When evaluating fees, novice forex traders frequently concentrate on the commission. However, since the spread is an indirect fee assessed on both buy and sell orders, it is just as significant. In this article, we want to discuss the 10 low spread forex brokers list.

What is spread?

The difference or gap that exists between two prices, rates, or yields is generally referred to as the spread.

One of the most widely used definitions of a spread is the difference between the asking and bid prices of an asset or security, such as a commodity, stock, or bond. A bid-ask spread is what this is called. In the financial markets, spreads can be created, among other things, between two or more contracts for derivatives, stocks, or bonds.

In trading terms, spreads can also mean the difference between a short position, which is selling in one futures contract or currency, and a long position, which is buying in another. Officially, this is referred to as a spread trade.

10 Low Spread Forex Brokers List

Continue reading to find out what 2023’s top lowest spread forex brokers have to offer. We review not only spreads but also other key performance indicators. For example, regulations, minimum deposit requirements, and supported markets.

Forex.com

Founded in 2001, Forex.com is a regulated broker which is on the 10 low spread forex brokers list. It provides competitive pricing and supports over 80 different currency pairs. Nevertheless, spreads frequently vary depending on the trader’s account type and location. For example, US clients can open an institutional-grade spread account with a small commission by opening a Direct Market Access (DMA) account.

Standard accounts are the only options available to non-US clients; these accounts have higher spreads but no commissions. Spreads for trading EUR/USD on the Standard account are as low as 0.7 pip. But spreads can fluctuate, so be prepared for volatility. However, it’s great that Forex.com is compatible with MT5, a trading and analysis toolkit.

Additionally, this firm offers a trading platform that can be accessed through desktop software, mobile apps for iOS and Android, and browsers. Access to thousands of additional assets backed by leveraged CFDs is available to non-US clients. Commodities, stocks, indexes, and cryptocurrencies are all included.

PROS:

• Reputable forex broker that was established back in 2001.
• More than 80 forex pairs are supported.
• DMA accounts are available to US clients.
• Regular accounts don’t charge commissions.

CONS:

• Due to the CFD backing of non-forex assets, US clients are unable to trade them.

eToro

eToro is another broker on the 10 low spread forex brokers list, particularly for novices. The minimum deposit for this well-known online broker is just $10 ($50 for clients outside of the US and the UK). Traders have three options for funding their accounts: bank transfers, e-wallets, and debit/credit cards. When deposits or withdrawals are made in US dollars, there are no fees. Numerous other currencies are accepted by this broker, but there is a 0.5% transaction fee.

More than fifty forex pairs are available for traders after their account is funded. A thorough blending of majors, minors, and exotics is part of this.

For trading fees, eToro uses a spread-only strategy on the forex market. The EUR/USD spread starts at one pip. Leverage is available on all supported currency pairs. The cap is set at 1:30. This broker is an approachable one that provides negative balance protection.

Account balances are guaranteed to never drop to zero. There are many trading tools available on this broker that are appropriate for beginners. Drawing tools, pricing charts, and technical indicators are examples of this. Additionally, customers can buy and sell currencies passively with the eToro copy trading tool. The user’s portfolio will replicate any pairs they trade after selecting an expert forex trader to copy.

There are more asset classes that eToro supports. This covers goods like natural gas, oil, gold, and silver. Additionally, commission-free stock and ETF trading is available for users. Spreads on large-cap stocks, such as Apple and Amazon, are extremely low. Along with Bitcoin, it supports some of the best altcoins, like Dogecoin, Ethereum, and BNB.

This broker offers a free demo account. It has $100,000 in paper trading funds pre-loaded and has no time limits. At any point, users can top off their demo account. Since eToro is a regulated online broker, it is safe. It is licensed by several organizations, such as FINRA (US), ASIC (Australia), CySEC (Cyprus), and FCA (UK). Ultimately, this company stands out as one of the top forex brokers available, and is considered one of the best ones on the 10 low spread forex brokers list.

