Best Zero Spread Forex Brokers and Accounts Compared (2024)
Best zero spread Forex broker - OANDA
TOP zero spread Forex brokers:
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OANDA - Best for trading with advanced technical analysis tools (TradingView charts support)
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FOREX.com - Diverse range of tradable assets (80+ currency pairs)
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Interactive Brokers - Best broker for international investors (assets from 33 countries, 150+ markets)
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Tradiso -
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RoboForex - Best Forex broker for beginners ($10 min. deposit, copy trading)
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Pocket Option - Best for Social Trading (top rated service by customers)
Zero-spread forex brokers typically offer clients trading on ECN/Zero spread accounts. This means that the broker does not add any markup to the price and provides true market quotes. Typically, these quotes start from 0.1-0.3 pips for major trading pairs. However, brokers charge a commission for using such accounts, which ranges from $2 to $5 per standard lot. Traders Union has selected regulated brokers with accounts for active trading in this review.
Warning:
There is a high level of risk involved when trading leveraged products such as Forex/CFDs. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Best Low Spread Accounts Comparison
| Broker | EURUSD spread from | ECN/Raw Spread account fee (per lot) | Minimum Deposit | Regulation | Open an account |
|---|---|---|---|---|---|
|
0.1 |
3,5 |
No |
FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA |
|
|
|
0.1 |
5 |
$1000 |
CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC |
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|
0.1 |
2 |
No |
SEC, FINRA, SIPC, FCA, NSE, BSE, SEBI, SEHK, HKFE, IIROC, ASIC, CFTC, NFA |
||
|
0.1 |
0 |
$0 |
|
||
|
0.1 |
2 |
$10 |
FSC |
|
|
|
0.1 |
2,5 |
$5 |
MISA |
|
|
|
0.1 |
3 |
$10 |
FCA, CySEC, FSA (Seychelles), FSCA, BVI FSC, FSC (Mauritius), CBCS, and CMA |
|
Low Spread Forex Brokers Reviews
OANDA
The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.
| 💰 Account currency: | USD, EUR, HKD, SGD |
| 🚀 Minimum deposit: | No |
| ⚖️ leverage: | Up to 1:200 |
| 💱 Spread: | 0 points |
| 🔧 Instruments: | FX, Indices, Bullion, Commodities, Crypto |
| 💹 Level of margin call / stop out | Stop Out - 50% |
FOREX.com
Forex.com is a company owned by GAIN Capital Holdings, Inc. (NYSE: GCAP) and has earned a reputation as a reliable broker in the trading industry for its transparent work and high quality of services. The company cooperates with clients in 140 countries. The broker is registered in the Cayman Islands and supervised by CIMA (Certified Institute for Management Accountants). The license number is 25033. The parent company of the Forex.com broker is registered in England and Wales under the number 1761813 at the UK Companies House. It is licensed by one of the most reputable regulators in the world, FCA (No. 113942).
| 💰 Account currency: | USD, EUR, GBP |
| 🚀 Minimum deposit: | $1000 |
| ⚖️ leverage: | Up to 1:400 |
| 💱 Spread: | 0.2 points |
| 🔧 Instruments: | Forex, cryptocurrencies, indices, commodities, stocks |
| 💹 Level of margin call / stop out | N/a |
Interactive Brokers
Interactive Brokers is among the best-known US investment companies, operating since 1977. The broker offers to trade currency pairs, but its basic instruments are stocks, CFD, indices, metals, ETF, futures, and other exchange market assets. You can also trade cryptocurrencies on Interactive Brokers. The company is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority (FINRA), the UK Financial Regulatory Authority (FCA), and other international financial regulation commissions. In 2020, the broker was awarded the "Best Online Broker” (Barron's) and "Best Broker for Economical Investments" (NerdWallet) titles and got five stars in the Online Stock Trading for Traders category (Canstar). Also, the broker is popular in other countries. Here you can read reviews of Interactive Brokers in Canada, Singapore, Australia, Hong Kong, Ireland.
