Top Low (Tight) Spread Forex Brokers

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Best Low Spread Forex Broker in 2024 - OANDA

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Forex Brokers With Lowest Average Spread 2024

  • OANDA — EUR/USD spread - 0.1, GBP/USD spread - 0.1

  • Coinexx — EUR/USD spread - 0.3, GBP/USD spread - 0.3

  • IG Markets — EUR/USD spread - 0.2, GBP/USD spread - 0.4

  • FOREX.com — EUR/USD spread - 0.1, GBP/USD spread - 0.3

  • Interactive Brokers — EUR/USD spread - 0.1, GBP/USD spread - 0.1

  • RoboForex — EUR/USD spread - 0.2, GBP/USD spread - 0.4

In the world of Forex trading, a spread, or a bid-ask spread, is the difference between the ask price that a particular dealer will sell a currency for and the best possible bid price that the dealer will pay for that currency.

In this guide, we broke down some of the lowest spread forex brokers you’ll be able to find in 2024. Our list contains brokers that are known for having extra tight spreads, in addition to low minimum deposits and great conditions for active trading.Traders Union compared the average spreads of brokers on the most popular currency pairs and presented the data in a convenient table format. The spreads were compared for account types with market spreads such as ECN/Raw spread.

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.

Low Spread Forex Brokers Compared

We have compiled brokers with the lowest spreads and compared them. The average spread tends to vary significantly between different brokers. The table below shows this comparison with the most popular currency pairs.

Broker Overall Score EURUSD avg. GBPUSD avg. ECN/Raw Commission $ per lot

OANDA

5.34

0.1

0.1

3.5

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Coinexx

2.78

0.3

0.3

2

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IG Markets

6.03

0.2

0.4

2.5

Study review

FOREX.com

5.3

0.1

0.3

3

Study review

Interactive Brokers

5.2

0.1

0.1

2.5

Study review

RoboForex

9.71

0.2

0.4

1.5

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Exness

9.34

0.1

0.3

3

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You can lose your money.

Pocket Option

9.04

0.3

0.3

2.5

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FBS

8.98

0.1

0.2

3

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76.5% of retail accounts lose money when trading ᏟᖴᎠs with this provider.

Forex4you

8.8

0.3

0.3

3

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TeleTrade

8.74

0.2

0.2

2

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FxPro

8.68

0.2

0.2

3

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OANDA

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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.

Coinexx

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Coinexx gives customers access to cryptocurrency markets. Deposit and withdrawal of funds are available via cryptos allowing for instant financial transactions. Here at Coinexx one can find top customer care service, narrow spreads, fast order execution, access to the cryptocurrency market from all over the world, and instant deposit of funds.

IG Markets

The Forex broker IG Markets is a structural subdivision of the IG Group corporation. Its securities are listed on the London Stock Exchange and are included in the FTSE 250 index. IG Markets is a UK registered company created in 1974, but since its inception, its representative offices have appeared in some other European countries. Since 2014, a retail line of brokerage services has been opened. The international division of the broker is registered in Bermuda and licensed by the Bermuda Monetary Authority (54814). The main activity of the broker is the provision of services for trading financial derivatives (CFDs).

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).

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.

RoboForex

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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).

Low Spread Brokers Trading Conditions Compared

We’ve also prepared a comparison of each of the above brokers by other important paraments, so traders can make more informed decisions about their broker of choice. Even though these brokers have low spread costs, they may not meet the mark when it comes to minimum deposits, leverage, and regulation.

