Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.

Low Spread Forex Brokers

Lowest spreads forex brokersThe term ‘spread’ is very common on the lips of any experienced forex trader and one which new traders need to become familiar with. A spread is simply defined as the difference between the price at which a currency pair is bought and that at which it is sold. The spread is the cost paid to the Forex broker for allowing the trader access to the currency trading market. Forex brokers with the lowest spread are usually the post popular ones among traders.

There are two practical explanations, it means that every Forex transaction entered into will be making a loss equivalent to the spread and that each time the trade is done and this amount is added to losing trades but deducted from winning trades. A low spread means that the cost of trading is low whether you’re dealing with a Market Maker or Electronic Communication Network Forex broker. If you are looking for Forex brokers offering the lowest spreads - check the table below.

  • Key information
  • Trading
  • Payment systems
  • Trading platforms
  • Trading instruments
  • Support
  • Trading accounts
  • Account settings
  • Spreads
  • Promotion
Filter
Company#LogoForex brokerFoundedRegulatedReviewsPayment systemsBroker type(?)Min. DepositMax.
leverage
Live spread
Interval:
Live
spread
EUR/USD
Live spread
Interval:
Live
spread
GBP/USD
Live spread
Interval:
Live
spread
USD/CHF
Live spread
Interval:
Live
spread
USD/CAD
Live spread
Interval:
Live
spread
USD/JPY
Live spread
Interval:
Live
spread
AUD/USD
Live spread
Interval:
Live
spread
NZD/USD
Live spread
Interval:
Live
spread
EUR/AUD
Live spread
Interval:
Live
spread
EUR/CAD
Live spread
Interval:
Live
spread
EUR/CHF
Accepting US traders?Account
1Forex.combest broker2001
FCA, CFTC

Regulated

46

Payment systems

ECN, MM
100 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1
2eToro2008
ASIC, FCA
60

Payment systems

NDD, STP
50 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1
3IG1974
ASIC, FCA
14

Payment systems

DMA, MM
0 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1
4TD Ameritrade1975
FINRA, SIPC
6
DMA
2000 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1
5Saxo Bank199224

Payment systems

ECN, STP
10000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1
6LMFX2015-25

Payment systems

NDD
50 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
7OANDA1996
ASIC, FCA
21

Payment systems

-0 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1
8CMC Markets1989
ASIC, FCA
32

Payment systems

NDD, STP
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
9Interactive Brokers1977
FCA, CFTC

Regulated

11

Payment systems

MM
10000 $1:40N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1
10City Index2001
ASIC, FCA
14

Payment systems

NDD, ECN
250 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
11FxGlory2012-13

Payment systems

NDD, MM
1 $1:3000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
12XM.COM2009
ASIC, IFSC

Regulated

76

Payment systems

MM
5 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
13Capital.com2016
ASIC, FCA
110

Payment systems

MM
20 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
14AXITrader2007
ASIC, FCA
12

Payment systems

NDD
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
15XTB.com2002
FCA, CNMV
5

Payment systems

NDD, STP
250 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
16RoboMarkets2012
CySEC
40

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
17RoboForex2009
IFSC
22

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
0 $1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
18Forex4you2007
FSC
32

Payment systems

NDD, STP
20 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
19NordFX2008
SEBI, VFSC
102

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
0 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
20Plus5002008
ASIC, FCA
39

Payment systems

NDD
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
21HYCM1977
FCA
174

Payment systems

MM
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
22FBS2009
IFSC, NAFD
100

Payment systems

ECN, STP
1 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
23EXNESS2008
FCA, CySEC
94

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
0 $1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
24FxPro2006
FCA, CySEC

Regulated

166

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
25Swissquote1996
FINMA
35

Payment systems

STP
1000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
26FXCM1999
ASIC, FCA
19

Payment systems

NDD
0 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
27Admiral Markets2001
FCA, CNMV
24

Payment systems

NDD, ECN
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
28AVATrade2006
ASIC, CBI
60

