| Updated: November 4, 2025If you plan on trading forex, the spread is one of several key concepts you should be familiar with. In fact, it is one of the most essential elements of financial markets as a whole, seeing as it dictates the costs a user will incur while trading.
Experienced traders typically seek out brokers that offer narrow spreads, but rookies also appreciate lower trading costs. If you are a newcomer to the world of FX trading and are yet to find a low-spread broker, consider checking out our selection of brands offering the tightest spreads.
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eToro61% of retail investor accounts lose money
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
Eightcap59.57% of retail investor accounts lose money when trading CFDs with this provider.
BlackBull MarketsTrading leveraged products is risky
Global Prime74-89% of retail CFD accounts lose money
Pepperstone75.5% of retail investor accounts lose money
AxiThe vast majority of retail client accounts lose money
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 | 1.2 | 1.4 | 1.4 | 1.5 |
| 3. Fusion Markets | 1.01 avg (Classic) | 1.17 avg (Classic) | 1.29 avg (Classic) | 1.14 avg (Classic) |
| 4. Global Prime | 1.04 avg (Standard) | 1.32 avg (Standard) | 1.19 avg (Standard) | 1.30 avg (Standard) |
| 5. IG | 0.86 av.spread | 0.97 av.spread | 1.83 av. spread | 1.84 av.spread |
| 6. IC Markets | 0.8 | 0.8 |
| 0.8 |
| 7. AvaTrade | 0.8 | 1.3 | 1.2 | 1.2 |
| 8. Pepperstone | 1.10 | 1.20 | 1.20 (min) | 1.20 |
| 9. Vantage FX | 1.23 | 1.36 | 0.3 (Raw ECN) | 1.31 |
| 10. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
Top 12 Brokers Offering Competitive Spreads
With mostly positive customer reviews on Trustpilot, Fusion Markets is quite popular among traders. Many satisfied customers have praised the broker for its market selection, customer support, and competitive spreads.
The main account options at Fusion Markets are Zero and Classic. If you pick the Zero Account, you will be able to trade with starting spreads of 0.0 pips plus a commission of $2.25 per side on a standard-lot trade. The Classic Account adds a 0.9 mark-up to the spread, with no commission charged. The broker offers a swap-free account option too, with the EURUSD spread starting from 1.4 pips. Demo accounts are perfect for new traders to learn and test strategies in a risk-free environment, replicating real market conditions.
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
Whether you are a retail trader or a professional, FP Markets is a broker that will cater to your preferences. Its spreads are known to be competitive, with the Standard account type offering spreads that can be as low as 1 pip and zero commission. The spreads associated with Raw accounts start from 0.0 pips plus a small commission of $3 per lot per side of the trade. The minimum deposit condition for both account types is $50, and the maximum allowable leverage is 1:30 (for retail traders).
FP Markets is regulated by both ASIC and CySEC, two financial authorities with an excellent reputation, and the broker’s customer support operates around the clock, seven days a week. Therefore, clients can get in touch with a member of the support team whenever necessary.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.92% 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. - 3. Pepperstone
Pepperstone’s services are offered in more than 160 countries, making it one of the most widely available brokers on our list. With licenses from the ASIC, CySEC, FCA, and several other trusted supervisory authorities, traders can rest assured that Pepperstone is a broker that delivers in terms of security and the overall quality of its services.
Pepperstone advertises spreads starting from 1.00 pip for Standard users, with no commissions attached to the overall trading cost. The spreads that Razor account holders can take advantage of start at 0.0 pips plus a $3.50 commission per lot per side. Both accounts feature 1,475 + instruments across markets such as forex, shares, commodities, and indices. The broker has much to offer to inexperienced traders when it comes to education. A wealth of guides awaits on Pepperstone’s website, and users may also attend webinars.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% 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. With over 26,000 tradable symbols, including 70 currency pairs, there is no shortage of potentially lucrative trading opportunities at BlackBull Markets. The FMA-licensed broker offers competitive trading conditions, including spreads from 0.0 pips for ECN Prime and ECN Institutional account holders. Retail customers can trade forex with no commissions and spreads as low as 0.8 pips via ECN Standard accounts. Lower spreads from 0.0 pips are available to clients with ECN Prime accounts, where a $3 commission applies when you enter or exit trades.
BlackBull Markets is renowned for its lightning-fast order execution, averaging under 100 milliseconds. The broker sources its pricing directly from top-tier liquidity providers such as Citibank, Goldman Sachs, and Barclays. Thanks to its Electronic Communication Network (ECN) pricing model, client orders are executed without passing through a dealing desk, ensuring greater transparency and minimal latency.