OANDA Coinexx IG Markets FOREX.com Interactive Brokers RoboForex

Regulation

FSC (BVI), ASIC, IIROC, FCA

FCA, BaFin, CySec, FINMA, DFSA, FSCA, MAS, JFSA, ASIC, NFA, BMA

CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC

SEC, FINRA, SIPC, FCA, NSE, BSE, SEBI, SEHK, HKFE, IIROC, ASIC

FSC

Min. Deposit

No

10 USD

$450

$1000

No

$10

Trading platform

WebTrader, MetaTrader4, Mobile platforms, MetaTrader5

Mobile platforms, MT4, MT5

MetaTrader4, Web platform, ProRealTime, Trading apps

FOREX.com, MT4, MT5

Trader Workstation, IBKR Mobile, APIs

MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader

Accounts

USD, EUR, HKD, SGD

BTC, BCC, LTC, ETH & USD

USD

USD, EUR, GBP

USD, EUR, GBP, AUD, CAD, CZK, DKK, HKD, HUF, ILS, JPY, MXN, NZD, NOK, PLN, SGD, SEK, CHF, CNH

USD, EUR, GOLD

Instruments

FX, Indices, Bullion, Commodities, Crypto

Forex, Commodities, Global Indices, Crypto Currencies

Currencies, assets of stock and commodity markets, cryptocurrencies

Forex, cryptocurrencies, indices, commodities, stocks

Stocks, options, futures, currency, metals, bonds, ETF, mutual funds, CFD, EPF, Robo-portfolios, hedge funds

Forex (currency pairs), ETFs, index CFDs, oil CFDs, CFD on European and U.S. stocks, real securities

Margin Call / Stop Out

Stop Out - 50%

70% / 50%

N/a

N/a

Depending on the asset

40% / 10% - 60% / 40%

Replenishment / Withdrawal

Visa, Mastercard, Skrill, Neteller and various Alternate Payment Methods

BITCOIN, LITECOIN, DASH, ETHEREUM, +25 MORE CRYPTOS

Bank transfer, payment cards

Bank transfer, payment cards

Bank Transfer (SEPA), US ACH Transfer, Direct Debit/Electronic Clearinghouse (ACH), Cheque, Canadian ETF Transfer, BACS / GIRO / ACH

SEPA, Bank transfer, Skrill, Neteller, AdvCash, Perfect Money, Visa/Mastercard, AstraPay, NganLuong Wallet, JCB.

Trading features

Advisors; Availability of a demo account; A large number of training materials.

Free VPS

Allows crypto trading

There is a cryptocurrency trading

Options, trading, CFD, ETF, EPF

Negative Balance Protection; No swaps on Islamic accounts, a pleasant affiliate program: each market participant gets up to 20% loyalty; One Click Trading.

What are Cheapest Forex Brokers?

Low spread brokers refer to brokers that have particularly low costs and spreads when compared to other brokers in the forex industry. Spreads are essentially how brokers make money in forex, so it can be difficult to find a broker with relatively affordable spreads. However, there are many different types of brokers out there, many of which have very low spread costs for traders.

What is a Low Forex Spread?

A low forex spread means that there is a relatively tiny difference between the bid and the dealer’s ask price. It is always more preferable for the trader to initiate a trade when spread costs are low, such as during major forex sessions. Low spreads indicate that the market is dealing with low volatility and the current liquidity rate is higher than usual.

Different spreads can be considered low for different currency pairs. For example, the currency pair EURUSD has an average spread from 0.1-0.8 pips, while for other pairs it is usually higher.

Average Spread vs Minimal Spread

In general, it is much more reasonable to pay attention to the average spread instead of the minimum spread, since the average spread is a lot more objective. The spread itself can fluctuate quite a bit during a session. However, when calculating commissions, the average spread is much more useful.

What else should be considered?

Brokers with the lowest spreads might seem quite attractive, but they are far from perfect. In many scenarios, especially with online brokers, a low spread broker will charge an additional commission between $1.50 and $4.50 per lot. This should be taken into account before opting for a low spread broker.

What does Forex Spread Depend on?

There are quite a few different factors that determine what a forex spread will amount to. Forex quotes must be presented with ask and bid prices. The bid will represent the price at which the market maker or broker wants to buy the base currency. For this example, we’ll use USD. The broker will want to buy the base currency in exchange for a counter-currency like GBP. The ask price would be the price where the forex broker will sell that base currency in exchange for the second currency.

A bid-ask spread is essentially the difference between the purchase price that a broker will buy and sell a specific currency. Thus, if a trader initiates their sell trade with a broker, their bid price would be considered quoted. If a trader wants to initiate their buy trade, the ask price would be what is quoted.