Payment systems

NDD
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
29IQ Option2013
FSA
7

Payment systems

NDD
10 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
30FxGiants2015
FCA
41

Payment systems

ECN, STP

Broker type

  • ECN
  • STP
  • MM
50 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
31Vantage FX2009
ASIC
18

Payment systems

ECN
200 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
32Instaforex2007
RAUFR
95

Payment systems

NDD, ECN
1 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
33Alfa-Forex2016
CBR
14

Payment systems

NDD
0 $1:40N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
34FIBO Group1998
FSC, CNMV
36

Payment systems

NDD, MM
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
35Markets.com2006
CySEC
13

Payment systems

NDD
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
36FXOpen2005
ASIC, FCA
106

Payment systems

ECN, STP

Broker type

  • ECN
  • STP
  • MM
1 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
37GrandCapital2006-16

Payment systems

STP
10 $1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
38AMarkets2007
FSA
81

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
100 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
39Dukascopy Bank SA1998
FINMA
15

Payment systems

ECN
1000 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
40Dukascopy Europe2010
FCMC
19

Payment systems

ECN
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
41FP Markets2005
ASIC, CySEC
19

Payment systems

DMA
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
42Just2Trade2006
CySEC
52

Payment systems

ECN, STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
43DeltaStock1998
BNB
21

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
100 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
44IFC Markets2006
FSC, CySEC
39

Payment systems

STP
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
45HotForex2010
CySEC, FSC
89

Payment systems

NDD
5 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
46IC Markets2007
ASIC
29

Payment systems

NDD, ECN
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
47FXDD2002
MFSA
7

Payment systems

NDD, ECN
250 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
48Finpari2013
CySEC
3

Payment systems

NDD, STP
100 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
49ActivTrades2001
FCA, CNMV
122

Payment systems

NDD
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
50AAFX Trading2014
ASIC, FSA
226

Payment systems

NDD, ECN
100 $1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
51LiteFinance2005-42

Payment systems

ECN
50 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
52BCS Forex2006
FSA
16

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
1 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
53ForexMart2015
CySEC
24

Payment systems

ECN
1 $1:5000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
54Binarium2012
CROFR
4

Payment systems

-9 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
55Fortrade2013
FCA, FSCS

Regulated

21

Payment systems

-100 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
56EasyMarkets2001
ASIC, CySEC
13

Payment systems

MM
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
57Orbex2010
CySEC
30

Payment systems

ECN
500 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
58Hantec Markets2009
FCA
15

Payment systems

NDD
1000 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
59ForexChief2014
VFSC
123

Payment systems

ECN, STP
1 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
60ICM Capital2009
FCA
4

Payment systems

-200 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
61Octa FX2011
FCA, FSA
27

Payment systems

ECN
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
62Fort Financial Service2010
IFSC
2

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
5 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
63BMFN1988
ASIC, FCA
12

Payment systems

NDD, DMA
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
64Core Spreads2014
FCA
18

Payment systems

NDD
1 $1:240N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
65NPBFX1996
IFSC
24

Payment systems

NDD, STP
10 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
66FreshForex2004
KROUFR
80

Payment systems

NDD, MM
0 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
67City Index Singapore2006
MAS
3
MM
100 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
68Degiro2008
BaFin
9
NDD
0 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
69GO Markets2006
ASIC
13

Payment systems

NDD
200 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
70Forex.ee2004
FSA
8

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
10 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
71Tickmill2014
FCA, SIBA
10

Payment systems

NDD
25 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
72Yadix.com2010
FSC
65

Payment systems

ECN, STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
73FXPRIMUS2009
CySEC, VFSC
11

Payment systems

STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
74Swiss Markets2012
CySEC
3

Payment systems

STP
200 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
75PSB Forex2016
CBR, NAFD

Regulated

8
NDD
1500 $1:40N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
76ICE FX2015-8

Payment systems

STP
30 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
77FriedbergDirect2008
IIROC
11

