Lowest Spread Forex Brokers - Comparison
For most forex brokers, the spreads are the primary fees clients must pay when trading. Hence, trading with a client with low spreads is a huge advantage as it helps you save on trading fees. In this article, we are going to look at the forex brokers offering the lowest spreads to traders. We are also going to look at the trading conditions provided by the brokers. Finally, we will look at the brokers' regulatory status.
Without further ado, here is our list of some of the Lowest Spread Forex Brokers out there.
Pepperstone is a forex broker dealing in over 1,200 CFDs. The company provides access to instruments in the forex, shares, indices, ETFs, commodities and currency indices markets. This variety of trading instruments is a characteristic of the best forex brokers in the market. We will now look at the regulation status of Pepperstone. Fortunately, Pepperstone is a regulated company that plays by the book. The company has regulations from three top-tier regulators. The FCA regulates the company in the UK, BaFin in Germany and ASIC in Australia.
Pepperstone also provides competitive spreads to traders. The spreads on the platform for major currency pairs range from 0 pips to 1.59 pips, depending on the account type. There are also commissions charged depending on the trading platform a trader uses. The trading platforms available to traders on Pepperstone include MT4, MT5 and cTrader. These are all excellent trading platforms with high functionalities. They are also fast in executing trades.
75.5% of retail CFD accounts lose money
Exness provides some of the best trading conditions in the world. The company offers some of the lowest spreads in the market. For example, the spreads can go as low as 0.6 pips on the EURUSD currency pair. The average spread on major currency pairs ranges from 1.0 to 2.0 pips. These are some of the lowest spreads in the market. Many traders would be happy to trade under such conditions. Furthermore, Exness features two zero-spread accounts for clients who prefer to pay commissions when trading.
Regarding trading instruments, Exness has a wide collection of assets clients can invest in. Traders can invest in various markets, including forex, metals, cryptocurrencies, energies, stocks, and indices. This ensures that Exness accommodates all kinds of traders, whether they want to invest in a single market or spread their investment across various markets. Better yet, Exness provides clients with some of the best trading software in the industry. Clients have access to the Exness Trader, MetaTrader 4, and MetaTrader 5.
In terms of regulations, this company operates under the strict supervision of several watchdogs. The company has regulatory licenses from the CySEC, the FCA, the FSA, the FSCA, and the FSC. Having authorization in several jurisdictions is a sign of a company that plays by the book.
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.
XTB is a platform that allows clients to invest in various markets. Clients can trade forex currency pairs and indices alongside CFDs on cryptocurrencies, commodities, shares, and ETFs. These are some of the hottest trading instruments in the market. Such a collection allows XTB to accommodate all kinds of traders.
Fortunately enough, XTB does not charge traders hefty fees. The primary charges on XTB are the spreads. They vary depending on the account you are using on XTB. For example, the lowest spread on the Standard account is 0.5 pips, while on the Swap Free account, it is 0.7 pips. Evidently, these are some of the lowest spreads in the market.
Looking at XTB’s regulation status, the company is in good standing. It has regulations from several bodies, including the CySEC in Cyprus, the KNF in Poland, the FCA in the UK, and the IFSC in Belize. Note that regulations alone are not enough. But this is a good sign from the company. It shows that the people behind the operations are willing to operate within legal bounds.
The trading platform that XTB offers to traders also gives a good reputation. Clients have access to the xTrader 5 platform that is built by XTB itself. This is an intuitive platform with fast execution times. Hence, it is suitable for all kinds of traders, whether experienced or inexperienced.
76% of retail investor accounts lose money when trading CFDs with this provider.
Forex.com is yet another tier-one trading platform with many merits for traders. First, the company has regulations in multiple jurisdictions. Some regulators licensing this company include the FCA, the NFA, the CySEC, and the IIROC. This regulatory status has attracted a lot of traders from around the world. Today, Forex.com is one of the biggest forex brokers in the world, with over 450,000 active users.
In terms of spreads, you should expect some of the lowest spreads on Forex.com. Here, the spreads can go as low as 0.8 pips for some major currency pairs. These impressive spreads, alongside powerful trading software, are a great deal to any trader. Luckily Forex.com has this covered. It provides clients with its own Forex.com trader alongside the MetaTrader 4. These are powerful platforms with fast execution times.
Further, Forex.com has a great selection of trading instruments. Clients can trade instruments from the forex, gold and silver, and futures and futures options markets. With over 80 different currency pairs, Forex.com has a rich collection of forex pairs to invest in.
77.1% of retail investor accounts lose money when trading CFDs with this provider.
FP Markets is another company offering some of the lowest spreads on crypto and forex in the market. There are two main accounts on FP Markets. These include the Standard account and the Raw account. The Standard account allows clients to trade on spreads as low as 1.0 pips with no commissions. On the other hand, the Raw account features spreads as low as 0.0 pips and a commission of $3 per side per lot. Hence, FP Markets accommodates all kinds of traders.
Clients of FP Markets do not have to worry about its regulatory status. The company has authorization from two tier-1 regulators, the ASIC in Australia and the CySEC in Cyprus. Such regulators have strict laws in place to protect investors from criminal operations. While the company might break these laws, you are better off investing with brokers with regulations than those without.
Further, FP Markets provides clients with a range of markets they can trade instruments from. These markets include forex, shares, metals, commodities, indices, cryptocurrencies, bonds, and ETFs. This is a great collection of trading instruments. In total, there are over 10,000 market instruments on FP Markets. Traders can widely diversify their portfolios here.