Let’s consider an example. Say that an investor wants to buy AUD, and the bid-ask pricing on the broker’s platform notes that it is $1.1300/1.1230. To initiate a buy trade, the trader would pay the asked price of $1.1230. If the trader sells back the AUD immediately to the broker, resulting in an unwinded position, the trader would then get the bid price of $1.1300 per AUD, with the assumption that no exchange rate had fluctuated. Specifically, the trade cost the trader $0.0070 because of the exchange rate’s specific bid-ask spread with the broker.

What Account Types Have The Tightest Spreads?

The best trading conditions with relatively low spreads are usually offered by brokers who support EU technology and trade automation. Low spreads are very important for trading bots and expert advisors. Micro or mini accounts are also becoming popular among forex traders, as they have low minimum deposit limits and make it possible to trade micro and nano lots. ECN brokers are also becoming increasingly popular, as they provide financial expertise via electronic communications networks (ECN) to provide clients access to different participants in different currency markets.

How to Get the Lowest Spread in Forex?

Trade during peak volume hours. Spreads tend to be tightest when the market is most active - during the overlap of the London/New York sessions. Avoid trading when major markets are closed.

Focus on the major currency pairs. Majors like EUR/USD and USD/JPY have the highest liquidity and therefore the lowest spreads. Trading exotic pairs will mean paying higher spreads.

Use Limit Orders. Utilizing limit orders rather than market orders can help control the spread cost. Limit orders allow traders to specify the price at which they want to buy or sell.

Avoid News Trading. Spreads can widen during major news releases. It might be prudent to avoid trading around such times unless you are specifically trading the news.

Utilizу Spread Indicators. There are spread indicators available that can help traders monitor and analyze spread levels in real-time.

Ask for a discount. Some brokers will offer discounted spreads or cash rebates to very active traders with high monthly volume. It never hurts to ask!

Expert Opinion

The brokers with the lowest spreads in Forex typically offer market spreads, which for the most liquid currency pairs can start from as low as 0.1 pip. These accounts are usually called ECN or Raw, or similar names. When aiming for cost-effective Forex trading, it's also important to consider the broker's commission. A commission below $5 per standard lot is considered low. Another crucial factor influencing price is liquidity. The higher a broker's liquidity (more liquidity providers), the less slippage and volatility in the spread throughout the day.

Andrey Mastykin

Andrey Mastykin

Author, Financial Expert at Traders Union

FAQs

Is Low Spread Good in Forex?

Yes. In Forex, a low spread generally means that there is a small difference in buying and selling price of a currency pair. This means that the transaction costs are relatively lower and the potential for profits is higher.

What are Pips?

Also known as Percentage in Points, Pips are the main unit of measurement for spread costs. Based on how the forex market operates, a pip is the smallest possible price movement that an exchange rate can allow.

What is the Difference Between Fixed and Variable Spreads?

Variable spreads are spreads offered by brokers that operate in a non-dealing desk model. Fixed spreads on the other are offered by brokers that work with the market maker or dealing desk model.

Which spread is best in forex?

The best spread in forex depends on various factors, such as the trading strategy and the currency pair being traded. Generally, a spread of 1-2 pips is considered good for major currency pairs, while spreads of 3-5 pips may be acceptable for exotic currency pairs.

Why would a trade that I have opened start with a loss?

This involves spreads. When a trade is opened, it is done so for buy trades, or at the bid price for specific sell trades. If one were to close that trade, the opposite pricing would be used. This principle applies to calculating a trade’s floating loss or profit. When opening a new trade, it will always begin in the red because of the bid and ask spread. All traders need to initially beat the spread price in order for their positions to be profitable.

What is transaction immediacy?

Transaction immediacy is the speed at which a buy or sell order can be exchanged or fulfilled in the forex market. Speedy transaction immediacy is quite important when it comes to forex exchanges. A spread is essentially the fee that a broker will charge for providing transaction immediacy.

Team that worked on the article

Mikhail Vnuchkov
Author at Traders Union

Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.

The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.

Mikhail’s motto: Learn something new and share your experience – never stop!

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

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.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.

Mirjan Hipolito
Cryptocurrency and stock expert

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). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.