When it comes to forex trading, one of the most important factors to consider is the spread. The spread is the difference between the bid and ask price of a currency pair, and it can significantly impact your trading profits. That’s why finding the best brokers with low spreads is crucial for any trader looking to maximize their returns.
However, with so many forex brokers claiming to offer low spreads, it can be difficult to know which ones are the best. Some may have hidden fees or other charges that can eat into your profits, while others may not be as reliable or trustworthy as they claim to be.
To help you find the best broker with low spreads, we’ve compiled a list of some of the top options available in 2024. All of these forex brokers have been carefully vetted by our team of experts and offer competitive spreads and other valuable features for traders.
Broker | Features | Broker Review | Visit |
 | * 1:400 leverage * 1000+ instruments * $0 min. deposit * CMA licence | ||
 | * 1:1000 leverage * 1200+ instruments * $5 min. deposit * CMA licence | ||
 | * 1:888 leverage * 1000+ instruments * $5 min. deposit * CySEC licence | ||
 | * 1:400 leverage * CMA licence | ||
 | * 1:500 leverage * 10,000 instruments * $100 min. deposit * ASIC licence | ||
 | * 1:500 leverage * 80+ instruments * $200 min. deposit * ASIC licence | ||
 | * 1:1000 leverage * 200+ instruments * $1 min. deposit * CySEC licence | ||
 | * 1:2000 leverage * 250+ instruments * $50 min. deposit * CMA licence |
Contents
What are Forex Spreads?
Before we dive into our carefully analyzed list of the best forex brokers with low spreads, let’s take a moment to understand what forex spreads are and why they matter.
As mentioned earlier, the spread is the difference between a currency pair’s bid and ask price. The bid price is the price at which you can sell the base currency, while the asking price is the price at which you can buy the base currency. The difference between these two prices is the spread, and it’s typically measured in pips.
For example, if the bid price for EUR/USD is 1.1200 and the ask price is 1.1202, the spread would be 2 pips. This means that if you were to buy EUR/USD at the ask price and then immediately sell it at the bid price, you would lose 2 pips on the trade.
Spreads can vary widely depending on the currency pair, the broker, and market conditions. Some currency pairs, such as EUR/USD and GBP/USD, tend to have tighter spreads due to their high liquidity. Other pairs, such as exotic currencies or those with less trading volume, may have wider spreads.
Why Low Spreads Matter
Low spreads are important for several reasons. First and foremost, they can help you save money on trading costs. The wider the spread, the more you’ll need to pay to enter and exit a trade. This can affect your profits over time, especially if you’re a frequent trader.
Low spreads can also make it easier to profit from small price movements. If the spread is too wide, you may need a significant price movement just to break even on a trade. With a lower spread, you can potentially profit from even minor fluctuations in the market.
Finally, low spreads can indicate a broker’s overall competitiveness and reliability. Brokers that can offer consistently low spreads are often those with deep liquidity, advanced technology, and a commitment to fair pricing.
Top 3 Forex Brokers with Low Spreads
Now that we understand the importance of low spreads let’s take a closer look at the top 3 forex brokers that excel in offering competitive spreads.
Pepperstone
Best overall low-spread broker: Australian-based Pepperstone has earned a reputation as one of the best low-spread brokers in the industry. They offer raw spreads starting from 0.0 pips on major currency pairs, thanks to their use of multiple liquidity providers and advanced execution technology.
Pepperstone Key Features
- Spreads from 0.0 pips on major pairs
- Leverage up to 1:500
- Minimum deposit of $0
- Over 1200+ instruments
- Fast execution with low latency
- Regulated by CySEC, FCA, ASIC, and the CMA
IC Markets
Low spreads and fast execution IC Markets is another Australian broker that consistently delivers low spreads and lightning-fast execution speeds. They offer raw spreads from 0.0 pips on major forex pairs and diverse trading instruments.
IC Markets Key Features
- Raw spreads from 0.0 pips
- Leverage up to 1:500
- $200 minimum deposit
- 60+ forex pairs and 1000+ CFDs
- Proprietary technology for fast execution
- Regulated by ASIC and CySEC
XM
Excellent all-around low-spread broker. XM is a well-established broker that offers a great balance of low spreads, high leverage, and a wide range of tradable instruments. They cater to both beginner and experienced traders with competitive pricing and user-friendly platforms.
XM Key Features
- Ultra-low spreads from 0.6 pips on EUR/USD
- Zero account with 0 pip spreads + commission
- Leverage up to 1:888
- $5 minimum deposit
- 1000+ instruments across forex, indices, commodities, stocks, and more
- Regulated by CySEC, ASIC, and the IFSC
Low Spread Forex Broker Comparison Table
| Broker | Min. Spread (EUR/USD) | Leverage | Min. Deposit | Instruments | Regulation |
| Pepperstone | 0.0 pips | 1:500 | $0 | 1200+ | CySEC, FCA, ASIC, CMA |
| IC Markets | 0.0 pips | 1:500 | $200 | 1000+ | ASIC, CySEC |
| XM | 0.6 pips | 1:888 | $5 | 1000+ | CySEC, ASIC, IFSC |
How to Choose the Best Low-Spread Broker for You
While the three brokers mentioned above are excellent choices for low-spread trading, the best one for you will depend on your specific needs and preferences. Here are some factors to consider when making your decision:
- Trading style: Are you a scalper, day trader, or swing trader? Some brokers may cater better to certain styles.
- Account types: Look for a broker that offers an account type that suits your needs, whether it’s a standard, micro, or ECN account.
- Platforms: Make sure the broker offers a trading platform you’re comfortable with, such as MetaTrader 4/5 or cTrader.
- Instruments: If you want to trade more than just forex, check that the broker offers various instruments like indices, commodities, and stocks.
- Customer support: Good customer support can make a big difference, especially if you’re new to trading. Look for a broker with multiple support channels and a good reputation.
Tips for Trading with Low Spreads
Once you’ve chosen a low-spread broker, there are a few tips you can follow to make the most of your trading:
- Focus on liquid currency pairs: Major pairs like EUR/USD, GBP/USD, and USD/JPY tend to have the lowest spreads due to high trading volume.
- Trade during active hours: Spreads are often tight during the most active trading sessions, such as the London and New York sessions.
- Use limit orders: Placing limit orders can help you enter trades at your desired price and avoid paying the spread.
- Manage your risk: Even with low spreads, it’s important to use proper risk management techniques like stop losses and position sizing.
Bottom Line
Choosing a forex broker with low spreads is one of the most effective ways to minimize your trading costs and increase your potential profits. Pepperstone, IC Markets, and XM are three of the best low-spread brokers in 2024, each offering competitive pricing, fast execution, and a range of valuable trading features. Remember to focus on liquid pairs, trade during active hours, use limit orders, and manage your risk to maximize your low-spread trading. With the right broker and strategies, you’ll be well on your way to forex trading success.