What Crypto Pairs have the Lowest Spreads
The cost of trading cryptocurrencies is often defined by spreads, the difference between the bid and ask price of a trading pair. For traders, especially scalpers and day traders, low spreads can make a huge difference in overall profitability. While many factors influence spreads, liquidity and market demand tend to be the most important. The most traded crypto pairs usually feature the lowest spreads.
In this article, we will take a deep dive into which crypto pairs typically have the lowest spreads, why spreads matter, how brokers handle them, and which brokers are known for offering competitive rates. Let’s first understand the factors that affect crypto spreads.
Factors That Influence Crypto Spreads
Spreads in the crypto market are not random. There are several key factors that influence the spreads of a given crypto pair. Understanding these factors can help traders identify and capitalise on low spread opportunities:
- Liquidity - The more liquid a pair is, the tighter its spread tends to be. Bitcoin and Ethereum dominate here due to their popularity. Stablecoin pairs also tend to maintain tight spreads because stablecoins have a stable value, reducing price volatility.
- Trading Volume - High trading volumes allow brokers and exchanges to match buyers and sellers efficiently, reducing spreads. High-volume pairs, such as BTC/USDT or ETH/USD, naturally attract more traders and have tighter spreads. Conversely, a less-known altcoin with low trading volume will have a wider spread because there are fewer participants to absorb buy and sell orders.
- Volatility - Extremely volatile pairs often carry wider spreads as brokers account for sudden swings. During periods of high volatility, such as a major news event or a sudden price crash, spreads can be significantly wide.
- The Broker Used - The type of broker that a trader uses also plays a significant role in the spreads that traders receive. Brokers typically earn money from adding a markup to the raw spreads of crypto pairs. For the best experience, traders usually prioritise the lowest crypto brokers to maximise their profit potential.
With this in mind, it becomes clearer why certain pairs almost always rank among the lowest-spread options across different brokers. Now, let’s take a look at some of the crypto pairs with the lowest spreads.
Which Crypto Pairs Have the Lowest Spreads?
The crypto pairs that consistently offer the lowest spreads are also the most liquid and widely traded. Let’s look at the major ones in detail:
BTC/USD
Bitcoin against the US Dollar (BTC/USD) is the most traded cryptocurrency pair worldwide. With Bitcoin acting as the benchmark digital asset and the US Dollar being the most liquid fiat currency, this pair benefits from unmatched trading volume and deep liquidity. Brokers compete aggressively on spreads for BTC/USD, with some offering spreads as low as fractions of a percent.
This pair is especially attractive to day traders and scalpers because the tight spreads reduce trading costs and allow for high-frequency strategies. Institutional participation also ensures that order books remain full, further stabilising spreads across brokers.
ETH/USD
Ethereum against the US Dollar (ETH/USD) is another major pair that enjoys low spreads. This is due to Ethereum’s position as the second-largest cryptocurrency by market cap and the US Dollar’s popularity. With its role in decentralised finance (DeFi), NFTs, and smart contract adoption, Ethereum consistently ranks among the highest cryptocurrencies in trading volume.
Most brokers offer ETH/USD with spreads nearly as competitive as BTC/USD, making it one of the go-to choices for traders seeking lower transaction costs.
XRP/USD
Ripple (XRP/USD) is a unique case. Despite regulatory challenges and controversies over the years, XRP continues to attract strong liquidity in global markets. Many brokers and exchanges quote XRP/USD spreads that rival or even beat ETH/USD at times, with some spreads measured in fractions of a cent.
For traders who value high-frequency opportunities and fast execution, XRP/USD remains one of the most cost-effective altcoin pairs to trade.
LTC/USD
Litecoin, often dubbed the digital silver, has long been one of the most liquid cryptocurrencies. As a result, the LTC/USD pair offers attractive spreads that appeal to traders looking for cost efficiency. Its historical stability and decent volume levels ensure brokers keep spreads competitive, though not always as low as BTC or ETH.
ADA/USD
Cardano has grown significantly in market capitalisation and adoption, particularly in the past few years. With this growth, ADA/USD has become increasingly liquid, prompting brokers to offer tighter spreads than many other altcoin pairs. For traders looking to diversify beyond Bitcoin and Ethereum without sacrificing too much on cost, ADA/USD is a solid choice.
