Top 10 Best Lowest Spread Forex Brokers 2020
Are you looking for the lowest spread Forex Brokers to find a cheap trading solution?
You’re in the right place.
We have collected for you the 10 major Forex Brokers with low spreads, with different features and functionality so you can choose the one that best suits your needs.
Forex Broker and Tight Spread
In the world of online trading, the main focus for the retail trader is to have a profitable strategy. However, the profit doesn’t refer to the outcome of a trade only. Instead, it must consider the adjacent transaction costs.
Things like broker spreads, commissions, deposit and withdrawal fees, but also the taxes to pay, they all affect the net result. As minimizing costs is a “modus operandi” for all businesses, finding the best lowest spread Forex broker is essential for the retail trader.
Before anything, let’s define what the spread is. Simply put, it is the difference between the bid and ask prices.
When trading the currency market, traders can’t just buy or sell a currency. Instead, they buy or sell a currency pair.
The broker offers a quotation for both sides of the market: the bid price corresponds to the short side (selling) and the ask price for the long side (buying). In other words, if a trader wants to short a currency pair, it can only do that from the bid price.
However, to book the profit, or to square the position, the trader must close it from the ask price. The difference between the bid and ask, or the entry and exit prices, is called a spread.
Different brokers have different spreads. They vary based on the type of the account, the market activity, and the moment of time during the trading day. For instance, the spreads tend to widen during the daily rollover. It is typical that during that moment of time, the liquidity pool is scarce, and brokers don’t have much to offer to traders interested in opening or closing a position.
In this article, we aim at listing the best Forex broker with the lowest spread to choose from.
Check them out!
(This post is part of the best forex brokers series)
Top 10 of the Best Forex Brokers with Low Spread 2020
Here’s our ranking:
1. Pepperstone
An Australian broker, Pepperstone offers sophisticated trading solutions for veteran traders but also targets the less experienced ones. It offers various account types to suit every trading style and tops the list for the best Forex broker/lowest spread ratio. During high liquidity times, as it is often the case, the Pepperstone spread drops to zero, while the average spread offered is 0.16 pips.
- Regulations: Pepperstone Limited authorised & regulated by the FCA (684312); Pepperstone Group Limited registered with ASIC (414530). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: ECN, Market Maker
- Leverage: 500:1 ASIC; 30:1 FCA
- Minimum Deposit: $ 200
- Platforms: MT4 (desktop, iPhone/iPad, Android), MT5 (desktop), cTrader (web platform, cAlgo, cTrader mobile)
- Headquarters: Pepperstone Group Limited is headquartered in Melbourne, Australia
- US Customers: No
- Other instruments: CFDs on indices, commodities, cryptocurrency
2. IC Markets
Another Australian broker, IC Markets offers access to over two hundred and thirty tradeable instruments, with no spreads whatsoever during certain market times. With an average spread of 0.1 pips, it is no wonder that IC Markets makes the list when it comes to best Forex broker/lowest spreads ratio.
- Regulations: International Capital Markets Pty Ltd. licensed by ASIC (AFSL no. 335692). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: Market Maker, ECN, STP
- Leverage: 1:500
- Minimum Deposit: $ 200
- Platforms: MT4, MT5, MT WebTrader, MT iPhone/iPad, MT Android, MT Mac, cTrader, cTrader Web, cTrader Android, cTrader iPhone/iPad, cTrader cAlgo
- Headquarters: International Capital Markets Pty Ltd. is headquartered in Sydney, Australia
- US Customers: No
- Other instruments: CFDs on indices, commodities, stocks, futures, bonds, cryptocurrency
3. XM
With spreads as low as zero pips, plus over a thousand financial instruments offered for trading, XM runs a huge brokerage business. The average spread of 0.1 makes it one of the most competitive brokerage houses to compete for the best Forex broker/low spread award.
- Regulations: Trading Point of Financial Instruments Pty Limited licensed by ASIC (443670); Trading Point of Financial Instruments UK Limited authorised & regulated by the FCA (705428); Trading Point Of Financial Instruments Ltd regulated by CySEC (120/10). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: Market Maker
- Leverage: 1:500
- Minimum Deposit: $ 5
- Platforms: MT4 (PC, Mac, web platform, iPad/iPhone, Android/Android tablet), MT5 (PC, Mac, web platform, iPad/iPhone, Android/Android tablet)
- Headquarters: Trading Point Of Financial Instruments Ltd is headquartered in Limassol, Cyprus
- US Customers: No
- Other instruments: CFDs on indices, commodities, stocks, metals, and energies
4. FxPro
From the United Kingdom, FxPro has the reputation of executing over two hundred and fifty 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.
- Regulations: FxPro UK Limited authorised & regulated by the FCA (509956); FxPro Global Markets MENA Limited authorised & regulated by the DFSA (F003333); FxPro Financial Services Ltd authorised & regulated by CySEC (078/07) and the FSCA (45052); FxPro Global Markets Ltd authorised & regulated by the SCB (SIA-F184). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: Agency
- Leverage: 1:500
- Minimum Deposit: $100, however, clients under the DFSA will need to deposit $500
- Platforms: MT4, MT5, cTrader, FxPro Edge (web platform)
- Headquarters: FxPro Group Limited is headquartered in Limassol, Cyprus
- US Customers: No
- Other instruments: CFDs on futures, indices, shares, metals, energies; spread betting
5. FBS.com
With over nine million traders choosing FBS for their online operations, it is no wonder this brokerage house is present all over the world. FBS‘ spreads reach minimum zero pips, making it for a very attractive environment when it comes to reducing the associated trading costs.
