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Top 10 Best Lowest Spread Forex Brokers 2019
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 2019
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: ASIC, FCA
- Type: STP – Straight Through Processing
- Leverage: 1:500 (professional retail traders only)
- Minimum Deposit: $200
- Headquarter: Australia
- US Customers: No
- Other instruments: indices, cryptocurrencies, soft commodities, energy, and precious metals
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: ASIC
- Type: ECN – Electronic Communication Network
- Leverage: depending on the asset, up to 1:500
- Minimum Deposit: $200
- Headquarter: Australia
- US Customers: No
- Other instruments: CFD’s, ETF’s, stocks, cryptocurrencies, commodities and indices
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: FCA, ASIC, CySEC
- Type: Market Maker
- Leverage: up to 1:500, depending on the jurisdiction
- Minimum Deposit: $5
- Headquarter: London, United Kingdom
- US Customers: No
- Other instruments: CFD’s on shares, futures, indices, 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: DFSA, SCB, FSB, CySEC, FCA
- Type: No Dealing Desk
- Leverage: up to 1:500, depending on asset
- Minimum Deposit: $500
- Headquarter: UK
- US Customers: No
- Other instruments: indices, shares, CFD’s, energies, metals, futures
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. Its spreads reach minimum zero pips, making it for a very attractive environment when it comes to reducing the associated trading costs.
- Regulations: IFSC, CySEC
- Type: hybrid ECB and STP
- Leverage: 1:3000
- Minimum Deposit: $1
- Headquarter: Belize
- US Customers: No
- Other instruments: ETF’s, CFD’s, stocks, cryptocurrencies, commodities
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. Headquartered in Cyprus, it gives access to over two-hundred markets, starting with foreign exchange and ending with cryptocurrencies or ETF’s.
- Regulations: CySEC, FCA, IFSC
- Type: ECN – Electronic Communication Network
- Leverage: 1:1000 (only if the customer doesn’t reside in the E.U)
- Minimum Deposit: $5
- Headquarter: Cyprus
- US Customers: No
- Other instruments: CFD’s, commodities, cryptocurrencies, stocks, ETF’s
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: ASIC
- Type: ECN
- Leverage: 1:500
- Minimum Deposit: $100
- Headquarter: Sydney, Australia
- US Customers: No
- Other instruments: CFD’s on equities, indices, commodities, shares,
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, it offers access to financial products with spreads as tight as 0.1 pips.
- Regulations: ES, MAS, CySEC, FCA, ASIC
- Type: Market Maker
- Leverage: 1:30 in the European Union and U.K, higher in other parts of the world
- Minimum Deposit: $100
- Headquarter: Israel
- US Customers: No
- Other instruments: ETF’s, CFD’s, shares, options, cryptocurrencies, commodities
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: FCA
- Type: ECN – Electronic Communication Network
- Leverage: 1:1000
- Minimum Deposit: $5
- Headquarter: St. Vincent and the Grenadines
- US Customers: No
- Other instruments: CFD’s, indices, commodities, cryptocurrencies
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: CySEC, FSC, FSB
- Type: ECN, STP
- Leverage: 1:1000 (lower if the clients reside in the European Union)
- Minimum Deposit: $50
- Headquarter: Cyprus
- US Customers: No
- Other instruments: indices, commodities, shares, cryptocurrencies, bonds, metals and energies
