Picking a Low Spread Forex Broker or Zero Spread Account is essential, especially for Forex trading and scalping. Paying less can significantly cut trading costs in the long run, especially if you are an active trader. But there are tons of low-spread Forex brokers out there, and not all of them are trustworthy.
Indeed, many of the so-called zero-spread accounts offered by Forex brokers are nothing more than a cheap marketing trick to lure new traders. To find the right traders, you need to know how to read between the lines. More importantly, you need to get testing. And who has time and patience for that?
Fortunately, you don't have to do that. I've done all the heavy lifting for you, and having tested all of the supposedly best low-spread Forex brokers in the industry, I've come up with the following list.
Overview of the Best Low-Spread Forex Brokers in 2023
Based on my research, here are the best low-spread brokers and zero-spread Forex brokers to trade at this year.
- Pepperstone – Lowest Spread Forex Broker Overall
- FP Markets – Ultra-competitive Low Spreads Broker
- AvaTrade – Fixed Low Spreads Forex Broker
- IC Markets – Raw Spreads Account Forex Broker from 0.0 Pips
- Forex.com – Best Execution Low Spread Forex Broker
- FXTM – High Leverage Tight Spreads Broker
- eToro – Great Copy Trading Lowest Spread Forex Broker
- IG – No Commission Broker with Low Spreads
- FxPro – 0 Spread Forex Broker
- Fusion Markets – Low Commission Forex Broker
My Top 3 Picks
Runner up
PFI Rating 4.9
Best Overall
PFI Rating 4.9
Third Place
PFI Rating 4.8
A Detailed List of the 7 Best Low-Spread Forex Brokers
PFI Rating: 4.9/5
Pepperstone – Lowest Spread Accounts and Best Overall
All things combined, Pepperstone is our PFI winner as the best broker with the tightest Forex Spreads and no commissions. Their Standard Account offers low average spreads from 0.6 pips for the EUR/USD pair and no commission trading fees. Their Razor account offers spreads from 0.0 – 0.3 pips + EUR 5,23 round turn per 100k traded.
Pepperstone has low trading fees and low costs overall compared to other brokers charging higher spreads.
76.6% of retail investor accounts lose money when trading CFDs with this provider
PFI Rating: 4.9/5
FP Markets
First Prudential (FP) Markets is another excellent choice for low spread and high leverage. They are a well-regulated and trustworthy zero-spread forex broker. They offer consistently low spreads starting at 0 pips and averaging around 0.45 pips. It offers access to a range of third-party platforms for you to choose from and an impressive selection of educational content.
On the downside, FP Markets isn’t available to US citizens.
On FP Markets Official Website
FP Markets Quick Facts
Founded in 2005, FP Markets is one of the Forex market veterans. The experienced broker has gained quite a reputation throughout the years and remains one of the most renowned Forex trading platforms in the industry.
Where FP Markets excels is its customer service. Generally speaking, their approach to user experience and client satisfaction is one of the best I’ve ever experienced from a broker. Besides that, FP Markets ensures fast trade execution, an extensive selection of trading markets, and, most importantly here, extremely low spreads.
FP Markets Accounts & Fees
FP Markets offers its users two types of accounts – Raw and Iress. The Raw trading account is compatible with MT4 and MT5 trading platforms and offers spreads as low as 0.0 pips. However, there’s a commission of 3.00 AUD per transaction and a minimum of 100 AUD.
The Iress trading account is tiered as Standard, Platinum, and Premier. Standard and Platinum come with minimum commission fees, respectively 10 and 9 AUD. The premier account has no minimum commission fees, but it requires a much higher minimum deposit of 50,000 AUD.
Pros and Cons
| Pros | Cons |
|---|---|
| Spreads starting at 0 pips | Not available in the US |
| Wide selection of platforms | |
| Numerous educational resources | |
| Fast order execution |
PFI Rating: 4.9/5
AvaTrade
AvaTrade is an excellent low spread broker for active traders. They offer competitive fixed spreads of 0.9 pips with no commissions. The minimum deposit is $100 to open an account with AvaTrade. They offer access to their proprietary platforms and both MT4 and MT5. On the downside, they charge above-average inactivity fees.
The Australian Securities and Investments Commission (ASIC), the Financial Sector Conduct Authority (FSCA), FCA, and CySEC regulate AvaTrade.
