Best Zero Commission Forex Brokers

In forex trading, investors are always looking to minimise their trading costs and maximise their profits. One of the most significant expenses are commission fees charged by brokers. Fortunately, there is a growing number of brokers that offer their traders zero commission conditions when trading. The most obvious advantage of this is cost savings. Traders can enter and exit positions without worrying about the added cost of commissions. However, please note that zero-commission trading does not mean trading fees are eliminated completely. Brokers typically generate revenue through the spread. Moreover, there are other fees to consider such as overnight charges or inactivity fees. 

Nonetheless, zero commissions are an attractive feature for most traders. In this review, we will highlight some of the best zero-commission forex brokers available in the market. We will focus on their regulations, trading platforms, collection of market products, and the spreads they charge. Let’s begin.

Pepperstone

Pepperstone is one of the best brokers offering commission-free trading on its standard account. On this account, investors can trade a variety of market products with spreads as the main trading fee. The spreads are within market standard starting from 1.0 pips for major currency pairs with no commission paid. There are plenty of investment opportunities on this broker site as it offers over 1,200 different market instruments to trade.

In particular, this broker allows its investors to trade CFDs on forex, indices, commodities, cryptocurrencies, currency indices, ETFs, and shares. To trade these market products, the broker avails five different trading platforms. These include MetaTrader 4, MetaTrader 5, cTrader, TradingView, and Pepperstone Trading Platform.

One of the key features of Pepperstone is its strong regulatory standing. It has regulations from several authorities including the FCA in the UK, the CySEC in Cyprus, the ASIC in Australia, and the CMA in Kenya, among others.

76.3% of retail CFD accounts lose money

Exness

Exness joins the ranks as another top broker offering zero-commission trading. Specifically, there are two accounts available to trade on without commissions charged. The Standard account on this broker site has a spread starting from as low as 0.2 pips for major currency pairs with no commission required. On the other hand, the Standard Cent account offers spreads from as low as 0.3 pips also without a commission. 

Like Pepperstone, Exness offers its traders a variety of trading platforms to use while trading. These include MetaTrader 4, MetaTrader 5, and Exness Terminal. These platforms allow investors to place orders in a variety of global market products including CFDs on forex, indices, stocks, commodities, and cryptocurrencies. 

In terms of regulation, Exness holds multiple licenses from reputable authorities. These include the CySEC in Cyprus, the FCA in the UK, and the FSCA in South Africa, among others.

Remember that forex and CFDs available at Exness are leveraged products and can result in the loss of your entire capital.
Please ensure you fully understand the risks involved.

XM

XM is a well-established international forex broker with a strong presence in over 190 countries. Notably, XM does not charge any commissions when trading CFDs on three of its four accounts. The Standard and Micro accounts offer spreads as low as 1.0 pips on major currency pairs with no commissions. For even tighter spreads, the XM Ultra Low account starts at 0.6 pips and is also commission-free. The only account that charges a commission on this broker site is the Shares account where the commission depends on the Share and the size of the trade.

Positively, this broker allows its clients to trade a deep collection of market products. These include over 1,000 different assets including CFDs on forex, stocks, indices, cryptocurrencies, precious metals, and energies. To trade these markets, clients have a few platforms at their disposal. They can use either MetaTrader 4, MetaTrader 5, or the broker’s own XM Trading Point App.

Traders should always prioritise brokers that have regulations from multiple regulatory commissions. Luckily, XM operates under the supervision of multiple organisations including the CySEC in Cyprus, the ASIC in Australia, and the FSC in Belize.

74.12% of retail investor accounts lose money when trading CFDs with this provider.

XTB

XTB is another top-tier broker offering zero-commission trading on its Standard account. It is highly regarded for its transparency, low trading fees, and user-friendly platform. On XTB, the standard account does not charge commissions on CFDs apart from Equity CFDs and ETF trades. However, the broker does disclose that investors will be trading with slightly wider spreads.

Positively, this broker allows its traders to access more than 5,400 financial instruments. These include CFDs on forex, commodities, cryptocurrencies, indices, stocks, and ETFs. The trading platform available to use here is the company’s own xStation platform, known for its user-friendliness and advanced charting tools.

While XTB discloses that it provides slightly wider spreads, they are within market standards. The standard account features spreads as low as 0.5 pips on major currency pairs. XTB also provides a swap-free account with spreads starting at 0.7 pips. On another note, XTB is regulated by leading financial authorities, including the FCA in the UK and the CySEC in Cyprus. Additionally, it operates under the supervision of the FSC in Belize and the KNF in Poland.

74-76% of retail investor accounts lose money when trading CFDs with this provider.

IQ Option

IQ Option is another popular choice for traders seeking a no-commission broker. This broker offers commission-free trading on forex and other underlying assets. One of the standout features of IQ Option is its user-friendly platform, which is designed to be usable by both beginners and experienced traders. 

IQ Option offers an in-house-built trading platform compatible with desktop Windows, MacOS, Web, and Mobile. The platform offers access to a variety of market products. With this broker, traders can access over 250 different instruments including CFDs on forex, cryptocurrencies, commodities, indices, stocks, and ETFs.

