Forex broker with the lowest spreads - List 2024

A Forex broker with the lowest spreads is sought after by traders like the Holy Grail. Although Forex market is characterized by relatively low transaction costs compared to, for example, the stock market, but the number of transactions made by traders makes them want to reduce their fees as much as possible, which is understandable. So where to look for the lowest spreads? We decided to look for an answer to this question.

What is the spread and what does it depend on

Spread (span) is the difference between the bid price (Ask) and the selling price (Bid) of a given financial instrument. That is, if a couple EUR / USD has quotes of 1.10280 (Bid price) and 1.10290 (Ask price), the spread is 0.00010. Colloquially it is said that the value of the currency in the amount 0.00010 to 1.0 pips and/ or 10 points.

The amount of the spread depends on the liquidity on the market and the orders that are flowing in at the moment. It means that the more liquid the instrument is (has a higher turnover), the lower the spread will be. In extraordinary situations, when liquidity dissipates (e.g. after the publication of important macroeconomic data) or during times of limited activity on the part of investors (e.g. Easter, Christmas), the spread widens.

The spread also depends on the broker and the amount of his margin, which is part of his remuneration and is included in the spread itself. Therefore, in the end, the broker has a decisive influence on the amount of costs incurred by the trader.

Broker with the lowest spreads - where to look for it?

It is not possible to give a precise answer to the question "which broker has the lowest spreads?", without specifying what instruments we are talking about and what fee model we are talking about. Spreads will vary across instruments and change over time. First things first.

When it comes to fees, brokers fall into three categories:

• brokers who charge spread only in which their margin is already included,
• brokers who offer market spread and they add to it commission for order handling,
• brokers who give clients a choice: 1) spread with margin included, 2) market spread + commission.

Keep in mind that spread + commission occurs mainly on currency pairs and precious metals. CFD instruments, e.g. on commodities and indices, very often have only a spread (without additional commissions). Please refer to your broker's instrument specifications for details.

The variant with only spreads is definitely more convenient, especially for beginners. We don't have to remember "memory count" commission costs, so how much we pay is immediately visible to the naked eye in the quotations on the platform. In practice, it often turns out that brokers from the second category of charging method offer the best conditions.

There is a legend that some have even seen negative spreads (!) – and it is actually possible, but only with ECN brokers (commission is added). 

Which broker has the lowest spreads?

It is not possible to select one broker with the lowest spreads. Almost no broker offers so-called fixed spreads. They have become the standard floating spreads, the amount of which depends on the current market situation. The only thing we can expect is a declaration of brokers regarding the minimum value (often the average and highest spreads from a given period are also provided).

Brokers with the lowest spreads

Below we present brokers who are characterized by very low transaction costs. We have detailed three offers (Tickmill, IC Trading), which definitely stand out from the competition and offer ultra-low spreads on the most popular instruments such as EURUSD, GBPUSD, SP500, DAX. The table shows the values ​​of average spreads expressed in pips and in parentheses the possible cost of commission also converted into pips on a given symbol (to obtain the total cost of the transaction, both values ​​must be added up).

Forex broker with the lowest spreads - List 2024

End	UK, Cyprus	Australia, Mauritius, Cyprus	Cyprus
Min. Deposit	PLN 100	200$	1$
Spread account name	PRO	RAW	Trade.MT4 Trade.MT5
Leverage	1:30	1:30 - 1:500	1:30 - 1:500
Platform	MT4, MT5	MT4, MT5	MT4, MT5
Spread EUR / USD *	0,1 pip + commission (approx. 0,5 pip)	0,1 pip + commission (approx. 0,5 pip)	0,6 pips
GBP/USD Spread*	0,3 pip + commission (approx. 0,5 pip)	0,23 pip + commission (approx. 0,4 pip)	1,0 pips
Spread SP500*	0,4 pips	from 0,2 pips	0,4 pips
DAX spread*	0,4 pips	from 0,5 pips	0,8 pips
CREATE AN ACCOUNT	DEMO	DEMO	DEMO
	REAL	REAL	REAL

*Average spread value

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. From 68% to 89% of retail investor accounts record monetary losses as a result of trading CFDs. Think about whether you understand how CFDs work and whether you can afford the high risk of losing your money.

Tickmill UK

Group Tickmill was established in 2015 and very quickly won the hearts of traders from around the world. Ultra low spreads and commissions, proven solutions and a transparent offer. This, combined with top-notch customer service, has created ideal trading conditions for even the most demanding traders. Account holders in Tickmill UK through Forex Club they automatically receive a reduced commission of -10% on their RAW MT5 account – details.

IC Trading

IC Trading is one of the largest retail brokers in the world. The company originating from Australia currently has branches in Cyprus and Mauritius. The phenomenon of this broker results from two things: a comprehensive offer and very high quality of global services. IC Trading provides access to the most important instruments and offers very favorable spreads and commissions. Account holders in IC Trading through Forex Club automatically receive a reduced commission by -21% – details.

Admirals

Admirals (Admiral Markets) is a retail Forex broker recognized around the world. The extensive offer is appreciated by traders, and at the same time provides access to the most sought-after instruments and platforms. From the very beginning, Admirals focused on tight spreads and openness to retail traders even with a very low initial deposit.

Don't be fooled by the zero spread!

Some brokers advertise by offering "zero spread". Of course, sometimes it actually is around zero, and it can even be artificially maintained at this level. However, in their advertising slogans, some people forget that you still have to charge a commission for it. Therefore, check the total cost of opening a transaction.

Are the lowest spreads the most important?

Yes and no. The amount of fees is definitely an important factor - after all, no one likes to overpay. When making tens or hundreds of trades, a difference of 0,2 pips can make a difference. But will the broker with the lowest spreads actually be the best one? Not necessarily. If a given company is not regulated, has a very poor trading platform, or has poor order execution or customer service, it is worth considering whether the game is worth the candle. Possible problems related not only to the trade itself can lead to our frustration and general dissatisfaction. The worst option, however, is to fall into the trap of the so-called. forex scam, which, tempting us with extremely good conditions, will eventually embezzle the funds we have paid.