Best Forex Brokers with Low Spreads in 2024
The spread is among the most important factors when choosing a Forex broker. It's the difference between the buy and sell prices in the currency market. The lower the spread, the more profit a trader can make.
Our article will discuss the best Forex brokers with the lowest spreads for 2024. We have analyzed the trading conditions of several companies and prepared a review to help you choose the best broker for your Forex trading strategy.
Top 10 Best Forex Brokers with Low Spreads
Recently, many Forex brokers have started offering their services without spreads. This means traders can operate in the market without additional commissions for the difference between the buy and sell prices. Therefore, we have compiled a ranking of the best Forex brokers with low spreads to help you choose the best provider for your trading strategy. We analyzed the conditions and rates of several brokers and prepared a review that will help you understand which Forex broker with zero spread is right for you.
1. IC Markets
IC Markets is a reliable and versatile broker that offers a wide range of services and tools for trading in the financial markets. The company provides impressive trading instruments, high-quality trading platforms, advanced analytical tools, and valuable education for traders of all levels.
IC Markets is likely most suitable for experienced traders who value deep liquidity, tight spreads, and advanced trading tools. Beginner traders can also benefit from the educational materials offered by the company, but they should be prepared for some additional expenses and a higher minimum deposit requirement.
Advantages of IC Markets
- Regulation. IC Markets is regulated by two serious financial regulators, ASIC and CySEC, which guarantees client funds protection and trading conditions fairness.
- A wide range of trading instruments. IC Markets clients can trade various assets, including currency pairs, stocks, indices, commodities, and cryptocurrencies.
- Low spreads. IC Markets offers some of the lowest spreads on the market, making trading more accessible and cost-effective.
- MetaTrader, cTrader, and TradingView platforms. These platforms are widely recognized for their advanced trading features and analysis tools.
- Educational materials. The broker offers high-quality training materials suitable for beginners and experienced traders.
- Efficient customer support service. IC Markets clients note the high level of customer support service, which responds quickly and professionally to problems and questions.
Disadvantages of IC Markets
- High minimum deposit. The entry threshold for opening a trading account with IC Markets is relatively high and may be inconvenient for novice traders or those who do not want to invest large sums at once.
- A limited number of withdrawal options. The options for withdrawing funds from IC Markets are limited, which may cause inconvenience, especially for clients who prefer specific payment systems.
2. Pepperstone
Pepperstone is a significant and reliable broker that offers a broad range of trading instruments and attractive trading conditions. With regulation by serious authorities, clients can be confident in the security of their funds.
The broker is suitable for various types of traders. Beginners will find extensive educational materials, including trading guides, webinars, instructional videos, and Forex trading courses. Experienced traders will also appreciate Pepperstone's opportunities, including favorable trading conditions, various trading platforms, and access to complex trading instruments.
The broker's technical support operates at a high level, offering clients quick and efficient responses to any questions.
Pepperstone is an excellent choice for traders of all experience levels. With a unique combination of educational materials, trading tools, and high-quality customer service, this broker ensures excellent conditions for successful trading.
Advantages of Pepperstone
- Wide selection of trading platforms.
- Tight spreads and favourable trading conditions.
- Numerous regulatory licenses.
- A large number of trading instruments, including over 600 CFDs on stocks.
Disadvantages of Pepperstone
- Lack of diversity in types of trading accounts.
- Withdrawals are only available via bank transfer, which can prolong the process for an extended period.
3. AvaTrade
AvaTrade is ideal for traders looking for various trading tools and a high level of investment protection. Beginners will be comfortable with the intuitive interface of the AvaTradeGO mobile platform, while experienced traders will appreciate the depth of MetaTrader's customization and analytical tools. However, traders who need access to STP or ECN accounts should pay attention to other brokerage companies.
Advantages of AvaTrade
- A wide selection of financial instruments. AvaTrade offers more than 60 currency pairs and CFDs on stocks, indices, commodities, cryptocurrencies, and other assets.
- Innovative trading platforms. AvaTradeGO, MetaTrader 4 and 5, and WebTrader provide convenience and functionality for trading.
- Educational resources. Access to an education center with video tutorials, articles, and other materials helps traders improve their skills and knowledge.
Disadvantages of AvaTrade
- Limited account options. The absence of market execution of orders, cent accounts, and fixed spread accounts may limit options for traders.