- 5. Global Prime
The financial regulators of Australia and Vanuatu have deemed Global Prime to be a broker that meets all of their regulatory standards, as evidenced by Global Prime’s licenses. Clients also seem pleased with Global Prime’s services, given the fact that Global Prime boasts a score of 4.5 on Google Reviews, while its Trustpilot score stands at 4.7 currently.
The minimum spread of Global Prime’s Standard Account is listed as 0.9 pips with no commission added. Alternatively, if one wants to enjoy lower spreads of 0.0 pips or above plus a commission of $3.5 per lot traded per side, then they will need to go with the Raw Account option. Both account types feature minimum trades of 0.01 lot and maximum trade sizes of 1,000 lots. Scalping, hedging, and Expert Advisors are allowed. The account currency options include USD, AUD, GBP, EUR, CAD, SGD, and JPY.
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 traders the option to trade currency pairs, stocks, indices, commodities, ETFs, and bonds, among other financial instruments. The broker supports two main trading account types, designed for retail and professional traders. Going for an Islamic account is also possible for traders who cannot pay or receive interest due to religious beliefs.
The spreads of currency pairs are relatively low, with EUR/USD averaging at around 0.8 pips. GBP.USD spreads are typically at 1.2 pips, and those for USD/JPY are at 1.3 pips. The broker’s app is compatible with both Android and iOS, and its platforms include both MetaTrader 4 and its successor, MT5. AvaTrade’s customer support team operates 24/5, and the broker’s customer service, in general, has been praised by many users on review platforms like Trustpilot.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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
eToro was launched in 2007, enabling retail traders to access global financial markets at affordable costs and copy the trades of experienced fellow traders. The broker currently offers over 62 currency pairs, including but not limited to EUR/USD, AUD/CHF, and GBP/JPY, among others. The spreads are reasonable, with EUR/USD and USD/JPY averaging at around 1 pip.
The broker offers its own proprietary platform, but neither MT4 nor MT5 is available. That said, the brand is often praised for its innovative social trading platform, making it a great place for beginners and experienced traders alike. The trading service of eToro is available in plenty of countries globally, which is why users can choose between English, French, Polish, and Vietnamese, among others.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% 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 global leader in online trading, granting its clients access to the forex market, shares, indices, and crypto, among numerous other financial instruments. IG is highly regarded for its low spreads. Dozens of currency pairs are available, with their spreads considered to be remarkably competitive. For example, the EUR/USD pair boasts an average spread of 0.6 pips. The spreads are competitive for other asset classes too, with major indices starting from 0.8 points and commodities from 0.1 points.
If you are new to trading, IG has excellent educational guides, online courses, and webinars. In case you ever run into any issues while using your account, you can contact 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 made its online debut in 2005, and it has been the broker of choice for 490,000 traders ever since. 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 boasts an average monthly trading volume of 140B+. The average execution time is 0.15 seconds.
The broker offers two main account types, the first one being the Classic account, with minimum spreads starting from 1.6 pips plus zero commissions. The Raw account, on the other hand, boasts spreads starting at 0.0 pips plus commissions of $3 per lot per side. The starting deposit for both account types is $100, and the available currencies include USD, EUR, GBP, PLN, and CHF. Maximum retail leverage is capped at 1:30, whereas pro traders can increase their positions with a leverage of up to 1:500. Tickmill supports both MT4 and MT5. Once a user decides to fund their account balance, they can choose between 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 FX
Vantage supports the platforms MT4, MT5, TradingView, and cTrader, giving clients ample choice in terms of software. Regardless of which one a user goes with, they will be able to trade on both computers and smartphone devices. Vantage offers a demo account for traders who are just starting out, with a wealth of educational content at their disposal.
If you decide to make Vantage your broker of choice, the spreads you will be able to trade with will start from 1.1 pips plus $0 commission if you become a standard user. Going with a Raw account, on the other hand, will let you trade with spreads as low as 0.0 pips, and commissions from $3 per each side of standard-lot trades.
- 11. Axi
Whenever you are looking for the forex broker that offers the most competitive spreads and overall cost-friendly trading, you can check the trading conditions of Axi. Licensed by leading regulatory bodies like CySEC, FCA, ASIC, and FSA (St.Vincent and the Grenadines), the broker caters to traders with different preferences, making sure they all have access to competitive spreads.
