Lowest Spreads Brokers

  Author: Eduardo Montero - Updated: 5 January, 2023 No Comments

Broker	Features
Featured Go to XTB	Excellent 24-hour customer service. More than 3000 instruments to trade. Regulated broker. OPEN ACCOUNT (*) Warning: Your capital is at risk. 80% of retail CFD accounts lose money. Spread EUR/USD: From 0.8 pips for Standard accounts. From 0.1 pips for Pro accounts with commission per lot traded. Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: xStation5, iOS App, Android App. Execution: Market Maker / STP Regulation: FCA, CNMV and IFSC Web Page: https:/www.xtb.com
Featured Go to Pepperstone	Very low spreads on over 1,200 instruments. 24/7 support, fast execution and no requotes. OPEN ACCOUNT (*) Warning: Between 74-89 % of retail investor accounts lose money when trading CFDs. Spread EUR/USD: From 0.6 pips on Standard Account and from 0.0 pips on Razor Account with commission from 5.23 EUR per lot traded. Demo Account: Yes Minimum Deposit: 200 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader, TradingView. Execution: STP / NDD Regulation: FCA, ASIC, CySEC, BaFin, DFSA, CMA and SCB Web Page: https://www.pepperstone.com
Featured Go to eToro	Buy stocks without commission. Automatically copy the best investors with the eToro CopyTrader tool. OPEN ACCOUNT (*) Warning: 78% of retail CFD accounts lose money. Spread EUR/USD: From 3 pips Demo Account: Yes, unlimited Minimum Deposit: 200 $ Trading Platforms: WebTrader, iOS App, Android App. Execution: Market Maker Regulation: FCA, CySEC and ASIC Web Page: https://www.etoro.com
Go to XM Group	Bonus of $30 without deposit and bonuses of up to $5,000 per deposit. Trade Forex with ultra-low spreads. OPEN ACCOUNT (*) Clients registered with XM Group's EU-regulated entity do not have access to the bonds. Spread EUR/USD: From 0.6 pips on Ultra Low Micro and Ultra Low Standard accounts (average 0.7 pips) and from 0 pips on Zero accounts (with a commission of $3.5 per $100,000 traded). Demo Account: Yes, unlimited Minimum Deposit: 5 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker Regulation: CySEC, FSC and ASIC Web Page: https://www.xm.com
Go to IC Markets	True ECN account with ultra-low spreads and ultra-fast execution designed for scalping and automated trading systems. OPEN ACCOUNT Spread EUR/USD: Average of 1.1 pips on Standard accounts and 0.1 pips on Raw Spread accounts (with commission per lot). Demo Account: Yes Minimum Deposit: 200 $ Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader. Execution: ECN Regulation: ASIC, CySEC and FSA Web Page: https://www.icmarkets.com
Go to AvaTrade	One of the most regulated brokers worldwide (in 9 different jurisdictions). OPEN ACCOUNT Spread EUR/USD: Fixed spreads from 0.9 pips. Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: WebTrader, MetaTrader 4, MetaTrader 5, iOS App, Android App. Execution: Market Maker Regulation: Central Bank of Ireland, ASIC, BVI, FSCA and FSA Web Page: www.avatrade.com
CFD Service Go to Plus500	Broker with more than 23 million registered customers since its inception and a Trust Pilot Score of 4.2 out of 5. OPEN ACCOUNT (*) Warning: 86% of retail CFD accounts lose money. Spread EUR/USD: Variable Demo Account: Yes, unlimited Minimum Deposit: 100 €/$ Trading Platforms: WebTrader, iOS App, Android App. Execution: Market Maker Regulation: FCA, CySEC, ASIC, FSCA, DFSA and FSA Web Page: https://www.plus500.com
Go to IQ Option	$1 minimum investment. Powerful and intuitive trading platform. Fast withdrawals. OPEN ACCOUNT (*) Warning: Your capital might be at risk. Spread EUR/USD: Variable from 0.9 pips. Demo Account: Yes, unlimited Minimum Deposit: 50 €/$ Trading Platforms: Proprietary Platform, iOS App, Android App. Execution: Market Maker Regulation: CySEC Web Page: https://www.iqoption.com
Go to Exness	Low spreads as low as 0.0 pips. No swaps on most instruments. Instant withdrawals. OPEN ACCOUNT Spread EUR/USD: From 0.3 pips for Standard accounts, from 0.1 pips for Pro accounts and from 0 pips with commission of 3.5 USD per lot on Zero and Raw Spread accounts. Demo Account: Yes Minimum Deposit: 10 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker / ECN Regulation: FCA, CySEC, FSCA, FSC, CBCS, FSA and SDL Web Page: https://www.exness.com
Go to Eightcap	OPEN ACCOUNT Spread EUR/USD: Variable between 0.5 and 1.8 pips on Standard accounts and from 0 pips on Raw accounts with commission per lot traded. Demo Account: Yes Minimum Deposit: 100 $ Trading Platforms: MetaTrader 4, MetaTrader 5, TradingView. Execution: STP / ECN Regulation: ASIC and SCB Web Page: https://www.eightcap.com
Go to Axi	OPEN ACCOUNT Spread EUR/USD: Average of 1.1 pips on Standard Account and from 0 pips on Pro Account with commission per lot traded (round trip $7). Demo Account: Yes Minimum Deposit: 0 €/$ Trading Platforms: MetaTrader 4. Execution: STP / ECN Regulation: FCA, ASIC, FSA and DFSA Web Page: https://www.axi.com
Go to RoboForex	$30 welcome bonus with a minimum deposit of $10 and bonuses up to $50,000 per deposit. OPEN ACCOUNT Spread EUR/USD: Average of 1.4 pips for Cent and Standard accounts and from 0.1 pips for ECN accounts (with volume commission). Demo Account: Yes, unlimited Minimum Deposit: 0 €/$ Trading Platforms: WebTrader, MetaTrader 4, MetaTrader 5, cTrader, iOS App, Android App. Execution: STP / ECN Regulation: IFSC Web Page: https://www.roboforex.com
Go to FP Markets	OPEN ACCOUNT Spread EUR/USD: Variable from 1.1 pips on Standard accounts and from 0 pips on Raw accounts with commission per lot. Demo Account: Yes Minimum Deposit: 100 €/$ Trading Platforms: MetaTrader 4, MetaTrader 5, IRESS. Execution: ECN Regulation: ASIC, CySEC and FSP Web Page: https://www.fpmarkets.com
Go to OANDA	Deposit bonus up to $5,000. OPEN ACCOUNT Spread EUR/USD: Average of 0.6 pips Demo Account: Yes, unlimited Minimum Deposit: 0 $ Trading Platforms: MetaTrader 4, MetaTrader 5. Execution: Market Maker Regulation: FCA, ASIC, NFA, IIROC, MFSA, BVI FSC Web Page: https://www.oanda.com