- Fees. Costs for account inactivity and maintenance may impact trading profitability.
4. RoboForex
RoboForex is recognized as one of the few Forex brokers with an impeccable reputation. The company strictly adheres to its regulations, does not delay payments, and provides fair quotes. RoboForex can be a good choice for both novice and professional traders due to its robust offerings, which include a variety of trading instruments, account types, platforms, and competitive trading conditions. The broker's commitment to transparency and customer service further solidifies its standing in the Forex community.
Advantages of Roboforex
- A variety of trading platforms, including MetaTrader 4, MetaTrader 5, cTrader, and R StocksTrader.
- Over 12,000 trading instruments, including currency pairs, stocks, indices, ETFs, commodities, metals, and cryptocurrencies.
- Different types of accounts for traders of all experience levels, including accounts with ECN and STP access.
- Competent 24/7 customer support.
- Loyalty programs and bonus offers for clients.
- Low spreads and commissions, as well as the ability to trade with high leverage.
Disadvantages of Roboforex
- Regulation in an offshore jurisdiction.
- Beginner traders may find a lack of educational materials.
5. FxPro
FxPro provides a comprehensive range of services and tools for traders. With its variety of trading accounts, platforms, and available markets, it is well-suited to meet the needs of different traders. This broker suits traders looking for a wide selection of markets, diverse platforms, and analytical tools. It is also apt for beginner traders, thanks to the educational materials and experienced traders who value flexible trading conditions.
Advantages of FxPro
- Various trading platforms, such as MetaTrader 4, MetaTrader 5, cTrader, and FxPro Edge, provide flexibility and convenience in trading.
- A diverse range of available markets and products, including currency pairs, CFDs on indices, stocks, commodities, futures, and cryptocurrencies.
- Analytical tools, including signals from Trading Central and Autochartist functionality.
- Extensive educational materials, including free courses, articles, videos, and webinars, contribute to the development of traders.
Disadvantages of FxPro
- An inactivity fee is charged after six months of no position opening or closing.
- Average trading commissions. FxPro does not have the tightest spreads in the market and not the most minuscule trading commission per transaction.
- Absence of cent accounts and services for copying trades of successful traders.
6. CMC Markets
CMC Markets has been a reliable CFD and Forex broker in the business for a long time. Top-tier financial authorities regulate the company, offers an excellent trading platform, and has low commission fees.
We believe it is an excellent choice for beginners and experienced traders. CMC Markets is a good option if you are seeking a trustworthy broker with extensive experience.
Advantages of CMC Markets
- Regulation. CMC Markets is regulated by leading financial authorities, including the UK FCA, ensuring the security of client funds.
- Low trading fees. The broker offers competitive spreads and swaps and does not charge fees for deposits or withdrawals.
- Wide range of markets and products. CMC Markets provides access to various trading instruments, including currency pairs, stocks, indices, commodities, and cryptocurrencies.
- Trading platforms. Access to the popular MetaTrader 4 and CMC Markets platforms, which offer flexible settings and an intuitive interface.
- Analytics. The broker offers extensive analytical materials, including news from Reuters, an economic calendar, and technical analysis.
- Education. CMC Markets offers comprehensive educational materials, including webinars, seminars, and courses.
Disadvantages of CMC Markets
- Limited account options. The broker offers a limited number of account types, which may not meet the needs of all traders.
- Inactivity fee. The broker charges a monthly fee if an account remains inactive for 12 months.
- No online chat. While support is available 24/5, the lack of an online chat option may hinder instant communication with support.
7. AMarkets
AMarkets is a versatile broker offering a full range of services in the Forex market. It enables independent trading and investing funds in copy trading with equal success.
Traders can access several accounts with low spreads, permitted scalping, and fast trade execution. Up-to-date analytics, valuable services, and rapid fund withdrawal support a stable technical platform.
Investors who are not keen on engaging in independent trading can still achieve significant profits by copying the trades of successful traders. Building a portfolio is time-efficient and offers the possibility of passive income.
Advantages of AMarkets
- A wide range of trading instruments, including currencies, stocks, indices, commodities, and cryptocurrencies.
- Extensive analytical capabilities using modern tools and trading robots.
- No commissions on many operations.
- Convenience and simplicity of opening an account and managing it.
Disadvantages of AMarkets
- Not the most extensive educational materials. The broker offers essential resources such as a blog and FAQ but lacks deeper educational content such as webinars, courses, etc.
