The forex market remains the largest financial market in the world, regularly facilitating more than $6 trillion in daily trading volume. Due to the high level of liquidity with forex, traders worldwide can easily speculate on price movements by partnering with a well-respected and regulated broker.

This guide will discuss the best low spread forex brokers available to partner with, reviewing which platforms have the most attractive fee structure before touching on what spreads actually are and how low spreads can be beneficial over the longer term.

The Best Low Spread Forex Brokers for 2024

Listed below are several low spread forex brokers, each offering a cost-effective way to place FX trades. We’ll review these cheap forex brokers in the following section, discussing their asset selection, features, and fee structure.

  1. XTB Popular Broker with Low Spreads from 0.1 Pips
  2. Vantage Beginner-Friendly Low Spread Forex Brokerage with Spreads from 0 Pips
  3. LibertexCheapest Forex Broker with Zero Spreads
  4. Trade NationAccess 25+ Forex Pairs with this Commission-Free Forex Broker
  5. AvaTrade – Leading CFD Platform with MT4/MT5 Support
  6. Interactive Brokers – One of the Best Low Spread Brokers for Experienced Traders
  7. TD Ameritrade – Great Forex Broker Featuring Excellent Trading Platform
  8. CMC Markets – One of the Best Cheap Forex Brokers with Huge Asset Selection
  9. Forex.com – Industry-Leading Broker with STP Account
  10. E*TRADE – Best Low Spread Platform to Trade Currency Futures

Lowest Spread Forex Brokers Reviewed

Low spread forex brokers are ideal for active traders, as fees can rack up quickly when placing multiple trades per day. Fortunately, there is an abundance of low spread brokers to choose from, each offering a slightly different fee structure and feature set. With that in mind, let’s dive in and explore the platforms listed in the previous section:

1. XTB – Low Spreads from 0.1 Pips

XTB is a well-known forex broker as well as supporting indices, commodities, cryptocurrency, stock CFDs and ETF CFDs. Their forex trading spreads are low – from around 0.1 pips depending on the instrument.

Traders can learn to trade forex with XTB’s educational courses aimed at beginner and intermediate traders, as well as keep up to date with the forex markets and all the latest FX news in their Market Analysis section.

XTB Forex Trading

XTB have dozens of positive ratings and five star reviews on TrustPilot for both their low spreads and the general usability of the platform with its range of features on offer. Micro-lot trading is also available.

XTB also implement industry-leading security protocols, and have built up a good reputation online for their safety, winning multiple awards from online forex review and comparison sites.

Number of Currency Pairs 48
Spread for EUR/USD 0.1 pips
Max Leverage 30:1
Accepts U.S. Clients? No

What we like:

  • Low Cost Fixed Spreads For UK & AU
  • Safety & Security Prioritized
  • Fast Deposits & Withdrawals
  • Micro-lot Trading Available

Your capital is at risk. 77% of retail CFD accounts lose money.

2. Vantage – Beginner-Friendly Low Spread Forex Brokerage with Spreads from 0 Pips

Vantage logo Vantage is an Australian-based forex broker which was founded in 2009. This trading platform allows users to trade over 40 forex pairs while paying some of the lowest trading costs. Forex pairs are accessible for some of the most popular pairs, including EUR/USD, AUD/CAD, AUD/CHF, CHF/JPY, and GBP/USD. 

The platform offers a straightforward account opening process, which only takes a few minutes to complete. On Vantage, users can choose between different account types. The first is the standard trading account, where users can start trading by paying low spreads. 

Vantage EUR:USD

For instance, on average, users pay between 0.0 – 0.2 pips when trading the EUR/USD forex pair. Furthermore, this trading platform does not charge further commission on trades. Through Vantage’s RAW ECN account, users can access even lower spreads while paying a small commission on their trades. 

Apart from forex, Vantage also lets users trade commodities, indices and share CFDs. For new and beginner traders, Vantage offers a social/copy trading platform where users can copy the trades of more experienced traders. 

Vantage also offers a demo trading account, which is a great way to practice trading strategies and familiarize yourself with the available tools on the platform. Notably, Vantage does not charge its customers any internal deposit or withdrawal fees. 

Vantage forex

To make a deposit on this platform, users can use VISA and Mastercard. E-wallets such as Skrill and Neteller can also be accessed. 

