Do you need a Forex broker that gives you the best spreads so you can make as much profit as possible?
You are in the right place! In this post we go through the five best low spread brokers and their different features that could suit your trading.
Some of these brokers will suit you if you are a scalper and others will suit you if you are using indicators or EA's to place your trades and need low spreads.
Best Low Spread Forex Brokers
|IC Markets||Regulation||Min Deposit||Leverage||Open an Account|
- No withdrawal or deposit fees.
- Low trading costs.
- High leverage.
- No protection EU traders.
- Live chat at times can be slow.
IC Markets is also an Australian based broker that is regulated by ASIC.
This broker has been around a long time and is now one of the biggest brokers in the world.
IC markets has a huge offering that caters to all types of traders. You have the ability to use any indicators or EA's you like as well as use strategies like scalping.
You can use many different platforms such as MT4, MT5 and cTrader that are available on both desktop and mobile devices.
|FXCM||Regulation||Min Deposit||Low Spreads||Open an Account|
|FCA, ASIC + others.||$300||Yes|
- Very good education available.
- Easy to quickly open an account.
- Multiple account types available.
- Low spreads.
- Not as many markets as others.
- Higher minimum deposit.
FXCM is a leading global broker that has been offering it's services since 1999.
FXCM has a huge range of trading services that include foreign exchange (FX) trading, CFD trading and spread betting. With FXCM you have access to multiple trading platforms, tools and premium resources to help you gain an edge over the markets.
One of the reasons so many choose to trade with FXCM is because of their extensive range of markets you can trade. You get access to everything from Forex, shares, cryptocurrencies, commodities and indices.
|FP Markets||Regulation||Min Deposit||Low Spreads||Open an Account|
- No withdrawal or deposit fees.
- Customer support through whatsapp messages.
- A demo account is offered.
- Inactivity fee after three months.
- They do not have a very complete educational section.
FP Markets is also an Australian based broker that is regulated by ASIC.
This broker has been around a long time as it was founded in 2005. With FP Markets you have many different deposit and withdrawal options including all the major cards and Paypal.
FP markets offer a large range of education and market analysis and along with their MT5 charts, they also offer other trading platforms to suit your individual needs including IRESS.
|Regulation||Min Deposit||Low Spreads||Open an Account|
|ASIC, FCA + Others||$200||Yes|
- It is regulated by ASIC and FCA.
- Offers various trading platforms.
- Low FX, equity, and indices fees.
- Excellent customer service.
- Free deposit and withdrawal.
- No investor protection for non-EU traders.
- No fundamental data analysis.
Pepperstone is an Australian based broker and is widely regarded as one of the best Forex brokers in the world.
With Pepperstone you have the ability to trade on Forex, gold, indices, equities, and more. One of the biggest benefits to Pepperstone is the availability of not just MT5, but also other different trading platforms. You can choose any of the MT4, MT5, and cTrader that come on desktop, mobile and web trading.
Pepperstone offer very comprehensive education and analysis that ranges from market news, analysis, an economic calendar, guides, webinars, and more.
Another large benefit to Pepperstone is their small trading costs. Pepperstone offer very small spreads and charge low commissions per round trade.
Forex.com (for US)
|Forex.com||Regulation||Min Deposit||Low Spreads||Open an Account|
|NFA, CFTC + Others||$100||Yes|
- Low FX fees.
- Numerous trading pairs.
- A wide range of research tools.
- Offers MT4 and other trading platforms.
- Limited product portfolio.
- High stock CFD fees.
Forex.com has established itself as one of the best brokers in the world.
This is our number one recommendation for traders in the US as they have strong regulation including being regulated with the CFTC.
With Forex.com you get access to spreads as low as 0.2, the ability to trade on over 80 currency pairs and a wide range of trading platforms.
The MT5 platform on Forex.com comes with 20 free, easy to install EAs and custom indicators. When opening an account with forex.com you also get access to the full suite of downloadable, web, and mobile apps.
Commission vs Spread – How Your Are Charged
When making your trades you will be charged what is called the spread.
The spread is the difference between the bid and ask price. When you go to place a trade you will notice that there is always a difference in the price you can buy and the price you can sell. This difference is the ‘spread'. This difference is how the broker is making money from you.
The spread can vary widely from broker to broker and from asset to asset.
Not all broking account types will charge commissions, but on the ones that do it will be per 'round trade'.
This means that you will be charge when you both open and close a trade.
The trade off to paying commissions is that you will normally be given a broking account that has smaller spreads.
Why You Want Lower Spreads
The less you pay out in trading costs, the more profits you get to keep at the end of the day.
Spreads can be the silent account killer. Unlike commissions that you can see being charged each trade, you will not as easily see the spread being charged.
Spreads can very quickly add up and if you are using the best broker that give you the best spreads you can very quickly save yourself a lot of money.
What is Spread in the Forex Market?
Spread is the difference between the bid and ask price. This is the cost you will pay for executing your trades through your broker. The spread will vary widely depending on the broker you are using and the asset you are trading.
What is the Lowest Spread?
It is quite common for low spread brokers to have spreads that go as low as 0.0 pips on the major Forex pairs.
Can I Avoid Paying the Spread?
Whilst at times the spreads can be 0.0 on major Forex pairs, this is normally on brokerage accounts that charge commissions. This means that whilst you will get very small spread costs, you will be charged a commision on top to make your trade.