Cheapest Brokers 2024 | Brokers With Low Fees
We compare and rank the cheapest brokers in April 2024. Our experts have tested the top low cost operators and compiled a list of the best discount brokers with low fees but great trading platforms.
Low Cost Brokers
Below are the 5 best discount brokers, ranked by lowest total trading costs and overall rating:
Comparison of Low Cost Brokers
| Broker | Fee on EUR/USD | Fee on Stocks | Fee on Oil | Fee for Inactivity | Visit |
|---|---|---|---|---|---|
|
1.2 | 0.14 | 2.5 | $15 | Visit |
|
0.02 | 0.02 | 0.03 | $0 | Visit |
|
0.0 | 0.7 | 1.0 | $0 | Visit |
|
0.4 | 1.0 | 0.4 | $0 | Visit |
|
0.05 | 0.01 (Apple Inc) | 2.0 | $0 | Visit |
|
0.1 | 0.02 | 2.5 | $0 | Visit |
|
0.0 | 0.01 | 0.01 | $0 | Visit |
|
0.08-0.20 bps x trade value | 0.003 | 0.25-0.85 | $0 | Visit |
|
0.26 | 0.3 | 2.90 | $0 | Visit |
|
1.3 | - | - | $25 | Visit |
|
1.6 | 0.002 | 0.03 | $5 | Visit |
|
1.0 | 0.2% | 0.03 | $0 | Visit |
|
0.7 | 0.02 | 3.5 | $10 | Visit |
|
1.6 | - | - | $0 | Visit |
|
0.2 | NA | 0.03 | $5 | Visit |
#1 - FOREX.com
Why We Chose 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.
"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."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Cryptos, Futures, Options, Commodities
- Regulator: NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
- Minimum Deposit: $100
- Minimum Trade: 0.01 Lots
- Leverage: 1:200 (Retail), 1:500 (Pro)
Pros
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- 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.
Cons
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- 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.
- There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
#2 - IC Markets
Why We Chose IC Markets
IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
- Regulator: ASIC, CySEC, FSA
- Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
- Minimum Deposit: $200
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
Pros
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
- As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
Cons
- The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
- While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
- Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
#3 - Exness
Why We Chose Exness
Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.
"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS
- Platforms: Exness Trade App, MT4, MT5, TradingCentral
- Minimum Deposit: $10
- Minimum Trade: 0.01 Lots
- Leverage: 1:2000
Pros
- Local payments are available, plus deposits in BTC and USDT
- Experienced strategy providers can open social trading accounts, with monthly commissions up to 50%
- Exness is the first brokerage to pass the $1 trillion and $2 trillion marks in monthly trading volumes
Cons
- Unlike most competitors, Exness doesn't provide its own education section
- There are several regional restrictions for retail traders including the USA, Europe and the UK
- There are no promotional deals or loyalty schemes for high-volume day traders
#4 - Skilling
Why We Chose Skilling
Skilling is a multi-asset broker founded in 2016 and based in Cyprus. The brand offers hundreds of day trading instruments with competitive spreads from 0.1 pips and beginner-friendly platforms. Skilling are also regulated in Europe and beyond with a transparent pricing structure. You can sign up and start trading in three easy steps.
"Skilling maintains its position as a top pick for beginners looking for a competitive zero commission account with direct access to a copy trading feature. It will also serve experienced strategy providers looking to earn commissions, or anyone looking to trade forex during extended hours."
- DayTrading Review Team
- Instruments: Forex, CFDs, Stocks, Indices, Commodities and Cryptos
- Regulator: CySEC
- Platforms: Skilling Trader, MT4, cTrader, TradingView
- Minimum Trade: 0.01 Lots
Pros
- Excellent third-party charting platforms are available for serious day traders, with dozens of technical indicators and advanced order types
- Skilling continues to strengthen its investment offering recently introducing weekend forex trading on 7 currency pairs
- The Skilling Copy solution is accessible directly from the cTrader web terminal, making it easy for strategy providers to manage their portfolios
Cons
- Skilling trails alternatives like IG when it comes to research tools that can help day traders make informed decisions
- You can only access shares in the Skilling Trader platform and fewer instruments are available overall in the MT4 accounts
#5 - Fusion Markets
Why We Chose Fusion Markets
Fusion Markets is an online broker established in 2017 and regulated by the ASIC, VFSC and FSA. It is best known for its low-cost forex and CFD trading, although its multiple account types and copy trading solutions cater to a range of traders. New clients can sign up and start trading in 3 easy steps.