76% of retail investor accounts lose money when trading CFDs with this provider.
AvaTrade Quick Facts
AvaTrade was founded in 2006, which makes it one of the older Forex and CFD brokers on this list. Where AvaTrade shines is its selection of available financial instruments, including commodities, bonds, cryptocurrencies, stocks, and stock indexes.
Another thing I love about AvaTrade is its excellent research tools, which make Forex trading an absolute breeze, even for less experienced traders. On top of that, the broker offers very competitive rates, user-friendly apps, and 100% free deposits and withdrawals.
AvaTrade Accounts & Fees
AvaTrade users can set either a standard, corporate or professional account. The first and the last are dedicated to individual traders, with a professional account being reserved for more experienced traders with documented prior investment experience.
As for the trading fees and spreads, these are very competitive. An average spread is 0.5 pips, which is about the industry standard. The fees are also low, although their exact amount depends on the financial instrument. The downside is that AvaTrade also charges an inactivity fee.
Pros and Cons
| Pros | Cons |
|---|---|
| Highly competitive rates of 0.9 pips | Inactivity fees |
| Wide range of currency pairs | |
| Easy account opening process | |
| Free deposits and withdrawals | |
| Great research tools |
PFI Rating: 4.8/5
IC Markets
With an average spread of 0.1 pips, IC Markets has one of the best spreads on this list. IC Markets fast order execution makes it a top choice for scalpers and algorithmic traders. IC Markets has no deposit or withdrawal commission fees. Plus, customers can access powerful platforms, including cTrader, and MetaTrader. IC Markets' Raw Spread Account features zero spreads + commissions.
A downside is that there is a high minimum deposit required to open an account.
74-89% of retail investor accounts lose money
IC Markets Quick Facts
Although IC Markets isn’t my personal favourite, it’s still one of the best Forex brokers around. I recommend it mostly to Forex traders who tend to rely on algorithms to make their trades. The broker offers an extensive selection of research tools and advanced features, making this platform one of the most powerful in the industry.
Other than that, IC Markets offers very competitive pricing and fast order execution. And while their selection of available markets isn’t overly comprehensive, it was more than enough to keep me engaged. The one thing that throws many traders away is the high minimum deposit amount.
IC Markets Accounts & Fees
IC Markets traders can take advantage of three trading accounts- Raw Spread (cTrader), Raw Spread, and Standard. The first two offer 0.0 spreads but come with commission fees, respectively 3 AUD and 3.5 AUD, whereas the Standard Account offers no commission fees but spreads start from 1.0 pips.
Pros and Cons
| Pros | Cons |
|---|---|
| Average spreads of 0.1 pips | High Minimum account deposit |
| Fast order execution speed | |
| No withdrawal or deposit fees | |
| Powerful platform |
PFI Rating: 4.8/5
Forex.com
Forex.com is one of the top-rated brokers in the US. This is another safe and reliable choice. Forex.com gives you access to 80 currency pairs. Although spreads are low, there is a flat commission rate of $5 per standard lot. It offers three premium platforms as well as the popular MT4 platform.
A downside is that passive traders will face inactivity fees. There is also a long waiting period for account verification.
On Forex.com Official Website
Forex.com Quick Facts
If you’re looking for an online brokerage platform that specialises in currency trading, Forex.com should be your top choice. Launched all the way back in 2001, Forex.com is one of the most renowned Forex brokers in the Forex industry, coming with all the major currency pairs, competitive prices, and very low fees and spreads.
Forex.com Accounts & Fees
Spread-wise, Forex.com is one of the cheapest Forex brokers on the market, with spreads going as low as 0.1 pips. However, considering that there’s a flat commission rate of 5 AUD per standard lot and non-trading fees, such as an inactivity fee, there are more cost-efficient options available. Also, while there’s only one account type, the application and verification process is relatively long and complex compared to some other brokers.
Pros and Cons
| Pros | Cons |
|---|---|
| Top-rated broker | Inactivity fees |
| Low fees | Long account verification waiting period |
| Diverse research tools | |
| Great range of currency pairs | |
| Access to premium educational resources |
PFI Rating: 4.8/5
FXTM
ForexTime (FXTM) is another reliable choice for experienced and beginner traders. FXTM offers traders spreads starting at 0.1 pips with a great selection of account types.
FXTM gives clients access to over 200 markets which include 48 currency pairs. It stands out for its excellent customer service and educational tools.
