fbpx
low spread forex brokers

Top 10 Low Spread Forex Brokers in 2022

Are you looking for a low spread Forex brokers to start your trading journey ? Well, you are lucky!

In this guide, we will mention the top 10 low spread Forex Brokers, discuss each one and mention the pros and cons. We hope that after reading this guide you will find the broker you need. Before we dig deeper, let me tell you what forex spreads are and why they are important.

Forex Spread

Forex spreads measure the difference between the bid (bid) and ask (sell) prices of a currency pair.

When acquiring a currency, sellers often pay slightly more than they earn when selling that currency. A spread is a change between two prices and is paid to the broker as a fee for facilitating the transaction. Spreads are a major source of income when trading currencies, as many forex brokers no longer charge fees.

Why do you need a low spread forex brokers?

Although broker spread fees seem extremely small on the surface, they are usually only a few pips, but there are pitfalls.

A trader’s spreads can quickly build up with significant operating costs, especially when trading on margin and disclosing huge foreign exchange reserves. As a result, choosing a low spread forex brokers is always a wise idea as it significantly lowers the cost of doing business.

When the spread is low, there is a lower spread between the bid and ask prices of the currency pair. The lower the spread, the less money the broker keeps, so you pay closer to the actual market price of the currency pair.

For example, the EUR/USD currency pair is one of the most widely traded forex pairs in the world and is commonly used to compare broker spreads. The industry average spread for the EUR/USD pair is around 1.0 pips. As a result, a forex broker with a low spread for this trading pair costs less than 1.0 pips.

Now that you understand what a low spread forex brokers is, let’s take a look at the top 10 low spread forex brokers.

1. Top1 market top 1 markets logo

Top1 Markets is a Forex and CFD broker based in Australia and Vanuatu. This broker is licensed and regulated by ASIC or the Australian Securities and Investments Commission.

Major, Minor and Exotic are among the Forex trading available in Top1 Markets. In addition to indices, stocks, metals and cryptocurrencies, the broker also offers indices, stocks, metals and cryptocurrencies.

ECN, Premium Leverage and Islamic Accounts have three account types available. Spreads and rates are different for each account type. Top1 makes it easier to navigate tradable product spreads. The spread offered by the broker is subject to change depending on market conditions and volatility.

The broker offers liquidity in markets around the world and liquid spreads that fluctuate with market movements. Spreads are reasonable when global markets are busy and not hampered by key financial data. However, spreads may widen during daily opening and closing periods or when news and financial data become available.

In EUR/USD, the Top1 Markets offer 0.8 spreads. This is a very competitive market. Also, the leverage of 1:100 is not too high, so you can experiment.

Feel free to create an account with Top1 Markets as the broker provides professional services with no hidden fees.

Advantages

  • ASIC license
  • MT5 platform provided
  • Low spreads
  • Friendly customer support service
  • Multiple account types
  • Allow automatic trading

Disadvantage

  • No MT4 platform

2. Pepperstone pepperstone logo

Pepperstone is an online trading broker based in Melbourne, Australia, launched in 2010 . It is the best Forex Broker with the lowest spread ratios, offering multiple account options to suit any trading approach.

Creating a Pepperstone account is very simple. With a $200 minimum deposit, you can start trading on any regular or ECN Razor account type that offers industry-leading spreads and execution speed.

They also offer social trading features for those who are interested and an excellent active trading program that can help you reduce your trading costs even more.

Pepperstone’s prices are so sharp that you always get competitive bids and very low spreads when trading. Minimum spreads for major FX currency pairs start at 0 pips on Razor and regular accounts.

These are among the lowest spreads in the industry, and especially given the world-class trading environment, Pepperstone serves its clients worldwide. Also, Pepperstone spreads typically drop to zero when liquidity is strong, but the average spread offered is 0.09 pips.

Advantages

  • high regulation
  • Offers multiple account types
  • Transactions without fees

Disadvantage

  • High Minimum Deposit

3. Vantage FX vantage fx logo

Vantage FX is a registered online trading broker established in 2009, providing institutional trading terms to retail clients worldwide in a transparent and true ECN/STP environment with no trading desk interference.

This platform has over 40 currency pairs to choose from. Spreads start at 0 pips and are leveraged up to 1:500. The broker also allows you to choose a trading account to meet your needs.

