Last Update: March 25th, 2024

The 10 Best Forex Brokers by Spreads revealed. Broker spreads are a critical aspect that can considerably impact profitability and trading strategies. We conducted extensive research and analysis on the services of different forex brokers to provide the 10 Best according to their spreads. 

In this in-depth guide, you’ll learn: 

• How to Understand the Role of Spreads in Forex Trading 
• The 10 Best Forex Brokers by Spreads 
• What is the Importance of Low Spreads in Forex Trading 
• Fixed versus Variable Spreads: What is the Difference? 
• Our Conclusion on The 10 Best Forex Brokers by Spreads 
• Popular FAQs about The 10 Best Forex Brokers by Spreads 

And lots more… 

So, if you’re ready to go “all in” with The 10 Best Forex Brokers by Spreads… 

Let’s dive right in… 

🏆 10 Best Forex Brokers

	Broker	Review	Regulators	Min Deposit	Website
🥇		Read Review	ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA	USD 100	Visit Broker >>
🥈		Read Review	FMA, FSA	USD 50	Visit Broker >>
🥉		Read Review	FSCA, CySEC, DFSA, FSA, CMA	USD 0	Visit Broker >>
4		Read Review	SFSA, FSCA, CySec*	USD 5	Visit Broker >>
5		Read Review	FCA, CySEC, FSCA, SCB	USD 100	Visit Broker >>
6		Read Review	FCA, FINMA, FSA, ASIC	USD 0	Visit Broker >>
7		Read Review	CySEC, FCA, FSA, FSCA, Labuan FSA	USD 100	Visit Broker >>
8		Read Review	Not Regulated	0.001 BTC	Visit Broker >>
9		Read Review	ASIC, CySEC, FSCA, CMA	USD 100	Visit Broker >>
10		Read Review	CySEC,MISA, FSCA	USD 20	Visit Broker >>

How to Understand the Role of Spreads in Forex Trading 

Forex trading relies heavily on spreads, representing the gap between buying and selling prices of currency pairs. These spreads influence profitability and trade outcomes and are crucial for traders as they signify liquidity and fees charged by brokers.  

Experienced traders pay close attention to spread fluctuations, capitalizing on narrow spreads during high market activity periods to fine-tune their trades. This blend of art and science is essential in crafting sophisticated trading approaches to reduce costs and maximize market opportunities. 

10 Best Forex Brokers by Spreads (2024*)

1. ☑️FBS – Low-cost MetaTrader platform experience.
2. ☑️Exness – Award-winning Broker in 2024*
3. ☑️Pepperstone – Low-cost MetaTrader platform experience.
4. ☑️XTB – Best customer service.
5. ☑️AvaTrade – Award-winning FCA-regulated trading platform.
6. ☑️HFM – Best trading services.
7. ☑️Octa – The Best Global financial market.
8. ☑️XM – Offers multiple trading account types.
9. ☑️JustMarkets – Voted multi-asset platform Broker.
10. ☑️Admirals  – Best trading services.

Best Forex Brokers by Spreads

10 Best Forex Brokers by Spreads 

FBS 

Overview 

FBS is a trusted forex broker that entices clients with a low minimum deposit of $5. It is governed by several regulatory authorities, including the IFSC and ASIC, which ensure a certain level of dependability.  

Traders of all skill levels can benefit from competitive beginning spreads of 0.7 pips and the accuracy of 5th decimal pricing, which improves trading accuracy. 

Unique Features 

Pros and Cons 

Exness 

Overview 

Exness stands out for its thin spreads from 0.0 pips on major currency pairs like EUR/USD. Furthermore, Exness offers fast order execution, ensuring traders can keep their trading fees as low as possible. 

Exness charges competitively low commissions across instruments and offers commission-free options to all traders, depending on the account type they choose.  

In addition, Exness offers a frictionless trading environment with rapid withdrawals, showing how client-centered Exness is. 

Unique Features 

Pros and Cons 

Pepperstone 

Overview 

Pepperstone is one of the largest brokers in the industry, offering spreads from 0.0 pips on its Razor Account. Furthermore, Pepperstone ensures traders can expect minimal slippage when executing orders.  

Pepperstone is reputable and regulated in several countries worldwide, making it a trusted broker for traders globally. In addition, their innovative trading platforms and technologies are intended to offer traders an advantage in fast-moving markets. 

Unique Features 

Pros and Cons 

XTB 

Overview 

XTB’s lack of a set minimum deposit ensures that traders can start trading with any amount. This benefit ensures traders access global financial markets regardless of their budgets.  

Furthermore, their advanced trading systems, including the award-winning xStation 5, provide traders with extensive analytical tools and real-time market data. 

Unique Features 

Pros and Cons 

AvaTrade 

Overview 

AvaTrade is a trusted Market Maker broker with a fixed-spread schedule, with spreads from 0.9 pips on the Retail Account. Furthermore, traders can expect commission-free trades across instruments as AvaTrade takes its broker fee from the spreads charged. 

AvaTrade is dedicated to giving traders access to some of the most comprehensive instructional materials and innovative trading platforms. In addition, their worldwide presence and regulatory compliance in numerous countries offer a safe and dependable trading environment for all traders. 

Unique Features 

Pros and Cons 

HFM 

Overview 

With HFM, traders can start trading EUR/USD with spreads from 0.0 pips in ideal market conditions. HFM also ensures minimal slippage and executes trades within a few milliseconds. 

