| Updated: In forex trading, the spread is a key concept for traders to understand, as it directly affects transaction costs. While experienced traders typically prioritize brokers with narrow spreads, new market participants can also benefit from competitive pricing. If you are new to FX trading and have yet to find a low-spread broker, review our selection of brands known for their tight pricing structures.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro50% 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
Pepperstone72.9% 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 nearly 90 major, minor, and exotic currency pairs.
The main account options at Fusion Markets are Zero and Classic. Тhe Zero Account features starting spreads of 0.0 pips plus a commission of $2.25 per side on a standard-lot trade ($4.50 per round-trip). The Classic Account adds a 0.9 mark-up to the raw spread, with no commission charged. 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.
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). More than 10,000 instruments, including 60 currency pairs, are available for trading via two primary account types, Raw and Standard.
The spreads associated with Raw accounts start from 0.0 pips plus a small commission of $3.0 per lot per side of the trade ($6.0 per round-trip). The Standard account type offers wider spreads starting from 1.0 pip, with no commission. 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 the maximum leverage is 1:30 (for retail traders), in line with the regulations of ASIC and CySEC.
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. The instruments are tradable via several third-party platforms, including TradingView, MT4, MT5, and cTrader, along with the broker’s proprietary BlackBull CopyTrader and Invest software. The company is regulated by the financial authorities of New Zealand and Seychelles.
BlackBull Markets offers execution averaging under 100 milliseconds with prices sourced directly from 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, supporting transparency and reduced latency. 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. Lower spreads from 0.0 pips are available to clients with ECN Prime accounts, where a $3 commission per side applies. The Prime+ account is designed for high-volume traders, with lot-based rebates. 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 software, including MT4, MT5, cTrader, and TradingView, or the proprietary Pepperstone platform.
The broker offers retail clients two main account structures, Standard and Razor. Standard users have access to spreads from 1.0 pip, with no commissions attached to the overall trading cost. Razor accounts, designed for high-frequency traders, feature spreads from 0.0 pips plus a $3.50 commission per lot per side. 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. 72.9% 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. The broker’s suite of nearly 150 instruments encompasses the asset classes of forex, commodities, crypto, indices, and US shares, tradable via the third-party platforms MetaTrader 4 and MetaTrader 5. Retail customers can choose between two account structures: Standard and Raw.
The Standard account offers spreads from 0.9 pips with no commission. The Raw account provides access to lower spreads from 0.0 pips. A commission of $3.50 per lot traded per side applies for these Raw account trades. 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. 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 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).
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 for EUR/USD average 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 MetaTrader 5. AvaProtect™ is an exclusive risk management tool, allowing 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). The broker currently offers over 62 currency pairs, including EUR/USD, AUD/CHF, and GBP/JPY. Beyond forex, traders can diversify their portfolios with stocks, crypto, ETFs, and commodities, all tradable via a proprietary platform. Through eToro’s CopyTrader™ feature, they can replicate the trades of experienced traders.
Spreads for major currency pairs, such as EUR/USD, GBP/USD, and USD/JPY, average 1 pip. 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. 50% 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 trading, and spread betting, whose availability may vary based on their jurisdiction.
The EUR/USD spread starts from 0.6 pips, with the average being 0.86 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 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 196B+. The average execution time is 0.15 seconds. Tickmill offers access to nearly 600 CFD instruments, tradable via MT4, MT5, TradingView, and Tickmill Trader.
The broker offers three 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, offers spreads starting at 0.0 pips plus commissions of $3.0 per lot per side. 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. The CFD broker supports access to nearly 1,000 instruments across forex, indices, precious metals, energies, ETFs, soft commodities, and shares. Vantage supports the third-party platforms MT4 and MT5, and TradingView, along with its proprietary platform available for web and mobile trading. Vantage offers a demo account for new traders, along with educational content.
The broker supports three main account types, with the most popular option being the Raw ECN account. It features spreads from 0.0 pips, and commissions from $3.0 per side of standard-lot trades ($6.0 per round-trip). If you prefer commission-free trading, the broker’s Standard STP account offers spreads from 1.1 pips. 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 hundreds of financial markets. The broker offers spread-only retail accounts to traders from more than 170 countries, with no minimum deposit requirement. Apart from forex, clients can trade in a variety of other asset classes, spanning global stocks, commodities, indices, exchange-traded funds, and bonds.
ActivTrades quotes minimum spreads from 0.5 pips for major forex pairs. 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. 72% 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). The broker offers access to over 220 financial markets, with average spreads starting from 0.6 pips, maximum leverage of 1:30 for retail clients, and a minimum deposit of $5.
The Standard account offers spreads starting from 0.6 pips on major forex pairs with no commissions. The Pro account features raw spreads from 0.0 pips and a round-trip commission of $7.0 on major currency pairs. The Elite account also features 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.