Choosing a low spread forex broker or a zero spread account is crucial, especially for forex and scalp traders. In the long run, reducing the payout can significantly lower the cost of trading, especially if you are an active trader. However, while there are plenty of low spread forex brokers out there, not all brokers are trustworthy.
In fact, many of the so-called zero spread accounts offered by forex brokers are nothing more than cheap marketing tactics to lure in new traders. To find the right trader, you need to know how to read between the lines. And, more importantly, you need to undergo testing. Who has the time and patience for that?
Luckily, you don’t have to. We have done all the heavy lifting for you and after testing all the purported best low spread forex brokers in the industry, I have come up with the following list.
Overview of the Best Low Spread Forex Brokers for 2023
Based on my research, here are the best low spread brokers and zero spread forex brokers for trading this year.
Pepperstone – Overall lowest spread forex broker
UIITN – Highly competitive low spread broker
AvaTrade – Fixed low spread forex broker
IC Markets – Raw spread account forex broker starting from 0.0 pips
Forex.com – Best execution low spread forex broker
FXTM – High leverage tight spread broker
eToro – Excellent copy trading low spread forex broker
IG – Commission-free broker with low spreads
FxPro – 0 spread forex broker
Fusion Markets – Low commission forex broker
My top three
1: UIITN is another excellent choice for low spreads and high leverage. They are a well-regulated and trusted zero-spread forex broker, providing continuous low spreads ranging from 0 to an average of around 0.45 pips. They offer a range of third-party platforms for you to choose from, as well as an impressive selection of educational content.
UIITN Market Overview
UIITN is one of the seasoned players in the forex market. This experienced broker has garnered quite a reputation over the years and remains one of the most well-known forex trading platforms in the industry.
One area where UIITN excels is its customer service. Overall, their approach to handling user experience and customer satisfaction is one of the best I’ve experienced from a broker. In addition to this, UIITN ensures fast trade execution, a wide range of trading market selections, and most importantly, extremely low spreads.
2: Pepperstone is one of the best brokers with the narrowest forex spreads and no commissions. Their standard account provides an average spread as low as 0.6 pips for the EUR/USD currency pair with no commission trading fees. Their Razor account offers spreads of 0.0-0.3 pips + €5.23 per 100,000 traded. Compared to other brokers with higher spreads, Pepperstone’s trading costs and overall expenses are lower.
Pepperstone Market Overview
Pepperstone is a secure and reliable forex trading platform trusted by many traders worldwide. Founded in Australia in 2010, it’s considered one of the best brokers in the industry, and as I discovered, its reputation is well-deserved.
Pepperstone offers fast execution speeds on popular MetaTrader 4, MetaTrader 5, and cTrader platforms. Their customer service is among the best in the industry, combined with competitive pricing, a wide range of available markets, and user-friendly platforms, making Pepperstone one of my favorite forex brokers of all time.
This doesn’t mean that Pepperstone is a perfect trading platform. I encountered some issues while using their mobile application, and I feel that the education materials provided are insufficient to educate new forex traders about the ins and outs of forex trading.
3: IC Markets has an average spread of 0.1 pips, one of the best spreads on this list. IC Markets’ fast order execution makes it the preferred choice for scalping traders and algorithmic traders. IC Markets does not charge deposit or withdrawal fees, and clients also have access to powerful platforms, including cTrader and MetaTrader. IC Markets’ Raw Spread account features zero spreads + commissions. The downside is that the minimum deposit required to open an account is quite high.
IC Markets Market Overview
Although IC Markets is not my personal favorite, it remains one of the best forex brokers out there. I mainly recommend it to forex traders who rely on algorithms for trading. The broker provides extensive research tools and advanced feature options, making the platform one of the most powerful in the industry.
In addition, IC Markets offers highly competitive pricing and fast order execution. Although their selection of available markets is not overly comprehensive, it’s enough to keep me engaged. One thing that puts many traders off is the high minimum deposit required to open an account.
What are low spread or zero spread forex brokers?
As the name suggests, these brokers offer the lowest possible forex spreads or zero spreads. In recent years, as forex brokers compete to win more clients, trading costs have decreased. Many offer zero spreads as an extra incentive, but it is important to understand the terms and conditions before choosing a broker.
The minimum spread range for the EUR/USD currency pair is 0.1 – 0.9 pips, without commission. However, you should check all fees, including overnight fees, commissions, non-trading fees, deposit or withdrawal fees, and inactivity fees.
How to choose a low spread forex broker?
Research your shortlisted brokers before you start trading. While some forex brokers promise low trading spreads, they may not be the best choice for your trading strategy.
You should consider the following:
Watch out for fixed spreads. This could mean that the spread is greater than the average level. As a market maker, the broker may also trade against your position.
Ensure that the broker is regulated by top regulatory authorities. This adds extra confidence in your broker’s ethical business practices.
Ensure that the minimum deposit is not too high.
Check the spreads for different currency pairs and account types. While some low spread brokers advertise low costs, spreads may vary depending on the currency pair or account type.
What is forex spread?
The spread is the difference between the ask price and the bid price in a trade. A low value means that there is a small difference between the buying and selling price of a currency pair. An increase usually means that there is a market condition or volatility in the market. Spreads typically widen during periods of low trading frequency, high volatility, or before news events.
The interbank market is the price source for most major brokers. Spread quotes are in fractions of a pip (decimal point).
Spread is the way no-commission brokers earn their profit. This cost is included in the buying and selling price of every currency pair you trade, instead of paying commission for each trade. Although some brokers advertise lower spreads, prices may be higher due to higher commission charges. Because spreads can fluctuate over time, it is best to calculate the average spread data (monthly spread data) and commission (spread + commission) over a longer period of time. This is how you avoid higher average spreads. You should not look at the minimum spread but calculate the average.
Is low spread important when trading forex?
The lower the spread, the cheaper it is to place a trading order. A smaller spread means lower trading costs. Incorporating a smaller spread into your trading strategy is key to achieving higher profits.
On the other hand, make sure to check the other commissions charged by your broker. Some may charge higher commissions to make a profit.
Top forex brokers with the lowest spreads: key points
As you can see, many low spread forex brokers offer competitively low spreads. While any of the above brokers can meet all your trading needs, my top recommendations are the following forex brokers. They are not only the cheapest forex brokers around, but also the overall preferred choice for both experienced and novice forex traders.