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EditorEditor: Chris CammackUpdated: April 22, 2024

Last Updated On April 22, 2024

Alison Heyerdahl
  • Pepperstone - Best for fast execution
  • Tickmill - Best for experienced traders looking for low commissions
  • HF Markets - Best for beginners looking for trading support
  • XM - Best for beginners seeking trading education
  • FXTM - Best for traders looking for trading ideas and signals
  • Axi - Best for serious beginners looking for advanced technical analysis tools
  • FP Markets - Best for traders looking for advanced tools
  • Vantage - Best for low spreads on TradingView
  • IG - Best for high volume traders

These are the lowest-spread brokers in the UK for 2024.

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Broker
Broker Score
Broker Website
Account Name
EUR/USD Spread
Commission
Trading Cost
Compare
Pepperstone
4.61 /5
Read Review
Visit Broker >
89%74- of retail CFD accounts lose money
cTrader Razor0.17 pips7 EUR / lotUSD 8.70
Tickmill
4.58 /5
Read Review
Visit Broker >
71% of retail CFD accounts lose money
Raw0.10 pipsUSD 1
HF Markets
4.45 /5
Read Review
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72.83% of retail CFD accounts lose money
Zero Spread0.30 pips6 USD / lotUSD 19
XM
4.45 /5
Read Review
Visit Broker >
75.33% of retail CFD accounts lose money
XM Zero Account0.10 pipsSpread OnlyUSD 1
FXTM
4.27 /5
Read Review
Visit Broker >
81% of retail CFD accounts lose money
Advantage0.00 pipsAverage of $0.40 - $2 based on volumeUSD 4
Axitrader
4.44 /5
Read Review
Visit Broker >
75.6% of retail CFD accounts lose money
MT4 Pro Account0.00 pips7 USD / lotUSD 7
FP Markets
4.40 /5
Read Review
Visit Broker >
79% of retail CFD accounts lose money
RAW0.10 pips6 USD / lotUSD 7
Vantage FX
4.35 /5
Read Review
Visit Broker >
of retail CFD accounts lose money
Raw0.00 pips6 USD / lotUSD 6
IG
4.69 /5
Read Review
Visit Broker >
71% of retail CFD accounts lose money
Live Account0.85 pipsSpread OnlyUSD 8.50

How we chose the brokers with the lowest spreads

In this section, we’ll review the criteria we used to choose the best low-spread forex brokers. These are pointers that can help you understand if a specific broker matches your trading style, the risk you are willing to take, and your budget specifications. Trading costs are just one of these factors. This is what we evaluate when comparing low-spread brokers:

  • We considered which UK forex brokers had the lowest spreads and low commissions. Some of these brokers have zero-spread accounts, which can be quite an advantage for both beginner and experienced traders. We’ll go through these advantages further along in this guide.
  • We chose the brokers with the best regulation, i.e., regulated by entities like the UK’s FCA (the Financial Conduct Authority). The FCA is one of the world’s top regulators and has many rules that Forex brokers need to follow to protect traders.  
  • We analysed the trading platforms that each broker offers, including their ease of use, reliability and main features. We ensured that the platforms have good charting tools and real-time data feeds.
  • We evaluated the execution speed for each broker and chose only those with the fastest and most reliable execution. Trades should go through at the expected price. When trades are not filled on time, slippage can occur.
  • We assessed customer service: how knowledgeable they are, how fast they respond, and how you can contact them. Also, their support needs to be available at least 24/5. Brokers who offer 24/7 services via many channels are better rated.
  • We considered any additional fees charged by the brokers. These include deposit and withdrawal fees, inactivity fees, swap fees, and currency conversion fees. No matter how low the spreads are, if your broker charges high additional fees, they could eat into your profit.
  • We only selected transparent brokers with a high trust rating and those with broker scores above 4 out of 5 stars. 