Number of Currency Pairs 40+
Spread for EUR/USD 0.0 – 0.2 pip
Max Leverage 500:1
Accepts U.S. Clients? No

What we like:

  • More than 40 forex pairs
  • Low spreads
  • No minimum deposit amount
  • Multiple payment options

3. Libertex – Cheapest Forex Broker with Zero Spreads

Libertex logo Investors looking for the lowest spread forex broker should look no further than Libertex. This is because Libertex occupies a unique position in the market because the platform charges no spreads on FX trades and is also considered to be one of the best MT5 brokers. Instead, Libertex charges a commission when trades are placed, which varies depending on the asset.

However, specific pairs do not come with a commission, such as EUR/USD and GBP/USD. Other pairs will be accompanied by a small commission of around 0.0003%, calculated using a multiplier when the position is opened. Aside from these commissions, Libertex does not charge any monthly account fees or deposit fees.

Libertex FX trading

The maximum leverage for retail traders on major pairs is 30:1, although this drops to 20:1 for minors and exotics. Libertex offers over 50 pairs to trade at the time of writing, although users can also invest in stocks and ETFs and buy cryptocurrency.

Libertex is regulated by CySEC, which is only of the world’s leading regulatory bodies. Regarding the trading experience, Libertex offers full support for MT4 and MT5, along with the ability to trade on a browser-based platform or the forex trading app. Finally, Libertex also provides a free demo account feature, complete with €50,000 in virtual money.

Number of Currency Pairs 50+
Spread for EUR/USD Commission Only
Max Leverage 30:1
Accepts U.S. Clients? No

What we like:

  • Zero spread fee structure
  • Full support for MT4 and MT5
  • Offers a free demo account facility

74.91% of retail investor accounts lose money when trading CFDs with this provider.

4. Trade Nation – Access 25 Forex Pairs with this Commission-Free Forex Broker

Trade Nation logoThe next low-spread forex broker on our list is Trade Nation, a popular multi-asset trading brokerage that was launched in 2014. Unlike a majority of the other forex brokers, Trade Nation does not charge variable costs on spreads. 

Instead, the broker charges a low fixed spread when trading forex brokers. With Trade Nation, users can trade over 25 forex pairs, including EUR/USD, USD/JPY, AUD/USD, and GBP/USD. For the EUR/USD pair, a fixed spread of 0.6 pips is charged. During the rollover period, the spreads can be increased to 1.4 pips. 

Trade Nation forex

Investors can start trading forex pairs through the TN Trader account, the proprietary trading platform of Trade Nation. When trading with this account, the platform charges no commission on trades. There are also no hidden costs, allowing traders to know exactly how much they will take back. 

This trading platform offers features such as negative balance protection. This means that if your balance falls into arrears, the platform will bring the balance back to zero by the next trading session. 

One can trade forex pairs with Trade Nation through a Meta Trader 4 (MT4) account. Through MT4, users can access various price charts and technical indicators. Furthermore, one can take out CFDs (Contracts for Differences) to trade on the future outcome of different assets. 

The platform offers 24/7 customer support, which is accessible via chat, email, or phone. To deposit Trade Nation, users can avail multiple payment methods such as VISA, Mastercard, and e-wallets such as Skrill. 

Number of Currency Pairs 25+
Spread for EUR/USD 0.4 Pips
Max Leverage 30:1
Accepts U.S. Clients? No

What we like:

  • 25+ forex pairs
  • Low fixed spreads
  • No commission with the proprietary trading platform
  • Multiple payment options

75% of retail investor accounts lose money when trading CFDs with this provider.

5. AvaTrade – Leading CFD Platform with MT4/MT5 Support

AvaTrade logo One of the best low spread forex brokers to consider when it comes to strict regulation is AvaTrade. AvaTrade is a CFD trading platform that offers 55 currency pairs to trade, with leverage that extends up to 30:1. Regarding oversight, AvaTrade is policed by the Central Bank of Ireland, ASIC, FSA, and FSCA – offering a high degree of investor protection.

As AvaTrade’s currency pairs are traded via CFDs, no commissions are levied when a trade is opened. Although AvaTrade isn’t the lowest spread forex broker on our list, since spreads start from 0.9 pips for highly-liquid pairs, the platform does offer numerous other trading instruments.

