Brokers with lowest spreads in Forex.
Which broker offers the best spread? Which condition is the most beneficial for trading?
Fore Brokers with lowest spreads in 2023
One of the fundamental aspects in trading and in choosing the trusted broker with which to enter markets around the world is undoubtedly the spread.
For this legitimate question, what is the spread? And why is it so important in trading?
In summary, the spread represents the cost that each trader will have to bear in order to trade in Forex.
This factor is the result of the difference between the purchase price (ask) and the sale price (bid) quoted for an asset.
In CFD trading, spreads play a major role as they determine the main cost of trading.
As already mentioned, the spread is a cost that every trader will have to face in order to trade on the markets.
But this is not always the case, in fact in some cases and for certain financial instruments some brokers opt for alternative solutions:
- Some international brokers do not use spreads but apply trading commissions for some types of assets (such as shares).
- For other types of assets, the broker may charge both the spread and also trading commissions.
The calculation that allows traders to figure out the value of the forex spread comes from the difference between the buy and sell price in pips.
In order to carry out this operation, it is sufficient to subtract the bid price from the ask price.
For example, suppose a trader is trading GBP/USD at 1.3089/1.3091, the spread will be calculated as follows: 1.3091 – 1.3089 = 0.0002 which is 2 pips.
The fluctuation of the spreads can depend on several factors, among which we can distinguish:
- Element that supports the ease of buying and selling an asset. Generally, with an increase in liquidity, the spread tends to decrease.
- Overall Trading Volume
- Volume is about how much an asset is traded on a daily basis. Usually, financial instruments with a high trading volume have a low spread.
- An instrument that measures the fluctuations of a market price over a given period. In times of high liquidity, when prices fluctuate rapidly, the spread is typically much wider.
The spread is divided into two sub-categories, fixed spread and floating spread:
- With the fixed spread there will be no fluctuations in the pips to be “paid” based on market variations or the difference in liquidity.
- With the variable (floating) spread, the price will fluctuate in relation to what happens in the markets.
Brokers from all over the world quote their prices in the form of spreads.
There are numerous offers of advantageous prices and favorable market conditions.
But which one to choose? Which broker today offers truly competitive spreads?
In the next ranking, you will know the online brokerage companies that offer the lowest spreads in the world.
Each of them has extremely advantageous features for trading and a trading environment that has a wide range of services and tools of superior quality.
FxPro is an international broker that is strictly regulated by numerous regulators.
In addition to an impeccable service, the broker offers the latest generation of trading tools and services that allow traders of any type to trade on markets around the world.
The extremely competitive spreads offered are undoubtedly one of the main features that make FXPro one of the most used online brokers in the world.
FXPro’s spread management is based on one key concept: versatility.
In fact, they vary according to the selected account, this allows traders to choose the option that best suits their needs:
- MT4 account with fixed spreads and instant execution.
- MT4 account with variable spreads and instant execution.
- MT4 account with variable spreads and market execution.
- MT4 account with raw spreads (on FX and metals) and market execution.
- cTrader account with floating spreads and market execution.
- MT5 account (for the more experienced) with variable spreads and market execution.
- FxPro EDGE CFD account with floating spreads and market execution.
Each of these accounts has been carefully created for any trader to be able to take advantage and maximize your potential.
With the “MT4 Raw Spread” account, FXPro allows you to trade with spreads without any spread cost on FX and Metals, with charges deriving from a commission on trades of $3.50 per lot (the commission will be charged at the time you open and close the position).
As for the cTrader platform account, spreads on FX and metals are even lower, with a commission of $35 per 1 million USD worth of volume traded.
In most cases the spreads are variable (this means that they fluctuate according to market conditions).
The MT4 Fixed accounts offer fixed spreads on 7 major FX pairs.
In order to have more detailed information on the Fixed Spreads offered, it will be possible to visit the official website and there the trader will have the opportunity to read the specifications for instruments such as EURGBP, EURJPY, EURUSD, GBPJPY, GBPUSD, USDCAD & USDJPY.
Deriv is a company that devotes much of its resources to providing traders with a highly liquid trading platform.
The spread available for EUR/USD on the “Deriv” platform starts from just 0.1 pips.
Unfortunately, external visitors do not have the opportunity to know in detail the values of the spreads offered.
In fact, Deriv does not allow access to sensitive information on its official website.
In order to know the spread and other essential information for trading, the interested trader must open an account with Deriv and access the platform.
The broker claims to offer one of the tightest and most competitive spreads in the industry.
LMFX is an innovative and versatile Forex broker that focuses its objectives on a precise concept: choice.
In fact, the broker allows anyone to trade Forex by opting for both variable and fixed spreads.
Each account available with LMFX differs in terms of spreads on each individual product offered. This feature allows any type of trader to choose the account that best suits their style.
- LMFX Premium Account
- The LMFX Premium Account offers you the traditional floating spread starting from 1 pip.
- LMFX Fixed Spread Account
- The Fixed Spread Account allows you to trade without having to pay any commission.
- LMFX Zero Account
- Zero Account offers the absolute lowest spread (starting from 0.0 pips) with a commission payment of $4 on each lot traded.
4. IC Markets
IC Markets is a leading broker in the industry offering its traders the most competitive Spreads in Forex CFDs.
The broker’s objective is to provide reduced costs in all market conditions. This is made possible thanks to the extensive use of technologically advanced services and extremely reliable liquidity providers.
Among the accounts offered by the broker, the “Raw Spread” presents an optimal trading conditions as regards the costs to be incurred (starting from 0.0 pips).
Among the lowest spreads available, is the average spread on EUR/USD of 0.1 pips and a low commission of $3.50 per lot.
The very high liquidity is guaranteed by more than 50 different banks and deep liquidity pools.
In addition, the total absence of requotes, price manipulations and restrictions of any kind ensures a perfect trading environment for day traders, scalpers and trading robots.
- Spreads from 0.0 pips with no hidden fees.
- The average spread on the EURUSD is 0.1 pips.
- A large number of reputable price providers guarantee tight spreads 24/5.
In the next table, it will be possible to know the characteristics of each single account offered by IC Markets.
The spreads, the costs of transactions and servers vary according to the type of account.
|Trading cost||0.0 pips ($6.0 per lot)||0.0 pips ($7.0 per lot)||0.6 pips|
|Server location||London||New York||New York|
|Suitable for||Day Traders & Scalpers||EAs & Scalpers||Discretionary Traders|
FXPrimus is an online Forex and CFD broker licensed by multiple international regulatory authorities.
With the broker, every trader has the opportunity to invest in over 100 financial markets including Energies, shares, Forex, indices and precious metals.
Considered one of the safest online brokers in the world, FXPrimus is trusted by over 100,000 traders.
The broker’s trading conditions are extremely advantageous, the spread offered starts from 0.0 pips but varies according to the selected account.
|Spread starting at 1.5 pips||Spreads starting at 1.5 pips||Spreads starting at 0.3 pips||Spreads at starting at 0 pips||Spreads starting at 1.5 pips|
Regardless of the advantageous trading conditions offered by the brokers described above, we would like to point out that this ranking has no objective value. Each broker has its own characteristics and it is up to the trader to decide which one fully reflects his trading style.