Our Broker Score and Trust Rating

FxScouts’ Broker Score and Trust Rating constantly evolve to reflect the forex market’s dynamics. We ensure transparency by incorporating regulator data and user insights. Our in-depth reviews consider over 200 metrics across seven key categories:

  • Trust Rating: Assessment of broker reliability and reputation
  • Trading Costs: Spreads and fees for clear comparisons
  • Platforms: User-friendliness and features
  • Asset Selection: Forex, stocks, and other available instruments
  • Transactions: Simple and straightforward deposits & withdrawals
  • Education: Support for beginners and developing traders
  • Customer Support: Accessibility, responsiveness, and expertise

Learn how we set the standard for broker reviews. Explore our in-depth review process here.

These are the best lowest spread brokers, as determined by our review process.


Others Also Visit

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AvaTrade
4.59 /5
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Tickmill
4.58 /5
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Spreadex
4.26 /5
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XM
4.45 /5
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Pepperstone
4.61 /5
Read Review
Visit

Pepperstone 

Broker Score
4.614.61 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for fast execution
One of the lowest spread brokers in the world
Fast trade execution on all accounts

Best for:

Traders who rely on scalping and bots for automated trading will like it for its fast execution.

Why do we like it?

We like that Pepperstone keeps costs low with some of the tightest spreads we’ve seen, down to 0.10 pips on the Razor Account.

Drawbacks

The complicated commission structure makes it difficult for traders to keep up with costs. This can be an issue when trading with Pepperstone.

Summary

Pepperstone offers access to the most reliable and popular trading platforms, including MT4, MT5, cTrader, TradingView, and its proprietary platform. It also stands out for its high-quality education and market analysis. With its commitment to transparency, trader education, and excellent customer service, Pepperstone consistently ranks among the best low spread brokers. In addition, Pepperstone does not require a minimum deposit to open a trading account.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts UK Clients. Average spread EUR/USD 1.00 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, CySEC, SCB, CMA, BaFin and the DFSA. 75.6% of traders lose money with this provider.

Tickmill 

Broker Score
4.584.58 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for experienced traders looking for low commissions
Spreads starting from 0 pips
Great trading tools

Best for:

With some of the industry’s lowest-commission trading accounts, Tickmill is a cost-effective choice for traders, though with a limited selection of assets, it’s more suited to those more interested in the currency markets.

Why do we like it?

We like that Tickmill offers one of the industry’s lowest commission accounts, the Raw Account, with a spread of 0 pips (EUR/USD) and a 6 USD (RT) commission. The copy-trading abilities are also great for beginners.

Drawbacks

Tickmill’s instrument availability is not impressive, with just above 200 assets available for trading, lower than many of its competitors. Additionally, unlike Pepperstone, there is a minimum deposit requirement of 100 GBP to open an account.

Summary

Tickmill offers two accounts, both with a minimum deposit of 100 GBP: the Pro Account, with raw spreads, and the Standard account, with a spread of 1.6 pips (EUR/USD). Tickmill offers MT4 and MT5 and provides traders with some of the industry’s top trading tools, including Autochartist, various copy trading services, and a free VPS service. Tickmill has a Zero Fee policy, reimbursing traders for any third-party fees charged up to 100 USD on deposits of over 5,000 USD. The broker also offers swift and free deposits and withdrawals.

Pros
  • Tight spreads
  • Well regulated
  • Fast and free withdrawals
Cons
  • Limited base currencies
AlertAccepts UK Clients. Average spread EUR/USD 0.00 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles. 71% of traders lose money with this provider.

HF Markets 

Broker Score
4.454.45 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for beginners looking for trading support
Low-cost zero account available
Offers a user-friendly proprietary trading app

Best for:

Beginners looking for local customer support and comprehensive and in-depth educational content available in many formats.

Why do we like it?

We like that there are no minimum deposits on the retail accounts. HF Markets’ Zero Account has competitive spreads that start at 0 pips (EUR/USD). Additionally, the HFM App is modern, innovative, and intuitive.

Drawbacks

In order to access Autochartist, traders must have been trading with HF Markets for at least six months, with at least one transaction during that period.

Summary

HF Markets’ Zero account offers spreads from 0 pips and a 3 GBP round trip commission. Its Premium account requires no commission but spreads start at 1.4 pips. The HF Markets Trading App enables smooth trading for busy and casual traders on the move. The broker offers an excellent range of trading tools, including Autochartist, VPS services, and Premium Trader Tools. British traders can rest assured that their funds are segregated at local banks and they will benefit from negative balance protection and the FCA’s compensation scheme.

