Naylyan NazifovaNaylyan Nazifova is a Financial Research and Platform Testing Analyst at BestBrokers.com, where she reviews and tests online brokers across forex, stocks, investing and personal finance. Her experience in online trading content and broker analysis helps readers understand how platforms perform in practice, from trading tools and fees to ease of use and investor suitability.
| Expert Editor 
Eugene Lee, CFA
Eugene Lee, CFA, is the Head of Research at BestBrokers.com, where he applies more than two decades of experience in global markets, portfolio management, derivatives and fintech analysis to the evaluation of online brokers. His background in institutional investing and quantitative research helps ensure broker reviews are based on data, risk assessment and practical trading conditions. 
| Updated: The spread is one of the most important costs in forex trading because it directly affects every trade you place. Experienced traders often focus on brokers with tighter spreads to keep costs down, but competitive pricing matters just as much for beginners. If you are new to FX trading and still looking for a low-spread broker, explore our selection of brands recognised for their consistently tight pricing.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro52% of retail investor accounts lose money
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.33% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Eightcap59.57% of retail investor accounts lose money when trading CFDs with this provider.
Global Prime74-89% of retail CFD accounts lose money
Pepperstone73.7% of retail investor accounts lose money
VantageTrading leveraged products is risky
IG67% of retail client accounts lose money when trading CFDs with this investment provider.Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Tickmill | 0.1 | 0.1 | 0.4 | 0.3 |
| 2. FP Markets | 1.17 | 1.64 | 1.40 | 1.43 |
| 3. Fusion Markets | 0.90 avg (Classic) | 1.04 avg (Classic) | 1.03 avg (Classic) | 1.04 avg (Classic) |
| 4. Global Prime | 1.00 avg (Standard) | 1.20 avg (Standard) | 1.16 avg (Standard) | 1.18 avg (Standard) |
| 5. IG | 0.86 av.spread | 0.97 av.spread | 1.83 av. spread | 1.84 av.spread |
| 6. IC Markets | 0.82 | 0.94 |
| 1.03 |
| 7. AvaTrade | 0.8 | 1.3 | 1.2 | 1.2 |
| 8. Pepperstone | 1.10 (avg.) | 1.20 (avg.) | 1.30 (avg.) | 1.20 (avg.) |
| 9. Vantage | 1.18 | 1.41 | 1.22 | 1.30 |
| 10. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
Top 12 Brokers Offering Competitive Spreads
In operation since 2019, Fusion Markets is regulated by the Australian Securities and Investments Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC).
The broker offers over 250 financial instruments, including more than 90 currency pairs, commodities, stocks, indices, and cryptocurrencies. We mostly traded forex majors, gold, and major indices like the US500 during our tests. We evaluated both the Classic and Zero accounts to compare their real-time costs.
Тhe Zero account features minimum spreads of 0.0 pips plus a commission of $2.25 per side on a standard-lot trade ($4.50 per round-trip). We recorded average spreads of 0.01 pips for EUR/USD, 1.03 pips for XAU/USD, and 0.21 pts for the US500. The Classic account adds a 0.9 mark-up to the raw spreads of forex and precious metals, with no commission charged. This resulted in average spreads of 0.91 pips for EUR/USD and 1.93 pips for XAU/USD during the testing period.
Additionally, we established that the broker offers a swap-free account option for eligible customers, with the EUR/USD spread starting from 1.4 pips. Demo accounts are well-suited for new traders to learn and test strategies in a risk-free environment, replicating real market conditions. It is worth noting that Fusion Markets does not impose a minimum initial balance requirement. However, most supported payment methods allow deposits starting from $10 in our experience.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.- 2. FP Markets
FP Markets has been serving both experienced and beginner traders since 2005. The global brokerage operates under the regulation of the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC). When testing the broker, we were able to explore more than 10,000 financial instruments, including 60 currency pairs, are available for trading via two primary account types, Raw and Standard.
During our tests with the Raw account, we incurred a small commission of $3.0 per lot per side of the trade ($6.0 per round-trip) and minimum spreads started from 0.0 pips. We measured average spreads of 0.19 pips for EUR/USD, 0.09 pips for gold, and 0.25 pts for the US500 index. The Standard account type offers wider spreads starting from 1.0 pip, with no commission. It delivered wider spreads of 1.17 pips for EUR/USD and 0.22 pips for gold. Spreads for indices like the US500 coincided with those for the Raw account.
