The FX market, which usually facilitates more than $6 trillion in daily trading volume, continues to be the largest financial market in the world. Because of the great amount of liquidity in the forex market, traders from all over the world can readily speculate on price changes by working with a reputable and regulated broker.
The spread is an increase in price that a forex broker applies to a pair of currencies. A low forex spread is regarded as any amount that is lower than the average spread, which on major currency pairings ranges from 1 to 3 pip. The lowest spread now offered on forex starts at 0 pip, and the best low spread forex brokers currently provide exceptionally tight spreads.
The best low spread forex brokers will be covered in this article, along with which platforms have the most appealing fee structures. After that, we’ll talk about what spreads are and how low spreads can be advantageous in the long run.
Best Forex Broker with Lowest Spreads
Numerous traders all over the world rely on Pepperstone as a secure and trustworthy FX trading platform. On the well-known Metatrader 4, Metatrader 5, and cTrader platforms. Pepperstone provides a very quick execution time and its customer service is one of the best in the industry.
Many traders all over the world rely on the security and dependability of Pepperstone as a platform for forex trading. Pepperstone provides quick execution times on the well-liked Metatrader 4, Metatrader 5, and cTrader platforms. One of the best in the business, their customer service.
For frequent traders that wish to enjoy competitive spreads, their Razor account is a good choice.
One of the best brokers in the US is Forex.com. This is yet another dependable and secure option. You have access to 80 currency pairings with Forex.com. Despite the minimal spreads, there is a $5 fixed commission fee each regular lot. Along with the well-known MT4 platform, it provides three premium platforms.
2. IC Markets
IC Markets has one of the best spreads on our list, with an average spread of 0.1 pip. Scalpers and automated traders favor IC Markets for its swift order execution. IC Markets does not charge commissions for deposits or withdrawals. Customers also have access to strong platforms like cTrader and MetaTrader. The Raw Spread Account from IC Markets has no spreads or commissions. The hefty minimum deposit needed to start an account is a drawback.
3. FP Markets
Another great option is First Prudential (FP) Markets. They are a reliable and well-regulated forex broker. They provide continuously low spreads, ranging from 0 pip to 0.45 pip on average. It provides you with access to a variety of third-party platforms as well as an astonishing array of educational materials. Unfortunately, US citizens cannot access FP Markets.
For active traders, AvaTrade is a great broker. They provide 0.9 pip fixed spreads that are competitive and commission-free. AvaTrade requires a $100 minimum deposit to start an account. They provide access to MT4 and MT5, as well as their own proprietary platforms. The drawback is that they impose higher than typical inactivity costs.
Another trustworthy option for both experienced and novice traders is ForexTime (FXTM). With a wide range of account types, FXTM provides traders with spreads starting at 0.1 pips. Customers of FXTM have access to over 200 markets, including 48 currency pairs. It is distinguished for its top-notch customer support and instructional resources. On the downside, FXTM charges substantial CFD commissions. In addition, there are withdrawal and inactivity costs.
Several low-spread account types are offered by FBS, but these are unavailable in Europe. Spreads for the Standard account at FBS begin at 0.5 pip and there are no further charges. Spreads are not charged on the FBS Zero account, however, there are costs for each lot starting at $20. The costs per lot for the ECN account from FBS start at $6, while negative spreads start at -1 pip.
The regular account at FBS has a $100 minimum deposit requirement for low spread accounts. For the Zero account and the ECN account, the minimum deposit increases to $500 and $1,000, respectively. FBS offers MT4 and MT5 as its platforms.
On all types of accounts, Vantage provides low spreads. Vantage requires a $200 minimum deposit to trade with low spreads. Vantage spreads begin at 0 pip, with fees per lot beginning at $6. You can trade FX on MT4 or MT5 using Vantage.
You can trade forex with Axiory using two trading accounts and low spreads. You can trade with low spreads on MT4 and cTrader with Axiory’s Nano account, while MT5 is available with the Tera account. Spreads as little as 0 pip are available on both of Axiory’s accounts, while costs per lot start at $6. The minimal deposit with Axiory is $10.
Bottomline – Is it worth it?
Lower spreads are always desirable because they effectively act as a broker commission. If you wish to use trading tactics like scalping, low spreads are also essential.
That being said, even though a lower spread is always preferable, it’s crucial to make sure you carefully review the broker’s offering to prevent receiving any other sorts of compensation in place of a spread.