71.23% of retail CFD accounts lose money
The spreads on XM are industry standard and competitive. There are three account types that come with different spreads. For example, the standard account has spreads as low as 1.0 pips for major currency pairs. In contrast, the spreads can go as low as 0.6 pips on the XM Ultra Low account.
On XM, clients can trade over 1,000 trading instruments. These fall under eight different markets. These include forex, stocks, indices, shares, cryptocurrency, commodities, precious metals, and energies. All kinds of investors are catered for on XM, whether they want to invest in one market or several markets.
Looking at the regulatory status of XM, we can say it is in a good state. This CFD broker has licenses from the CySEC, ASIC, and FSC. Companies with multiple regulatory licenses have a better reputation for a reason. They have been able to follow strict laws for a long time, attracting many traders.
Furthermore, the trading platforms that XM Provides are some of the best in the market. Clients have access to both the MetaTrader 4 and 5 platforms on PC, Mac, iOS, Android, and Tablets. These platforms come with plenty of tools to assist traders in their activities. For instance, there are a plethora of charting tools available on MT4 and MT5.
IG is a CFD broker with over 300,000 clients worldwide. The company is currently regulated by the FCA from the UK, ASIC from Australia, BaFin from Germany, and the NFA in the USA. These are reputable organizations watching over the company’s operations. Companies with regulatory licenses from multiple regulators are less likely to operate in criminal ways.
IG allows clients to trade with some of the lowest spreads in the market. This platform's spread can go as low as 0.6 pips for some major currency pairs. Additionally, IG does not charge commissions on forex trading. This cheap way of trading allows clients to save on trading fees.
Regarding the range of markets, IG allows clients to trade CFDs in various markets. These include forex, shares, commodities, cryptocurrencies and more. In total, there are over 18,000 market instruments on IG. This is an excellent way for traders to diversify their portfolios. Further, IG provides clients with various trading platforms, including the MetaTrader 4. This platform is one of the best in the market, as it comes with a plethora of charting tools. Such a collection of tools allows traders to harness the full power of their trading strategies.
CMC Markets is operating in multiple jurisdictions legally under the supervision of reputable regulators. The company is licensed and regulated by the FCA in the UK and BaFin in Germany. Investors should only invest in regulated brokers as they are less likely to defraud clients.
CMC Markets charges variable spreads to clients when trading. For example, the spreads on the EUR/USD and the USD/JPY can go as low as 0.7 pips. This is very attractive to all kinds of traders. While the spreads are variable, it is good to know they can drop this low.
The number of markets available for trading on CMC Markets is also attractive. Clients can trade CFDs on Forex, indices, cryptocurrencies, commodities, shares, share baskets, and treasuries. Here, clients can easily spread their investment across these markets, spreading the risk of investment. Even better, the platform available to clients is the revolutionary MetaTrader 4. It is robust and suitable for all levels of traders.
AvaTrade is a tier-one CFD broker with regulations from several organizations. These include the Central Bank of Ireland, the BVIFSC, the ASIC, the FSCA, and the CySEC. This regulation from multiple regulators gives AvaTrade a good reputation in the market. The company has an impressive 4.8 rating out of 5 on Trustpilot after over 7,000 reviews.
The spreads on AvaTrade are not steep. They are industry standard and relatively low. As expected, the most traded instruments have the lowest spreads on AvaTrade. For example, the spreads for major currency pairs can go as low as 0.9 pips. Traders should stay updated on the movement of spreads on AvaTrade before they invest. Luckily, AvaTrade also provides clients with a variety of trading platforms. These include the MetaTrader 4 and 5 alongside its own AvaTradeGO. The DupliTrade technology on AvaTrade allows clients to copy the trading strategies of other traders.
AvaTrade is a top-tier CFD provider in the market. Clients can trade CFDs on forex, cryptocurrencies, stocks, commodities, indices, bonds, ETFs, and vanilla FX options. A variety of trading markets allows traders to diversify their portfolios. This way, they can spread the risk of investment across various markets.
76% of retail CFD accounts lose money
TickMill launched its online brokerage services in 2014 and features multiple markets on its platform. Investors can buy and sell CFDs on forex, stock indices and energy, bonds, precious metals, cryptocurrencies, and stocks. This is a great collection of market instruments. It ensures that Tickmill accommodates all kinds of traders.
Trading with regulated brokers is the safest bet for any investor. Luckily, Tickmill has regulations in multiple jurisdictions. The FCA regulates it in the UK, the CySEC in Cyprus, the FSCA in South Africa, and the FSA in Seychelles. Such regulation makes Tickmill one of the best forex brokers in the world. Additionally, Tickmill offers clients some of the lowest spreads in the market. The spreads can go as low as 0.1 pips on some major currency pairs. Clearly, these are some of the lowest spreads in the market today. Additionally, clients get access to great trading platforms in MetaTrader 4 and MetaTrader 5. Such trading conditions are why Tickmill attracts a lot of traders to its platform.
Conclusion on Lowest Spread Forex Brokers
This guide looked at the best forex brokers offering some of the lowest spreads in the market. We presented ten forex and CFD brokers with some of the best trading conditions in the market. These brokers have ample regulations, have a wide range of market products, and provide some of the best trading platforms. On top of that, the platforms offer some of the lowest spreads in the market. Evidently, these brokers have a lot to offer. There are still a lot of factors to consider before investing. While these are our choices, we still encourage investors to do their own research before investing. This way, they can select the broker that best suits their needs.