Brokers With Low Spreads
Brokers with low spreads are often key to reducing trading costs, especially when carrying out short term trading such as scalping and day trading. Spreads are the difference between the buy and sell price, meaning high volume trading with wide spreads can quickly result in diminished trading capital, regardless of whether you’re trading forex, gold or crypto.
In this article, we explain what spreads are, how they are calculated and which factors influence them. We also list the best brokers with low spreads.
Best Brokers With Low Spreads
Our experts reviewed and compared hundreds of brokers and these 7 offer the tightest spreads:
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1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
DNA Markets
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:500ASICCFDs, Forex, Indices, Commodities, Stocks, CryptoMT4, MT5Credit Card, Debit Card, Wire Transfer, BPAY, Skrill, Neteller, Bitcoin Payments, Bitwallet, AstroPay, MastercardUSD, EUR, GBP, CAD, AUD, NZD, SGD -
3
Axofa10% Deposit Bonus
$10.01 Lots1:1000SVGFSAForex, CFDs, Stocks, Indices, CommoditiesMT5Debit Card, Credit Card, Visa, Mastercard, Neteller, Skrill, Bitcoin Payments, Wire TransferUSD, IDR -
4
Sage FX$1,500 trading competition
$100.01 Lots1:500PendingForex, indices, cryptosTradeLockerCredit Card, Visa, Mastercard, Bitcoin Payments, Ethereum PaymentsUSD, EUR, GBP, CAD, AUD -
5
Coinexx100% Deposit Welcome Bonus
0.001 BTC0.01 Lots1:500Forex, Commodities, Indices, CryptocurrenciesMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD -
6
Plexytrade120% Cash Welcome Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$500.011:2000UnregulatedCFDs, Forex, Indices, Stocks, Commodities, CryptoMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD, EUR -
7
World Forex100% Deposit Bonus
$10.01 Lots1:1000SVGFSAForex, CFD Stocks, Metals, Energies, Cryptos, Digital ContractsMT4, MT5Wire Transfer, Debit Card, Credit Card, Visa, Mastercard, Google Wallet, Apple Pay, Perfect Money, Bitcoin Payments, VoletUSD, EUR, RUB
Here is a short summary of why we think each broker belongs in this top list:
- FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
- DNA Markets - DNA Markets is a forex and CFD broker established in 2020. The broker operates two entities in Australia and the offshore jurisdiction, St Vincent and the Grenadines. Traders can access 800+ markets, with a Standard account for beginners and a Raw account for experienced traders. The reliable MetaTrader 4 and MetaTrader 5 platforms are available, alongside Signal Start.
- Axofa - Axofa is a forex and CFD broker registered in St Vincent and the Grenadines. The broker offers three account types with access to forex, commodities and indices. With ECN processing, low minimum deposits and no commissions, Axofa remains an attractive option, although the broker does not hold a reputable license.
- Sage FX - SageFX is an offshore, unregulated CFD broker that offers highly leveraged trading on forex, stocks, commodities, indices and crypto via the TradeLocker platform. Traders can access commission-free trading or an ECN account with tight spreads. While the broker's regulatory status is weak, it does provide segregated accounts and two-factor authentication.
- Coinexx - Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.
- Plexytrade - Established in 2024 and headquartered in Saint Lucia, Plexytrade is an ECN/STP broker. Geared towards active traders, it supports four account options, crypto deposits and withdrawals, plus very high leverage up to 1:2000 made possible by its unregulated status.
- World Forex - World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Stocks, Futures, Futures Options |
| Regulator | NFA, CFTC |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
Cons
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
DNA Markets
"DNA Markets is an excellent choice for short-term traders familiar with the MetaTrader platforms. The smooth sign-up process also makes it easy to get started while the $100 minimum deposit is accessible. That said, DNA Markets trails the top brokers in education, research and mobile trading. "
DNA Markets Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Indices, Commodities, Stocks, Crypto |
| Regulator | ASIC |
| Platforms | MT4, MT5 |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, SGD |
Pros
- The broker provides 24/5 customer support with response times of <2 minutes during testing
- Short-term trading strategies are permitted including scalping and automated trading using Expert Advisors (EAs)
- After a recent upgrade, there are now over 800 assets available to trade via CFDs, with a particularly impressive range of 120+ cryptos
Cons
- Unlike many alternatives, there are limited educational and research tools for traders seeking an all-in-one solution
- Despite access to MT4 and MT5, there is no proprietary trading app for seamless account management whilst on the go
- Although it continues to strengthen its client base and reputation, DNA Markets lacks the track record of top brokers like Vantage
Axofa
"Axofa could be a good option for clients looking for social trading features alongside the MT5 platform. The low entry requirements and ECN spreads are particularly promising, but the lack of transparency and respected regulatory oversight raises security concerns."