PROS:

• One of the top low-spread brokers for new traders.
• Trade only spreads when trading forex (from 1 pip).
• Supporting more than 50 forex pairs.
• The minimum deposit amount is $10.
• Overseen by several licensing authorities.
• Additionally supports indices, cryptocurrencies, stocks, ETFs, and commodities.
• Forex traders can trade passively by using copy trading.

CONS:

• For payments made outside of USD, there is a 0.5% deposit fee.

Capital.com

One of the greatest FX low-spread brokers for diversification is Capital.com. 125 forex pairs are supported by this company which is a great number compared to other brokers. Numerous exotic pairs are included here, appealing to traders who are willing to take big risks.

There are no trading commissions on any of the markets that Capital.com supports. Additionally, spreads on EUR/USD begin at a mere 0.6 pip. Spreads are erratic and will fluctuate based on the state of the market.

This broker offers a native iOS and Android app in addition to its web trading platform.  More than 70 technical indicators, economic news, multi-chart toggling, and customized watchlists are all supported by its trading suite. Leverage up to 1:30 is supported by Capital.com for trading major currency pairs. This is lowered to 1:20 when dealing with exotics and minors. Traders may want to open a demo account first.

This follows real-time market conditions and comes pre-loaded with $1,000 in virtual funds. The minimum deposit for real money accounts is just $20. E-wallets and debit/credit cards are accepted. However, a $500 minimum is needed for bank wire deposits. Both deposits and withdrawals are free.

Capital.com’s support for additional leveraged markets is great. More than 2,800 stocks from various foreign exchanges are included in this. This broker also offers support for indices, commodities, and cryptocurrencies.

PROS:

• Minimum EUR/USD spreads of just 0.6 pip.
• In all supported markets, there are no commissions to pay.
• Supported are 125 forex pairs, many of which are exotics.
• Numerous analytical tools are included with the native trading platform.
• No fees for withdrawals or deposits.

CONS:

• There is a $500 minimum deposit required for bank wires.

XTB

Among the greatest low spread brokers for day traders is XTB. It has competitive spreads in addition to no commissions to pay. This holds true for every market that is supported. For instance, the EUR/USD pair opens at just 1.3 pip.  Moreover, because there is no minimum deposit needed, XTB is a good option for novices.

It’s crucial to remember that XTB spreads can change. This implies that depending on broader trading commissions, spreads will fluctuate during the day. For instance, due to market closures, the spread on GBP/USD is currently 1.6 pip. However, during regular market hours, this is lowered to 1.3 pip. This company is one of the greatest low spread brokers for securing high-leverage limits.

Forex pairs can be bought and sold using a maximum leverage of 1:500. This corresponds to a mere 0.2% margin requirement. This broker offers thousands of additional financial instruments in addition to forex. This covers all assets, including commodities and cryptocurrencies as well as stocks and indexes. xStation 5 is XTB’s proprietary trading platform. Technical indicators are among the many sophisticated trading tools that are available.

PROS:

• No commission on supported markets.
• Spreads on EUR/USD begin at 1.3 pip.
• A top-tier broker with high leverage (up to 1:500).
• No minimum payment needed.
• Controlled by several different authorities.

CONS:

• Outside of regular market hours, variable spreads are more expansive.

Trade Nation

For experienced traders, Trade Nation is on the 10 low spread forex brokers list. With spreads on EUR/USD beginning at 0.0 pip, its Raw Spread account provides institutional-grade pricing. The users pay $3.50 per lot to access the best spreads available in the markets. Both ends of the trade are billed for this. There is a $1,000 minimum deposit required for this kind of account.

Another option is to open a Standard account .This is done with no minimum deposit requirements and no trading commissions. But one should expect higher spreads, which will vary depending on market conditions.

Both account types offer lightning-fast execution speeds and access to significant liquidity. Additionally, users trade on the MT4 platform. All device types are supported.

This broker offers leverage up to 1:500 on major currency pairs. But some traders will be offered much lower limits, including those based in the UK and EU.

Please note that this company is tightly regulated. It has licenses in several countries, including the UK, Australia, South Africa, Seychelles and the Bahamas. The broker offers a free demo account for traders who want to test the broker before depositing money.