Payment systems

NDD, STP
0 $1:33N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
78TrioMarkets2014
CySEC
9

Payment systems

ECN, STP
500 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
79iOCBCfx2004
MAS
8
NDD
1000 $1:35N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
80UOB Kay Hian2000
MAS
7
NDD
0 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
81KGI Futures2001
MAS
8
NDD
1000 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
82KE Forex1972
MAS
9
NDD
0 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
83Haitong2010
MAS
9
NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
0 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
84FXCitizen2010
VFSC
10

Payment systems

NDD, ECN
10 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
85Land FX2013
FCA, FSCS

Regulated

11

Payment systems

NDD, ECN
300 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
86Pepperstone2010
ASIC
13

Payment systems

ECN
200 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
87PhillipCapital UK1975
ASIC, FCA
7
NDD
200 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
88Ak Investment1996
SPK
12
NDD, DMA

Broker type

  • NDD
  • DMA
  • MM
1000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
89InvestAZ2010
FSP, SPK
8
ECN
100 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
90Corner Trader2012
FINMA
9
MM
1 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
91Abshire-Smith2011
FCA, FSCS
10

Payment systems

STP, DMA
500 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
92ArgusFX2000
CySEC
10

Payment systems

STP
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
93Ayondo2008
FCA, BaFin
9

Payment systems

NDD
100 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
94Bacera2009
ASIC
11

Payment systems

MM
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
95BogoFinance2006
CySEC
11

Payment systems

NDD
100 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
96Capital Index2014
FCA, CySEC

Regulated

3

Payment systems

NDD, STP
100 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
97Core Liquidity Markets2012
ASIC, FSA
10

Payment systems

NDD
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
98CMG2015
ASIC
19

Payment systems

-250 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
99Colmex Pro2010
CySEC
13
NDD, ECN
2000 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
100Darwinex2012
FCA
10

Payment systems

STP, DMA
500 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
101eTrader2014
CySEC
11
NDD
100 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
102Flatex1999
BaFin
9
NDD, MM
0 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
103Fullerton Markets2015
FSP
14

Payment systems

ECN, STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
104FX882016
CySEC
2

Payment systems

ECN
100 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
105FXCC-
FCA, CySEC
157

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
106FX Choice2010
IFSC
6

Payment systems

NDD
100 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
107FxGrow2008
CySEC
4

Payment systems

ECN, STP
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
108GMG Markets2015
FCA
2
NDD, STP
200 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
109HMS Markets1972-2
NDD
1000 $1:40N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
110Infinox Capital2009
FCA
10

Payment systems

ECN, STP
100 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
111iTrader2012
IFSC
4

Payment systems

NDD
250 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
112Mex Exchange2012
ASIC
3

Payment systems

NDD, ECN
200 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
113FXPCM2007
FSC, DFSA

Regulated

2

Payment systems

NDD, ECN
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
114Rakuten Securities Hong Kong2002
SFC
2
NDD, STP
0 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
115RietumuFX1992
FCMC
9
NDD
1000 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
116TFI Markets1999
CySEC
3
NDD
50 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
117Tradealot2010
FCA
8

Payment systems

STP
2000 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
118FinmaxFX2017
CROFR, VFSC
21

Payment systems

MM
250 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
119CommSec1998
ASIC
4
DMA, MM
10 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
120Finam Forex1994
CBR, NAFD

Regulated

3

Payment systems

NDD, DMA
0 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
121MultiBank Group2005
ASIC
2

Payment systems

ECN
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
122AMP Global2018
CySEC, CFTC

Regulated

7

Payment systems

STP
100 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
123Ingot Brokers2004
ASIC
8
ECN
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
124Alvexo2014
CySEC, SIBA
10

Payment systems

ECN
0 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
125AETOS2007
ASIC
6

Payment systems

NDD
250 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
126Arum Capital2017
CySEC
4