On the negative side, FXTM charges high CFD fees. There are also inactivity fees and withdrawal fees.
On FXTM Official Website
FXTM Quick Facts
Founded in 2011, FXTM has established itself as one of the best Forex and CFD brokers, especially when it comes to user experience and customer support. Its trading platforms are incredibly straightforward to use, the registration process is fast, and I was able to contact its customer service almost instantly. Furthermore, FXTM is a great online broker for beginners due to its extensive number of educational and research tools.
FXTM Accounts & Fees
Although FXTM isn’t the cheapest Forex broker, with spreads beginning from 0.1 pips and low commission rates, it lands somewhere below the industry average. Opening an account is also a blast, especially if you opt for the Micro Account with a minimum deposit of only 50 AUD. The Advantage Plus Account requires a minimum deposit of 500 AUD, but it comes with more advanced features and lucrative trading conditions for more experienced Forex traders. Its non-trading fees, withdrawal, and inactivity fees are relatively high, though.
Pros and Cons
| Pros | Cons |
|---|---|
| Spreads from 0.1 pips | High CFD fees |
| Responsive customer service | Inactivity and withdrawal fees |
| Extensive educational tools | |
| Fast account opening process |
Lowest Spread Forex Brokers Comparison
Below is a comparison of low spread forex brokers based on general information such as foundation year, regulation, offering of investments, and more.
| Trading Platform | Pepperstone | FP Markets | AvaTrade | IC Markets | Forex.com | FXTM | eToro |
|---|---|---|---|---|---|---|---|
| Founded | 2010 | 2005 | 2006 | 2007 | 2001 | 2011 | 2007 |
| Regulation | ASIC, CySEC, FCA, SCB, DFSA, BaFin, CMA | ASIC, CySEC | FCA, ASIC, FSCA, FRSA, Israel Securities Authority, Financial Services Agency, Financial Futures Association of Japan | ASIC, CySEC, FSA, SCB | CFTC | FCA, CySEC, FSCA, MiFID, FSA, BaFin, AMF, FCMC, AFM | FCA, CySEC, ASIC, FSAS |
| Offering Of Investments | CFDs on Forex, Crypto, Shares, Indices, Crypto | Forex, Shares, Metals, Commodities, Indices, Cryptocurrency, Bonds, ETFs | Forex, Stocks, Commodities, FXOptions, Cryptocurrencies, Indices, ETFs, Bonds | CDFs on Forex, Commodities, Indices, Bonds, Cryptocurrency, Stocks, Futures | Forex, Shares, Commodities, Cryptocurrencies, Gold and Silver, Indices | Forex, Indices, Forex Indices, Commodities, Metals, Stocks | Stocks, ETFs, Forex, Crypto, Indices, Commodities |
| Minimum Deposit | $0 | $100 | $100 | $200 | $100 | $50 | $50 - $100 |
| Demo Account | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Withdrawal Fee | $5 | $0 | $0 | $0 | $25 in the US, and $40 for international | $3 for Credit Cards, $20 - $40 bank transfer, $0 for Skrill / Neteller | $5 |
| Inactivity Fee | $0 | $0 | $50/month After 3 Months | $0 | $15/month after 12 months | $5/month after 6 months | $10/month |
| Deposit Methods | Credit/debit cards, Bank/Wire Transfer, PayPal, Neteller, Skrill, UnionPay | Credit Cards. Debit Cards, Bank Transfer, Ngan Luong, FasaPay, Online Pay, Broker to Broker, Neteller, Skrill, PayTrust, PayPal, Bpay, Poli | Credit and Debit Cards, Wire Transfer, e-payments | Credit Cards, Debit Cards, PayPayl, Neteller, Skrill, UnionPay, Wire Transfer, Bpay, Fasapay, Broker to Broker, Poli, Thai Internet banking, Klarna, Rapidpay, Vietnames Internet Banking | Credit Cards, Debit Cards, Wire Transfer | Credit Cards, Debit Cards, e-Wallets, Bank Wire, Local Payment Solutions | PayPal, Skrill, Neteller, Credit Card, Debit Card, Rapid Transfer, iDEAL, Klarna / Sofort Banking, Bank Transfer, Online Banking - Trustly, POLi |
Fees Compared
While it is hard to compare fees as spreads vary, we compared fees below to give you a basic understanding. When comparing fees, you should look for all fees combined, not just the spreads.