There is also the option to start with a free 30-day demo account. The minimum deposit for both live account types is $50, and we were able to use maximum leverage of 1:30 for major pairs under the CySEC entity.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.33% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded in 2014, BlackBull Markets supports over 26,000 tradable symbols, including 70 major, minor, and exotic currency pairs. When setting up a live account, we could choose from platforms like TradingView, MT4, MT5, and cTrader. Alternatively, customers can activate the BlackBull CopyTrader for automated trade copying or allocate funds to trade physical shares with BlackBull Invest.
During our live tests, we confirmed that BlackBull Markets delivers average execution speeds under 100 milliseconds and sources prices directly from top-tier liquidity providers like Citibank, Goldman Sachs, and Barclays. We benefited from transparent pricing and low latency during testing as the broker’s ECN infrastructure routes client orders directly to liquidity providers without passing them through an in-house dealing desk.
There are three main account types: ECN Standard, ECN Prime, and Prime+. Retail customers can trade forex with no commissions and spreads as low as 0.8 pips via ECN Standard accounts. We tested the ECN Prime account, where we paid a $3 commission per side per standard lot, but spreads were significantly lower, averaging 0.1 pips for EUR/USD, 0.12 pts for gold, and 0.6 pts for major indices like the US500. The Prime+ account is designed for high-volume traders, with lot-based rebates. We found that swap-free accounts, subject to administrative fees, are available for the three account types in select markets.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.- 4. Pepperstone
Founded in 2010 and headquartered in Melbourne, Pepperstone is a global broker with a presence in over 160 countries. The broker is licensed by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and the UK’s Financial Conduct Authority, among others. Pepperstone supports over 1,475 instruments across markets such as forex, shares, commodities, and indices. The instruments are tradable via a suite of third-party platforms, including MT4, MT5, cTrader, and TradingView, or the proprietary Pepperstone platform.
When registering, we were able to choose from Standard and Razor accounts. We noticed that Standard accounts had a 1-pip markup on raw forex spreads and enabled commission-free trading with average spreads of 1.1 pips for EUR/USD. Spreads for gold and the US500 index averaged 0.23 pts and 0.4 pts, respectively.
Raw accounts, designed for high-frequency traders, feature spreads from 0.0 pips plus a $3.50 commission per lot per side. They yielded average spreads of 0.1 pips for the EUR/USD pair. The average spreads for precious metals and indices coincided with those for the Standard account. The broker offers a demo account for inexperienced clients along with various guides, articles, and webinars.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 5. Global Prime
Established in 2010, Global Prime is regulated by the financial authorities of Australia and Vanuatu. Our tests revealed the broker offers a suite of nearly 150 instruments that encompasses the asset classes of forex, commodities, crypto, indices, and US shares, tradable via the third-party platforms MetaTrader 4 and MetaTrader 5.
We tested the broker with a live Raw account, with the other option being a spread-only Standard account. Our experience with the Standard account showed that it delivers spreads from 0.9 pips with no commission, averaging 1.0 pip for EUR/USD, 1.69 pips for gold, and 4.01 pips for the US500 index. The Raw account granted us access to lower spreads from 0.0 pips, but we incurred a commission of $3.50 per lot traded per side for positions in forex and precious metals like gold and silver.
While trading with the Raw account, we recorded considerably lower average spreads of 0.10 pips for EUR/USD and 0.79 pips for gold. Global Prime does not add a markup to the raw spreads for indices, so they coincided with those for the Standard account. Both account types feature minimum trades of 0.01 lots and maximum trade sizes of 1,000 lots. Scalping, hedging, and Expert Advisors are allowed. We used USD as our base currency but AUD, GBP, EUR, CAD, SGD, and JPY are also supported.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017. - 6. AvaTrade
Established in 2006, AvaTrade offers access to currency pairs, stocks, indices, commodities, ETFs, and bonds, among other financial instruments. The multi-regulated broker operates through licenses granted by several financial regulators, including the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), and the British Virgin Islands Financial Services Commission (BVIFSC).
AvaTrade enables commission-free trading with a standard retail account, with the option to transition to a professional status. Opting for an Islamic account is also possible for traders who cannot pay or receive interest due to religious beliefs.
The retail account yielded average spreads of 0.8 pips for EUR/USD during the testing period, while GBP/USD spreads were typically at 1.2 pips, and those for USD/JPY were at 1.3 pips. We traded gold and the US500 index with average spreads of $0.37 and 0.50 pts over-market, respectively. Our tests showed average execution speeds of around 100 milliseconds. We particularly liked the AvaProtect™ risk management tool, which allows clients to hedge positions against losses for a specified period, with coverage of up to $1 million.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 57% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 7. eToro
Launched in 2007, eToro is a multi-regulated company operating through licenses from leading financial regulators, including the Financial Conduct Authority (FCA), the Cyprus Securities Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC).
