The Best Brokers for Small Spreads and Which Traders They Benefit

It can be difficult to find a forex broker with the lowest spread with no charges or additional costs as there are lots of low-spread brokers but not all have the same features and advantages. But don’t worry, you are in the right place to find a solution.

We’ve compiled the best global low-spread forex brokers for you, with various features and functionality so you can pick the one that best fits your particular needs. Before that, however, what is a low spread?

What is a Low Spread in Forex ?

Very often you’ll hear spread being discussed in forex, and that it is a crucial factor in deciding the trading costs. The spread is the gap between an asset’s bid/sell prices. This price gap is measured in another related expression you may also have heard, PiP. This represents percentage in points and usually, when trading forex, 1 pip is a market value change of 1 point depending on the currency pair’s fourth decimal position in most situations including the USD. 

For example in the case of EUR/USD:

  • bid/ask of 1.08335/1.08340 (0.5 pips spread) 
  • bid/ask of 1.08335/1.08345 (1 pip)
  • bid/ask of 1.08335/1.08485 (5 pips spread)

One of the exceptions here are the JPY forex pairs (such as the USD / JPY) that are measured at 2 decimal places instead of 4, so where 1 pip is  0.0001 for the EUR / USD, it is 0.01 for the USD/JPY.

Spreads on a market are considered low if they are below the average. Many may start at 1 pip and this may be less on some more traded markets, whereas it may be much higher on other markets such as commodities.

Forex.com

Forex.com is one of the oldest forex traders around. It was founded in 2001 under the parent company, Gain Capital Holdings, which is listed on the New York Stock Exchange. Forex.com is regulated by many countries including the United States, Singapore,  Japan, the United Kingdom, Australia, Canada, and the Cayman Islands. Forex.com offers a different product for each country due to the variations of laws in each country. The Contract for Difference (CFDs), for example, is not tradable by US citizens. It has a total asset value of over $1.28 billion, and over $849 million in customer equity. Its trading platforms are unique and accommodate beginners and professionals alike. Traders have the MetaTrader 5, MetaTrader site, MetaTrader desktop, MetaTrader software, VPS hosting, or MetaTrader 4 to choose from. 

forex.com-logo

Account details 

  • Demo account: Yes 
  • Minimum deposits: $100
  • Base currencies: AUD,  CAD, USD, EUR, CHF, JPY, and GBP
  • Minimum lot sizes: 01 
  • Account types: Regular account, Contract account, and DMA account.
  • Options for payment: debit, ACH, wire, and cheque 
  • Bonuses: None 

Advantages 

  • No withdrawal fees
  • Low minimum deposit for the lowest account type
  • Funds are free to deposit and withdraw
  • It has a fairly low spread
  • Has a large selection of tradable assets including CFDs

Disadvantages

  • An inactivity fee is charged on inactive accounts
  • Account verification takes a relatively long period – 3 days
  • The CFDs cannot be sold by US residents

Ideal for the Following Traders

Forex.com dealer is the perfect choice for the regular and active traders. It may not be suitable for long-term traders making monthly trades or annual trades because their portfolios will be subject to an inactivity fee.

EasyMarkets

This broker was created in 2001 under the name easyForex. It then rebranded under the new name easyMarkets in 2016. It is owned by Quick Forex Trading Ltd, a sister company of Blue Capital Markets Limited. The offices are based in Majuro, on the Marshall Islands. It does have other branches around the globe, however. 

The broker is supervised by the Securities & Exchange Commission of Cyprus (CySEC) and the Securities & Investment Commission of Australia (ASIC). One of its most notable characteristics is that it offers fixed spreads. They also offer more than 250 commercial properties including CFDs. Some of the offered assets include currencies, indexes, agricultural commodities, metals, options for vanilla, and energy. Traders can choose to trade using either the easyMarkets platform or the MetaTrader 4 (mt4). 