Pros
  • Well regulated
  • Excellent market analysis
Cons
  • Limited base currencies
AlertAccepts UK Clients. Average spread EUR/USD 0 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA. 69.03% of traders lose money with this provider.

XM

Broker Score
4.454.45 / 5
🏦  Min. DepositGBP 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for beginners seeking trading education
Low trading fees for all traders
Comprehensive education content and webinars

Best for:

Beginner traders looking for low trading fees and those looking for an in-depth and comprehensive education.

Why do we like it?

We like that XM offers some of the lowest fees in the industry together with comprehensive trading education and its trading app. The app is user-friendly and has been designed with the needs of beginners in mind.

Drawbacks

The only drawback is that XM lacks some of the common trading tools available at other brokers such as Autochartist and Trading Central.

Summary

XM has some of the best educational and research resources in the industry and offers a few low-cost, low-spread trading accounts, and all with a minimum deposit requirement of 5 USD. Its Zero Account offers spreads starting from 0, and a commission of 7 GBP round trip. With the Ultra Low Micro Account, you get zero commission, but spreads start at 0.6 pips, which is still very tight. XM provides comprehensive research and educational resources comprised of various sections, including its unique live education, daily Q&A sessions, videos, webinars, and Forex seminars.

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Limited platform choice
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the FSC. 75.33% of traders lose money with this provider.

FXTM

Broker Score
4.274.27 / 5
🏦  Min. DepositGBP 10
🛡️  Regulated By
💵  Trading Cost 
USD 15
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for traders looking for trading ideas and signals
Low spreads on its Advantage Account
Insightful Market Analysis for All Traders

Best for:

FXTM offers great market analysis content and trading signals through the Signal Centre. Traders who focus on analysis and trends will be satisfied with FXTM.

Why do we like it?

FXTM’s Advantage Account has spreads starting at 0 pips on popular majors (EUR/USD, EUR/GBP), with a flat commission rate of 5 USD per lot traded.Users can trade forex, metals, commodities and indices using any live account from the broker.

Drawbacks

Trading costs are higher than average on its commission-free Advantage Plus account, with spreads of 1.5 pips on the EUR/USD. The 500 GBP minimum deposit is also high.

Summary

FXTM provides a wide range of educational resources, including video and written materials, supporting the learning journey of new traders. The only platform available for trading is MT4. Although it is quite popular, some traders might find it to be a bit dated. On the other hand, there are over 1000 assets to trade with FXTM, a large instrument offer. FXTM’s daily market analysis provides an insightful understanding of how news events impact the Forex market, helping traders identify potential trading opportunities. It makes for an ideal starting point for those who use market analysis to back up their trades.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
Cons
  • Expensive withdrawals
AlertAccepts UK Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. MT4 platform supported. FXTM Group regulated by CySEC, FCA, FSCA and FSC. 81% of traders lose money with this provider.

Axi

Broker Score
4.444.44 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for serious beginners looking for advanced technical analysis tools
No minimum deposit for any account
Comprehensive education content

Best for:

Axi offers traders free use of various powerful platform-integrated technical analysis tools. These will help serious beginners make better trading choices. Its educational material is comprehensive, including training through the Axi Academy classes.

Why do we like it?

Axi’s Pro Account offers spreads starting at zero pips, with a round-trip commission of 7 USD, which is average for the industry. The Standard Account has spreads starting from 0.9 pips. There is no minimum deposit, which makes trading with Axi simple and inexpensive.

Drawbacks

A main drawback for Axi is that MT4 is the only trading platform it supports. Additionally, although it offers 70 Forex pairs for trading, their total offer in financial instruments is a bit underwhelming: just over 220 assets are available.

Summary

Apart from having a comprehensive education section, with a series of eBooks about trading, blog posts, video tutorials, and a glossary of trading terms, the Axi Academy is also available as a course. All of these resources are free and available to all traders. New traders can test trading with a complimentary Demo account without any commitment.

