Brokers with Low Spreads

What are the Brokers with Lower Spreads?

The spread is the difference between the buy price (bid) and sell price (ask) of a currency pair and is one of the fundamental factors when investing in Forex since it involves the commission for trading in the markets that brokers usually apply.

In the Forex market and transactions with CFDs, it is usually common for the broker to apply these types of commissions instead of a flat rate for each trading order. Getting an online broker that offers the lowest possible spreads is one of the most important objectives for any trader, especially for those who open and close numerous positions in short periods of time, such as those who do day trading or use trading techniques like scalping. In these cases, lower spreads can make the difference between making a trading strategy profitable or not.

In the following table you can find a list of the brokers that offer the lowest spreads:

BrokerRegulationTrading InstrumentsMinimum Spreads (EUR/USD)Minimum DepositBroker Review
XM
CySEC-Forex
-Commodities
-CFD
From 1 pip in Micro and Standard accounts (Average 1.6 pips) and from 0.6 pips in Ultra Low account$5Review
XTB
FCA-Forex
-Commodities
-CFD
From 0.9 pips for Standard accounts. From 0.28 pips for Pro accounts with commission per lot traded.$250Review
FPMarkets
ASIC-Forex
-Commodities
-CFD
-Stocks
From 1 pip in Standard accounts and from 0.0 pips in Raw accounts$200Review
HotForex
CySEC and FSB-Forex
-Commodities
-CFD
From 1 pip in Micro and Premium accounts and from 0.0 pips in Zero Spread accounts$5Review
HYCM
FCA
CySEC
-Forex
-Commodities
-CFD
From 1.8 pips in the Fixed and Classic accounts and from 0.2 pips in the Raw accounts$250Review
Axitrader
ASIC and FCA-Forex
-Commodities
-CFD
From 1 pip in Standard MT4 accounts and from 0.0 pips in MT4 Pro accounts$10Review
RoboForex
http://www.roboforex.com/?a=ufb
CySEC-Forex
-Commodities
-CFD
From 1.3 pips in the Pro-Cent and Pro-Standard accounts and from 0.0 pips in the ECN Pro accounts$10Review
Alpari
--Forex
-Commodities
-CFD
From 0.2 pips in all trading accounts, including their ECN accounts.$10Review
BlackBull Markets
FSRP-Forex
-Commodities
-CFD
From 0.8 pips in your Standard ECN accounts and from 0.0 pips in the ECN Institutional accounts.$200Review
ICMarkets
http://icmarkets.com//?camp=1462
ASIC-Forex
-Commodities
-CFD
From 1.0 pips in Standard accounts and from 0.0 pips in Raw Spread accounts (ECN accounts).$200Review
Pepperstone
ASIC-Forex
-Commodities
-CFD
From 1.0 pips in Standard accounts and from 0.0 pips in Razor accounts$200Review
ForexTime
CySEC
IFSC
-Forex
-Commodities
-CFD
From 1.5 pips in Cent Account, from 1.3 in Standard account and from 0.1 pips in ECN accounts$5Review
ThinkMarkets
ASIC and FCA-Forex
-Commodities
-CFD
From 0.5 pips
From 0.4 pips in Standard Account and from 0.1 pips in Pro Account with commission of $2.50 per lot operated (round trip $ 5).
$200Review
FXPrimus
http://www.fxprimus.com/open-an-account?r=15010
CySEC-Forex
-Commodities
-CFD
From 0.4 pips on average in ECN Premier account (commission of 1 pip per lot).$200Review
FXOpen
FCA
ASIC
-Forex
-Commodities
-CFD
Spreads: From 0.5 pips
From 0.1 pips in ECN trading accounts
$1Review
FBS
CySEC
IFSC
-Forex
-Commodities
-CFD
From 3.0 pips in Micro accounts and from 0.0 pips in ECN accounts.$1Review
Forex4you
--Forex
-Commodities
-CFD
Spreads: From 0.5 pips
From 2.0 pips in Classic accounts and from 0.1 pips in Pro STP accounts.
$10Review

Note: The spreads indicated in the table are indicative and may be outdated or not correspond to the current conditions of each broker.

Until not long ago, lower spreads have gone hand in hand with very high initial deposit requirements, thus, the broker rewarded the most seasoned or professional investors. However, given the appearance of new brokers and the increase in competition between them, the deposits required to access low spreads are becoming smaller;  at present, many brokers do not usually make a special distinction between regular customers and customers who have more capital for trading purposes. While it is true that online brokers often offer their clients various trading accounts to target different investor profiles. The ones that offer the best spreads are still the ones that try to capture higher deposits and traders with more experience. The characteristics and requirements to open each account type are variable and mainly try to segment customers.

Generally, the lowest spreads are usually offered by ECN brokers (Electronic Communication Network), that is, those that offer direct connectivity with the largest liquidity providers worldwide. In this way, these brokers offer access to the lowest spreads available at all times and according to existing market conditions, usually in exchange for a commission per transaction volume. By having the most favorable buy and sell prices (bid and ask quotes) available at all times, naturally, the spreads are usually variable, according to the market situation s and the number of participants at that precise moment ( market liquidity).

On the other hand, there are the Market Maker brokers who usually act as counterparts to their clients’ transactions and usually offer higher spreads than ECNs. However, these spreads are usually fixed. This type of spread can be more advantageous for certain types of traders and investment strategies.

Whatever your preferences (trade with fixed or variable spreads), the important thing is that you investigate and select an online broker that offers low spreads along with transparency and reliability in the management of trader funds. In the table above you can find the ones we consider the best brokers to trade in Forex and you can compare the spreads they offer for the EUR/USD pair and thus find the brokers with lower spreads.