The spreads indicated in the table are indicative and may be outdated or may not correspond to the current conditions of each broker.

Which are the Brokers with the Lowest Spreads?

The spread or differential between the bid and ask price of a currency pair is one of the fundamental factors when investing in Forex, since it is the commission for trading in the markets that online brokers usually apply.

In Forex and CFD trading it is common for the broker to charge this type of commission rather than a flat fee for each trade order. Finding an online broker that offers the lowest possible spreads is one of the most important factors for any trader, even more so for those who open and close numerous positions in short periods of time, such as those who daytrade or use techniques such as scalping. In these cases, lower spreads can mean the difference between a trading strategy being profitable or unprofitable. More Info: List of brokers for scalping.

Until recently, lower spreads have gone hand in hand with very high initial deposit requirements, so that the online broker rewarded more experienced or professional investors. However, with the emergence of new brokers and increased competition among them, the deposits required to access low spreads are becoming lower and lower; brokers do not tend to make a special distinction for clients who have more capital to trade with. While it is true that online brokers often offer their clients a variety of trading accounts to target different investor profiles, the brokers that offer the best spreads remain the ones that offer the best spreads. The ones that offer better spreads are still the ones that try to attract higher deposits and a profile of more experienced traders. The characteristics and requirements for opening each type of account vary and are mainly aimed at segmenting clients.

Generally the lowest spreads are offered by ECN brokers (Electronic Communication Network), those that offer direct connectivity with the major global liquidity providers. In this way, they themselves get access to the lowest spreads available at any given time and according to the prevailing market conditions, usually in exchange for a commission per transaction volume. By having the most favourable bid and ask prices available at any given time, spreads are naturally variable, depending on the market situation and the number of participants at that precise moment (liquidity).

On the other hand, there are Market Maker brokers that usually act as counterparties to their clients’ trades, usually offering higher spreads than ECNs; however, these spreads are usually fixed . Such spreads may be more advantageous for certain types of traders and investment strategies.

Whatever your preference (trading with fixed or variable spreads), the important thing is to research and select an online broker that offers low spreads, in contrast to the other services it offers and other factors such as transparency and reliability of funds. In the comparative table above you can find what we consider to be the best brokers for Forex trading and compare the spreads they offer for the EUR/USD pair to find the brokers with the lowest spreads.

References and sources:

• What is a Spread in Forex Trading?
• How Forex Brokers Make Money
• What Does a Forex Spread Tell Traders?

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About the author: Emontero

I am Eduardo Montero. Computer scientist by profession and passionate about online trading with more than 10 years of experience in the financial markets. I publish articles on various financial websites and I have created this website in order to help those interested in the world of trading. The content is based on my personal experience as a trader, learning from the successes and above all the mistakes I have made over the years and always prioritising risk control of operations as, from my point of view, it is the only way to achieve sustainable results over time.

The content of this website is purely informative, it should not be considered as investment advice and we do not offer financial advisory services. You should bear in mind that you are the one who will make your financial decisions and you will be responsible for the outcome of those decisions.