Axi’s provision of Autochartist, MyFxBook, and PsyQuation makes it suitable for advanced, analytical traders. These comprehensive tools offer plenty of detail for those who like to plan their trading through market analysis.

Pros
  • Low minimum deposit
  • Tight spreads
  • Innovative trading tools
Cons
  • MT4 only
  • Limited range of assets
AlertAccepts UK Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.

FP Markets

Broker Score
4.404.40 / 5
🏦  Min. DepositGBP 50
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for traders looking for advanced tools
Low-cost trading accounts
Knowledgeable customer service

Best for:

FP Markets is an excellent choice for traders seeking a competitive trading environment with low trading fees and an advanced range of trading tools and platforms. 

Why do we like it?

FP Markets’ intuitive Trading App and consistently high-quality customer service further enhance its appeal. It offers two low-cost accounts and has excellent trading tools, including Autochartist, VPS services and a Trader’s Toolbox.

Drawbacks

FP Markets’ withdrawal fees are quite high compared to its main competitors.

Summary

FP Markets stands out for its Raw Account with a spread that starts at 0 pips (EUR/USD) in exchange for a low commission of 6 USD. Traders can select from various platforms, including MetaTrader 4, MetaTrader 5, cTrader, and TradingView catering to diverse trading preferences.

FP Markets offers prompt and knowledgeable customer service, always ready to address trader queries. 

Pros
  • Trusted since 2005 with top-tier regulation
  • 100 USD minimum deposit amount
  • Supports MT4 MT5 cTrader and TradingView
  • Spreads start at 1.0 pip and narrow to 0 pips with higher trading volumes
  • Welcoming South African traders with specific regulatory compliance
Cons
  • Notably higher withdrawal fees than competitors
  • Stock CFDs are limited on MT4/MT5 and primarily available through IRESS
  • High leverage up to 500:1 posing risks for inexperienced traders
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, and cTrader trading platforms available. FP Markets is regulated by CySEC and ASIC.

Vantage

Broker Score
4.354.35 / 5
🏦  Min. DepositUSD 50
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for low spreads on TradingView
Raw ECN Account Starting at 0 pips
Wide Range of Trading Tools

Best for:
TradingView enthusiasts looking for low commissions. The Pro ECN account has spreads starting at 0 pips (EUR/USD) and the commission per lot is 2 GBP per round trip – one of the lowest in the industry.

Why do we like it?
Vantage supports both the MT4 and MT5 platforms and TradingView. These options are a great advantage for traders looking for the best conditions with a low spread. Vantage has a wide range of accounts with very low trading costs.

Drawbacks

Their conditions are great for traders looking for a bargain. However, the minimum deposit for the Raw ECN account is 500 GBP.

Summary
Vantage offers one of the lowest commissions in the industry—down to 2 GBP round trip, with spreads of 0 pips (EUR/USD) and a 500 GBP minimum deposit. When it comes to trading tools, Vantage offers many useful tools in its suite, such as VPS, economic calendar, Forex sentiment indicators, Market Buzz, and Forex calculators. These conditions are great for savvy traders who want to keep their costs low and safe.

Pros
  • Well regulated
  • Tight spreads
  • Fast and free withdrawals
  • Great platform choice
Cons
  • Limited assets
  • High minimum deposit on Pro Account
AlertAccepts UK Clients. Average spread EUR/USD 0.00 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & Protrader platforms supported. VantageFX is regulated by the FCA, CIMA, VFSC & ASIC.

IG

Broker Score
4.694.69 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for high-volume traders
Low Spread Accounts Available
Wide Range of Financial Instruments to Trade

Best for:

Experienced traders seeking fast execution, low spreads (down to 0.165 pips EUR/USD) and commissions that reduce with increased trading volumes.

Why do we like it?

When it comes to trading fees, the DMA Account has a spread of 0.165 pips (EUR/USD) and a commission of 6 USD round turn. IG also offers a Live Account starting at 0.86 pips with no commission and a spread betting account with a minimum spread of 0.60 pips.

Drawbacks

Traders can only use the L2 Dealer platform when choosing the DMA account option.