EasyMarkets

Account Statistics

  • Demo Account: Yes 
  • Maximum deposits allowed: $100 
  • Base currencies: AUD, CAD, EUR, CNY, HKD, NZD, GBP, JYP, SGD, and USD
  • Minimum lot sizes: 01 
  • Account types: Standard Account, Premium Account, VIP Account, and Super VIP Account 
  • Transaction options: Credit Card, Bpay, Wire Transfer, Skrill, SOFORT, Fasapay, Webmoney, Neteller and iDEAL
  • Bonuses: 50% bonus up to $30

Advantages 

  • It offers fixed spreads.
  • There is no slippage 
  • They do not charge a trading commission
  • First deposit bonus of 50% for new traders and a cumulative discount of $2000 if you refer someone
  • Responsive and competent customer service 

Disadvantages 

  • Does not accept US consumers and 20 other countries
  • The spreads are fairly high compared with other brokers

Ideal for the Following Traders

easyMarkets is a perfect forex broker for European-based traders. However, the minimum deposit is very high for its base account and is ideally fit for traders with some trading experience.

Pepperstone

Pepperstone

The Pepperstone forex broker has its headquarters in Melbourne and is based in Australia. It was established in the year 2010. The broker also opened another office in 2015 in London.

It is regulated by the UK Financial Conduct Authority (FCA) and the Australian Commission on Securities and Investments (ASIC). Since it is such a relatively young broker, it currently has few tradable assets to sell. It has more than 20 pairs of currencies including gold and silver. 

Traders can choose to use MetaTrader 4, MetaTrader 5, MT Mobile, or WebTrader

Account stats 

  • Demo account: Yes 
  • Minimum deposits allowed: $0 
  • Base currencies: AUD, CAD, EUR, GBP, JPY, CHF, SGD,  USD, HKD, and NZD
  • Minimum lot sizes: 01 
  • Account types: Regular and Razor 
  • Payment options: Bank transfer, credit and debit cards, Paypal, Neteller, Skrill, Poli, and Bpay.
  • Bonuses: 50% bonus up to $30, initial deposit for new traders, and $2000 official bonus for a buddy.

Advantages

  • It has a very low initial deposit limit. Traders should start with their smallest sum possible.
  • No inactivity fees are charged.
  • There is no commission on the base account, which is the standard account.

Disadvantages 

It charges a high $20 bank withdrawal fee for non-EU and Australian customers.

Ideal for the Following Traders

As Pepperstone is among Australia’s lowest spread forex brokers, it’s perfect for Australian and European traders. It’s a perfect option for beginners who are looking for a broker where they can spend the least amount possible for a start.

IC Markets

IC Markets

Forex broker IC Markets was founded in 2007. International Capital markets PTY operates it. Its office is in Melbourne, Australia. It is authorised and governed by the Australian Securities & Investments Commission (ASIC). It is also a member of the Financial Ombudsman Service (FOS).

Traders can choose from three of their trading platforms which are MetaTrader 4 (mt4), MetaTrader 5 (mt5), and CTrader. The CTrader is designed primarily to promote auto trading.

Account stats 

  • Demo account: yes 
  • Minimum deposits allowed: $200 
  • Base currencies: AUD, USD, CAD, GBP, EUR, NZD, HKD, SGD, JPY, and CHF 
  • Total lot sizes: 01
  • Account types: Regular account, true ECN account, CTrader ECN account, and Islamic account 
  • Payment options: Credit and debit cards, WebMoney, bank wire transfers, Bpay deposit, skrill, PayPal, Neteller, China union fee,  Qiwi, FasaPay, and Branch Cash Deposit

Advantages

  • Has one of the lowest spreads available
  • Their base account, the standard account, does not have any trade commissions
  • It provides an option to open any of the accounts as an individual, as a joint venture or as a corporation.

Disadvantages 

  • It costs $25 AUD to withdraw funds to international banks outside of Australia.
  • The initial deposit is relatively high, particularly for beginners
  • It does not accept US, Canadian, Japanese, and New Zealand clients.

Ideal for the Following Traders

For traders using automated trading, it’s a preferred choice. It’s also a perfect choice for those traders who are based in Australia and Europe. Because of the education feature on its website, it is also a great option for beginners.

FXTM

FXTM

ForexTime, best known as FXTM broker, was founded in 2011 and is based in Cyprus. It is regulated by the Cyprus Securities and Exchange Commission (CySEC), UK Financial Conduct Authority (FCA), South African Financial Sector Conduct Authority (FSCA), and the Republic of Mauritius Financial Services Commission.

