Choosing low-spread forex trading is important, especially for scalping forex traders. The lowest spread forex brokers are getting extremely popular since this trading technique allows several open deals in a day. Commissions can even go up to 100 pips. Some traders opt for this approach to cut costs on forex operations.
Since there are low spreads, financial losses are expected to decrease, which favors the basic principle – to secure profit and gain personal funds. Still undecided which broker to choose, this article makes things handy for you. See some of the best lowest spread forex brokers below.
In This Guide
FCA, ASIC, CIMA, SIBL
up to 50% bonus
ASIC, CBI, BVI, FSCA, IIROC, FFAJ, JFSA, ADGM FRSA
up to 40% bonus
$10 000 demo
Pepperstone is one of the top brokers with no commissions and has the tightest spreads. The standard account provides spreads of as low as 0.6 pips for a USD/EUR pair and requires no commission trading charges. This broker is considered to be a reliable and safe forex trading platform, which is trusted by several clients worldwide.
It has fast execution speeds through the famous MetaTrader 4 and 5 and cTrader platforms. It has various account types to address every trading style and leads the list for the best broker with the lowest spread ratio. In some cases, especially during high liquidity situations, the broker spread can drop to zero, having an average spread of 0.09 pips.
This is another Australian broker which provides access to more than 230 tradable instruments, all with no spreads during particular market times. IC Markets makes it to the list of best forex brokers with a low spread ratio, having an average spread of 0.1 pip. The great spreads combined with a fast ECN execution make IC Markets the top forex broker, especially for scalpers.
Regardless of whether you are new to trading or a veteran in the industry, you can count on IC Markets to bring transparency and trustworthiness while providing access without having to require a minimum deposit from its clients.
This low-spread forex company is famous for maintaining trading costs and other charges as low as possible while maintaining a very accessible and efficient operation. Fusion Markets have regulations in place from both the ASIC in Australia and VFSC in Vanuatu.
Compared to other providers, Fusion Markets have been in the industry for a short time. However, they have quickly become a forex broker choice for most traders. You can find a spread starting from 0 pips when trading forex using a broker and an average of 0.09 pips on USD/EUR trading. It also has one of the lowest commissions of $4.50 for each round turn to trade, depending on your account type.
This forex broker from the United Kingdom holds the reputation for executing more than 250 million dollars so far. It has spreads that can go as low as zero pips on certain pairs, with an average of 045 pips. Besides its reputation for maintaining trading costs at a very low margin, FXPro is one of the most awarded and respected forex brokers in the trading industry.
They operate as a top NDD broker and are very famous with any trader type. To specifically put it, FXPro adopts the straight-through technology or STP in trade execution. The adopted technology led to zero requotes on 99.32% of the trades. It also led to fast execution speeds, with several orders processed in 11.06 milliseconds.
OctaFX’s mission is to lessen costs and, at the same time, optimize traders’ profits. It provides spread ranges from a minimum of 0.4 pips to an average of 0.45 pips. It’s a multi-awarded low spread forex broker that brings accessibility to both new and veteran traders. OctaFX may be famous to Asian traders, but they cater to all traders and markets globally and maintain a significant client following. One feature that attracts traders to this broker is the low minimum deposit of $100 and the wide range of 28 forex currency pairs. Traders will also choose variable or fixed spreads, which is something not provided by most forex brokers.
While the lowest spread forex brokers will always be beneficial to traders, it is still essential for you to understand and read the fine print on what to look for when choosing ecn forex brokers with lowest spread. In some rare cases, there can be zero spread offerings, which can also be marketing gimmicks to lure traders.
The spread means the mark-up commission given by forex brokers to a forex pair. If you have been in the trading industry for a long time, you know that the average spread lies between one and three pips on the most significant forex pairs. A low forex spread lies below the mentioned average.
The word ‘spread’ in forex is now very common. It is a crucial figure to determine trading costs. The spread is defined as the difference between the sell/bid price of an asset. You can encounter spreads in pips or Percentage In Points.
One pip means a one-point movement in the market value based on the fourth decimal place of a specific currency pair. See the example below:
The spread is a commission from a broker, so having a lower spread is always beneficial for traders. Low spreads can also be necessary when you wish to employ trading techniques like scalping. You just need to study the broker offering thoroughly to avoid any unnecessary commission types in place of spreads.
Remember that the closer the spread is to zero, the better. Better choose those that usually have an average spread of below one pip.
No, forex trading is done within a brokerage account that provides you with a particular leverage degree, together with access to trading platforms and a selection of currency pairs.