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In Forex trading, a spread, or a bid-ask spread, is the difference between the asking 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 break down some of the lowest-spread Forex brokers you’ll find in 2025. Our list contains brokers known for having extra-tight spreads, low minimum deposits, and great conditions for active trading. We 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 with market spreads such as the ECN/Raw spread for account types.
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.
Comparison of low-spread Forex brokers
| Min deposit | $0,00 | $0,00 | $0,00 | $0,00 | $100,00 |
|---|---|---|---|---|---|
| ECN | No | No | No | No | No |
| Average Spread EUR/USD | 0.6 Pips | 0.6 Pips | 0.6 Pips | 0.6 Pips | 0.6 Pips |
Low spread brokers trading conditions compared
We’ve also prepared a comparison of each of the above brokers by other important parameters, 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.
Low spread brokers trading conditions
| MT4 | No | No | No | No | No |
|---|---|---|---|---|---|
| MT5 | No | No | No | No | No |
| cTrader | No | No | No | Yes | No |
| Webtrader | No | No | No | No | No |
| Copy trading | No | No | Yes | Yes | Yes |
| Deposit fee | 0 | 0 | 0 – 1.5% | 0 | 0 |
| Withdrawal fee | 0 | Up to 3% | 0 | $5,00 | 0 |
| Regulation | BAFIN (DE), CNMV (ES), CYSEC (CY) | CYSEC (CY) | CONSOB (IT) | FMA (NZ) | VFSC (VU), ASIC (AU) |
Who are the cheapest Forex brokers?
The cheapest Forex brokers are those that offer competitive pricing with ultra-low spreads, enabling traders to minimize transaction costs. These brokers earn primarily through the spread, but many provide affordable trading conditions tailored to cost-conscious traders. By focusing on brokers with tight spreads and transparent fee structures, traders can significantly reduce their overall trading expenses while maximizing profitability.
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 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 EUR/USD has an average spread from 0.1–0.8 pips, while for other pairs it is usually higher.
Average spread vs minimal spread
When comparing Forex spreads, understanding the difference between average spreads and minimal spreads is crucial. Average spreads represent the typical cost of trading over a given period, accounting for market fluctuations and varying liquidity conditions. This metric provides a more realistic expectation of trading costs, as spreads can widen during volatile periods or outside of peak trading hours.
Minimal spreads, on the other hand, are the lowest spreads offered by a broker, often observed during high-liquidity market conditions. While these spreads might seem attractive, they can be misleading if they rarely occur or are accompanied by additional fees, such as commissions. For traders, focusing on average spreads is more practical, as it reflects the actual cost of trading over time, allowing for better planning and strategy development. Minimal spreads should be considered alongside other factors, such as trading conditions and execution speed, to avoid unexpected costs.
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?
Forex spread is determined by the difference between the bid price (the price at which a broker or market maker is willing to buy a currency) and the ask price (the price at which the broker is willing to sell the same currency). This spread represents the cost of executing a trade and is influenced by several factors, including market conditions, liquidity, and the currency pair being traded.
For example, if you are trading USD/GBP, the bid price might be $1.1300, meaning the broker will buy one GBP for $1.1300. The ask price might be $1.1230, meaning the broker will sell one GBP for $1.1230. The difference between these two prices, 0.0070, is the spread.
To make this clearer, let’s consider an example using the AUD (Australian Dollar). Suppose the broker displays the following bid-ask pricing: $1.1300/$1.1230. If you decide to buy AUD, you would pay the ask price of $1.1230 per AUD. Now, if you immediately sell the AUD back to the broker without any market changes, you would receive the bid price of $1.1300 per AUD. The spread cost of this trade would be $0.0070, which represents the broker’s fee for facilitating the trade.
In summary, Forex spreads depend on the currency pair’s liquidity (how actively it is traded), market volatility (sharp price changes may increase spreads), and the broker’s pricing model (whether they include commissions or only charge through spreads). Trading during high-liquidity sessions, like overlapping major market hours, can often result in tighter spreads and lower trading costs.
What account types have the tightest spreads?
In Forex trading, the type of account you choose directly affects the spreads you will encounter. Accounts offering the tightest spreads typically include:
Raw spread accounts
These accounts provide direct access to interbank pricing, with spreads as low as 0.0 pips. Traders pay a fixed commission per trade, which, combined with raw spreads, can result in lower overall trading costs. This setup is ideal for high-frequency traders and scalpers who benefit from minimal spread costs.
ECN (electronic communication network) accounts
ECN accounts connect traders directly to the Forex market, allowing them to trade with other participants without intermediary markups. This structure results in variable spreads that can be extremely tight, especially during peak trading hours. However, a commission per trade is usually charged.
STP (straight-through processing) accounts
STP accounts route orders directly to liquidity providers without dealing desk intervention. This process ensures competitive spreads as multiple quotes from liquidity providers are available, providing the best possible pricing. While spreads may be slightly wider than in ECN accounts, STP accounts often do not charge additional commissions, making them suitable for traders seeking tight spreads without extra fees.
VIP or professional accounts
Some brokers offer VIP or professional accounts for high-volume traders or those with substantial deposits. These accounts often feature reduced spreads and lower commissions. Eligibility criteria, such as minimum trading volume or account balance, typically apply. Find out whether the TIOmarkets VIP Black Account truly offers the lowest-cost Forex trading experience and how it stacks up against Standard and Raw accounts.
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!
Dynamic spreads provide the opportunity to benefit from ultra-tight spreads
Methodology for compiling our ratings of Forex brokers
Infobrokers applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
- Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
- User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
- Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
- Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
- Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
- Other factors like brand popularity, client support, and educational resources are also evaluated.
Find out more about the unique broker assessment methodology developed by Infobrokers specialists.
Conclusion
Selecting the right low-spread Forex broker is a critical factor in maximizing your trading profitability. Tight spreads help minimize trading costs, especially for high-frequency traders and scalpers. However, while low spreads are important, they should not be the sole deciding factor. Evaluate brokers holistically by considering additional factors like commissions, trading platforms, execution speed, and customer support. A broker that balances low spreads with advanced tools, reliable platforms, and transparent pricing will better align with your trading strategy and goals. By conducting thorough research, you can identify a broker that not only offers tight spreads but also provides the resources and stability necessary for long-term trading success.
