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:
| Broker | Regulation | Trading Instruments | Minimum Spreads (EUR/USD) | Minimum Deposit | Broker 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 | $5 | Review |
XTB | FCA | -Forex -Commodities -CFD | From 0.9 pips for Standard accounts. From 0.28 pips for Pro accounts with commission per lot traded. | $250 | Review |
FPMarkets | ASIC | -Forex -Commodities -CFD -Stocks | From 1 pip in Standard accounts and from 0.0 pips in Raw accounts | $200 | Review |
HF Markets | CySEC and FSB | -Forex -Commodities -CFD | From 1 pip in Micro and Premium accounts and from 0.0 pips in Zero Spread accounts | $5 | Review |
EXNess | FCA CySEC | -Forex -Commodities -CFD | From 0.5 pips in the Classic accounts and from 0.0 pips in the Raw accounts | $1 | Review |
Axi | ASIC and FCA | -Forex -Commodities -CFD | From 1 pip in Standard MT4 accounts and from 0.0 pips in MT4 Pro accounts | $10 | Review |
RoboForex | 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 | $10 | Review |
Alpari | - | -Forex -Commodities -CFD | From 0.2 pips in all trading accounts, including their ECN accounts. | $10 | Review |
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. | $200 | Review |
ICMarkets | ASIC | -Forex -Commodities -CFD | From 1.0 pips in Standard accounts and from 0.0 pips in Raw Spread accounts (ECN accounts). | $200 | Review |
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. | $10 | Review |
JustMarkets | CySEC | -Forex -Commodities -CFD | Spreads: From 0.5 pips From 0.1 pips in ECN trading accounts | $10 | Review |
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 | $5 | Review |
FBS | CySEC IFSC | -Forex -Commodities -CFD | From 3.0 pips in Micro accounts and from 0.0 pips in ECN accounts. | $1 | Review |
Pepperstone | ASIC | -Forex -Commodities -CFD | From 1.0 pips in Standard accounts and from 0.0 pips in Razor accounts | $200 | Review |
FXPrimus | CySEC | -Forex -Commodities -CFD | From 0.4 pips on average in ECN Premier account (commission of 1 pip per lot). | $200 | Review |
FXOpen | FCA ASIC | -Forex -Commodities -CFD | Spreads: From 0.5 pips From 0.1 pips in ECN trading accounts | $1 | Review |
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.