The company operates in Mauritius under the name Exinity Limited while in the United Kingdom it operates under the name ForexTime UK Limited. It has a wide variety of trading platforms from which traders can choose. This includes: MT5 Android, MT4 windows, MT5 windows, MT4 iOS, MT4, and MT5 iPhone/iPad, MT4 and MT5 Windows mobile, MetaTrader 4/5 for Mac and MetaTrader 4/5 for Linux 

Account Statistics 

  • Demo Account: Yes 
  • Minimum deposits allowed: $1 
  • Basic currencies: EUR, GBP, USD, and NGN 
  • Minimum lot sizes: 01 
  • Account types: Standard Account, CENT Account (Microlots), Shares Account Account (âĢ¢ Payment options: LiteCoin (LTC), DASH, Ethereum (ETH), Alfa-Click, Western Union, Fast Transfer, Yandex.Money, QIWI, CashU, VLOAD, Konnexone, Perfectmoney, TC Payment, Fasapay, GlobePay, Ngangluong,  DusuPay, DixiPay, and WebMoney. 
  • Bonuses: $50 recommendation for each relative, and 30% refund on any balance invested by the broker for 30 days.

Advantages 

  • Its minimum deposit of $1 for the cent account is good particularly for beginners
  • Its cent account offers newcomers a fantastic chance to transact 
  • It has excellent educational resources
  • It offers trades with ECN.
  • Makes trade by copy possible
  • Has a vast variety of payment options

Disadvantages

  • Charges withdrawal and inactivity fees.

Ideal for the Following Traders

FXTM is a good option for forex professionals and beginners alike. It gives the cent account to the newcomers where they can genuinely exchange in terms of cents while reducing the chance of losing too much money. Professionals can select from a wide variety of ECN accounts.

FxPro

FxPro

FxPro was established in 2006 and is operated by FxPro Group Limited. Its headquarters are in London, UK, and is regulated by the UK Financial Conduct Authority, the Dubai Financial Services Authority, the Cyprus Securities and Exchange Commission, the Financial Sector Conduct Authority (‘FSCA’), and the SCB. 

It operates in the UK as FxPro British Limited. In Dubai, it operates as FxPro Global Markets MENA Limited while it operates as FxPro Financial Services in Cyprus. It trades under the name FxPro Global Markets Ltd to the rest of the world. 

Its customers/traders can select from a range of trading platforms, including FxPro edge, FxPro MT4, FxPro CTrader, and FxPro MT5 for online trading. Trading apps are also available on smartphones running ios and iOS.

Account stats 

  • Demo account: yes 
  • Minimum deposits allowed: $500 
  • Base currencies:  AUD,  CHF, EUR,  GBP, JPY, PLN, USD, and ZAR 
  • Total lot sizes: 01
  • Account types: CTrader account, mt4 account, mt5 account, VIP account, Edge account, Joint account, and Islamic account
  • Payment options: gift cards, bank money transfer, Neteller, PayPal, skrill and UnionPay 

Advantages

  • Free deposit and withdrawal
  • It has zero trade-execution slippage
  • Has FxPro academy where traders can improve their trading skills

Disadvantages

  • It has relatively high trading costs
  • Its initial minimum deposit is very high, particularly for beginners on forex

Ideal for the Following Traders

FxPro is a well-known forex broker and is a good option for European and UK traders ideally. It makes for electronic trading and is a perfect match for traders looking to trade using EAs.

HYCM

HYCM Logo

HYCM is a trading name for HYCM (Europe) Ltd, Henyep capital markets (UK) Limited, HYCM Limited, and Henyep Capital Markets (DIFC) Limited. These companies are owned by the holding company Henyep Capital Markets group. 

Henyep Capital Markets (UK) Limited is governed by the Financial Conduct Authority, HYCM(Europe) Ltd is controlled by the Cyprus Securities and Exchange Commission, HYCM Ltd is regulated by the Cayman Islands Monetary Authority and Dubai Financial Services Regulator regulates Henyep Capital Markets (DIFC) Limited. 

