Inexperienced forex traders will often focus on the commission when assessing fees. But the spread is equally as important, as this is an indirect fee charged on both buy and sell orders.
In this guide, we reveal the 10 best low spread brokers for 2023. Not only do we rank brokers based on average spreads, but also commissions, payment types, supported markets, leverage limits, and much more.
The 10 best low spread brokers are ranked in the list below: This low spread forex broker list covers the top 10 providers, which we review in the following sections. Read on to discover what the best lowest spread forex brokers offer in 2023. Our reviews not only cover spreads but also other important metrics. For instance, supported markets, minimum deposit requirements, and regulations. We found that eToro is the overall best low spread broker – especially for beginners. This popular online broker requires a minimum deposit of just $10 ($50 for non-US/UK clients). Traders can fund their eToro accounts with a debit/credit card, e-wallet, or bank transfer. No fees are charged on deposits/withdrawals made in US dollars. While eToro accepts dozens of other currencies, a 0.5% transaction fee is charged. Once the account is funded, eToro traders have access to more than 50 forex pairs. This includes a comprehensive blend of majors, minors, and exotics. In terms of trading fees, eToro operates a spread-only model on forex. Spreads on EUR/USD start from 1 pip. eToro offers leverage on all supported currency pairs. This is capped at 1:30. As a beginner-friendly forex broker, eToro offers negative balance protection. This ensures that account balances never go below zero. eToro offers plenty of trading tools that are suitable for novices. This includes technical indicators, pricing charts, and drawing tools. In addition, the eToro copy trading tool allows users to buy and sell currencies passively. After choosing an experienced forex trader to copy, any pairs they trade will be replicated in the user’s eToro portfolio. eToro also supports other asset classes. This includes commodities like gold, silver, oil, and natural gas. eToro traders can also invest in stocks and ETFs without paying any commissions. Large-cap stocks like Apple and Amazon come with super-low spreads. eToro is also one of the best crypto exchanges for beginners. It supports Bitcoin and the best altcoins, such as BNB, Ethereum, and Dogecoin. We also like eToro for its free demo account. There are no time limits and it comes pre-loaded with $100,000 in paper trading funds. Users can replenish their eToro demo account at any time. In terms of safety, eToro is a regulated online broker. It holds licenses with various bodies, including the FCA (UK), CySEC (Cyprus), ASIC (Australia), and FINRA (US). All in all, eToro is one of the best forex brokers in the industry. Pros Cons
81% of retail investor accounts lose money when trading CFDs with this provider. XTB is one of the best low spread brokers for day traders. Not only does it offer competitive spreads but there are no commissions to pay. This is the case for all supported markets. EUR/USD, for example, starts from just 1.3 pips. Moreover, XTB is suitable for beginners, as there is no minimum deposit requirement. It is important to note that XTB spreads are variable. This means that spreads will change throughout the day, depending on broader trading commissions. For example, GBP/USD is currently trading with spreads of 1.6 pips, because the markets are closed. However, this is reduced to 1.3 pips during standard market hours. XTB is also one of the best low spread brokers for obtaining high-leverage limits. Eligible traders can buy and sell forex pairs with leverage of up to 1:500. This translates to a margin requirement of just 0.2%. In addition to forex, XTB supports thousands of other financial instruments. This includes everything from stocks and indices to cryptocurrencies and commodities. XTB has its own native trading platform – xStation 5. This offers plenty of advanced trading tools, including technical indicators. Pros Cons
Forex and CFDs are leveraged products and can result in losses that exceed your deposits. Please make sure you fully understand all risks. Capital.com is one of the best FX low spread brokers for diversification. 125 forex pairs are supported, which is more than most brokers in this industry. This includes dozens of exotic pairs, which will appeal to high-risk traders. All markets supported by Capital.com can be traded at 0% commission. Moreover, spreads on EUR/USD start from just 0.6 pips. Spreads are variable, so will change as per market conditions. Capital.com has its own web trading platform and a native app for iOS and Android. Its trading suite supports over 70 technical indicators, economic news, multi-chart toggling, and personalized watchlists. Capital.com supports leverage of up to 1:30 when trading major currency pairs. This is reduced to 1:20 when trading minors and exotics. Traders might wish to start with the Capital.com demo account. This comes pre-loaded with $1,000 in virtual funds and it tracks live market conditions. Real money accounts require a minimum deposit of just $20. Debit/credit cards and e-wallets are supported. But bank wire deposits require a minimum of $500. There are no deposit or withdrawal fees. We also like that Capital.com supports other leveraged markets. This includes more than 2,800 stocks from multiple international exchanges. In addition, Capital.com supports cryptocurrencies, commodities, and indices. Pros Cons
