. They offer CFD trading on forex from a fixed spread of 0.9 pips with no commissions per lot to worry about.
You can open a forex trading account with AvaTrade with a minimum deposit of only $100.
AvaTrade also offer a wide range of the top forex trading platforms including both MT4 and MT5. For more in-depth information on this broker, and a round-up of the lowest forex spreads, benefit from our top 10 brokers with the lowest fixed spread.
Forex brokers with the lowest spreads comparison
There are a lot of forex brokers in the industry with many of these offering low spreads. Here you can find a list of brokers offering tight spreads, but if you’re interested in ECN brokers, visit our round-up of the best ecn brokers.
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
| Broker | Minimum deposit | EUR/USD avg. spread | Fee/lot |
|---|---|---|---|
| Pepperstone | $200 | 0.09 pips | $7 |
| IC Markets | $0 | 0.10 pips | $6 |
| XM | $100 | 0.10 pips | $7 |
| FxPro | $100 | 0.45 pips | $9 |
| FBS | $500 | 0.00 pips | $20 |
| FXTM | $200 | 0.40 pips | $4 |
| FP Markets | $100 | 0.09 pips | $6 |
| Vantage | $200 | 0.50 pips | $4 |
| OctaFX | $100 | 0.50 pips | $10 |
| HotForex | $200 | 0.30 pips | $6 |
Low spread forex brokers FAQs
What are the best low spread forex brokers?
The best low spread forex brokers based on our review process:
- Pepperstone
- IC Markets
- XM
- FxPro
- FBS
- FXTM
- FP Markets
- Vantage
- OctaFX
- HotForex
What is the lowest spread in forex?
The lowest spread in forex is 0 pips, and it’s usually offered by ECN-STP brokers. When spreads are this low the broker also charges a small fee per lot traded, which is usually around $3.
Do brokers have different spreads?
Yes, forex brokers offer different spreads. Even though the minimum spread usually ranges between 0 pips and 1 pip, the average spreads may differ depending on a number of factors, including the broker’s liquidity providers.
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