The Standard account of Axi for retail traders will offer low spreads starting from 0.8 pips on major forex pairs. This account type comes with no commissions, ensuring fair pricing for retail traders. There is also the option to pay a small round-trip commission of $7 and reduce the spreads to 0.0 pips on major currency pairs. Those eligible to open Elite accounts will also trade Forex with spreads as low as 0.0 pips, and the round-trip commission per lot will be $3.50.
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. - 12. ActivTrades
ActivTrades excels at providing low-cost trading for hundreds of financial markets, quoting minimum spreads from 0.5 pips for major forex pairs. The broker offers spread-only retail accounts to traders from more than 170 countries, allowing them to join the price action with any deposit amount they wish. Apart from forex, clients can dip their toes in a variety of other asset classes, facing a choice from over 1,000 global stocks, commodities, indices, exchange-traded funds, and bonds.
Customers under the offshore and EU entities can additionally dabble in competitively priced cryptocurrency trading. Options like Bitcoin, Ethereum, and Cardano are just a few of the available coins. While trading costs are on the lower end of the spectrum, the broker charges several types of non-trading fees to keep in mind. 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 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.
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 FX | 10,604 | 4.5 ⭐ |
| 7. Pepperstone | 3,144 | 4.4 ⭐ |
| 8. eToro | 29,171 | 4.2 ⭐ |
| 9. IG | 8,324 | 3.9 ⭐ |
| 10. Tickmill | 993 | 3.5 ⭐ |
| Low-Spread Broker | Min. Deposit |
|---|---|
| IC Markets | $200 |
| FP Markets | $50 |
| Fusion Markets | $0 |
| AvaTrade | $100 |
| Global Prime | $0 |
| Pepperstone | $0 |
| 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 as well as a sell (bid) price. More often than not, they do not match, and the difference between the two price values is known as the spread. It is measured in pips (percentage in point), 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. Essentially, 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 – spreads tend to widen during periods of low liquidity, high volatility, or major economic announcements.
The spread is influenced by many factors, 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, especially scalpers and high-frequency traders, often look for low spread forex brokers to minimize transaction costs and enhance potential returns. Choosing a broker with consistently tight spreads across major pairs can make a significant difference in long-term performance.
What is Considered Low/High Spread?
As established, 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 designated into the so-called “exotics” category. They involve major currencies and currencies from emerging 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 benefit from 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 especially attractive to 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, we recommend simply comparing the spreads offered by a broker with the industry average for the instruments you wish to trade. Our comprehensive list of top low-spread brokers includes a comparison of spreads on major forex pairs against industry averages. This will instantly help you assess how tight the spreads offered by the reviewed brokers are.
Wide spreads like those of the EUR/TRY pair tend to indicate a volatile market with minimum liquidity. If you see a pair with narrow spreads, however, then usually, its liquidity will be high while its volatility–low.
How to Calculate Spread Movements?
Calculating the spread is relatively simple, and all one needs to do is subtract the sell price from the buy price. To demonstrate, let us say that we are looking at the EUR/USD pair and that 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. Do note that while for the majority of pairs, the pip is based on the fourth digit, for some pairs, it is the second digit that matters.
We should also stress that your broker will display the current spread, so beyond understanding how the calculation works, you will not need to utilize it each time you plan to execute a trade.
How Can Traders Enjoy Lower Spreads?
There are several actions one can take in order to trade with lower spreads.
- The first one is to simply choose a broker whose standard spreads are relatively narrow compared to the competition.
- An alternative is to go with a zero-spread account. As one can guess, a zero spread account is one 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, similarly to zero-spread trading, tend to be under 1.0 pip.
- Last but not least, seasoned traders may open a professional account. They are reserved for individuals who meet a set of criteria of substantial trading activity, an impressive portfolio, or experience in the financial sector involving leveraged trading. In addition to typically featuring low spreads, professional accounts also come with the perk of large leverage. 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 serve to make your trades have either low or non-existent spreads, there are some downsides that you should consider before you open such an account.
First and foremost, you should remember that standard accounts typically come with no commissions attached to trades, with the entire trading cost built into the spread. That, however, automatically increases the spread applied to trades with standard accounts. Zero-spread accounts, on the other hand, tend to apply 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 the aforementioned commissions may seem like an additional surcharge that exceeds the cost of trading with a standard account, if the zero/raw account charges a reasonable commission, you will almost always 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, it is worth noting that 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.