74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. Trade Nation is one of the best low spread brokers for professional traders. Its Raw Spread account offers institutional-grade pricing, with spreads on EUR/USD starting from 0.0 pips. To access the best spreads in the markets, Trade Nation users pay $3.50 per lot. This is charged at both ends of the trade. This account type requires a minimum deposit of $1,000. The other option is to open a Standard account. This comes without a minimum deposit requirement and no trading commissions are charged. But do expect higher spreads, which will vary depending on market conditions. Both account types offer ultra-fast execution speeds and access to deep liquidity. Moreover, Trade Nation users trade on the MT4 platform. All device types are supported. Trade Nation offers leverage of up to 1:500 on major forex pairs. But some traders will be offered much lower limits, especially those based in the UK and the EU. We also like that Trade Nation is heavily regulated. It holds licenses in multiple countries, including the UK, Australia, South Africa, Seychelles, and the Bahamas. Trade Nation offers a free demo account for traders who want to test the broker before making a deposit. Pros Cons AvaTrade is an established forex broker that also supports other leveraged markets. This includes stocks, indices, commodities, cryptocurrencies, and options. When trading EUR/USD, AvaTrade offers spreads of just 0.9 pips. USD/JPY and AUD/USD can be traded with spreads of 1 pip and 1.1 pip, respectively. GBP/USD is slightly less competitive at 1.5 pips. Nonetheless, AvaTrade doesn’t charge trading commissions on any of its supported markets. In addition, AvaTrade offers eligible clients leverage of up to 1:400 on major and minor forex pairs. Exotics can be traded with leverage of up to 1:100. AvaTrade supports multiple trading platforms, including MT4 and MT5. It also offers a native web trading platform. Users can also trade via the AvaTrade mobile app for iOS and Android. AvaTrade is also popular for its regulatory framework. It is authorized and licensed in nine different countries. We also like that AvaTrade offers fee-free deposits and withdrawals. Accepted payment methods include debit/credit cards and bank wires. The minimum deposit is $100, or the currency equivalent. Pros Cons Pepperstone, used by more than 400,000 traders globally, offers some of the lowest spreads in the market. Those opening a Razor account will secure minimum spreads of 0.0 pips on many pairs. This includes EUR/USD, GBP/USD, USD/JPY, AUD/USD, and USD/CHF. To get the best spreads possible, users will need to trade during peak market hours. The Razor account comes with commissions of $3.50 per traded lot. On pairs denominated in GBP and EUR, the commission amounts to £2.25 and €2.60 respectively. Pepperstone also offers Standard accounts that come without commissions. But the spread will be much higher. For instance, EUR/USD and GBP/USD start at 0.7 and 0.9 pips. This is still very competitive nonetheless. We also like that Pepperstone allows traders to deposit any amount of their choosing – no minimums apply. No deposit fees are charged either. Accepted payment types include debit/credit cards, PayPal, and bank wires. All deposit methods are processed instantly apart from bank wires. Pros Cons Libertex is a popular CFD broker that supports forex, stocks, indices, and commodities. It also supports some of the best cryptocurrencies to trade, such as Bitcoin, Ethereum, BNB, Litecoin, and Dogecoin. Forex traders have dozens of currency pairs to choose from across the majors, minors, and exotics. There are no trading commissions to pay. Moreover, Libertex offers spreads of just 0.2 pips on EUR/USD. One of the best features of Libertex is that it offers leverage of up to 1:999 on major forex pairs. This means for every $999 traded, a margin balance of just $1 is required. Limitations will apply depending on the location of the trader. In terms of trading platforms, Libertex supports MT4 and MT5. It also has its own native platform for web browsers and smartphones. First-time users can test Libertex via its free demo account, which comes with $50,000 in virtual trading funds. Real money accounts require a minimum deposit of just $10. Pros Cons Forex.com is a regulated forex broker that was founded in 2001. It supports more than 80 currency pairs and offers competitive pricing. That said, spreads often depend on the trader’s location and account type. For instance, US clients can open a Direct Market Access (DMA) account, which