| 💰 Account currency: | USD, EUR, GBP, AUD, CAD, CZK, DKK, HKD, HUF, ILS, JPY, MXN, NZD, NOK, PLN, SGD, SEK, CHF, CNH |
| 🚀 Minimum deposit: | No |
| ⚖️ leverage: | Depending on the asset |
| 💱 Spread: | 0 points |
| 🔧 Instruments: | Stocks, options, futures, currency, metals, bonds, ETF, mutual funds, CFD, EPF, Robo-portfolios, hedge funds |
| 💹 Level of margin call / stop out | Depending on the asset |
Tradiso
Tradiso offers trading different financial assets, including currency pairs, cryptocurrencies, and CFDs on indices, stocks, and commodities. The company is registered in Kingstown, St. Vincent and the Grenadines, but its activities are not regulated by any financial authorities. Thus, Tradiso provides its services without a license.
| 💰 Account currency: | USD |
| 🚀 Minimum deposit: | $0 |
| ⚖️ leverage: | Up to 1:100 |
| 💱 Spread: | 0 points |
| 🔧 Instruments: | Currency pairs, cryptocurrencies, CFDs on stocks, indices, and commodities |
| 💹 Level of margin call / stop out | Margin call is 80% |
RoboForex
RoboForex is a brokerage company that was founded in 2009. RoboForex is a leading software developer in the Forex industry and one of the best Forex brokers based on client reviews.
RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize (license No. 000138/437).
| 💰 Account currency: | USD, EUR, GOLD |
| 🚀 Minimum deposit: | $10 |
| ⚖️ leverage: | 1:2000 |
| 💱 Spread: | 0 points |
| 🔧 Instruments: | Forex (currency pairs), ETFs, index CFDs, oil CFDs, CFD on European and U.S. stocks, real securities |
| 💹 Level of margin call / stop out | 40% / 10% - 60% / 40% |
Pocket Option
Pocket Option is an innovative Forex and binary options broker with over $500 million in trading volume. It offers active trading on financial markets, copy trading, and passive income on holding funds in dollar and cryptocurrency safes. The broker provides an in-house platform to trade binary options and MetaTrader platforms to trade CFDs on currencies, cryptocurrencies, stocks, indices, and commodities. Pocket Option was incorporated in 2017. The broker’s service is available in more than 95 countries and regions globally. Today, over 10 million users are registered with the broker, and 100,000 traders regularly use its services. In July 2023, it obtained a license from Mwali International Services Authority number T2023322.
| 💰 Account currency: | USD |
| 🚀 Minimum deposit: | $5 |
| ⚖️ leverage: | 1:1000 for MT4/MT5; 1:1 for options on the in-house platform. |
| 💱 Spread: | 1.2 point |
| 🔧 Instruments: | Binary options and CFDs on currency pairs, cryptos, indices, stocks, and commodities |
| 💹 Level of margin call / stop out | 30%/50% |
Exness
The Exness brand is known worldwide due to its profitable trading conditions, high-security level, and wide range of financial instruments. It focuses on trading CFDs, especially currency pairs. Cryptocurrencies, commodities, stocks, and derivative stock indices are also available. Exness offers account types for novice traders, more experienced traders, and professionals. It allows traders to use a variety of strategies including passive ones, such as copy trading and algorithmic trading. The proprietary Exness platform for social trading is used by over 20,000 investors globally. The broker’s activities are legal and its services are available in over 130 countries. Exness is supervised by 8 financial commissions, including CySEC (Cyprus, 178/12), one of the strictest European regulators, and FCA (UK, 730729), FSA (Seychelles, SD025), FSC (BVI) SIBA/L/20/1133, CBCS (Curacao, 0003LSI), FSCA (South Africa, 51024), and CMA (Kenya, 162). The broker offers demo and cent accounts for novice traders, as well as standard and ECN account types for experienced traders.
| 💰 Account currency: | EUR, USD, GBP, CAD, AUD, and CHF for all account types; 38 more currencies for non-cent account types |
| 🚀 Minimum deposit: | $10 |
| ⚖️ leverage: | 1:unlimited for retail clients |
| 💱 Spread: | 1 point |
| 🔧 Instruments: | Forex CFDs on: cryptos, commodities, indices, and stocks |
| 💹 Level of margin call / stop out | Standard: 0%/60% Professional: 0%/30% |
Useful Forex Facts & Insights
Top 3 Brokers With the Tightest Spreads
The spread size is crucial for active trading styles and bot trading. STP/ECN brokers typically offer the lowest spreads for EUR/USD, with an average spread of around 0.1 pips. Additionally, these brokers usually charge a small commission per standard lot, ranging from $1.5 to $3.5. Traders Union prepared a list of the top 3 brokers in your country with the lowest spread for the EUR/USD and GBP/USD currency pairs.
| Broker | Avg. EUR/USD Spread | Avg. GBP/USD Spread |
|---|---|---|
0,1 |
0,3 |
|
0,2 |
0,3 |
|
0,2 |
0,4 |
What Is a Zero/Raw Spread Forex Account?