Our hands-on analysis of eToro’s proprietary platform revealed that the broker offers one of the most diverse selections of financial instruments in the industry, with access to over 10,000 tradable markets, including 68 currency pairs, stocks, cryptocurrencies, ETFs, and commodities.
The broker charges no commissions on CFD trading and delivers spreads from 1 pip for EUR/USD, 0.025% for gold, and 0.015% for the US500 index. We clocked in average execution speeds under 200 milliseconds, experiencing minimal slippage throughout the testing period.
We also allocated a portion of our testing capital to their CopyTrader™ platform, which allowed us to replicate the positions of experienced traders in real-time. Another thing we noted during our review is that the minimum amount required per copy investment is $200.
Zero balance protection, price alerts, and pro charts are among the features and instruments traders can use to support their trading decisions. Swap-free trading for eligible customers is supported, too, with administrative fees being applied after a 7-day grace period.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 52% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. - 8. IG
IG, headquartered in the UK, is a globally operating FTSE 250 company, offering trading and investing services. The asset classes supported by the broker include forex, indices, commodities, shares, crypto, and more. Besides Contracts for difference (CFDs), traders have access to other ways to trade forex, including barriers, vanilla options, and spread betting, whose availability may vary based on their jurisdiction.
During our live testing of the IG execution infrastructure, we focused heavily on analyzing real-time costs across the main account for CFD trading. We observed stable pricing with this commission-free account, especially during peak liquidity periods. We recorded average spreads of 0.86 pips for EUR/USD, 0.3 pts for gold, and 0.8 pts for the US500. While the minimum spread for forex majors can drop to 0.6 pips, these averages represent the true costs we encountered across multiple daily sessions.
IG also offers a DMA account with narrower spreads and institutional pricing, but this option is available only to professional traders. If you are new to trading, IG offers educational guides, online courses, and webinars. For account-related issues, you can reach IG’s customer support via live chat, email, or phone.
CFDs are complex instruments. 67% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. - 9. Tickmill
Tickmill has been operating since 2005, with more than 490,000 traders choosing its services over the years. Tickmill Group’s entities hold licenses from multiple financial regulators, including the FSA, FCA, DFSA, CySEC, and FSCA. As per data on the broker’s website, the brand is present in 180+ countries and has an average monthly trading volume of over $196 billion.
Our orders filled rapidly during tests with an average execution speed of around 150 milliseconds, which allowed us to enter and exit positions without worrying about delayed orders or requotes.
The broker offers three main account types, the first one being the Classic account, with minimum spreads starting from 1.6 pips and zero commissions. We registered a Raw account connected to MT5, which granted us access to over 600 financial instruments. The other available platforms include MT4 for CySEC customers and TradingView and Tickmill Trader for clients at the Seychelles-regulated entity.
The Raw account offers spreads starting at 0.0 pips plus commissions of $3.0 per lot per side. Our tests indicated average spreads of 0.1 pips on EUR/USD, 0.09 pts on XAU/USD, and 0.39 pts on the US500. The TradingView Raw account features spreads from 0.0 pips plus commissions of $3.5 per lot per side. The minimum deposit for all three account types is $100. Classic and Raw accounts are available on MT4 and MT5, while the TradingView Raw account runs on TradingView and Tickmill Trader. Maximum retail leverage is capped at 1:30, whereas pro traders can increase their positions with a leverage of up to 1:500. Traders in specific jurisdictions can increase their exposure to 1:1,000. Funding methods include bank transfers, Visa, Mastercard, and digital wallets.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with Tickmill Europe Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 10. Vantage
Founded in 2009, Vantage Markets is a global broker, serving more than 5 million customers across its entities. During our live testing of Vantage, we explored their catalog of nearly 1,000 instruments, which spans forex, indices, metals, energies, and shares. We linked our account to MT5, but traders can also choose from MT4, TradingView, or Vantage’s proprietary web and mobile apps. Additionally, we can confirm that Vantage provides a fully functional demo account, which pairs well with their comprehensive educational content to help beginners safely learn the ropes.
We opened a live Raw ECN account for our tests, which is the most popular of the three main account types supported by the broker. It features spreads from 0.0 pips, and commissions from $3.0 per side per standard lot ($6.0 per round-trip). Our live tracking on the Raw ECN account showed highly competitive average spreads, sitting at 0.08 pips for EUR/USD, 1.26 pts for XAU/USD, and 3.60 pts for the US500.
