Best low spread Forex brokers and where to find them

It is known that the largest Forex brokers earn over 100,000 US dollars only through spreads that they charge on trading assets. Forex trading is unimaginable without spreads. The spreads are the main revenue sources for the Forex brokers worldwide while at the same time they represent significant trading costs for the traders. Therefore, most Forex traders will seek the lowest spread Forex brokers to cut on their trading costs. In most cases, those brokers who have the tightest spreads come with commission fees payable to compensate for their main revenue source. It is very rare to come across a commissionless trading opportunity with low spreads on Forex currency pairs.

Since there are over 3500 officially registered and regulated Forex brokerage companies worldwide, the competition among these firms is extremely high. They compete with each other in many ways – some choose to lower minimum deposit requirements, some will offer massive assets portfolios and others will provide tight spreads. If you seek low-budget trading then the last option is what you should look for. Our review will reveal the best Forex trading brokers who offer the lowest spreads on the market but do not compromise the quality of the service at the same time.

The best low spread Forex brokers list

Tight spreads only are not enough to save you money on brokerage services since you might be subject to other fees such as commissions, administrative or hidden fees. Therefore, one should not be deceived by the 0 pip spread banners lighting up the internet. You should carefully examine the fee structure of the broker to understand why and how is it offering such tight spreads. Below is the list of the cheapest Forex brokers with the lowest spreads.

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

1:1000

Year founded

2009

Trading platform

MT4, MT5, WebTrader

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

SAXO Bank

SAXO Bank Forex Review

Minimum deposit

USD 5,000

Regulation

FINMA, FCA, ASIC, FSA, MAS, AFM

Bonus

N/A

Maximum leverage

1:30

Year founded

1992

Trading platform

SaxoTraderGo, SaxoTraderPro

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA

Bonus

N/A

Maximum leverage

1:400

Year founded

2010

Trading platform

MT4, MT5, cTrader, TradingView

FXRoad

Review of FXRoad – Broker with Superior Islamic Accounts

Minimum deposit

250 EUR

Regulation

FSA (Seychelles)

Bonus

None

Maximum leverage

1:200

Year founded

2023

Trading platform

FXRoad web & mobile platforms

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

MT4, MT5, WebTrader

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 understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why spreads matter in Forex trading?

low spread forex brokers indiaSimply put, the spread in Forex is the difference between the buying and selling price of any given currency. The spreads are not exclusive with Forex brokers only, the banks and retail currency exchanges use them actively, as well. However, the main difference is that your bank or retail currency exchange will usually charge much higher spreads than a decent Forex broker.

Let’s explain the example of spreads on the most popular Forex currency pair – EUR/USD. If a certain exchanger purchases one Euro for 1.10 US dollars and sells for 1.15 US dollars, it means that the spread on an applicable currency is 0.05.  If you were to buy 1 lot of the currency with this exchange (1 lot is equal to 100,000 USD) you would immediately lose 5,000 US dollars. However, this usually happens with major exchanges such as banks.

The best Forex brokers with lowest spread have access to major liquidity providers, which allows them to lower the difference significantly compared to banks and retail currency exchanges. For instance, on EUR/USD currency pairs, the best brokers will have a spread of 0.00005 USD which is at least 2000 times less than what you’ll observe with major retailers.

Trade with lowest spreads at XM

What are pips and how are they calculated?

Pip is a percentage in points, some refer to it as a price interest point. It is a standard measuring unit of price movement of Forex currencies. If you were to express the price difference in four decimal places then the last or the fourth decimal point would be a pip. Hence, a pip is mainly equivalent to one-hundredth of a 1 percent or one basis point. However, it has to be noted that not all currency pairs are quoted in dour decimal points. For example, while a low spread Forex broker in India would use 4 decimal places as a general rule on all currency pairs, the Japanese yen (JPY) is the only exception that is quoted with 2 decimal points.

low spread forex brokers canada

How to identify best spreads on Forex pairs

If you are new to Forex trading it might be difficult to understand what is a convenient or tight spread. You may observe that most Forex brokers offer EUR/USD currency pairs for 1 pip or more and it may sound quite cheap for you. However, the absolute best brokers would go even lower and offer spreads of 0.9 or 0.6 pips. So how do you know what is the best spread for a specific currency pair? One of the guaranteed methods of identifying the best offer would be to dig into the lowest spread Forex broker comparison reviews. As you go through the available spread offers of the individual brokers you will eventually come up with the lowest offer available on the market. Another way is to seek special low spread accounts which are often referred to as Zero Spread account types.

Zero Spread Accounts

forex brokers with lowest spread in nigeriaZero Spread accounts are exclusive account types of Forex brokers where the spreads applicable on Forex currency pairs start from 0 pips. It might sound counterintuitive as it seems that the broker is losing its revenue source. However, it has to be noted that these account types come with commission fees almost in every single case. Two best examples of 0 spread Forex broker would be HotForex and FXTM. HotForex offers a Zero Spread account with 0 pips and a commission rate of $0.03 per 1K lot, whereas FXTM offers a 0-spread Advantage account type with an average commission of $0.40 – $2 per lot based on volume.

Get your Zero Spread account with HotForex

While some Forex traders might prefer commissionable Zero spread accounts, others will look for tight spreads and no-commission trading opportunities. For the traders who seek the last option, we recommend the XM Ultra-Low account type which operates commission-free and offers spreads starting as low as 0.6 pips compared to the standard 1 pip market average. To understand the differences between these brokers better, you can read the XM vs HotForex or XM vs FXTM comparison reviews. However, XM is the best low spread no commission Forex broker currently operating in the industry.

FAQs on best low spread Forex brokers

Which broker has the lowest spread in Forex?

The best Zero Spread account types are found with HotForex and FXTM brokers. However, they both charge commission fees for Zero Spread trading accounts. If you are looking for a commission-free low-spread broker then XM is the best choice. XM Ultra-low trading account type offers spreads starting as low as 0.6 pips on most popular Forex currency pairs and the account operates with 0 commissions. Another option is AvaTrade, which is one of the best tight spread Forex brokers in the industry. The broker has a commission-free Standard account with spreads starting at 0.9 pips on Forex assets.

Is there a broker with 0 spread?

Yes. There are 0 spread account types that offer zero spread charge on the major and minor Forex currency pairs. These account types are often referred to as Zero Spread accounts. HotForex and FXTM are two famous brokers offering such accounts. However, you should bear in mind that Zero Spread accounts come with commission fees that would be $0.03 per 1K lot in HotForex’s case and $0.40 – $2 per lot for FXTM users. However, these two companies are still considered as the best low spread brokers in South Africa.

How is Forex spread calculated?

Forex spread is the difference between a buying and a selling price of a given currency. This difference is often measured in pips which represent the fourth decimal point of the price difference between the bid and ask rates. Hence, a Forex pip is the 1/100th of a 1 percent of a price difference provided by the broker. Very low spread Forex brokers might display their spreads in percentages instead of pips, as well.