offers institutional-grade spreads alongside a small commission. While non-US clients are limited to Standard accounts, which come with higher spreads but without commissions. On the Standard account, EUR/USD can be traded with spreads of just 0.7 pips. But spreads are variable, so expect volatility. Nonetheless, we like that Forex.com supports MT5, which comes packed with trading and analysis tools. Forex.com also has its own trading platform, accessible via browsers, desktop software, and an app for iOS and Android. Non-US clients have access to thousands of other assets, backed by leveraged CFDs. This includes commodities, stocks, indices, and cryptocurrencies. Pros Cons IG is one of the best low spread brokers for US-based clients. It is registered with the CFTC and NFA and supports more than 80 currency pairs. Moreover, IG is popular for its super-fast execution speeds and high-level trading dashboard. The latter supports dozens of technical indicators, chart drawing tools, and customer order types. The IG trading suite also supports breaking news, direct from Reuters. In terms of fees, EUR/USD spreads can be traded from 0.8 pips. There are no commissions to pay when trading forex. US clients can also trade forex with leverage. EUR/USD requires a minimum margin requirement of just 2%. GBP/USD and USD/CHF require a slightly higher margin at 5%. IG offers a fast account opening process. In most cases, US clients are verified instantly. The main drawback is that US clients cannot trade other assets on IG. Those based in other countries will have access to thousands of stocks, funds, commodities, indices, and other popular markets. Pros Cons Skilling is the final option to consider on this list of the best low spread brokers. It offers two account types to choose from. Its Premium account offers minimum spreads of just 0.1 pips on EUR/USD. This comes with a commission of $35 for every $1 million traded. Moreover, the Premium account has a minimum deposit requirement of €5,000. As such, the Premium account likely won’t be suitable for beginners. That said, Skilling also offers a Standard account. Not only does it come with a minimum deposit of €100 but no trading commissions are charged. But the minimum spread on EUR/USD has increased to 0.7 pips. Both Skilling accounts offer access to 73 forex pairs, alongside indices, stocks, cryptocurrencies, and commodities. Retail clients can trade major pairs with leverage of 1:30. This is increased to 1:200 for professional traders. We like that Skilling supports multiple trading platforms. This includes MT4 and cTrader. Skilling also offers a native trading suite, available on web browsers and a mobile app for iOS and Android. Pros Cons Comparing spreads, commissions, and other important metrics can be a daunting task. Therefore, the best low spread brokers are summarized in the table below. In simple terms, the spread is the difference between the ‘bid’ and ‘ask’ prices of a forex pair. Some brokers will display this as the ‘buy’ and ‘sell’ price. Either way, this is an indirect fee that is charged when entering and exiting a position. Crucially, this is one of the most common ways that forex brokers make money. Irrespective of which way the market moves, the broker will make a small profit on each buy and sell order. In forex, spreads are priced in PIPs (percentage in point). The reason for this is that currency prices – especially majors, move by micro-fractions. For instance: This means that traders will pay 1 pip when opening a position. And if the spread remains the same when cashing out, they will again pay 1 pip. It is important to note that most forex brokers highlight the ‘minimum’ spread that traders can access. But spreads are usually variable, meaning they change as each second passes. The minimum spread is usually available during peak market hours for the respective pair. To calculate the spread, traders first need to know what the bid and ask prices are for the forex pair. In most cases, forex brokers quote prices with four decimal places. For instance, the bid price of GBP/USD might be 1.2801. The only exception here is pairs that contain the Japanese yen, which have two decimal places. Nonetheless, after the bid and ask prices are known, traders can calculate the spread in pips. For example: In the above example, the difference between the bid and ask prices is 0.0005. Now, to convert this into pips, the decimal place needs to be moved four digits to the right. So, in this example, the spread is 5 pips. However, some brokers with the lowest spreads use five decimal places (and three on JPY pairs). The good news is that the fourth decimal place still represents the pip. For example: In the above example, the difference between the bid and ask prices is 0.00010. As such, the spread is 1 pip. If the difference was 0.00015, the spread would be 1.5 pips, and so on. The competitiveness of a forex spread varies depending on the pair. A good starting point is to assess EUR/USD, as this is the most traded currency pair globally. Moreover, forex