Summary

IG has one of the widest range of financial instruments to trade in the industry, with over 17,000 share CFDs and instruments that are hard to find at similar brokers. It should be noted that the spread betting account has a minimum deposit of 250 USD. L2 Dealer, designed by IG as a specialist platform, offers direct market access (DMA) free of charge, however, the traders must maintain a balance of 200 GBP. IG also offers weekend trading on GBP/USD, USD/JPY, and EUR/USD. Spreads, however, are higher over the weekend.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts UK Clients. Average spread EUR/USD 0.85 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

What is the Spread?

When learning to trade Forex, the spread is one of the first concepts you need to grasp. It affects your trading costs, which impacts your profit. The spread is the difference between the broker’s sell rates and buy rates when exchanging or trading a currency.

In other words, the spread is the difference between the bid price (the price at which you can sell) and the ask price (the price at which you can buy). Brokers charge spreads as a fee for enabling the trades.

Spread values can fluctuate a lot. Factors like the currency pair you are trading, the time of day, and the economic conditions that surround that pair can change your spread.

Why are low spreads important?

  • Cost Reduction: Low spreads can help traders to reduce their trading costs. Each time a trade is executed, the trader has to overcome the spread cost to get into a profitable position. The lower the spread, the less the price needs to move in the trader’s favour before they start to make a profit, and the more the price can move against the trader before they start to incur a loss.
  • Higher Frequency Trading: Traders, especially those using high-frequency trading strategies like scalping and day trading, must enter and exit the markets frequently. Lower spreads mean they pay less to execute these trades.
  • Increased Potential Profits: When the spread is lower, the distance to a profitable trade decreases. This can potentially increase a trader’s profitability, especially in volatile markets.

How do brokers with low spreads make money?

In the world of forex trading and other types of investment, brokers typically earn money in one of two ways: through spreads and commissions.

A spread is the difference between the buying price and the selling price of a financial instrument. The spread is essentially the broker’s profit on each trade a trader makes.

On the other hand, a commission is a fee that a broker charges for its services. This is generally a flat fee per trade or a percentage of the total volume of the trade.

Now, let’s consider brokers who offer low spreads. These brokers essentially offer to execute trades at prices very close to the market price. This can be attractive to traders because it reduces their trading costs. However, because these brokers make less money from the spread, they may charge a commission to compensate for the lower profit margins.

The commission can be seen as a fee for the broker’s service of facilitating the trade. For a broker offering low or even zero spreads, the commission may be their primary source of income.

The Advantages and Disadvantages of Trading with Low Spreads

Each broker is unique, but some main features distinguish low-spread Forex brokers. These are the main ones:

Advantages

  • Lower Transaction Costs:  The spread is the difference between the buy price and the sell price for a certain currency pair. The lower it is, the easier it is for traders to profit from a transaction. This results in lower transaction costs for the trader, especially for those engaged in high-frequency trading, such as day traders or scalpers and can increase the net profit from each trade.
  • Transparent Pricing: Low spreads coupled with a commission-based pricing model tend to be more transparent. The broker makes money from the commission, and the spreads are closer to the underlying market prices. This can provide a clearer view of the market conditions and facilitate better trading decisions.

What are the disadvantages of trading with low spreads?

There are, of course, some downsides to low spreads. The most important disadvantages to using low-spread forex brokers are the following:

  • Commissions Can Add Up: If you are a high-frequency trader, commission fees might get expensive as they add up. In these cases, it might be better to go for a higher spread with no commission.
  • Complex Fee Structure: Understanding and calculating costs can be more complex with a low spread and commission model. Traders need to consider both the spread and the commission in their cost analysis, which can be confusing, particularly for novice traders.

Whether a low spread and commission model is advantageous depends largely on the trader’s strategy and trading frequency. Each trader must understand their own trading habits, calculate their potential costs under different pricing models, and choose the broker that offers the most cost-effective solution for their specific needs.

What is the difference between fixed and variable spreads?

Fixed spread brokers offer spreads that do not change, no matter the market conditions, whereas variable spreads could be lower, but fluctuate throughout the trading day. 