Payment systems

ECN, STP
0 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
127ATFX2015
FCA
17

Payment systems

NDD
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
128Key to Markets2010
FCA, FSP

Regulated

6

Payment systems

ECN
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
129Trading.com2018
FCA
3

Payment systems

ECN
5 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
130BDSwiss2012
CySEC, FSC
10

Payment systems

ECN
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
131ATC Brokers2005-3
ECN
2000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
132ACY.com2011
ASIC, VFSC
3
ECN, STP
--N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
133Milton Prime2015
CySEC, SIBA
1

Payment systems

NDD
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0
134-Capex2018
CFSFA, DMCC

Regulated

2

Payment systems

DMA, MM
50 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0


0.00
Was the information useful for you?
5 (1)

Lowest spread Forex Brokers - perfect solution for scalping!

Low spreads

The spreads for different currency pairs vary depending on the jurisdiction in which the broker is based as the spread for one broker may be higher than of another. It is wise to look at the spreads for various currency pairs that you intend to trade other than EUR/USD which is the commonly traded pair and usually which brokers offer the lowest spread for. Deciding which forex broker to trade with can be a difficult task. Being able to find the right partner that will charge a fair price to give you access to the currency trading market, secure your investment throughout with appropriate dealings and that will efficiently respond to your concerns isn’t simple more so when dealing with someone online and you never get to meet them “one-on-one” because they may be based abroad.

The major mistake most traders make when choosing a broker is to focus mainly on the cost factor. Many traders look for those that offer ‘the tightest’ spreads available or ‘near zero’ spreads on most major pairs. The reality on ground is that brokers are aware of their cost structures and would never go into such business ventures. A broker’s main target is always to recover costs in any way possible, this means that for every subsidy of spreads they make, they are sure to recover and make up for it somewhere else in terms of other fees possibly, slippage and poor execution, or low-quality customer service and support.

Does the broker type favour low spread offerings?

There exist two main types of forex brokers; ECN brokers and brokers that are market makers. An ECN broker runs the traders orders directly to its liquidity providers to be executed at their prevailing spreads. These fluctuate overtime according to supply and demand but are usually very minimal. Much as they offer lower spreads, the ECNs have various ways through which they recover their costs such as through transaction-based pricing and commissions. Depending on the trader’s style and level of activity, an ECN’s pricing structure may turn out to be lower as compared to the typical market maker broker on the overall.

Market makers on the other hand rely on the ”Bid/Ask” spread to make their income, this is multiplied if the trader chooses to use leverage in their trading strategy. A market maker acts as an intermediary between you, their client, bank or liquidity providers, and prefer to “arbitrage” for profit the spread that they offer to you against what they can trade in the market on their own behalf. The market maker keeps an instantaneous accounting of the “overs” and “shorts” for each currency pair on a daily basis. If he is losing at a certain point, he will slightly increase the spread to compensate the difference over time. However, the market maker’s ultimate objective is to make a specified profit for each pair by the end of the business day.

What to be wary of when choosing a low spread forex broker?

Low spreads and no Comission

Businesses always compete in either providing low costs or offering of quality services. A business cannot offer the most affordable services and not compromise on quality assurance. This means that when a forex broker offers the lowest spreads in the market, then it definitely has to cut back on quality in some other department. It may happen to charge extra fees that will usually be hidden and not easily detected or it may indulge in bad business practices to hide its unscrupulous recovery of costs.

The trader must be concerned how the broker will recover their costs whenever low spreads are offered. The quality of services offered and whether extra fees are being charged are evident if you do your due diligence review and compare the broker’s offers to the competitors’, going through customer testimonials and independent reviews of the broker. The difficulty is identifying a broker involved in bad business practices which are usually covered up leaving you at the mercy of your broker. The only sound course of action to take option you have in such a situation is to halt your business arrangement and withdraw your account balance without any delay.