| Trading Fee | Pepperstone | FP Markets | AvaTrade | IC Markets | Forex.com | FXTM |
|---|---|---|---|---|---|---|
| EURUSD | Minimum from 0.0 and 0.17 average spread (Razor Account) Minimum from 0.6 and 0.77 average spread (Standard Account) | from 0.0 - 1.3 (average 0.2 pips) | Spread: 0.9 | Raw Spread account: 0.0 pips spread and $3.5 (per lot per side) commission Standard Account: 0.6 pips spread and $0.0 (per lot per side) commission | average 1.15 | Commissions +Minimum 1.6 pips - Typical 1.9 (Standard Account) Minimum 1.9 pips - Typical 1.9 (Micro Account)Minimum 0 pips - Typical 0 (AdvantageAccount) |
| GBPUSD | Minimum from 0.0 and 0.59 average spread (Razor Account) Minimum from 0.6 and 1.19 average spread (Standard Account) | from 0.0 - 1.8 (average 0.7 pips) | Spread: 1.5 | Raw Spread account: 0.0 pips spread and $3.5 (per lot per side) commission Standard Account: 0.6 pips spread and $0.0 (per lot per side) commission | average 1.7 | Commissions+Minimum 1.8 pips - Typical 2 (Standard Account)Minimum 2.2 pips - Typical 2 (Micro Account)Minimum 0.1 pips - Typical 0.2 (AdvantageAccount) |
| Apple Fees | 0 + market spread | Spread | 0.13% | Spread | N/A | Spread + Commission |
| Tesla Fees | 0 + market spread | Spread | 0.13% | Spread | N/A | Spread + Commission |
| Amazon Fees | 0 + market spread | Spread | 0.13% | Spread | N/A | Spread + Commission |
| S&P 500 Fees | min. 0.4 spread | Spread | 0.25 over market | Spread | N/A | Spread + Commission |
| Options Fee | N/A | N/A | N/A | N/A | N/A | N/A |
| Mutal Fund Fees | N/A | N/A | N/A | N/A | N/A | N/A |
| ETF Fee | N/A | N/A | 0.13% - 0.15% | N/A | N/A | N/A |
What Are Low-Spread or Zero-Spread Forex Brokers?
As their name implies, such brokers offer the lowest Forex spreads or zero spreads. Trading costs declined over recent years as forex brokers compete to win more clients. Many offer zero spreads as an extra enticement, but it is essential to know the terms and conditions before choosing a broker.
The Lowest Spread for the EURUSD pair ranges from 0.1 – 0.9 pips with no commission charge. However, you should check all fees, including overnight, commissions, non-trading, deposit or withdrawal, and inactivity charges.
Compare Forex Costs per 100,000 Traded
| # | Forex Broker | Spread | Pips on Major Forex Pairs * | Established |
|---|---|---|---|---|
| 1 | Pepperstone | Variable | from 0.7 | 2010 |
| 2 | AvaTrade | Variable | from 0.9 | 2006 |
| 3 | FP Markets | Variable | from 1.4 | 2005 |
| 4 | IC Markets | Variable | from 1.0 | 2007 |
| 5 | Forex.com | Variable | from 1.0 | 2006 |
| 6 | FXTM | Variable | from 0.4 | 2011 |
How to Pick a Low-Spread Forex Broker?
Before you start trading, research your shortlisted brokers. While some forex brokers promise low dealing spreads, they might not be the best for your trading strategy.
You should watch out for these situations:
- Be on the lookout for fixed spreads. This could mean that the spread is wider than average. The broker might also be trading against your positions as a market maker.
- Make sure the broker is regulated by a top-tier regulator. This adds an extra level of confidence in the ethical business practices of your broker.
- Make sure the minimum deposit isn't too high.
- Check the spreads on different currency pairs and account types. While some low-spread brokers advertise low costs, spreads can vary depending on currency pairs or account types.
What Is Spread in Forex?
The spread is the difference between the ask and bid price on a trade. A low value means that there is a small difference between the bid and the asking price of a currency pair. An increase usually means volatile market conditions or liquidity in the market. Spreads usually widen during less frequent trading hours, volatile times, or before news events.
The interbank market is where the prices originate from for most of the major brokers. Spreads are quoted as fractions of a pip (fractional pips).