"Fusion Markets is a standout option for forex traders looking for excellent pricing with spreads near zero, industry-low commissions and recently TradingView integration. It’s a particularly good broker for Australian traders where the company is headquartered and regulated by the ASIC."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator: ASIC, VFSC, FSA
- Platforms: MT4, MT5, cTrader, TradingView, DupliTrade
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:500
Pros
- Fusion Markets is set up to support algo traders with a sponsored VPS solution and a 25% discount if you opt for the NYC Servers VPS for MT4 or cTrader.
- Average execution speeds of around 37 milliseconds are noticeably faster than many rivals and can help day traders secure optimal prices in fast-moving markets.
- Fusion Markets continues to impress with its pricing that provides tight spreads with below-average commissions that will appeal to active day traders.
Cons
- While the selection of currency pairs trumps most rivals, the broker's alternative investment offering is average with no stock CFDs beyond the US.
- The demo account expires after 30 days, limiting its potential as a useful trading tool alongside a real-money account.
- There is no proprietary trading platform or app built with beginners in mind, a notable drawback compared to AvaTrade.
Understading Broker Fees
Spreads & Commission
The two main ways that brokers generate income are through spreads and commissions. These essentially work as a per-trade cost. For example, a commission charge might be implemented as a flat fee, such as $0.50 per lot, or a percentage, like 0.1% of the trade value. Spreads, on the other hand, are charged by increasing the difference in the bid and ask prices of an asset, with the broker taking the difference once the position is closed.
Some discount firms may advertise themselves as the cheapest brokers with low fees because they offer ultra tight spreads, but they will often make up for them in other ways. For example, electronic communications network (ECN) brokers often offer minimal spreads but charge high commissions. Similarly, not all brokers charge commissions because they simply mark up the spreads.
Deposits & Withdrawals
Charges are also implemented by brokers for transactions, i.e. deposits and withdrawals. While this can sometimes just be to cover funds that the payment provider charge, brokers can also mark these up. Deposit and withdrawal fees will often vary slightly with different payment methods. These costs can sneak up on unwary traders, sometimes taking a large percentage of any money taken out of a trading account.
Overnight Charges
Swaps, or overnight fees, are often charged by brokers that are focused on day trading clients or short-term derivatives. Swaps go against Sharia law, so many brokers will offer Islamic swap-free accounts to facilitate halal trading. However, these charges are usually made up elsewhere in the fee model.
Inactivity
As well as charging clients for using their services, many online discount brokers will charge them for not. Accounts that are inactive for long periods of time (often at least a month) may incur additional charges. Inactivity fees can eat into any profits made by unwatchful investors who do not withdraw their capital or trade regularly. Be careful that the cheapest brokers with low fees don’t unexpectedly sting you for inactivity.
Currency Conversions
Forex and international brokers will often charge their clients for converting one currency to another. This fee is most often seen by clients opening accounts in a foreign country with a base currency they do not already own. Trading spot forex incurs these charges directly through commissions and spreads, although forex derivatives typically avoid this fee as no currency is actually converted.
Margin
Traders looking to take advantage of broker leverage through margin trading may see additional costs associated with the borrowing of the broker’s capital. This often comes by way of a small percentage fee on the amount borrowed for short-term trading. Taking out margin over longer periods of time, i.e. more than one day, can be charged an interest rate that is compounded daily.