In addition, HFM’s commitment to transparency and regulatory compliance strengthens its reputation as a reliable broker in the forex industry. 

Unique Features 

Pros and Cons

Octa 

Overview 

Octa’s competitively low spread of 0.6 pips and the absence of commission costs make it a cost-effective broker for traders who need a competitive edge.  

Furthermore, Octa’s emphasis on lowering trading expenses and increasing efficiency makes it an appealing choice for traders trying to stretch their investments further. 

Unique Features 

Pros and Cons 

XM 

Overview 

XM stands out for its $5 minimum deposit and spreads as low as 0.7 pips. XM charges low and competitive commissions, ensuring traders can keep their trading costs low. Traders can also expect access to personalized customer support and extensive educational guides and resources. 

Unique Features 

Pros and Cons 

JustMarkets 

Overview 

JustMarkets maintains a low entry barrier with a minimum deposit of $10 and offers an attractive spread starting from 0.0 pips.  

Furthermore, traders can easily trade micro-lots across markets. JustMarkets aims to ensure its pricing model caters to various traders regardless of their trading objectives or needs. 

Unique Features 

Pros and Cons 

Admirals 

Overview 

Admirals charge competitive spreads from 0.0 pips, which increases transaction profitability while reducing overall trading costs. 

Their powerful trading platforms and comprehensive market research tools help traders make informed decisions. 

In addition, Admirals’ focus on education and customer service ensures that traders have the information and assistance they need to successfully navigate the markets, making it a trustworthy forex trading partner. 

Unique Features 

Pros and Cons

What is the Importance of Low Spreads in Forex Trading 

Spreads are a key topic in the dynamic world of Forex trading since they shape a trader’s approach and ultimate profitability.  

There are various reasons why low spreads are extremely important. First, they have a direct influence on the cost of trade. Lower spreads result in lower trading expenses, allowing traders to keep more gains.  

This is especially important for high-volume traders and those who use tactics like scalping, where the profit margin of each transaction is small, and efficiency is essential. 

Furthermore, tighter spreads improve trading conditions by allowing deals to be executed at prices closer to market rates. This accuracy is critical in fast-moving markets, where even little differences in execution prices can majorly impact transaction outcomes.  

In addition, low and competitive spreads increase liquidity, signaling a healthy, competitive market environment in which traders may join and exit positions with minimum slippage, ensuring the integrity of their trading plans. 

Narrow spreads are more than just a cost-cutting measure; they are essential for fair, efficient, and even lucrative trading.  

They demonstrate a broker’s dedication to offering advantageous trading conditions and are an important consideration for traders when choosing a Forex broker. 

Fixed versus Variable Spreads: What is the Difference? 

The contrast between fixed and variable spreads is critical in Forex trading, impacting traders’ choice of brokers and methods. As the name implies, fixed spreads are constant regardless of market conditions.  

This stability is a huge advantage, particularly for traders who like to strategy without the additional complication of shifting spreads.  

Fixed spreads provide consistency in trading expenses, making financial planning and risk management easier. They are especially popular in volatile markets, where they can shield traders from large spreads caused by unexpected market changes.

Variable spreads, on the other hand, fluctuate in real-time as market conditions change. They are often smaller than fixed spreads in normal trading situations, providing a chance for savings.  

However, during extreme volatility or low liquidity moments, variable spreads can expand dramatically, raising the cost of trading abruptly. Because of this uncertainty, traders must be more watchful and adaptable in their trading methods, reacting to fluctuating spreads. 

The choice between fixed and variable spreads is determined by a trader’s risk tolerance, trading style, and the market circumstances in which they are most comfortable.  

While fixed spreads give predictability and simplicity, variable spreads can potentially reduce expenses but with an additional degree of complexity and risk.  

Overall, understanding the subtleties of each spread type is critical for traders seeking to match their trading activities with their financial objectives and risk management techniques. 

Conclusion 

In our experience, spreads in forex trading and their importance cannot be overstated.  

While we evaluated various brokers and their spreads to find the best ones, we found that spreads are important for reducing trading costs and increasing profitability. Still, they are not the only key consideration. 

Other factors like a broker’s regulatory standing, how quickly they execute trades, and the level of support they provide customers are also key in ensuring a positive trading experience.  

So, while spreads are important, a thorough assessment of a broker’s offerings provides the most reliable basis for choosing the right trading partner. 

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Frequently Asked Questions

Which types of forex brokers generally offer the lowest spreads? 

Brokers with ECN accounts have direct access to liquidity sources, resulting in the narrowest possible spreads. However, ECN accounts typically have commission fees added to the trade to compensate the broker for facilitating the transaction. 

How do I compare spreads between different brokers? 

You can use reputable broker review websites, the brokers’ fee schedules, and several other sources to compare spreads between brokers. 

Do spreads change throughout the day? 

Yes, spreads are affected by market liquidity and volatility. 

Do low-spread brokers offer bonuses or promotions? 

Yes, brokers may provide deposit bonuses or trading incentives. Many brokers have forex cashback rebate programs that can lower trading costs, especially for active traders. 

Are low spreads always a sign of a good broker? 

No, spreads alone cannot be a sign of a good broker. A good broker must be well-regulated, have a transparent fee schedule, have user-friendly trading platforms, education, trading tools, etc. 

Can I trade other assets besides forex with low-spread brokers? 

Yes, many brokers provide assets such as equities, commodities, indices, and cryptocurrencies alongside forex.