PROS:

• A commission of 3.50 USD is reasonable.
• The Raw Spread account offers minimum spreads of 0.
• Trade Forex with leverage up to 1:
• Regulated in the UK, Australia, South Africa, and other jurisdictions.

CONS:

• A minimum deposit of 1,000 USD is required for the Raw Spread account.
• Wants users to create an account to view live Forex prices and spreads.

Pepperstone

Pepperstone, used by over 400,000 traders worldwide, offers the lowest spreads on the market. Those who open a Razor account will receive minimum spreads of 0.0 pips on many pairs.

This includes EUR/USD, GBP/USD, USD/JPY, AUD/USD and USD/CHF .To get the best possible spreads, users will need to trade during peak market times.

There are $3.50 commissions for each traded lot with the Razor account. The commission on pairs worth GBP and EUR is £2.25 and €2.60, respectively. Additionally, commission-free Standard accounts are available. However, there will be a much larger spread. For example, GBP/USD and EUR/USD open at 0.7 and 0.9 pip, respectively. Even so, there is still fierce competition in this.

It’s great that Pepperstone has no minimum deposit requirements and lets traders deposit as much as they’d like. Additionally, there are no deposit fees. PayPal, bank wire transfers, and debit/credit cards are accepted forms of payment. Except bank wires, all deposit methods are processed instantly.

PROS:

• Forex spreads on the Razor account start at 0.0 pip.
• No minimum payment is necessary.
• There are also accounts available without commission.
• Governed by tier-one licensing authorities.

CONS:

• Only works with trading platforms from third parties.

AvaTrade

Renowned forex broker AvaTrade offers support for other leveraged markets. This covers indices, options, cryptocurrencies, commodities, and stocks. This broker offers spreads of just 0.9 pip when trading EUR/USD. Spreads of one pip for USD/JPY and 1.1 pip for AUD/USD can be traded. At 1.5 pip, GBP/USD is marginally less competitive.

However, on all of the markets it supports, it does not impose trading commission fees. Furthermore, the company provides leverage on major and minor forex pairs up to 1:400 to qualified clients. Trades in exotics can have a leverage of up to 1:100. MT4 and MT5, among other trading platforms, are supported. A native web trading platform is also available.

The iOS and Android AvaTrade mobile app allows users to trade as well. Another reason for being well-liked is its regulatory setup. It has licenses and authorization in nine different nations. Plus, it doesn’t charge fees for withdrawals or deposits. Bank wire transfers and debit/credit cards are accepted forms of payment. $100, or the equivalent in other currency, is the minimum deposit.

PROS:

• It’s regulated, holding licenses in nine nations.
• There are no fees associated with any of the supported markets.
• Spreads on EUR/USD begin at 0.9 pip.
• fee-free withdrawals and deposits.

CONS:

• Supports DupliTrade, although a $5,000 minimum deposit is needed for this.

Libertex

Libertex is among the 10 low spread forex brokers list. It offers support for indices, commodities, stocks, and forex. Additionally, it supports some of the top cryptocurrencies for trading, including Dogecoin, Litecoin, BNB, Ethereum, and Bitcoin.

Furthermore, this company offers EUR/USD spreads as low as 0.2 pip. Its ability to provide leverage of up to 1:999 on popular forex pairs is among its best features. This implies that a margin balance of just $1 is needed for every $999 traded. Restrictions will apply based on the trader’s location.

This broker offers support for MT4 and MT5, two trading platforms. It also has a native platform of its own for smartphones and web browsers. It offers a free demo account with $50,000 in virtual trading funds for new users to try out. The minimum deposit for real money accounts is just $10

Pros:

• Trading EUR/USD starts at just 0.2 pip.
• There are no commissions in any market.
• $1 is the minimal deposit amount.
• Leverage up to 1:999 can be used to trade major forex pairs.

CONS:

• Outside of regular market hours, spreads can be quite volatile.

Skilling

Another choice on the 10 low spread forex brokers list is Skillling. There are two different account types available. For EUR/USD, its Premium account has minimum spreads as low as 0.1 pip. For each $1 million traded, a $35 commission is charged. Moreover, a €5,000 minimum deposit is needed for the Premium account.