Axofa Quick Facts
| Bonus Offer | 10% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, CFDs, Stocks, Indices, Commodities |
| Regulator | SVGFSA |
| Platforms | MT5 |
| Minimum Deposit | $1 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD, IDR |
Pros
- There's a proprietary social/copy trading service for beginners looking to follow successful strategies and for experienced traders looking to sell their strategies
- The $1 minimum deposit across all 3 accounts will appeal to novices and those on a budget
- Low ECN spreads are available from 0.0 pips, plus reasonable commissions at $3.50 per side
Cons
- The offshore operations and lack of any regulatory oversight is a major concern
- Our team found inconsistencies between international subsidiaries and website information
- There is a lack of transparency around pricing and account conditions, which significantly reduces the trust score
Sage FX
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."
Tobias Robinson, Reviewer
Sage FX Quick Facts
| Bonus Offer | $1,500 trading competition |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, indices, cryptos |
| Regulator | Pending |
| Platforms | TradeLocker |
| Minimum Deposit | $10 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- Prop trading accounts with multiple funding tiers
- Ability to deposit and withdraw via Bitcoin
- Low starting deposit from $10
Cons
- Relatively narrow range of asset classes
- Not regulated by any reputable body
- Lacks educational resources and other extra features
Coinexx
"Traders seeking highly leveraged CFDs with a broker that uses crypto as a base account currency will find a good match in Coinexx. The ECN model also offer tight spreads from 0 pips. On the downside, traders should note the weak regulatory oversight."
Coinexx Quick Facts
| Bonus Offer | 100% Deposit Welcome Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Commodities, Indices, Cryptocurrencies |
| Platforms | MT4, MT5 |
| Minimum Deposit | 0.001 BTC |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD |
Pros
- Full range of investments including cryptos
- ECN execution model with tight spreads from 0 pips
- Free VPS for active traders
Cons
- No regulatory oversight reduces safety
- No copy trading service for aspiring investors
- No fiat account funding options - crypto only
Plexytrade
"Plexytrade is a newcomer in the brokerage scene with attention-grabbing features like 1:2000 leverage, zero spreads on select instruments and fast execution speeds of less than 46 milliseconds. However, the absence of regulation is a significant concern, while the non-existent research and educational tools place it far behind industry frontrunners."
Plexytrade Quick Facts
| Bonus Offer | 120% Cash Welcome Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | CFDs, Forex, Indices, Stocks, Commodities, Crypto |
| Regulator | Unregulated |
| Platforms | MT4, MT5 |
| Minimum Deposit | $50 |
| Minimum Trade | 0.01 |
| Leverage | 1:2000 |
| Account Currencies | USD, EUR |
Pros
- There are various VPS packages starting from $50 per month, but they become complimentary once specific deposit thresholds are reached.
- Plexytrade offers among the highest leverage we’ve seen, up to 1:2000, catering to advanced traders willing to forego regulatory protections.
- US residents are accepted as clients, distinguishing Plexytrade as one of the rare offshore brokers that cater to US-based traders.
Cons
- With around 100 instruments, Plexytrade restricts the flexibility of investors who prefer to trade across various assets, especially compared to Blackbull with its 26,000 securities.
- There are no social or copy trading features for inexperienced traders to replicate the trades of more experienced investors, trailing category leaders like eToro.
- Deposits and withdrawals are exclusively facilitated through cryptocurrencies, as Plexytrade does not support bank cards, bank wire transfers, or e-wallets.
World Forex
"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."
World Forex Quick Facts
| Bonus Offer | 100% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts |
| Regulator | SVGFSA |
| Platforms | MT4, MT5 |
| Minimum Deposit | $1 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD, EUR, RUB |
Pros
- A wide range of assets to trade, including via digital contracts
- Low deposit of $1
- Several different account types with varied pricing structures
Cons
- No negative balance protection
- Withdrawal fees apply
- Weak regulation
Spreads Explained
A spread is the difference between the bid (buy) and ask (sell) price in trading. Often this results in the offer price sitting just above the underlying value and the sell price sitting just below it.
This is usually how brokers make a profit, although some will charge commission instead of or on top of spreads.
Because of this, spreads can quickly cut into trader’s available capital, especially when executing a large number of trades.
Calculating Spreads
Spreads are calculated by subtracting the bid price from the ask price.
This difference is measured by small price increments called pips (percentage in points) which is the fourth decimal point of a price (or second if trading forex pairs quoted in JPY).