In Forex trading, the difference between fixed spreads and variable spreads is quite important when deciding which broker to trade with. Here’s a breakdown of the main differences:

Fixed Spreads:

  • Consistency: Fixed spreads remain the same no matter the market conditions.
  • Predictability: Since these spreads don’t depend on the markets, they are predictable for traders. And predictable often means safer.
  • Market Makers: Fixed spreads are usually offered by market makers, who set both the bid and the ask prices for their clients, taking the opposite side (or the counterparty) of their trades. This means that when the trader wins, the broker loses, and vice versa.
  • Higher Costs During Low Volatility: While fixed spreads provide stability, when there is low market volatility, they may be higher on average. This leads to potentially higher trading costs.

Variable Spreads:

  • Market Conditions: Variable spreads fluctuate based on market conditions, including liquidity and volatility. This means the spread can be very low during times of high liquidity but can widen significantly during major economic announcements or market uncertainty.
  • Lower Costs Potentially: During periods of high liquidity, variable spreads can be lower than fixed spreads, potentially reducing trading costs.
  • ECN/STP Brokers: Variable spreads are often associated with ECN (Electronic Communication Network) or STP (straight-through processing) brokers, who pass the orders directly to liquidity providers without a dealing desk. This means traders are getting real market prices.

The choice between fixed and variable spreads depends on a trader’s strategy, trading style, and risk tolerance. Fixed spreads offer predictability and simplicity, which can be beneficial for beginners or those with straightforward strategies. Variable spreads, on the other hand, can offer lower costs under normal market conditions and are preferred by traders who can manage the risks associated with market volatility.

FAQs

What is considered a low spread at Forex brokers?

In the world of Forex trading, a spread is considered low if it’s close to 0.0 pips. However, what constitutes a ‘low’ spread can depend on the currency pair being traded. For major currency pairs like EUR/USD, a low spread is typically anything under 1 pip. For less liquid currency pairs like the minors or exotics like the USD/ZAR, spreads are usually considerably wider.

What is considered a low commission for a Forex broker account?

Commission rates can vary widely among Forex brokers, but a low commission is typically considered to be around 0.1% – 0.3% of the trade volume. In terms of fixed commissions, which are more common in ECN or STP brokers, anything around $6 – $10 per lot traded (100,000 units of currency) could be considered low.

Do some brokers offer zero-spread accounts? 

Yes, some brokers offer zero-spread accounts. Zero-spread forex brokers offer trading accounts where a currency pair’s bid and ask price are the same. This means there is no difference between the bid price and the ask price of a currency pair. However, it’s essential to note that while the spread is zero, these brokers often compensate by charging a commission on trades or using other fee structures. Therefore, traders must understand the overall cost of trading, not just the spread, before choosing a broker.

Are low-spread accounts suitable for all traders?

While low-spread accounts can save costs for high-volume traders, they might not be as beneficial for less active traders. This is because the commission costs could outweigh the benefits of low spreads for traders who don’t trade frequently.

Which Forex broker has the tightest spread?

The broker with the tightest spread is not constant, as spreads fluctuate based on market conditions and the broker’s policies. However, brokers that consistently offer tight spreads often operate using an Electronic Communication Network (ECN) or Straight Through Processing (STP) model.

Can I trade Forex without a broker?

While it is technically possible to trade forex without a broker, it’s not practical for most individuals. Brokers provide access to the trading platforms and the liquidity necessary to trade efficiently in the forex market.

What’s the difference between a raw spread and a standard account?

A standard account typically includes all trading costs within the spread. This means you won’t pay a separate commission on your trades. On the other hand, a raw spread account usually offers spreads close to zero, with brokers charging a separate commission on each trade. The choice between the two often depends on the trader’s strategy and volume of trades.

Which currency pairs have the lowest spreads?

The most heavily traded pairs, such as the EUR/USD, GBP/USD and USD/JPY, normally have the lowest spreads, while an emerging-market currency paired with the USD, such as the USD/ZAR, will have a wider spread. In other words, the more liquid the market, the narrower the spread. That’s because the high volumes traded generate lots of profit for brokers, even though the profit margins might be narrow. 

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. Forex and CFD transactions involve high risk due to the following factors: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. Regardless of how much research you have done or how confident you are in your trade, there is always a substantial risk of loss. (Learn more about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our overall Forex Rankings report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

 

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