If you are a beginner trader, you are likely wondering what a spread account is and how it will affect your trading. The spread is the difference between the current bid and ask prices of a financial instrument, such as forex pairs. In other words, it is the price you pay your broker for every transaction you make.
This means that as a trader, you are responsible for covering this cost. While this is not a big deal for experienced traders, it can be an issue for new traders, as the high cost of trading can impact their bottom line. A zero spread account means that the broker will not charge you for the spread. This means that you will only pay the spread of the financial instrument you are trading.
Spreads are typically very low on major currency pairs, so a zero spread account can save you a lot of money in commissions.
Raw Spread Account Typical Spread
A raw spread account is an account that typically starts with 0.1 pips for EURUSD and USDJPY pairs. However, spreads may be higher for other pairs, depending on the broker.
This means that there is no markup on the spread and that the broker is simply making its money on the commission. A raw spread account is the best type of account for a high-frequency trader or a scalper, as it minimizes the costs of trading.
Raw Spread vs. Standard Account
When it comes to the best forex brokers, they offer several different account types: raw spread and standard account. One type of account is the raw spread account. Raw spread accounts are typically offered by ECN brokers. ECN stands for electronic communication network. An ECN broker is a type of broker that uses this network to connect traders directly with different liquidity providers. This type of account gives traders access to the best possible prices and spreads.
Another type of account is the standard account. Standard accounts are offered by most brokers and don't have the same tight spreads as raw spread accounts. Standard accounts typically have a spread that is a few pips higher than the raw spread account.
How Do Zero Spread Forex Brokers Make Money?
Forex brokers that offer zero-spread trading typically charge clients a small commission, which ranges from $2 to $5 per round trip lot. They may also earn money by providing clients with financing to hold margin positions and through other services. Even with all the fees considered, the average commission on Raw/Zero-spread accounts is lower than on Standard accounts with the same brokers, and therefore the costs for active traders are lower.
Top 12 Lowest Spread Forex BrokersShould I Choose a Zero Spread Account?
A zero spread account can be a great option for many traders. This is because it can help you to save on costs. With a zero spread account, you will only pay the commissions that are associated with your trades. This can be a great way to save money, especially if you trade frequently.
Another benefit of a zero spread account is that it can help you to trade more effectively. With a higher spread, you may have to take larger losses in order to make a profit. However, with a zero spread account, you can trade more conservatively and still make a profit. This can be a great way to improve your overall trading results.
One disadvantage of using a zero spread account is that you may not be able to take advantage of all of the benefits that come with having a higher spread. For example, if you are only able to trade with a limited amount of leverage, then you may not be able to make as much money as you would like. However, if you are willing to trade with more risk, then you may be able to make more money. Just remember that you will need to be careful when using leverage so that you do not end up losing more money than you originally invested.
When deciding whether to choose a zero spread account or not, there are a few things you should consider. First, what is your trading style? If you are a day trader or scalper, then a zero spread account can save you a lot of money in commissions. However, if you are a longer-term trader who holds positions for days or weeks, the spread is less important. Second, what is your risk tolerance? If you are willing to take on more risk for the potential of higher rewards, then a zero spread account may be right for you. However, if you are risk-averse, then you may want to stick with a traditional account with slightly higher spreads.
Can you really trade with zero spreads?
Brokers that claim to offer zero spreads are only advertising themselves. It’s not advisable to only look for the minimum or lowest spread because the prices can be high most of the time. Many brokers can provide really tight spreads, but typically, spreads are 0.1 pips or higher.
To be safe, only determine the average spread of the zero spread zero commission brokers claiming to offer zero spreads. This is because when the spread is zero, it simply implies that there’s no difference between pips and the asking price.
There are few brokers that offer something close to zero pips spreads, but traders still have to pay per trade commission. With these, the average spreads still turn out higher. Therefore, most zero spread zero commission brokers are highly questionable.