For example, a forex pair with an ask price of 1.2323 and a bid price of 1.2330 has a spread of 8 pips.
Spreads are the difference between what the market is willing to sell and pay for an asset. If these prices are close, it means buyers and sellers agree on the value of an asset.
Fixed Vs Variable Spreads
Spreads can be either fixed or variable, with each type offering its own advantages. Fixed spreads allow the trader to develop more predictable strategies as the costs are known upfront.
This is especially useful when scalping, to understand what exit price is required to measure profit or loss. (Check your broker allows scalping prior to trading).
On the other hand, variable spreads can be tighter, especially when the asset is highly liquid.
The best type of spread therefore depends on the trading volume and time of day. Scalpers might choose variable spreads to try and get the best rates at certain points.
However, in volatile times, for example when trading news events, spreads can quickly widen.
Spreads & ECN Brokers
ECN brokers use Electronic Communication Networks to directly match buyers with sellers.
Because ECN brokers can combine prices from multiple market participants, the spreads are often tighter and may be the best bet for traders looking for brokers with very low spreads.
However, they charge a commission to carry out the trade, which is a fixed fee per transaction.
Influences On Spreads
Spreads are affected by several variables:
- The broker’s markup – this will differ from broker to broker but is not the only thing that should be considered. For example, a broker with tight spreads may also charge high commission fees or have high initial deposit requirements.
- Liquidity – a highly liquid asset is easier to buy and sell and will therefore usually have a tighter spread.
- Volatility – a highly volatile asset is more difficult to predict, resulting in wider spreads.
Examples of Brokers With Low Spreads
Here we review five of the top regulated brokers with the lowest spreads, across instruments including forex, indices and commodities.
Plus500
Plus500 offers variable spreads. The spreads are tight compared with other leading brokers, at an average of just 0.8 pips for EUR/USD (variable).
Additionally, Plus500 does not charge commission on CFDs, though it does have standard overnight charges, currency conversion rates and account inactivity fees.
Pepperstone
Pepperstone is an ECN broker offering spreads as low as 0 with their Razor account, though commission fees apply ($0.04 per 0.01 lots for EUR/USD). With the Standard account spreads are wider, but still low versus other leading brokers, with an average of 0.79 pips for EUR/USD and no commission fees.
Overall, Pepperstone is a great broker choice for traders looking to use the leading MT4, MT5 or cTrader platforms, with some of the lowest forex and gold spreads around.
CMC Markets
CMC Markets is a UK based broker that offers low spreads on a wide range of instruments including forex, commodities, stocks and indices. The EUR/USD spread of 0.7 pips is competitive, with commission fees charged on shares only.
There are also no minimum deposit requirements, making CMC Markets an excellent choice for traders looking for FX brokers with low spreads and straightforward account registration.
Eightcap
Eightcap is one of the best CFD and forex brokers with low spreads. On EUR/USD, Eightcap offers variable spreads starting from 1 pip with their Standard account, dropping to a minimum spread of 0 with their Raw account. However, commission fees are charged on the Raw account, unlike the Standard account.
XTB
XTB is one of the best CFD and forex brokers with tight spreads of just 1 pip (fixed) for EUR/USD and equally low spreads on indices such as NASDAQ. However, traders can qualify for even lower spreads with a discount of between 5 and 30% when trading higher volumes.
Final Word
Brokers with tight spreads help prevent fees from cutting into trading funds. While many leading brokers offer competitive spreads across a range of instruments, consider whether they are fixed or variable, as well as any commission fees that might be applied on top. The most suitable broker will depend on the time and frequency of the trade, as well as what is being traded.
FAQ
What Is A Broker With Low Spreads?
A broker with low spreads is one that has a small gap between the buy and sell rate. This is often how brokers make a profit though they can charge commission too.
Why Use A Broker With Low Spreads?
Using a broker with low spreads means the costs associated with your trade are lower, and your remaining balance is higher.
Which Brokers Offer The Tightest Spreads On Forex?
CMC Markets offers low variable spreads on forex pairs, while XTB offers some of the tightest fixed spreads. Pepperstone is an ECN broker that offers spreads as low as 0 pips with their Razor account, though this comes with commission fees.
Which Brokers Offer Low Gold Spreads?
The Pepperstone Razor account offers some of the lowest spreads for trading spot gold. Gold can be traded against USD, EUR, AUD, GBP, JPY and CHF.
Which Forex Brokers Offer The Lowest Spreads In Nigeria?
Pepperstone offers low spreads across a range of instruments including forex and accepts customers located in Nigeria.