The main differences between the accounts are the minimum deposit spreads and fees. Traders looking for direct market access, larger spreads, and no commission trading should opt for a standard STP account. A minimum deposit of $200 is required for variable spreads starting at 1.4 pips.

Traders looking for deep liquidity and low spreads should choose RAW ECN accounts. The minimum deposit is $500, variable spreads start at 0 pips and commissions start at $3.

Vantage FX is an ECN broker that offers fast trade execution speeds and narrow RAW ECN spreads starting at 0 pips using top-notch liquidity providers.

Vantage FX account holders can utilize a variety of trading platforms including the popular MetaTrader 4 and MetaTrader 5 platforms to trade markets from their desktop, web or mobile device.

Advantages

  • Multiple trading instruments
  • Offer a variety of account types
  • Zero spread trading

Disadvantage

  • High Minimum Deposit

4. FxPro FxPro Logo

FxPro is an online FX and CFD broker founded in 2006, offering a wide range of products on a state-of-the-art infrastructure. With spreads as low as 0 pips on some pairs and spreads as low as 0.4 pips on average, FxPro is a trusted brokerage for retail traders.

They are one of the most reputable and dubious brokers in the industry and are known for keeping transaction costs low. FxPro is a well-known NDD broker serving a wide range of traders.

MT4 traders can trade on the MT4 platform with a fixed 1.2 pips spread. If you are interested in trading fixed spreads, the minimum deposit is $100.

On four trading platforms, including MT4, MT5, cTrader and Edge, traders can trade more than 260 instruments across six asset classes. In addition, traders from the UK can also participate in spread betting.

The state-of-the-art trading platform offered is top notch and ideal for traders of all abilities and types. Each platform also offers a mobile application that allows traders to trade on the go. FxPro has also developed a mobile app for FxPro Tools and FxPro Direct.

Advantages

  • high regulation
  • Great teaching and research tool
  • Provide various trading platforms

Disadvantage

  • Spreads can be high

5. IC market IC markets logo

Founded in 2007, IC Markets is an Australian trading broker headquartered in Sydney that has since grown to become one of the largest trading brokers in the world. They are ASIC regulated genuine ECN brokers serving retail and institutional clients worldwide.

Their ECN approach uses state-of-the-art technology to provide low spreads and ample liquidity for fast trade execution.

Genuine ECN accounts and regular accounts are two account types offered by IC Markets. The minimum deposit amount is $200. A genuine ECN account offers flexible spreads starting from 0.0 pips and a low fee of $3.5.

There are no fees on the basic account, but variable spreads start at 1.0 pips. With over 50 unique liquidity sources, the spreads are narrow and liquidity is available 24 hours a day, 7 days a week using a standard ECN account.

As a result, IC Markets’ European and Australian businesses have leverage of 1:30, while companies worldwide have leverage of up to 1:500.

If you are not concerned about the cost of dispersion, a basic account is sufficient. On the other hand, if you want the narrowest spreads and the best bid/ask quotes, a raw spread account is a good option.

Advantages

  • high regulation
  • Fast order execution
  • ECN model applied

Disadvantage

  • No fixed spread

6. XM xm logo

Xm is one of the low spread forex brokers. XM Group was founded in 2009 and has since developed into one of the world’s largest trading brokers with clients in 196 countries. They don’t cut corners for trading performance, so they can offer the lowest spreads and fastest execution times while remaining flexible.

Brokerage firms have a best practice policy to provide traders with the best possible trading environment. And because we work with a variety of liquidity providers, we can offer you the lowest spreads with a lot of liquidity.

In addition to three unique account types, XM offers trading criteria tailored to meet the needs of both beginners and experienced traders. For example, the minimum deposit amount is $5 and you can choose between a floating spread starting at 0 pips or a no-commission account with spreads for a fee of $3.5. Leverage depends on the financial item being exchanged and the customer’s location.

Zero accounts have the narrowest group spreads, which can be helpful for clients who are scalping or running expert advisors (EAs). Micro and standard accounts are good choices for beginners who want their fees to be included in their spreads.

Advantages

  • Minimum deposit zero
  • Transactions without fees
  • high regulation

Disadvantage

  • No fixed spread

7. FXTM fxtm logo

With over 250 instruments to choose from, FXTM allows traders around the world to trade the markets. In addition, FXTM offers award-winning trading services, stringent regulations, deep liquidity for fast trade execution, flexible accounts/leverage, narrow spreads and minimal minimum deposit requirements for Forex traders.

