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In the context of forex (foreign exchange) trading, “spread” refers to the difference between the bid and the ask price.

Forex brokers typically make their money through this spread.

Here’s a brief explanation of each term:

  • Bid Price: This is the highest price that a forex trader is willing to pay to buy a certain currency pair.
  • Ask Price: Conversely, this is the lowest price at which a trader is willing to sell a certain currency pair.

The “spread” is measured in pips, which is the smallest price move that a given exchange rate can make based on market convention.

So, if a broker is quoting a bid price of 1.3000 and an ask price of 1.3002 for EUR/USD, the spread would be 2 pips. In this situation, if a trader were to buy at the ask price and then immediately sell at the bid price, they would incur a loss of 2 pips.

Forex brokers offer different spreads based on various factors such as the currency pair being traded, market volatility, and the broker’s policy. Some brokers offer fixed spreads, while others offer variable spreads.

The spread is one of the cost factors a trader should consider when choosing a broker.

A “low spread forex broker” refers to a forex brokerage firm that offers its traders relatively small differences between the bid and ask prices for currency pairs. Low spread is also called “tight spread”. In other words, the broker provides a trading environment where the cost of entering and exiting trades is lower than that offered by other brokers.

The spread is essentially the broker’s fee for executing the trader’s order.

A smaller or tighter spread can save a trader a significant amount of money over time, especially if they are a high-volume trader or a scalper who makes multiple trades in a single day.

For instance, a broker offering a spread of less than 1 pip on the EUR/USD currency pair is considered to provide a low spread. Conversely, a broker offering a 3-pips spread on the same currency pair is providing a higher spread.

It’s also worth noting that some brokers offer different types of accounts with varying spread structures, including accounts with lower spreads but commissions per trade, and accounts with commission-free trading but wider spreads. So the total cost of trading can depend on various factors, not just the nominal spread.

The ‘spread’ is usually the focus of forex brokerage advertising campaigns. One of the most popular tactics has become lowering offered spreads. Nowadays, practically every platform brands itself as a ‘low spread Forex broker.’

That said, the real issue is not finding the lowest-spread Forex brokers but rather finding low-spread brokers that are also reputable. There are tons of scammers out there, and nothing attracts traders, especially inexperienced ones, more than low trading costs.

To ensure you only trade at tried and trusted trading platforms, we have grouped some of the best brokers that offer low spreads.

We have taken the following factors into consideration to compile the ranking:

  • Spreads without mark-ups
  • Low fees per lot
  • The broker’s minimum deposit
  • The overall quality of the broker
  • The trading platforms offered

So, without further ado, let’s see which Forex brokers offer the tightest spreads.

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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.

Low spread FX brokers Avg. EUR/USD spreads Fee per lot (round-turn)
Pepperstone 0.09 pips 7 USD
IC Markets 0.10 pips 6 USD
XM 0.10 pips 7 USD
Fusion Markets 0.09 pips 9 USD
FxPro 0.45 pips 9 USD
FBS 0.50 pips 6 USD
FXTM 0.10 pips 4 USD
FP Markets 0.45 pips 6 USD
Vantage 0.50 pips 6 USD
Axiory 0.30 pips 6 USD

What are the best lowest spread forex brokers?

Although Pepperstone can still be considered a relatively new Forex broker (launched in 2010), the Australian trading platform has become one of the leading forces in the industry, offering some of the lowest spreads on Forex currency pairs and CFDs. More importantly, it’s regulated by several tier-1 regulatory bodies, ensuring it’s not only a cost-efficient broker but also a reputable one.

Why Pepperstone:

  • Pepperstone offers low spreads as low as 0 pips with fees per lot of $4.
  • Low spreads on Pepperstone are offered, especially on the Razor account, which requires a minimum deposit of $200.
  • Traders on Pepperstone can trade Forex on MT4, MT5, and cTrader.
  • Trading costs on Pepperstone can be further limited with the active trader program available for professionals.
  • Pepperstone doesn’t charge any non-trading fees, meaning you don’t have to worry about deposit, withdrawal, or inactivity fees.
74-89% of retail investor accounts lose money when trading CFDs

Another Australian Forex broker on the list, IC Markets, has been around a bit longer than Pepperstone. Established in 2007, IC Markets quickly gained popularity among Forex traders worldwide due to its incredibly low spreads, a wide range of currency pairs, and automated trading tools.

Why IC Markets?

  • IC Markets allows trading Forex pairs with low spreads as low as 0 pips.
  • Low spreads are available on all three account types offered by IC Markets.
  • IC Markets offers its traders MT4, MT5, and cTrader to trade through.
  • Commissions per lot on IC Markets start at $6 on cTrader and $7 on MetaTrader.
74-89% of retail CFD accounts lose money

Since its launch in 2009, XM has established itself as one of the best low-spread Forex brokers in the industry, offering low spreads on Forex currency pairs. Not only that, XM is considered one of the trustworthy platforms for Forex traders, being regulated by multiple top-tier governing bodies.

Why XM?

  • XM’s spreads start at 0 pips on Forex.
  • XM charges an additional $7 commission for each lot.
  • XM requires a minimum deposit of only $5 to begin trading with its Zero Spread accounts.
  • Low spreads on XM are also ensured by excellent order management that makes the percentage of requotes minimal.
77,37% of retail investor accounts lose money

Fusion Market is yet another Australian low-spread Forex broker. It offers multiple markets, is regulated by several top-tier authorization bodies, and has some of the lowest spreads on major currency pairs. Furthermore, Fusion Markets doesn’t charge any deposit or withdrawal fees (with few exceptions). There’s also no inactivity fee, which only further confirms it’s one of the best places for online trading.

Why Fusion Markets?