How to choose a Zero spread Forex account?
You should only work with reliable brokers when choosing zero spreads account. Consider the features and regulations of the broker before making a decision because they usually differ in terms of the level of support and service. Do your research and compare different brokers with low spreads before choosing.
Some of the factors to consider when choosing zero spread forex account include:
Regulation: Only choose a zero spread forex broker that is highly regulated with an agency in major jurisdictions. If the broker is regulated in your country of residence, it will be even better.
Trading platforms: Consider a broker with ease to use platform with technical analysis, market alert functionality, and the ability to trade directly from charts. A reliable low-spread broker should support MetaTrader 4 or 5 trading platforms.
The commission per Trade: Any zero spreads account comes with a commission per trade. You’ll have to pay a commission per trade on top of the dealing spread for ECN accounts.
Currency pairs: Brokers with more liquid currency pairs also charge tighter dealing spread. Many traders favor pairs with high liquidity.
Expert Opinion
Zero spread Forex brokers offer accounts where the spread, the difference between the bid and ask price, is minimal, allowing traders to execute trades at market prices. This can seem advantageous for reducing trading costs and maximizing profits. However, beginners should be cautious, as brokers might compensate for zero spreads through commissions or other fees. It's essential to understand all associated costs and the risks of trading with leverage, which can lead to rapid losses. Beginners are advised to thoroughly research brokers, considering their regulatory status, reputation, and the transparency of their fee structure. Start with a demo account to understand the platform and its costs without financial risk. Remember, a lower spread doesn't guarantee profit and trading involves significant risk. It's crucial to trade within your financial limits and seek education on Forex trading before investing real money. Always prioritize long-term learning over short-term gains.
Should I use a Zero spread account?
Zero-spread accounts are really lucrative as they offer faster execution of trades and reduced trading costs. However, they might not be suitable for everyone. You should first compare the benefits versus the drawbacks before using a zero-spread account.
👍 Benefits
•Faster execution: Zero spreads accounts offer faster execution as you don’t have to add spreads to the market price. High-frequency traders and scalpers are more likely to benefit from this.
•Reduced trading costs: With zero spread, traders don’t need to make payments for spreads when opening and closing trades. The reduced costs also mean high profits.
•Transparency: Without added spreads, traders can see the exact market price. With this, they’ll make better decisions and avoid risks.
👎 Drawbacks
•High commission: Traders must pay high commissions to compensate for the lack of spreads.
•Limited currency pairs: Zero spreads mean reduced currency pairs, as certain pairs require higher spreads.
What currency pairs have the tightest spreads?
The currency pairs with the tightest spreads include:
EURUSD: This is the most traded pair in the market that also favors beginners due to their low spreads. EURUSD spread starts from 0.1 pips.
GBPUSD: This is another currency pair with the tightest spreads. It offers the lowest spreads that shift from time to time and are about 0.3 to 2.7 pips, plus commissions.
USDJPY: The USDJPY is second after EURUSD when offering the tightest spreads. This currency pair offers a variable spread of 0.2 to 2 pips which can yield good profits to the traders.
FAQs
Do zero spread brokers have any fees or commissions?
Most zero spread brokers still charge some commissions per trade or other incidental fees. They make their profits through these fees rather than from the spread markup.
Is it possible to have a broker with both zero spread and zero commission?
Typically not - brokers must profit somehow. It's rare to have a no fees and no spreads combination legitimately. There is usually a tradeoff.
Are Zero Spread Accounts suitable for beginners?
Yes, they can be suitable for beginners, especially those looking to understand pricing without the complexity of variable spreads.
How quickly are orders filled and executed with zero spread brokers?
In general, order execution is extremely fast and efficient with true zero spread brokers across all asset classes due to advanced technologies and integration systems used.
Methodology for compiling our ratings of Forex brokers
Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.
Find out more about the unique broker assessment methodology developed by Traders Union specialists.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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3
CFD
CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.
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4
Leverage
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
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5
Margin Call
A margin call is a demand made by a broker or a financial institution to a trader or investor who is using margin (borrowed funds) to cover potential losses in a trading account. It occurs when the value of the securities or assets held in the account falls below a certain threshold, known as the maintenance margin or margin requirement, as specified by the broker.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).