Stock Trading
Investing in spot stocks has recently become significantly cheaper. Not long ago, commissions for buying shares were a minimum of $10 at the cheapest stockbrokers. However, some cheap online discount brokers have recently sprung up with minimal trading fees, such as Robinhood and Freetrade. Other spot trading fees, like holding and closing charges, are also removed at these new-wave cheapest brokers.
Pros Of Using Brokers With Low Fees
The best discount brokers allow traders to minimise the chunks of their gains that get taken away by brokers, markets and payment service providers. This means that there is a smaller margin for each trade to become successful, and any seriously successful trades become even more so.
With the constant development of online convenience and the number of blogs, forums, brokers and training centres constantly increasing, more and more free educational content is becoming available. This means that the premium educational content and courses that some more expensive brokers would charge for are no longer required, so traders can become effective at their enterprise even with the cheapest brokers and discounts.
Technical analysis is similarly becoming more easily accessible and advanced, with lots of free signals services and market breakdown blogs available online. Furthermore, the cheapest brokers with the lowest fees are now offering some high-end trading platform solutions, like MetaTrader 4 (MT4) or MetaTrader 5 (MT5), at no extra cost, which means that advanced market analysis and charting options are available.
Cons Of Using Brokers With Low Fees
Some of the cheapest brokers can seem almost too good to be true, and they sometimes are. The ability to offer high-end trading services for very little cost is difficult, so some companies use workarounds to get there and some simply lie, scamming their clients. Always ensure you research a discount broker’s regulatory status, licensing and customer reviews.
Fees are not always clear and some brokers will try to hide some of theirs to seem more competitive. The removal or reduction of obvious fees can just mean that they are not the broker’s main source of income and they are often replaced by some other form of charge.
Some of the extra services and features that might make your trading experience more enjoyable, like responsive, knowledgeable customer support, may not be provided by the cheapest brokers, as hiring a good team will mean money must be taken from elsewhere in the business model.
How To Compare Low Cost Brokers
In terms of pure cost, a comprehensive review of the entire pricing structure is the best way to find the cheapest brokers with low fees. These should, at minimum, include spreads and commissions, deposit and withdrawal charges and margin rates.
However, it is no good opening an account with the cheapest discount broker if they offer trading in one company share from half the world away, the full service should be considered. Beyond the asset list, you should take a look at trading platforms, customer service, leverage rates, regulation and demo accounts.
Final Word On Cheapest Brokers
The cheapest brokers with low fees are not necessarily the best brokers, as with the discount versions of most goods and services. However, if you know what you are looking for and how to get around some of the shortcomings they may have, they can be used to minimise trading losses and maximise profits. Be on the lookout for hidden fees and unregulated discount brokers to ensure you are not being scammed. See our list of brokers with low fees above to get started.
FAQs
Who Are The Cheapest US Online Trading Brokers?
Aside from those mentioned above, in the US, brokers such as Robinhood, Ally Invest and Tastyworks are notably cheap and popular platforms that are well-regulated and have a good range of stock, futures and forex trading services.
Who Are The Cheapest Forex Brokers?
Some of the best and cheapest forex brokers with tight spreads include Pepperstone, IC Markets and XM. Explore our top 10 best forex brokers.
Who Are The Cheapest Brokers With Low Fees For Day Trading?
Some of the cheapest brokers with low fees for intraday trading in Canada, India, Singapore and the USA include Robinhood, Capital.com and Fidelity.
How Do I Find The Cheapest Discount Brokers Near Me?
Not all discount brokers are licensed to provide their services everywhere in the world, so the absolutely cheapest brokers in the world may not be available to you. For example, a crypto broker regulated in Australia may not be able to provide its services to traders in India, Europe or South Africa. See our list above for the cheapest brokers in your area to get started today.
What Are The Cheapest Discount Crypto Brokers?
Cryptocurrency exchanges have slightly different fee structures from stock and forex brokers. Rather than charging spreads for currency conversions, exchanges will commission transactions. Coinbase is a top-rated trading platform with relatively low fees.