  • Fusion Markets offers spreads as low as 0 pips on its major currency pairs.
  • Fusion Markets does not charge a mark-up on the spread and charges a fee of $9 per lot.
  • Fusion Markets’ various low-spread accounts require no minimum deposit.
  • The trading platforms offered by Fusion Markets are MT4 and MT5.

FxPro is a highly respected UK broker. Founded in 2006, the platform quickly became one of the most popular places for UK traders, mostly due to its low spreads and multiple top trading platforms available. FxPro has also won over 70 prestigious awards, which only proves its excellence and cements the broker’s spot as one of the best low-spread Forex brokers in the industry.

Why FxPro?

  • At FxPro you can trade Forex with low spreads on cTrader.
  • Spreads on FxPro’s cTrader account start at 0 pips, with fees per lot starting at $9.
  • The minimum deposit is the same for all FxPro account types and starts at $100.
72.87% of retail investor accounts lose money

If you’re looking for a tried and trusted broker with a zero-spread account, FBS might be your top choice. FBS is well-known for its attention to user data security, providing Forex traders with a low-cost trading space.

Why FBS?

  • FBS offers several account types with low spreads, but these are not available in Europe.
  • FBS’s Standard account has spreads starting at 0.5 pips with no additional fees.
  • FBS’s Zero account does not charge spreads but has fees per lot starting at $20.
  • FBS’s ECN account has negative spreads starting at -1 pip, with fees per lot starting at $6.
  • The minimum deposit for a low-spread account with FBS starts at $100 with the standard account. The minimum deposit rises to $500 for the Zero account and to $1000 for the ECN account.
  • The platforms offered by FBS are MT4 and MT5.
74-89% of retail CFD accounts lose money

FXTM, also known as ForexTime, is a well-established Forex broker recognized for its exceptionally low spreads. FXTM is mostly popular among African traders and inexperienced Forex traders, who value it for a wide range of educational materials and research tools they can use for making better trades. That, combined with low spreads and multiple top-tier licenses, makes FXTM a fantastic broker for traders of all experience levels.


  • FXTM offers spreads as low as zero pips and over 45 Forex pairs to trade on.
  • The minimum deposit at FXTM is very low, however, for zero-spread accounts, the minimum deposit is $500.
  • Commissions per lot on FXTM start at $4 on Forex.
  • On FXTM, it is possible to trade on MT4.
81% of retail investor accounts lose money

FP Markets is known for two things – lightning-fast trade execution and extremely low spreads. Indeed, this Australian-based broker has established itself as one of the fastest and most cost-efficient trading platforms in the industry. It’s also licensed by multiple top-tier governing bodies, ensuring that its performance and low trading costs go hand in hand with data security and reliability.

Why FP Markets?

  • FP Markets offers low spreads from 0 pips due to its ECN execution.
  • Trading costs are kept low with a $6 fee per lot.
  • The minimum deposit at FP Markets is $100.
  • FP Markets accounts that offer low spreads are offered with MT4 and MT5.
74-89% of retail CFD accounts lose money

In addition to being one of the Forex brokers with the lowest spreads, Vantage is also considered one of the most secure places for Forex traders. Throughout its still relatively short presence in the Forex brokerage industry, Vantage has already established itself as one of the best brokers around, offering low spreads and fast executions.

Why Vantage?

  • Vantage offers low spreads on all account types.
  • The minimum deposit to trade low spreads on Vantage is $200.
  • Spreads on Vantage start at 0 pips, with fees per lot starting at $6.
  • With Vantage, you can trade Forex on MT4 or MT5.
74-89% of retail CFD accounts lose money

While Axiory offers one of the lowest spreads in the industry, its brokerage services may raise some questions. That’s mainly due to their extremely high leverage offered, restricting Axiory from operating in areas with strict Forex rules, such as the EU, Australia, the UK, and the US. However, if you’re looking for high leverage on your low-spread Forex trades, you likely won’t find a better broker than Axiory.

Why Axiory?

  • At Axiory, you can trade Forex with low spreads on two trading accounts.
  • Axiory’s Nano account allows you to trade low spreads on MT4 and cTrader, while the Tera account offers MT5.
  • Both of Axiory’s accounts offer spreads as low as 0 pips with fees per lot from $6.
  • Axiory’s minimum deposit is $10.
(Your capital is at risk)

What is considered Low Spread in Forex?

A low Forex spread is usually considered to be any value below 1 pip, considering that the Forex market’s average spread is between 1 and 3 pips on major Forex pairs.

Nowadays, the best low-spread Forex brokers offer extremely tight spreads, with the lowest spread available on Forex starting from 0 pips.

Not all of these zero-spread brokers are reliable, though, so it’s essential to always do your research when looking for the supposedly cheapest Forex brokers, especially if they market themselves as such.

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?

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 0 pips spread, what they are actually 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, any reasonable Forex trader should also be able to estimate how much the spread will cost overall. Additionally, 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 the “per-side, per lot” commission.

In other cases, with some brokers, you may see commission written as “round turn.” In such instances, a round-turn commission of $7 means $3.50 on the 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 trading strategy 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 the 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.

FXTM is a popular choice for its 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.

What Is the Best Zero-Pip Spread Broker?

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.

What Is the Forex Broker With the Lowest Fixed Spread?

With fixed spreads, you won’t have to worry about the market volatility of liquidity in order to find the best spreads to send a buy/sell order to the broker. Spreads, in fact, tend to widen depending on a number of factors when using floating spreads brokers.

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 offers 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.

Comparison of Forex Brokers with the Lowest Spreads

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.


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 per 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 $25 0.50 pips $10
HotForex $200 0.30 pips $6

filippo ucchino

About The Author

Filippo Ucchino
Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of 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.

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