- The broker does not offer a trading platform, which may disadvantage those seeking a unique trading solution.
- On some assets, spreads are higher than those of competing Forex brokers.
8. Deriv
Deriv is an appealing choice for a wide array of traders, particularly those who are just beginning or are at an intermediate level. Its user-friendly approach, diverse platforms, and low-cost structure make it ideal for individuals seeking a straightforward trading experience. While it may not fully satisfy the needs of highly advanced traders due to some limitations in educational and analytical resources, Deriv's overall offering is solid, making it a reliable and accessible broker for most trading requirements.
Advantages of Deriv
- Relatively reliable with licenses from various global regulators.
- Simple and fast account opening process.
- A wide variety of account types cater to different trading needs.
- Low commission structure.
- A wide range of trading platforms is suitable for traders of different levels.
- High-quality technical support with fast and effective responses.
Disadvantages of Deriv
- Some essential asset classes are absent, and a limited number of CFDs on stocks exist.
- Educational materials are confined to a blog and lack comprehensive learning resources.
9. Admirals
The broker Admirals is suitable for a broad spectrum of traders. With its strict regulation, various account types, and a competent set of educational and analytical materials, this broker provides high-quality services for novice and experienced traders.
Beginners seeking detailed educational resources and support will undoubtedly appreciate this broker. Experienced traders will also find it beneficial due to competitive trading commissions, abundant tools for analysis and trading, and the convenience of the depositing and withdrawal process.
Advantages of Admirals
- Regulation. Admirals is regulated by several leading financial authorities, including the FCA in the UK and CySEC in Cyprus, ensuring high reliability and security.
- Trading Fees. Trading commissions are set at a competitive level, making trading with Admirals cost-effective.
- Wide Range of Payment Methods. Clients can deposit and withdraw funds using various convenient payment methods, including bank transfers, credit/debit cards, and electronic wallets.
- Analytics. Admirals offers extensive analytical resources, including an economic calendar, trading news, weekly podcasts, and technical and fundamental analyses.
- Education. The broker provides a rich collection of educational materials, including webinars, articles, guides, and e-books.
Disadvantages of Admirals
- Inactivity fee. Admirals charges a fee if an account remains inactive for a certain period, which may be undesirable for some investors.
- Support. Although the support service provides multiple communication channels and quick responses, some users sometimes complain about its intrusiveness and note unprofessionalism. Additionally, information about the support service's working hours is missing from the Admirals website.
10. Oanda
Oanda is an excellent choice for traders seeking a reliable and regulated broker with competitive spreads and various trading assets.
With quality analytics and diverse educational materials, Oanda suits beginners and experienced traders.
Advantages of Oanda
- Strict Regulation. Oanda is regulated by leading financial authorities worldwide, ensuring high security.
- Tight Spreads. Oanda offers competitive and transparent spreads.
- Diverse Markets and Products. The broker provides a wide selection of assets, from Forex and CFDs to indices and commodities.
- Advanced Trading Platforms. Oanda supports MetaTrader 4 and 5 and its proprietary platform, fxTrade.
- Quality Analytics. Automatic pattern recognition, advanced tools for MetaTrader, a currency converter, and other resources are provided.
- Extensive Learning Section. Oanda offers rich educational materials and resources, including webinars, videos, and articles.
Disadvantages of Oanda
- Limited Account Types. Oanda offers only one standard type of account, which may not be suitable for traders with different needs.
- Inactivity Fee. An inactivity fee may be charged if the account is not used for an extended period.
- High Swaps. Oanda has relatively high swap rates, which could reduce the profitability of long-term trades.
How the Best Forex Brokers with Low Spreads List was Compiled
The selection of the best Forex brokers with low spreads was based on carefully chosen criteria that ensure optimal trading conditions for traders:
Basis of Broker Ranking: In compiling the list of brokers with low spreads, we relied on our own Forex broker rating. This rating is formed based on numerous parameters, including the company's reputation, financial stability, quality of customer service, and much more.
Comprehensive Evaluation Methodology: According to our methodology, the selected brokers demonstrate high standards in all operations. This includes factors such as transparency of trading conditions, possession of licenses, customer service level, and overall reliability.
Low Spread Criterion: A distinctive feature of this list is that it includes brokers offering lower spreads than the average market level. This criterion is essential for traders looking to minimize trading costs and is a critical factor in choosing a broker for effective trading.