brokers usually offer their most competitive spreads on EUR/USD. This is because EUR/USD attracts the most liquidity and lowest volatility levels. In most cases, an EUR/USD spread of under 1 pip would be considered competitive. That said, traders also need to factor in another trading fee – commissions. For example, some forex brokers offer spreads of 0.0 pips on EUR/USD. However, traders will need to pay a commission to access spreads this low. This is usually about $3.50 for each currency lot traded ($100,000). At the other end of the scale, some forex brokers offer 0% commission trading. But equally, spreads will be less competitive. Some forex brokers will offer a choice of two account types: The best option ultimately depends on trading volumes. For example, those trading larger amounts will be better suited for a 0.0 spread account, with a small commission. However, casual traders are better suited for 0% commission accounts with a slightly higher spread. We mentioned earlier that forex brokers usually quote the ‘minimum’ spread that they can offer. But this won’t always be available, as spreads are variable. This means that outside of market hours, traders should expect less competitive spreads. The most competitive spreads can be accessed during peak market hours. But this will depend on the pair being traded. Traders should do some research on the time zones applicable to their preferred pairs. For example, those trading AUD/JPY should consider what times the Australian and Japanese markets open, and when they overlap. The overlap is the best time to trade the respective pair, as both markets are open. Not only will this ensure the lowest spreads but the most liquidity. While the spread is an important trading fee to assess, other charges should also be considered. This includes: Some forex brokers charge commissions on forex trades. This can be charged in many different ways. For example, Trade Nation charges a $3.50 commission for every one lot traded. This means that every time the trader buys or sells $100,000 worth of currencies, they will pay Trade Nation $3.50. Other forex brokers charge a percentage-based fee. For example, suppose the broker charges 0.5% per slide. The trader enters a $10,000 position, so they pay a commission of $50. When they exit the position, it’s worth $12,000. In this instance, the trader pays a commission of $60. Forex traders also need to pay overnight financing fees when positions are kept open past standard market hours. This is otherwise known as a swap fee. Overnight financing represents the cost of borrowing capital from the forex broker. After all, currency pairs are traded in lots. So, if the trader doesn’t trade an entire lot (e.g. $100,000), part of the position is being funded. Fortunately, overnight financing won’t apply to day traders. This is because day trades close positions before the market closes. Some forex brokers charge payment fees. This might be on deposits and/or withdrawals. Fees can also depend on the payment method. For example, Skilling charges up to 2.9% when depositing or withdrawing funds with an e-wallet. But debit/credit card payments are fee-free. eToro, on the other hand, offers fee-free deposits and withdrawals on all supported payment methods, as long as US dollars are being used. Even the best low spread brokers charge inactivity fees. This is usually charged if the trader doesn’t place any orders for a certain number of months. For instance: The best way to avoid inactivity fees is to withdraw the account balance in full. The broker won’t be able to charge anything if there isn’t an active balance. Some forex brokers offer multiple accounts to choose from. This will determine the spread and commission. In most cases, the trade can choose from the following: For example, Pepperstone offers both of the above account types. Its Standard account offers 0% commission trading, with a minimum spread of 0.7 pips. Its Razor account offers spreads from 0.0 pips, with a commission of $3.50 for each lot traded. As we briefly mentioned earlier, the best account type will depend on the trader’s profile. For example, those trading with large amounts will be better suited to a low spread account with a small commission. After all, even a slight change in the spread can have a major impact when trading large amounts. On the flip side, those trading smaller amounts will be better off with a 0% commission account, and slightly higher spreads. This is because even a small commission can make the trade unviable. In this instance, eToro is the best low spread broker. It has a spread of 1 pip on EUR/USD and doesn’t charge commissions. In choosing a low spread broker, traders can reduce their trading fees when buying and selling forex pairs. Importantly, traders should strike the perfect balance between low spreads and competitive commissions. eToro fits the bill perfectly – it offers spreads of 1 pip on EUR/USD and doesn’t charge any commissions. This regulated broker supports over 50 forex pairs and the minimum deposit starts from just $10.