If you prefer commission-free trading, the broker’s Standard STP account offers spreads from 1.1 pips for forex. Both account structures have a minimum deposit threshold of $50. The third account type, Pro ECN, is designed for high-volume traders, with spreads starting from 0.0 pips, commissions of $1.5 per lot per side, and a minimum deposit requirement of $10,000.
- 11. ActivTrades
Founded in 2001 in Switzerland, ActivTrades provides low-cost trading across more than 1,500 financial markets. The broker offers spread-only retail accounts to traders from more than 170 countries, with no minimum deposit requirement.
While testing the broker with an MT4 retail account, we were able to trade various asset classes, including over 50 forex pairs, global stocks, commodities, indices, exchange-traded funds, and bonds.
We tracked the live costs at ActivTrades, and the broker delivered highly competitive baseline pricing, with EUR/USD spreads averaging 0.5 pips during peak liquidity. The spreads for CFDs on precious metals and cash indices were also competitive and averaged 0.25 points for spot XAU/USD and 0.23 points for the US500. We paid no commissions whatsoever, as all trading costs are covered by the spreads.
Customers under the offshore and EU entities gain access to competitively priced cryptocurrency trading. Available cryptocurrencies include Bitcoin, Ethereum, and Cardano. Beyond trading costs, the broker charges several non-trading fees. Currency conversion will cost you 0.5%, while bank transfer withdrawals in the UK come with a £9 surcharge. There is also a $10 monthly fee after one year of account inactivity.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 12. Axi
Founded in 2007, Axi is a global forex and CFD broker, operating under several regulatory regimes. The company’s entities hold licenses from the financial regulators in Cyprus (CySEC), the UK (FCA), Australia (ASIC), and New Zealand (FMA).
When evaluating the broker, we had access to over 220 financial instruments across multiple asset classes. We observed competitive pricing with average spreads of 0.7 pips for EUR/USD with Standard accounts and as low as 0.0 pips for Pro accounts, where we incurred a $4.50 round-turn commission per standard lot at the CySEC entity. We can confirm the broker caps maximum forex leverage at 1:30 for retail clients as per CySEC requirements, and has a low barrier to entry with a minimum deposit of just $5.
Additionally, we found that Axi keeps gold trading costs low and maintains average spreads of $0.16 on their Standard account and $0.09 on the Pro account. Spreads for the US500 cash index averaged 29 pts with the Standard account. Customers of the offshore entity can also open Elite accounts with forex spreads from 0.0 pips, with a round-trip commission of $3.50 per lot.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Best Low Spread Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. FP Markets | 9,422 | 4.9 ⭐ |
| 2. IC Markets | 48,248 | 4.8 ⭐ |
| 3. Fusion Markets | 4,873 | 4.8 ⭐ |
| 4. Global Prime | 341 | 4.7 ⭐ |
| 5. AvaTrade | 11,076 | 4.7 ⭐ |
| 6. Vantage | 10,604 | 4.5 ⭐ |
| 7. Pepperstone | 3,144 | 4.4 ⭐ |
| 8. eToro | 29,171 | 4.2 ⭐ |
| 9. Tickmill | 1,077 | 4.1 ⭐ |
| 10. IG | 8,324 | 3.9 ⭐ |
| Low-Spread Broker | Min. Deposit |
|---|---|
| IC Markets | $200 |
| FP Markets | $50 |
| Fusion Markets | $0 |
| AvaTrade | $100 |
| Global Prime | $0 |
| Pepperstone | $10 |
| eToro | $100 ($50 in some countries) |
| IG | $50 for cards ($0 for bank transfers) |
| Vantage FX | $50 |
| Tickmill | $100 |
What is Spread in Forex Trading?
In forex trading, every currency pair involves a buy (ask) price and a sell (bid) price. The difference between the two price values is known as the spread. It is measured in pips (percentage in points), which represent the smallest unit of price movement for a currency pair.
For example, if the EUR/USD pair has a bid price of 1.1050 and an ask price of 1.1052, the spread equals 2 pips. This is the cost traders pay to open a position; hence, the tighter the spread, the lower the trading cost.
Spreads can be fixed or variable (floating), depending on the broker’s pricing model. Market conditions also play a major role, as variable (floating) spreads tend to widen during periods of low liquidity, high volatility, or following major economic announcements.
Many factors influence spreads, and forex brokers themselves can also dictate whether the spread of a given forex pair is wide or narrow. Market makers may slightly mark up the spread to generate profit. Meanwhile, ECN (Electronic Communication Network) or STP (Straight Through Processing) brokers typically offer raw spreads sourced directly from liquidity providers, often starting from 0.0 pips, but may charge a small commission instead.