The main fee charged by IQ Option when trading is the spreads which are within market standards. For major currency pairs, the spreads on IQ Option start from as low as 1.0 pips. Nonetheless, it is important to remember there are other fees that apply including overnight charges and inactivity fees.

On another note, IQ Option is regulated by the CySEC in Cyprus, one of the top financial watchdogs in the market. This means that the broker follows stringent laws imposed by the organisation.

AvaTrade

AvaTrade is another reputable broker offering zero-commission trading on its Standard account. With a client base of over 400,000 people, AvaTrade has established itself as one of the top names in the online trading industry. Spreads at AvaTrade are competitive, starting from as low as 0.9 pips on major currency pairs.

One of the key advantages of AvaTrade is its wide range of trading instruments. These include CFDs on forex, stocks, commodities, indices, cryptocurrencies, ETFs, and bonds. AvaTrade’s trading platforms include MetaTrader 4, MetaTrader 5, and the broker's proprietary AvaTradeGO platform. The broker also offers DupliTrade and Zulutrade for social and copy trading, allowing traders to mirror strategies from successful traders worldwide.

Finally, AvaTrade is well-regulated by several well-known financial authorities. These include the Central Bank of Ireland, the ASIC in Australia, the FSA in Japan, the FSCA in South Africa, and the Abu Dhabi Global Markets (ADGM) in the UAE.

Plus500

Plus500 is a well-known broker that offers commission-free trading on all of the instruments. Notably, Plus500 clearly states on its website that it does not charge dealing commissions. Plus500 is mainly compensated for its services through the market spread. On this broker site, a variable spread applies to cover trading fees. As an example, the spread on the EURUSD pair can go as low as 0.8 pips depending on market conditions.

Regarding market products, Plus500 provides access to over 2,800 financial instruments. These include CFDs on forex, cryptocurrencies, indices, commodities, shares, options, and ETFs. The software available to place orders is the in-house built Plus500 trading platform. It is available on desktop, web, and mobile devices.

Trading with a regulated broker is the best bet in the market as they follow strict rules to ensure the market is safe and fair. Luckily, Plus500 has regulations from a variety of institutions including the FCA, the CySEC, the ASIC, and the FSCA.

Markets.com

Established in 2010, Markets.com has grown to become a popular choice among traders seeking to minimize their trading costs. The broker offers 0% commissions on all trades. Additionally, the broker provides some of the lowest spreads in the market, starting from 0.8 pips for major currency pairs. Notably, this broker offers its traders plenty of investment opportunities. This includes CFDs on Forex pairs, indices, commodities, cryptocurrencies, shares, ETFs, and bonds. Traders can access these market products through user-friendly platforms such as MetaTrader 4 and MetaTrader 5.

In terms of regulation, Markets.com is well-regulated by several top-tier institutions. These include the FCA, the ASIC, and the CySEC. This regulatory background has allowed Markets.com to gain the trust of traders globally.

Capital.com

Capital.com is another contender in the zero-commission forex broker landscape. Capital.com does not charge commissions on any trades. The broker instead charges a spread that is within market standards. It has spreads starting as low as 0.6 pips for major currency pairs. These are some of the lowest spreads in the market today.

Capital.com provides its traders with plenty of investment opportunities to allow them to diversify their portfolios. Some of the markets offered are forex, indices, commodities, shares, and cryptocurrencies. To trade these market products, traders have access to MetaTrader 4, Capital.com, and TradingView as the trading platforms.

Choosing a well-regulated broker is crucial for safe trading. Capital.com prioritises security by adhering to regulations from several authorities. They include the CySEC in Cyprus, ASIC in Australia, and the FCA in the UK. While regulations alone are not enough, it is always a good sign when a broker holds several licences. 

Advantages of Zero Commission Forex Brokers

• Cost Efficiency - The most obvious advantage of zero commissions is cost savings. It is particularly beneficial for high-frequency traders or those using short-term strategies like scalping or day trading.
• Simplified Pricing - Without commission fees, the cost structure becomes more straightforward. Traders only need to focus on the spread when calculating the total cost of a trade.
• Potential for Increased Profit Margins - Since traders aren’t paying commission fees, every money gained from a trade contributes more directly to profit, making trading potentially more lucrative.

Potential Drawbacks of Zero Commission Forex Brokers

• Higher Spreads - Some zero-commission brokers often widen the spread to compensate for the absence of commissions. This can make trading slightly more expensive than it first appears, especially during times of high volatility or low liquidity.
• Potential for Hidden Fees - While there might not be any commission, some brokers may charge fees in other areas such as withdrawals, overnight swaps, or inactivity fees.

Closing Remarks

Zero-commission forex brokers offer a great opportunity for traders looking to reduce costs and maximise profits. However, the key to successful trading lies not only in choosing a broker with zero commission but also in understanding the overall cost structure. Traders should also consider other charges such as spreads, overnight fees, and any hidden charges.

This article featured some brokers that stand out as some of the best zero-commission forex brokers in the market. Each broker has its unique strengths, and the choice ultimately depends on individual trading preferences. It's essential to stay updated with the latest industry developments and conduct your own research. Understand that brokers may update their pricing structures from time to time.