By contrast, exotic or newly listed cryptocurrencies tend to suffer from higher spreads due to thin liquidity. These wider spreads can significantly eat into profits, particularly for short-term traders.
Why are Low Spreads Important
The importance of low spreads cannot be understated, especially for active traders. A trader who makes ten or more trades per day on BTC/USD will pay far less in spread costs compared to someone trading an exotic altcoin with wide spreads. Over weeks and months, these savings accumulate significantly, impacting net profitability.
Furthermore, tight spreads improve trade execution by allowing traders to enter and exit positions closer to the actual market price. This precision is essential for strategies like scalping, algorithmic trading, and high-frequency approaches.
The Role of Brokers in Crypto Spreads
Not all brokers offer the same spreads, even on popular pairs. Some operate on a market-maker model, while others use straight-through processing (STP) or electronic communication networks (ECN) to match trades directly with liquidity providers. The execution model can significantly affect the spreads that traders have access to.
STP and ECN brokers usually provide the tightest spreads, sometimes approaching raw interbank levels, while charging a small commission per trade. On the other hand, market-maker brokers may widen spreads slightly to cover their risk.
For traders focused on minimising costs, choosing the right broker can be just as important as choosing the right trading pair. Some brokers even advertise their lowest spreads openly, making it easier to compare.
Examples of Brokers Known for Low Crypto Spreads
When considering brokers for crypto trading, it’s worth noting that some brokers have built reputations for offering competitive spreads on major pairs like BTC/USD and ETH/USD. These include names such as Pepperstone, FP Markets, and XM.com, just to mention a few. Let’s take a quick look at these brokers.
Pepperstone
Pepperstone offers an average spread of $25.24 for the BTC/USD pair on its two accounts. The broker offers access to 21 different cryptocurrency CFDs, giving traders a wide selection of digital assets to trade. Additionally, it supports cryptocurrency trading over the weekends, ensuring flexibility and continuous market access.
Clients can trade using a suite of premier platforms like MT4, MT5, cTrader, the Pepperstone Trading Platform, and TradingView. On regulations, Pepperstone has supervision from the FCA in the UK, the CySEC in Cyprus, the ASIC in Australia, and the BaFin in Germany, among others.
73.7% of retail CFD accounts lose money
FP Markets
FP Markets offers 12 popular cryptocurrencies paired with the US Dollar, available to trade 24/5. Traders benefit from fair and low spreads, which vary by asset. For example, the average spread for BTC/USD is $21.28, which is highly competitive.
Clients can pick between MT4, MT5, cTrader, and TradingView. Regarding regulations, FP Markets holds licenses from the CySEC in Cyprus, the ASIC in Australia, and the FSCA in South Africa, among others.
74.73% of retail CFD accounts lose money
XM.com
XM provides several benefits for cryptocurrency trading to its clients. It offers 31 crypto pairs for trading, supports weekend cryptocurrency trading, and features low spreads. For example, the BTCUSD pair has a minimum spread of $60.0 and an average spread of $60.1 on the standard account.
In contrast, the XM Ultra low account offers lower minimum spreads of $30.0 and the same average spread of $30.0. The trading platforms available on XM include MetaTrader 4, MetaTrader 5, and the XM App. Finally, XM is also a regulated broker by various organisations, including the FCA, the DFSA, the FSC, and the CySEC.
Traders from the EEA countries should be aware that cryptocurrency trading is not available to them, international traders from most other countries are, however, welcome to trade crypto here.
74.3% of retail investor accounts lose money when trading CFDs with this provider.
Each of these brokers tends to highlight their spread offerings, especially on Bitcoin and Ethereum, in order to attract active traders. While spreads can still vary depending on volatility and market conditions, these brokers are generally recognised for providing consistently competitive pricing.
Conclusion
While a variety of factors influence crypto spreads, the key takeaway is that liquidity reigns supreme. The most liquid and high-volume pairs, led by BTC/USD and ETH/USD, consistently offer the lowest spreads. These tight spreads are not just a minor detail. They are critical for the profitability of frequent traders, enabling more precise execution and significantly reducing transaction costs over time.
While selecting the right crypto pair is essential, choosing a broker known for competitive pricing is equally important. Brokers such as Pepperstone, FP Markets, and XM have proven to offer competitive spreads, diverse crypto assets, and strong regulatory oversight. By understanding both the market dynamics and the role of brokers, traders can make informed decisions that enhance their trading experience.
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