Bad business practices usually reveal themselves in a number of ways. The first could be in constant re-quoting, you may see a quote and gain interest and act upon it with an execution order then get a server message with a different quote asking you to try again. This certainly means that the broker might have chosen to block your request for his own profit reasons. However, if you took an unacceptably long period of time to act, then the broker may have acted appropriately to re-quote.

Slippage is also another common practice could spoil one’s trading experience and lead to loss losses of capital. Slippage is caused by having your stated order executed at a price other than the one you stated. Your broker will defend himself by stating that the market is volatile or that you delayed to act or that some major data release caused an abrupt change in the market. If these indicators are not present and yet slippage occurs frequently then it means that it’s about time you questioned your choice of broker.

The last and probably, most frustrating bad business practice is spread manipulation. If your broker is a market maker, he can post whatever quotes are in his best interest at that point in time. Market makers are all about setting spread quotes, however, some unscrupulous ones may decide to quote rates that do not reflect anywhere in the market, they may for instance use quotes from an independent Reuter’s quote feed or even another broker. This type of spread manipulation is common when the market is in a tight range. Under such conditions brokers can’t make profits so they manipulate the spreads. When traders place orders for the big move the quotes may take a plunge roughly 20 to 30 pips. This is just the right amount to clear out any stop-loss orders and to prevent traders from benefiting from the move. The unscrupulous broker then cashes in on the profit from those closed client positions in this case.

The truth is that not all low spread brokers are bad. However, you should be aware that a low spread broker must make good of their loss one way or another. You may not need education materials or customer support and if at all you want a broker that truly focuses on a low spread and is ready to compromise in other areas. The most important thing is that the brokering firm adheres to good business practices in its execution of your orders.  A spread is very important in your choice of the broker, but you must strive to understand what other costs might be hidden and if the quality of service might be low. The best advice to a trader is that they should take time to choose their broker wisely.

The Best Forex Brokers + Trading Platforms

There are obviously several benefits for trading with lower spreads and the following are reasons for opening an account with a brokerage company that offers low spreads.

  1. The trader gets to pay less per trade. Although it is not always as simple as it sounds, sometimes is.
  2. If you are trading big, low-spread brokers levy a commission which becomes smaller the more you trade.
  3. Trading with a broker offering low spreads encourages its competitors to reduce their spreads and this makes the forex market friendlier.

Some traders insist on lowest spreads possible as a prerequisite before choosing to trade with any particular broker. It is important for traders who open and close several positions each session they trade to get the tightest spread possible so that they can be able to minimise losses. Some brokers provide either low fixed or a variable spread with very attractive minimum and typical values. The downside to such low spreads is that the brokers may require high-deposit accounts. Some of the best international forex brokers offer pretty low spreads with mini or even micro Forex accounts but these are not to be confused with zero-spread accounts.

Low spread forex brokers are preferred especially by traders who use the scalping strategy because this trading strategy allows them to open and close several deals per day and with low spreads, the commissions may add up to even 100 pips

In order to cut costs on forex operations, traders usually opt for dealing desks that can avail low spreads. For traders who use this criterion, financial losses are limited and this is what every trader looks forward to, being able to make profits and secure their principle invested amount.

Best Low Spread Forex Brokers

Forex.com

Are you new to the forex bandwagon and seek a forex broker who will hold your hand as you start trading? This is one of the best brokerage firm for beginners as you can understand in Forex.com detailed Review. It offers a myriad of education resources, a reliable customer support, seminars and multiple guides. Furthermore, it also offers 24/7 broker support for six days including Saturdays and a social trading features that is available in 25 languages.

PLUS 500

PLUS 500 is a highly acclaimed CFDs trader that specializes in such financial instruments as Forex, commodities, ETFs, and stocks. The firm also has one of the most competitive market capitalizations, currently valued at over $1 Billion, and operating through multiple subsidiaries across the world. Though the broker is registered and headquartered in London, it maintains an active office in Australia under the ASIC’s regulations.