FXTM offers a variety of trading accounts with adjustable leverage, a powerful trading platform across multiple devices, competitive trading conditions, and low minimum deposits starting at $10.

All traders can benefit from the FXTM Basic Account, which includes a variety of features and perks. The minimum deposit is $100 and the maximum trading volume is 30 lots. There are no fees for this account. However, floating spreads are marked to pay off, so they start at 1.3 pips.

Spreads on ECN accounts start at 0.1 pips, with a modest fee of $2 per lot. The minimum deposit required is $500. Professional traders can benefit from the significant liquidity of FXTM directly from Tier-1 liquidity providers with spreads as low as 0 pips.

FXTM spreads are variable and may increase at different times of the day depending on market conditions.

Advantages

  • Tighter spreads with faster execution
  • Transactions without fees
  • Minimum deposit of $10

Disadvantage

  • Spreads may vary.

8. Forex.com Forex.com logo

Since 2001, Forex.com has provided traders worldwide with access to more than 4,500 global markets, including more than 80 currency pairs, more than 220 stocks, commodities, equities, indices and cryptocurrencies.

The fact that Forex.com has existed for a long time gives traders peace of mind that they are dealing with a reputable broker with years of expertise in the trading business.

Excellent trade execution speed and low spreads help keep trade costs low while providing good value and increasing trade reliability.

Forex.com has invested more than a decade in developing a large network of liquidity providers, enabling brokers to offer traders narrow spreads and fast execution times in a variety of market conditions.

refers to your trading style and geographic location, Forex.com UK offers a variety of account options. For example, commission accounts or DMA accounts charge commissions when trading foreign exchange pairs. There is also a minimum deposit of $100.

Depending on the market you choose to trade in, Forex.com offers fixed and floating spreads. Fixed spreads are not affected by market factors such as volatility and liquidity. Variable spreads may change during the day depending on various factors such as underlying liquidity and market volatility.

Advantages

  • high regulation
  • Lots of tradable products
  • Excellent educational and research resources

Disadvantage

  • High inactivity fees

9. FP Market FP Market Logo

FP Markets has been offering award-winning ECN trading terms since 2005 with direct market access prices, narrow spreads starting at 0 pips, and adjustable leverage up to 1:500.

FP Markets also has a variety of minor, major and exotic currency pairs to choose from. Available 5 days a week, 24 hours a day. Spreads start at 0 pips and leverage goes up to 1:500.

They work with the world’s leading liquidity providers to provide their clients with more liquidity and competitive spreads. Order execution is fast and reliable thanks to the transparent price feed.

FP Markets offers a variety of accounts for beginners and experts alike. All accounts have adjustable leverage up to 1:500 and run ECN pricing methodology using NY4 Equinix servers in New York. It seeks to provide the narrowest spreads and the fastest transaction execution speeds feasible. There is also no penalty for inactive accounts.

The Basic Account does not offer a modest minimum deposit of $100, spreads starting at 1.0 pips, and no trading fees. The minimum deposit for an ECN RAW account is $100, offering spreads as low as 0 pips, but charging a relatively low fee of $3 for each lot.

Advantages

  • Transactions without fees
  • Multiple account types
  • A great research and teaching tool

Disadvantage

  • No fixed spread

10. FXCM fxcm logo

Forex Capital Markets (FXCM) is a well-known online broker that offers Forex, CFD and Spread betting services. The broker boasts a variety of currency pairs available for trading.

There are over 500 major, minor and exotic currency pairs offered by the platform. FXCM also offers “Forex Baskets” where you can hedge your bets by investing in multiple currencies simultaneously.

Brokerage services are provided through the No Dealing Desk (NDD) method. According to FXCM, the sophisticated trading technology used is responsible for the company’s fast execution times and minimal spreads.

Spreads are variable and are determined by liquidity and volatility. For EURUSD, typical spreads start at 0.7 pips for UK websites and 1.3 pips for global users.

Advantages

  • Great teaching and research tool
  • Rich trading platform

Disadvantage

  • Limited tradable products

Last thoughts

Forex trading allows you to participate in the vast global currency market . For Forex trading, most companies charge spreads rather than fees. As a result, it’s important to get the best spread possible so you can keep more profits. I hope this article is useful for those of you who are looking for low spread forex brokers.