Because spreads directly impact profitability, traders, particularly scalpers and high-frequency traders, often seek out low spread forex brokers to minimize transaction costs and enhance potential returns. Choosing a broker with consistently tight spreads across major pairs can meaningfully reduce transaction costs over time.
What is Considered Low/High Spread?
The spread represents the difference between the buy price and the sell price of a forex pair. If this difference is substantial, then that increases the overall cost of a trade, which automatically indicates a higher (wider) spread.
Typically, the forex pairs with the widest spreads are classified in the “exotics” category. They often involve currencies from emerging or frontier markets. An example is the EUR/TRY pair, which can reach spreads of over 100 pips.
In contrast, forex pairs that tend to have low spreads are typically the major ones, such as EUR/USD, GBP/USD, or USD/JPY. These pairs have high trading volumes and deep market liquidity, allowing brokers to offer spreads as tight as 1 pip or even lower during active market hours. This makes them popular with traders seeking cost-efficient execution, particularly scalpers and day traders who open multiple positions within short time frames.
While you can use trading calculators to estimate the overall cost of a trade, one approach is to compare the spreads offered by a broker with the industry average for the instruments you wish to trade. The list of low-spread brokers above includes a comparison of spreads on major forex pairs against industry averages. This can help you assess how tight the spreads offered by the reviewed brokers are.
Wide spreads, such as those in the EUR/TRY pair, tend to indicate a volatile market with low liquidity. If you see a pair with narrow spreads, its liquidity will usually be high while its volatility is low.
How to Calculate Spread Movements?
Calculating the spread is a straightforward process involving the subtraction of the bid (sell) price from the ask (buy) price. To demonstrate, let us consider the EUR/USD pair and assume its sell price stands at 1.07977, while the buy price is 1.07983. Thus, we should do the following calculation:
1.07983 – 1.07977 = 0.00006
The resulting number is the spread, while the pips are represented by the fourth digit after the decimal. Therefore, the EUR/USD pair’s spread in the above example stands at 0.6 pips. While for the majority of pairs, the pip is based on the fourth digit, for some pairs, it is the second digit that matters.
Your broker will display the current spread, so beyond understanding how the calculation works, you will not need to perform this calculation for each trade.
How Can Traders Access Lower Spreads?
Traders can access lower spreads through several approaches.
- Choosing a broker whose standard spreads are relatively narrow compared to the competition is a straightforward option.
- Another option is a zero-spread account, where the bid and ask prices are identical or almost the same, allowing the spreads to start at 0.0 pips and generally average at lower than 1.0 pip. Such accounts are not cost-free, however. Instead, traders will typically need to pay commissions if they go with such an account.
- There are also raw-spread accounts where the spreads are not marked up, and the commissions are usually lower than those of zero-spread accounts. These accounts often offer spreads that, similar to zero-spread trading, tend to be under 1.0 pip.
- Additionally, seasoned traders may open a professional account. Professional accounts are designed for individuals who meet a set of criteria for substantial trading activity, a substantial portfolio, or experience in the financial sector involving leveraged trading. In addition to typically featuring low spreads, professional accounts also come with higher leverage limits. In jurisdictions like the UK and Australia, for instance, if you are a retail trader, you cannot trade with leverage of over 1:30. In contrast, professionals can typically access leverage of up to 1:500. Professional accounts usually lack negative balance protection, however, so that is something to keep in mind.
Is It Always Better to Trade with Zero Spread Accounts?
While a zero-spread account can reduce or eliminate spreads on your trades, there are some downsides that you should consider before you open such an account.
Standard accounts typically come with no commissions attached to trades, with the entire trading cost built into the spread (except for the overnight funding costs). This, however, tends to increase the spread applied to standard account trades. Zero-spread accounts, on the other hand, tend to charge a commission on each side of a trade. Additionally, the minimum deposit requirement for a zero-spread account may be higher, making this type of trading account less suitable for traders with lower budgets.
While these commissions may appear to exceed the cost of trading with a standard account, if the zero/raw account charges a reasonable commission, you will typically benefit from lower overall trading costs by choosing an account with tighter spreads and a standard commission per lot traded.
Despite zero/raw spread accounts offering lower trading costs, some brokers apply reduced spreads only to forex pairs and a limited selection of CFD assets. If you notice that a broker offers the same spreads on commodities, cryptocurrencies, and other instruments across all account types, it may be more cost-effective to choose a no-commission account to avoid extra trading fees.