It was established in 1997 and its head office is situated in London, UK. HYCM offers traders two trading platforms: Prime Trader, the state-of-the-art multi-asset platform unique to HYCM, and MetaTrader4 (MT4) platform. It also offers a smartphone app that can also be used by HYCM to transact on the go. 

Account Statistics

  • Demo Account: Yes 
  • Minimum deposits allowed: $100 
  • Standard Currencies: EUR, USD, GBP, AUD, CHF, PLN, JPY, and ZAR 
  • Minimum lot sizes: 01 
  • Account types: Fixed account, Classic account, Islamic account, and Raw account.
  • Options to pay: PayPal, Bank Wire Transfer, Neteller and Skrill.
  • Bonuses

Advantages

  • All accounts have an Islamic account alternative 
  • Relatively small minimum deposit required
  • Classic and raw accounts allows for EA trade
  • It has VIP Accounts provisions

Disadvantages

  • When the cumulative amount withdrawn via bank wire transfer is less than $300, $30 is charged 
  • Permits few forms of withdrawal and deposit
  • The fixed account does not allow EA trading

Ideal for the Following Traders

HYCM has a long forex trading history. It is considered to be among the best forex markets for forex traders in the middle east. Moreover, it delivers fantastic liquidity and small spreads to consumers, and also provides effective services. It’s a perfect alternative for newcomers and professionals alike on forex.

HotForex

HotForex

One of the world’s most renowned forex trading brokers, HotForex was founded in 2010 and is controlled by HF Markets Groups. Its headquarters are in Cyprus. It has further offices in Kingston, St. Vincent & the Grenadines

HF Markets (DIFC) Ltd is regulated by the Dubai Financial Services Authority (DFSA), HF Markets (Seychelles) Ltd is supervised by the Financial Services Authority (FSA) and HF Markets Ltd in the Republic of Mauritius is regulated by the Financial Services Commission (FSC). 

Traders may either opt to use the MetaTrader 4 or the MetaTrader 5

Account Details

  • Demo Account: Yes 
  • Maximum approved deposits: $5 
  • Reference currencies: USD and EUR
  • Maximum Batch sizes: 01 
  • Account types: Set Micro Account, ZERO Account, Islamic Account, Auto Account, HF Print Account, and Raw Account.
  • Payment Option: Visa or Maestro and Master Cards, Bank Wire Transfer, China UnionPay, Neteller, BitPay, Skrill, FasaPay, Ideal, SOFORT, Ripple, Bitcoin Cash, and MPesa.
  • Bonuses: 100% supercharged bonus, 100% credit bonus credit, and 30% rescue bonus

Advantages

  • The options for making deposits and withdrawals are very large
  • Automatic trading allowed
  • The broker is ECN/STP with no conflicts of interest
  • Narrow spreads, as low as 0 pips
  • Well-governed in different countries by multiple regulators 
  • it offers multiple rewards and contests which make trading enjoyable
  • Offers versatile trading options

Disadvantages 

Not accepting US-based clients

Ideal for the Following Traders

HotForex is a perfect option for both newcomers and professionals on forex. It has fantastic trading platforms and sections for traders, where consumers can conveniently monitor their accounts. Furthermore, the fact that it has a wide variety of payment options makes it a great alternative for forex traders around the world.

Bottom Line

Choosing the right forex brokers without commission is a very critical step in forex trading because it decides the trader’s trading experience. A dealer will weigh a variety of considerations before opting to invest his/her funds with some single broker. 

You will look for the broker that fits your financial capability in order to select a decent broker. For example, if you have to spend less than $100 you would search for a broker that will make an initial deposit of less than $100. You should also go to the broker that suits your trading style. If you want to copy trade, for example, you will find a broker that allows that. When you are looking to use automatic trading, you will search for a broker that helps you to use Expert Advisors to sell online.

FAQ's

YES. You will need to look for a forex broker, however, that makes a minimum initial deposit of 10$ or less. These brokers include Hotforex, Pepperstone, and FXTM. 

Clearly. Since a spread is essentially a broker commission, a lower spread is often better. If you want to employ trading tactics like scalping, it can also be really important. That said, while a lower spread is always better, make sure you look closely at the broker offering to avoid any other types of commissions instead of a spread.