77% of retail investor accounts lose money when trading CFDs with this provider. https://www.fidelity.com/insights/investing-ideas/glossary-large-cap https://coinmarketcap.com/currencies/bitcoin/ https://www.bloomberg.com/quote/EURUSD:CUR https://www.cnbc.com/quotes/GBP= https://markets.ft.com/data/currencies/tearsheet/summary?s=audjpyTop 10 Low Spread Brokers Shortlisted
Best Low Spread Forex Brokers Reviewed
1. eToro – Overall Best Low Spread Broker for Beginners
Broker
Min. EUR/USD Spread
Min. GBP/USD Spread
eToro
1 pip
2 pips
2. XTB – EUR/USD Spreads From 1.3 Pips and 0% Commission
Broker
Min. EUR/USD Spread
Min. GBP/USD Spread
XTB
1.3 pips
1.3 pips
3. Capital.com – 0% Commission Forex Trading on 125 Currency Pairs
Broker
Min. EUR/USD Spread
Min. GBP/USD Spread
Capital.com
0.6 pips
1.3 pips
4. Trade Nation – Trade Forex From 0.0 Pips and a $3.50 Commission per Slide
Broker
Min. EUR/USD Spread
Min. GBP/USD Spread
Trade Nation
0.0 pips
0.0 pips
5. AvaTrade – Established Forex Broker With EUR/USD Spreads Starting at 0.9 Pips
Broker
Min. EUR/USD Spread
Min. GBP/USD Spread
AvaTrade
0.9 pips
1.5 pips
6. Pepperstone – 0.0 Pip Spread Accounts With Deep Liquidity
Broker
Min. EUR/USD Spread
Min. GBP/USD Spread
Pepperstone
0.0 pips
0.0 pips
7. Libertex – Minimum Deposit of $10 and Leverage of up to 1:999
Broker
Min. EUR/USD Spread
Average GBP/USD Spread
Libertex
0.2 pips
0.9 pips
8. Forex.com – Regulated Forex Broker Offering Over 80 Pairs
Broker
Min. EUR/USD Spread
Min. GBP/USD Spread
Forex.com
0.7 pips
1.1 pips
9. IG – Trusted Low Spread Broker for US-Based Clients
Broker
Min. EUR/USD Spread
Current GBP/USD Spread
IG
0.8 pips
1.6 pips
Broker
Min. EUR/USD Spread
Min. GBP/USD Spread
Skilling
0.1 pips
0.4 pips
Best Low Spread Brokers Compared
Broker
Pairs
EUR/USD Spread
Account Types
Account Fees
Max. Leverage
eToro
52
From 1 pip
Standard – Spread-only trading
0.5% deposit fee on non-USD payments. $10/month inactivity fee after 1 year
1:30
XTB
48
From 1.3 pips
Standard – 0% commission trading
€10/month inactivity fee after 1 year
1:500
Capital.com
125
From 0.6 pips
Standard – 0% commission trading
None
1:30
Trade Nation
Not stated
From 0.0 pips
Standard – 0% commission trading / Raw – $3.50 per lot
Not stated
1:500
AvaTrade
53
From 0.9 pips
Standard – 0% commission trading
$50/quarter inactivity fee after 3 months
1:400
Pepperstone
60+
From 0.0 pips
Standard – 0% commission trading / Razor – $3.50 per lot
None
1:200
Libertex
50
From 0.2 pips
Standard – 0% commission trading
2.5% on debit/credit card payments. E-wallet payments are charged between 1.9% and 4%.
1:999
Forex.com
80+
From 0.7 pips
Standard – 0% commission trading / US Clients have access to DMA accounts
$10/month inactivity fee after 1 year
1:50 (US)
IG
80+
From 0.8 pips
Standard – 0% commission trading
Deposit fee of 1% (Visa) and 0.5% (MasterCard). $18/month inactivity fee after 2 years
1:50 (US)
Skilling
73
From 0.1 pips
Standard – 0% commission trading / Premium – $35 per $1 million traded
E-wallet payments are charged up to 2.9%. Bank wire withdrawals cost up to $25.
1:30
What is a Spread in Trading?
How are Forex Spreads Calculated?
Do I Need to Calculate the Spread?
What is Considered a Low Forex Spread?
Commission-Free or Low Spreads: Which is Better?
Best Times to Trade Forex for Low Spreads
Finding Forex Trading Overlaps
Other Fees to Consider When Trading Forex
Commissions
Overnight Financing
Payment Fees
Inactivity Fees
Forex Account Types Spreads
Conclusion
References
FAQs
What is the spread in forex?
What is a good spread for a broker?
What is the lowest spread broker?