As such, novices probably won’t want to use the Premium account. Nevertheless, Skilling provides a Standard account as well. In addition to requiring a minimum deposit of €100, there are no trading commission fees. However, the minimum spread for the EUR/USD pair has gone up to 0.7 pip.

Access to 73 forex pairs, as well as indices, stocks, cryptocurrencies, and commodities, is available with both Skilling accounts. Retail customers can use a 1:30 leverage when trading major pairs. For professional traders, this is raised to 1:200. This company works with a variety of trading platforms. This covers both cTrader and MT4. Additionally, it provides a native trading suite that can be accessed via an iOS and Android mobile app and web browser.

PROS:

• The minimum spread for premium accounts is 0.1 pip.
• It includes a large variety of assets, such as stocks, indices, and forex.
• There are also accounts available without commission.
• In the event of a brokerage collapse, each trader would have insurance worth €1 million.

CONS:

• Maximum leverage for retail clients is 1:30.

IG

For customers in the US, IG is at the 10 low spread forex brokers list. It supports over 80 currency pairs and is registered with the NFA and CFTC. In addition, this broker is well-known for its lightning-fast execution times and sophisticated trading dashboards. The latter allows for the support of numerous customer order types, chart drawing tools, and technical indicators.

Breaking news straight from Reuters is also supported by the IG trading suite. Spreads on EUR/USD can be traded starting at 0.8 pip in terms of fees. Trading forex does not require paying commissions.

US customers are also able to trade forex using leverage. The minimum margin needed to trade EUR/USD is just 2%. USD/CHF and GBP/USD demand a marginally larger margin of 5%.

It provides a quick account opening process. US clients are typically verified right away. The inability of US clients to trade other assets on this broker is the primary disadvantage. Access to thousands of stocks, funds, commodities, indices, and other well-known markets will be available to individuals residing in other nations.

PROS:

• Best forex broker in the US for customers.
• Supports several trading platforms, such as MT4.
• Forex trading without commissions and spreads starting at 0.8 pip.
• Excellent customer service.

CONS:

• Fees for debit and credit cards up to 1%.

The 10 Low-Spread Forex Brokers in a Glance

It can be difficult to compare spreads, commissions, and other crucial metrics. As a result, the table below provides a summary of the 10 low-spread forex brokers.

What is a zero-spread account?

Brokers that offer trading accounts with spreads that average almost zero or no difference between the ask and bid prices are said to offer zero-spread accounts. Nevertheless, depending on the broker and account you select, there is still a chance for spreads to widen and additional trading expenses (like commissions).

As long as there are no extra commissions or fees, trading with a zero-spread account allows you to enter and exit trades quickly and easily without worrying about losing money.

Note: Although commissions are typically displayed in a separate column in the majority of brokerage reports, accounting can be made simpler when you know there was no spread when calculating trading costs.

Is there a broker with zero spread?

Even though many brokers advertise zero spreads, focusing just on the minimum spread or the spread of the day may be deceiving because it’s likely that the spread is worse (higher) most of the time.

To ascertain the actual cost of a broker purporting to offer zero-pip spreads, it is crucial to rely solely on the average spreads. When the spread is zero, the bid and ask prices are exactly the same, suggesting that there is no difference in pip values.

Only a small number of brokers average close to zero pip spreads on the EUR/USD; however, these brokers still charge a per-trade commission, which makes the average effective spread higher.

Best Times to Trade Forex for Low Spreads

Forex brokers typically quote the “minimum” spread that they can provide. However, because spreads fluctuate, this won’t always be available. This implies that traders should anticipate less competitive spreads outside of market hours.

You can access the most competitive spreads during hours of high market activity. However, this will rely on the traded pair. For instance, 8 a.m. to 12 p.m. (EST) is the ideal time to trade GBP/USD. Both the US and UK markets are open during these hours.

Conclusion

When buying and selling forex pairs, traders can lower their trading fees by selecting a broker with a low spread. Crucially, traders need to find the ideal ratio between cheap spreads and affordable commissions. Checking the 10 low spread forex brokers list can a big help for traders in choosing the best brokers.