Best Low Spread Forex Brokers

When a slew of forex broker options are available, making the right choice can become a major task. It takes careful comparative analysis to choose the broker with the tightest dealing spreads that also align with your interests and needs.

Regulation, trading costs like commissions and spreads, funds security, ease of trading and customer service can all be key criteria for selecting a broker. Here's some of the top lowest spread forex broker.

Quick Look: Best Low Spread Forex Brokers

• Best Overall: FOREX.com
• Best for a Simple Trading Platform: Trading.com
• Best for Professional Traders: Interactive Brokers
• Best for Low Fees: tastyfx
• Best for Copy Trading: eToro

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Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% to 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account

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Best Lowest Spread Forex Brokers

Take a look at the following brokers that made the list.

1. Best Overall: FOREX.com

FOREX.com allows trading in over 80 currency pairs, indices, over 220 shares, commodities and cryptocurrencies. The account types offered are standard and commission accounts. Cost of trading with a commission account is a low variable forex spread plus a flat $5 commission per standard lot chargeable at the time the trade is executed.

Typical spread for some of the major currency pairs are as follows:

• EUR-USD: 1.2 pips
• GBP-USD: 1.9 pips
• USD-JPY: 1.3 pips
• AUD-USD: 1.6 pips

FOREX.com has all three proprietary platform options, namely desktop, web and mobile. It also offers the widely used MetaTrader 4 and MetaTrader 5 platforms. Currently, FOREX.com only offers spread betting in the UK.

2. Best for a Simple Trading Platform: Trading.com

Trading.com is becoming the go-to choice for traders seeking a straightforward yet effective trading platform. Tailored for modern traders, it boasts a user-friendly interface that streamlines trade executions, especially for those who prioritize simplicity over complex features. What distinguishes Trading.com amidst the competitive broker landscape is its highly competitive spreads, ensuring cost efficiency for users.

The platform has an attractive design, easy navigation and provides a seamless trading experience. While advanced traders may find the platform's features somewhat limited, Trading.com offers a balanced blend of functionality and user-friendliness, making it a compelling option for traders of all levels.

3. Best for Professional Traders: Interactive Brokers

Interactive Brokers is a low-spread forex broker that offers some of the most competitive commission rates in the industry. The company has been around since 1977 and is well-known for its trading platform and its ability to execute trades quickly. With over 100 markets, Interactive Brokers provides a wide variety of currencies and commodities, as well as access to global markets such as futures, options, and stocks.

The company’s trading platform is designed to be highly user-friendly, with powerful features that make it easy for traders of all levels of experience to execute orders in a timely manner. The interface includes technical analysis tools such as charting and risk management tools, along with an array of research capabilities. Additionally, Interactive Brokers has a wide variety of mobile trading applications, such as smartphone apps, that allow traders to stay connected to the markets while on the go.

Another advantage of Interactive Brokers is their low spreads, which start at 0.2 pips for major currency pairs. This can be very beneficial for those who want to make smaller trades and benefit from lesser fees. 

4. Best for Low Fees: tastyfx

tastyfx offers 82 currency pairs and allows up to 1:50 leverage with capital requirements as low as 2% elsewhere.

The average spread for tastyfx's ECN account is 0.8 pips for the EUR-USD or USD-JPY pairs. (Terms and conditions apply).An ECN account facilitates using electronic communications networks for giving clients direct access to other participants in currency markets. Apart from the spread, a commission is also applicable.

For a standard account, where only spread is applicable, there’s an average 0.8 pip spread for the EUR-USD and USD-JPY pairs along with 1.0 pips for the AUD-USD pair and GBP-USD pairs. tastyfx provides traders access to the desktop, online and mobile versions of the MetaTrader 4 as well as its own proprietary platform.

5. Best for Copy Trading: eToro

eToro is a reliable and popular online brokerage platform used by forex traders around the world. It offers competitive spreads, low trading fees, and a wide selection of assets to trade. With its powerful trading platform, you can easily access global markets from anywhere in the world.

One of the most appealing features of eToro is its low spreads for forex traders. Providing some of the lowest spreads in the industry, eToro offers an ideal setting for those who want to maximize their profits while minimizing their losses. The spread is the difference between the bid and ask price of a currency pair or other asset, and it's important to understand how brokers calculate this cost before choosing which one to use.

eToro provides access to more than 80 currency pairs, with spreads as low as 0.75 pips on major pairs such as EUR/USD and USD/JPY. This is significantly lower than what many other brokers charge, meaning that you pay less for each trade and can potentially make more money in the long run.

What to Look for in a Low-Spread Forex Broker

Do some careful research, since a promise of low dealing spreads may not always guarantee that a forex broker offers the lowest trading costs for your particular strategy. Watch out for these situations:

• Most brokers offer different spreads for different currency pairs and account types. Some accounts might tempt traders with the promise of a low dealing spread while also charging a high commission. Make sure you are aware of all dealing costs involved. 
• Be cautious when a broker promises a fixed spread. It could mean the spread is wider than average, additional trading fees will be charged or the broker may be trading against you by acting as a market maker. 
• Some brokers that offer low spreads can require a high minimum deposit.
• When you have to make a choice among brokers offering the lowest spreads, look for brokers regulated in your country. That way, if a problem arises, it is generally much easier to litigate in your own country. Trading with brokers that offer a convenient and inexpensive mode of local payment can also help you avoid extra deposit, withdrawal and currency conversion charges. 

Choose the Best Low Spread Forex Broker for You

Tighter spreads can definitely give forex traders an edge, but look out for hidden costs. These might include commissions, rollover fees for holding overnight positions, data feed fees, charges for not maintaining a minimum account balance, etc.

Along with spreads and commissions, there are other factors that should be considered when selecting a forex broker in order to trade safely and optimally given your trading strategy.

Frequently Asked Questions