These standards ensure that the brokers on our list with low spreads meet high-quality requirements and offer trading conditions that provide maximum efficiency and safety for Forex market traders.
What is a Spread?
A spread is the difference between an asset's buy and sell price. In Forex, the spread is also defined as the difference between the Bid and Ask prices:
- Bid is the price at which other market participants buy currency or another asset from us. For this reason, Bid is referred to as the buy price.
- Ask is the price at which other market participants sell currency or another asset to us. Ask is also known as the sell price.
It’s important to note that from a trader's perspective, the Bid is the price at which they sell the asset. Purchases are made at the Ask price.
The spread is market-driven. Bid and Ask prices differ because some market participants are interested in buying the asset for less, while others aim to sell for more. Consequently, the Bid is always lower than the Ask.
The popular MetaTrader 5 terminal displays Bid and Ask prices for each currency pair. These can be seen in the list of trading instruments (left column) and on the chart. The difference between these values constitutes the spread.
For example, if a trader wants to buy EURUSD, they would open a transaction at the Ask price (1.08858). If they want to sell the asset immediately, it must be done at the Bid (1.08823). Thus, the trader loses on the spread:
1.08858 – 1.08823 = 0.00035
How is the Spread of Currency Pairs Calculated?
Forex spreads are determined in points using a 4-digit quotation.
It is important to note that brokers offer two types of quotations:
- Five-digit quotations, for example, 1.08858.
- Four-digit quotations, for example, 1.0885.
Referring back to the MetaTrader terminal screenshot, it can be observed that the program receives five-digit quotes for EURUSD – this is the most popular option among the majority of Forex brokers.
In our example, the difference between the bid and ask is 0.00035. Since the quotation is five-digit, the last digit is separated by a comma, and it is said that the spread is 3.5 points.
For four-digit quotations, the spread is calculated directly. For example, if the difference between the bid (1.0882) and the ask (1.0885) is 0.0003, then the spread is 3 points.
Any Forex broker offering low spreads provides one or several accounts with five-digit quotations. This is the only way to achieve a minimum value of less than 1 point.
What Types of Spreads are Available in Forex?
To accommodate the interests of different categories of traders, brokers offer several types of spreads:
- Floating Spreads: The spread can increase or decrease depending on market conditions. This traditional method is based on changes in the balance of supply and demand.
- Fixed Spreads: The broker independently sets a constant difference between the bid and ask – for example, 3 points. Regardless of market conditions, the spread remains the same.
- Zero Spreads: The difference between the buying and selling price is 0 points. Of course, this is impossible under market conditions, so a Forex broker with no spread charges a commission per transaction or a percentage of the trading turnover.
Floating Spread
A floating spread is favorable in a calm market but can increase sharply during high volatility. Typically, spread widening occurs at market opening or when news is released. In such moments, the market experiences a shake-up, during which buyers and sellers struggle to agree on an acceptable price balance. As a result, the difference between the buying and selling price skyrockets.
Fixed Spread
Fixed spread behaves oppositely. A calm market tends to be higher than a floating spread, but it provides more comfort during periods of high volatility. Forex brokers with fixed spreads are pretty popular among scalpers, as this approach allows for specific losses to be incorporated into the trading strategy in advance.
Zero Spread
Zero spread is the most ambiguous pricing model. It is disadvantageous for most traders, as the fixed commission eats up all the profit with a small capital volume. This scheme may only be helpful when trading with large lots.
It should be noted that dishonest brokers often use zero spread for aggressive advertising. They lure clients with attractive offers but omit information about commissions or other trading conditions that make trading unprofitable. Of course, there are reputable Forex brokers with zero spread, but there are few.
What Determines the Spread in Forex?
The size of the spread in Forex depends on the following factors:
Broker: Low spreads can be found among both large and small companies. Additionally, the same broker may offer different types of accounts, each with varying spreads.
Trading Instrument: The lowest spreads, around 1 – 2 points, are typically seen in popular currency pairs such as EURUSD, GBPUSD, USDJPY, etc. In exotic pairs, spreads can often reach 20 – 50 points. Contracts for precious metals, stocks, and other commodities stand apart; the range of spreads for these is very wide and largely depends on the broker.
Currency Volatility at a Specific Time: If there's a flurry of activity in the market, Forex spreads widen. On the other hand, in an overly calm market, the spread can also increase due to a lack of liquidity.