The spread is how no-commission brokers make a profit. The cost is built into the bid-ask prices of each currency pair you trade. This is done instead of paying a commission fee per trade. While some brokers advertise lower spreads, they are more expensive because they charge higher commissions. Because spreads change during periods, it is best to calculate Average Spread data over a more extended period (monthly spread data) and commissions (spread + commission). That is how you avoid higher average spreads. You shouldn't look at the minimum spread but calculate the average.
How does spread work in Forex?
The bid price is the exchange rate at which you are willing to sell a currency and the price a broker is willing to pay. The asking price is the price at which you buy the same currency and the price at which a broker is willing to sell it. The bid price is generally lower than the asking price. When you buy a Currency Pair from a broker, you buy the base currency and sell the Quote Currency. When you sell the currency pair, you sell the base and receive the quote currency. Currency pairs are quoted based on their bid and ask prices.
A currency quote is the value of one currency compared to another foreign currency. These two currencies are known as the base currency and the quote currency. The base currency is always the first currency listed. The second one listed is the quote currency.
How are spreads calculated?
Spreads are a key figure when calculating trading costs. There are two parts to how the spread is calculated. This price difference is calculated in pips. The width of the spread is based on factors such as trading volume, market volatility, and liquidity.
Pip stands for “percentage in points.” In Forex, 1 pip usually equals 1 point movement in market value. This is based on the fourth decimal place of your currency pair.
First, there is an interbank spread. This is the difference between the bank that wants to buy the currency at a set price and the selling bank's offer.
Second is the spread of the specific broker. Retail traders use brokers for order execution, so the broker adds a markup spread above the Raw Spread. The way forex and CFD brokers make money depends on the available execution methods and their business model.
To calculate it, you need to determine the difference between the buy and the selling price in pips. All you need to do is subtract the bid price of a currency pair from the asking price.
1 pip is equal to 0.0001 for most currency pairs.
An example of a 1 pip spread for USD/EUR would be 1.1061/1.1062.
How to spread bet in Forex?
Spread betting is only available in certain countries like the United Kingdom. A spread bet is where traders “bet” on the direction of the price, up or down. This way, spread betting brokers are a way to cut taxes for traders.
What Is Considered a Good Spread?
Spreads are considered good when they are as close to zero as possible. Those usually have an average of below 1 pip. An example of a good spread would be 0.5 pips for a currency pair. It is also important to base your calculations on average price data over an extended period.
What is the lowest spread in Forex?
A low spread is when the difference between the bid and ask price is small. It is best to trade when the spreads are low, like during the major forex sessions. A low spread usually means that liquidity is high and volatility is low.
0 pips is the lowest spread (zero spread) in Forex. 0 pips spreads are offered by ECN-STP brokers. To calculate which broker has lower spreads, it is essential to calculate all trading costs. While some brokers offer zero spreads, they still charge per-trade commissions, which could cost you more.
What is a zero-spread account?
Zero Spread Trading Account is a Forex trading account with no difference between the bid and ask price, or the spread is close to zero. Spreads can widen depending on the trading conditions, account type, and whether or not the broker charges commissions.
How to Compare Low Spread Accounts?
To compare low-spread forex accounts, you need to consider factors such as commissions per trade, spreads, trading platforms, regulation, security, and currency pairs offered.
Raw Spread Account vs. Standard Account
In Forex, a Standard Account refers to a standard lot size, which is 100,000 units of currency. A Raw Spreads account refers to the cost where the broker doesn't add a price markup but offers the price directly from liquidity providers.
Do Low Spreads Matter When Trading Forex?
The lower the spread, the cheaper it is to place a trade order. A smaller spread means low trading costs. Incorporating tighter spread into your trading strategy is key to making higher profits.
On the other hand, make sure you check what other commissions your broker charges. Some charge higher commissions to make a profit.
Scalping and Spreads
Finding a broker with low spreads is significant for scalping. Scalping is a strategy that involves profiting off of small price changes. As a result, traders make a high number of trades. Traders need fast order execution and a strict exit strategy as one significant loss could erase the many small gains.
The Lowest Spread Forex Brokers: Key Takeaways
As you can see, numerous low spread Forex brokers offer competitive and low spreads. And while any of the brokers mentioned above will cover all your trading needs, my top recommendation is Pepperstone. It’s not just the cheapest Forex broker around, but an overall top choice for both experienced and beginner Forex traders.