- Regulations: Tradestone Limited authorized & regulated by the by CySEC (331/17); FBS Markets Inc. regulated by IFSC (IFSC/60/230/TS/18). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: Market Maker, ECN
- Leverage: 1:3000
- Minimum Deposit: $ 1
- Platforms: MT4 (for Windows, iOS, Android and/or webtrader)
- Headquarters: FBS Markets Inc. is headquartered in Belmopan, Belize
- US Customers: No
- Other instruments: Futures; CFDs on precious metals, oil, cryptocurrency
6. FXTM
With a great choice of account types and multiple regulatory bodies under its umbrella, FXTM is a terrific brokerage house with low spreads starting with 0.1 pips. FXTM is headquartered in Cyprus, it gives access to over two-hundred markets, starting with foreign exchange and ending with cryptocurrencies or ETF’s.
- Regulations: ForexTime Limited regulated by CySEC (185/12), licensed by the FSCA (FSP No. 46614), and registered by the FCA (600475); ForexTime UK Limited authorised & regulated by the FCA (777911); FT Global Limited regulated by the IFSC (license numbers IFSC/60/345/TS and IFSC/60/345/APM). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: Market Maker
- Leverage: 1:1000
- Minimum Deposit: $ 5, £5, € 5
- Platforms: MT4 (PC, Mac, iOS, Android, multi terminal, web platform), MT5 (PC, Mac, iOS, Android, web platform), MyFXTM (Android, iOS)
- Headquarters: ForexTime Limited is headquartered in Limassol, Cyprus
- US Customers: No
- Other instruments: CFDs on shares, commodities, indices; spot metals
7. FP Markets
A true ECN Forex broker with competitive spreads starting with zero pips and averaging 0.45 pips, FPMARKETS the best lowest spread Forex broker classification. Regulated by ASIC, this Australian regulated broker claims to offer the ultimate trading experience to its customers.
- Regulations: First Prudential Markets Pty Ltd licensed by ASIC (286354). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: STP, ECN, Market Maker
- Leverage: 1:500
- Minimum Deposit: $ 100 AUD, $ 100 USD or €100
- Platforms: IRESS, MT4
- Headquarters: First Prudential Markets Pty Ltd is headquartered in Sydney, Australia
- US Customers: No
- Other instruments: CFDs on equities, futures, commodities, indices, Bitcoin
8. Plus500
Listed on the London Stock Exchange, Plus500 runs a huge online trading business, offering staggering trading conditions. Regulated by various entities around the world, Plus500 offers access to financial products with spreads as tight as 0.1 pips.
- Regulations: Plus500UK Ltd authorised & regulated by the FCA (509909); Plus500CY Ltd authorised & regulated by CySEC (250/14); Plus500SG Pte Ltd licensed by the MAS (CMS100648-1) and IE Singapore (PLUS/CBL/2018); Plus500AU Pty Ltd licensed by ASIC (417727), the FMA (486026), and authorised by the South African FSP (47546). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: Market Maker
- Leverage: 1:30
- Minimum Deposit: € 100
- Platforms: Web platform, desktop (windows), mobile apps (iPhone/iPad, Android, Windows phone)
- Headquarters: Plus500 Ltd. is headquartered in Haifa, Israel
- US Customers: No
- Other instruments: CFDs on indices, stocks, cryptocurrencies, commodities, options, ETFs
9. OctaFX
With a mission to minimize the costs to optimize the clients’ profits, OCTAFX offers spreads ranging from minimum 0.4 pips all the way to averaging 0.45. A multi-awarded brokerage house, OCTAFX’s mission is to bring Forex trading accessibility to everyone.
- Regulations: Octa Markets Incorporated is regulated by the FSA. (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: ECN, STP
- Leverage: 1:500
- Minimum Deposit: $ 5
- Platforms: MT4 (web platform, desktop, Android, iOS), MT5 (web platform, desktop, Android, iOS), cTrader (desktop, Android, iOS)
- Headquarters: Octa Markets Incorporated is headquartered in Kingstown, St. Vincent and the Grenadines
- US Customers: No
- Other instruments: CFDs on indices, commodities, cryptocurrency
10. HotForex
A proud sponsor of Porsche Carrera Cup and offering no less than six trading platforms, HotForex spreads start from 0.7 pips and rising. A multi-asset broker with a 24/5 customer support, HotForex even offers zero spreds accounts for clients that meet specific requirements.
- Regulations: HF Markets (Europe) Ltd regulated by CySEC (183/12); HF Markets (UK) Ltd authorised ®ulated by the FCA (801701); HF Markets (DIFC) Ltd authorised & regulated by the DFSA (F004885); HF Markets SA (PTY) Ltd authorized & regulated by the FSCA (46632); HF Markets (Seychelles) Ltd regulated by the FSA (SD015). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
- Type: Market Maker
- Leverage: 1:1000
- Minimum Deposit: $ 5
- Platforms: HF Markets MT4 Terminal, HF Markets Multiterminal, MetaTrader 4 Webterminal, HF Markets iPhone Trader, HF Markets iPad Trader, HF Markets Android
- Headquarters: HF Markets Ltd is headquartered in Cyber City, Mauritius
- US Customers: No
- Other instruments: CFDs on spot metals, energies, commodities, indices, bonds, shares, cryptocurrency