These criteria are listed in order of importance. A Forex broker with minimal spreads will ensure comfortable trading conditions. Conversely, a poor broker regularly manipulates buying and selling prices, undercutting the trader's potential earnings.
What Should be the Average Spread in the Forex Market?
The comparison of spreads among Forex brokers is usually done using the EURUSD pair, the most popular trading instrument that most traders focus on.
The average spread in Forex for the EURUSD pair is 1.5 points, i.e., 0.00015 with a five-digit quote. This value is calculated based on continuous monitoring 24 hours a day.
If we look at each Forex trading session separately, we get the following picture:
- Asian Session (night and morning): 1.7 points.
- European Session (day): 0.9 points.
- American Session (evening): 0.9 points.
These figures show that the Asian session tends to be the most "expensive" for traders, which is attributed to comparatively low liquidity. Europe and America bring with them a reduction in the average spread. However, it's important to note that significant news releases, which can significantly increase the low spreads of Forex brokers, also occur during the daytime and evening sessions.
The spread offered by a particular broker largely depends on the type of trading account. On standard accounts, the difference between buying and selling is usually 1.5 points above. If you choose an account from the professional line (e.g., ECN), the average spread will be lower — 1 point or less.
However, such accounts typically include additional conditions, such as:
- Increased minimum deposit requirements.
- Fixed commission on turnover.
- Only market execution (Market Execution) can lead to price slippage.
Therefore, while lower spreads can be advantageous, they often come with other factors that traders need to consider.
An important nuance: many brokers indicate the average and minimum spread. However, these figures are of limited use, as in most trading situations, the user will encounter the average value.
The maximum spread is usually not specified as it depends on market conditions. In this aspect, relying on the broker's reputation is advisable. A reputable company will not artificially inflate spreads, whereas unscrupulous brokers frequently use this tactic.
Why is a Low Spread Important in Forex Trading?
The lower the spread, the higher the trader's income. This is a fundamental axiom of exchange trading that holds proper under any circumstances.
The size of the spread is critically essential in scalping, where a trader makes numerous trades, each lasting only a few minutes. In this case, the profit rarely exceeds 8-10 points, so a difference that is too significant between the bid and ask can undermine such strategies. To forecast costs more accurately, scalpers often use accounts with fixed spreads, which is more expensive but more reliable.
In short-term intraday trading, the spread is also very significant. With a low spread, setting stop-loss and take-profit orders is much easier. If the difference between the bid and ask is too substantial, a transaction may close prematurely at the stop or fail to reach the planned profit.
In medium-term and long-term trading, the stop-loss size can be neglected, except for strategies with exact entry points and short stop-losses. In other cases, swaps are charged every night and become much more critical.
The Best Forex Broker for Scalping
A critical condition for successful scalping is a reliable Forex broker with minimal spreads. Implementing a scalping strategy becomes nearly impossible if the average difference between the bid and ask exceeds 2-3 points. Additionally, sudden spread widening is a hazard: a sharp divergence between bid and ask can cause a position to close at the stop-loss.
One of the best Forex brokers for scalping is RoboForex. It's among the top companies in the market, offering low spreads, fast order execution, and quality technical support.
Here are the reasons why scalpers may find trading in the currency market with RoboForex more comfortable:
- Low spreads – starting from 0 points.
- The average spread for EURUSD is only 0.2 points (on the ECN-Pro NDD account).
- Instant order execution due to access to interbank liquidity: traders won’t lose precious seconds in opening positions.
- Reputation as an honest broker: traders won't face unjustified spread widening or account blocking when profits are made, which is familiar with less scrupulous competitors.
- Cashback of up to 15% on commission fees.
- The option to practice trading with a minimal initial deposit.
Remember, scalping is a precarious form of trading. To avoid getting caught in market turbulence and to protect your deposit, it's recommended to refrain from trading during significant news releases.
Conclusion
In short-term trading on Forex and CFDs, choosing a broker with the lowest possible spread is crucial. Building a successful strategy is only feasible with a minimal difference between the buy and sell prices.
A beginner trader might think that analyzing spreads is a desirable but not essential step in choosing a broker. What difference does a point more or less make if a good strategy is in place? However, experienced traders understand that making a profit in Forex is a fierce market battle for every cent of profit. In actual trading, the spread always becomes one of the main success factors.