AvaTrade also offers a PAMM forex trading account which enables users to allocate fractions of their investing capital to a professional money manager who then invests those funds on behalf of the user.

AvaTrade fx trading

These include ‘vanilla options’ for FX pairs, which are ideal for experienced traders. AvaTrade also offers full support for MT4 and MT5, along with a free demo account feature. Finally, AvaTrade’s minimum deposit threshold is set at $100, which can be made via credit/debit card, wire transfer, Skrill, or Neteller.

Number of Currency Pairs 55
Spread for EUR/USD Average of 0.9 pips
Max Leverage 30:1
Accepts U.S. Clients? No

What we like:

  • Supports MT4 and MT5
  • Offers a selection of vanilla options
  • Heavily regulated throughout the world

6. Interactive Brokers – One of the Best Low Spread Brokers for Experienced Traders

interactive brokers reviewAnother of the best trading platforms offering low FX spreads is Interactive Brokers. Interactive Brokers is a US-based platform regulated by several leading bodies, such as the SEC and the FCA. Users can trade 105 different currency pairs, meaning this platform has one of the largest selections on our list.

In terms of fees, Interactive Brokers charges a commission based on each user’s monthly trading volume. For volumes less than $1,000,000, a 0.20 basis point (BPS) commission is levied, with a minimum charge of $2. Aside from this, Interactive Brokers does not charge any additional hidden fees to place FX trades.

Interactive Brokers FX trading

Interactive Brokers has no minimum deposit threshold, and the platform supports 23 base currencies. US-based traders can fund their accounts via ACH transfer, check, or online bill payment – although credit/debit cards are not currently supported. Finally, each user’s first monthly withdrawal is free of charge, although subsequent withdrawals will have a fee depending on the payment method.

Number of Currency Pairs 105
Spread for EUR/USD No spread (commission based on monthly trading volume)
Max Leverage 400:1 (for professional traders)
Accepts U.S. Clients? Yes

What we like:

  • No minimum deposit threshold
  • Over 100 currencies to trade
  • Regulated by the SEC

7. TD Ameritrade – Great Forex Broker Featuring Excellent Trading Platform

td ameritrade reviewTD Ameritrade is one of the cheapest forex brokers for US-based traders since no commissions are charged when a trade is opened or closed. This is the case for all 70 trading pairs that TD Ameritrade offers – which includes exotics like ZAR/JPY and NOK/SEK.

All of TD Ameritrade’s fees are built into the spread, which varies depending on the pair but remains competitive with the other platforms on this list. The account opening process is fully digital and requires no minimum deposit, although users looking to trade with margin will need to fund their account with at least $2,000.

TD Ameritrade FX trading

One of TD Ameritrade’s most appealing features is its ‘thinkorswim’ platform, which is considered the best in the industry. This platform offers real-time data, hundreds of technical indicators, backtesting features, and more. Users can also trade on TD Ameritrade’s mobile app, which can easily sync with the thinkorswim platform.

Number of Currency Pairs 70
Spread for EUR/USD Variable
Max Leverage 50:1
Accepts U.S. Clients? Yes

What we like:

  • Industry-leading thinkorswim platform
  • No commissions when placing trades
  • Offers a selection of exotics

8. CMC Markets – One of the Best Cheap Forex Brokers with Huge Asset Selection

CMC markets logo CMC Markets is considered one of the best low spread forex brokers in terms of reputation since the platform has been in operation since 1989. It is also regulated by the FCA, with the platform’s parent company listed on the London Stock Exchange, adding considerable credibility.

CMC Markets has a vast asset selection, as users can trade over 330 currency pairs. This platform also employs ‘precision pricing’, which uses fees from various banks to offer the best price to users. CMC Markets also boasts lightning-fast execution, ensuring little to no slippage.

CMC markets FX trading

Spreads are particularly low with CMC Markets, averaging around 0.7 pips for EUR/USD during peak trading hours. CMC Markets also doesn’t charge any deposit, withdrawal, or monthly account fees – although there is an inactivity fee after a year of no trading. Finally, this platform has no minimum deposit threshold, and users can fund their accounts via credit/debit card, bank transfer, or PayPal.

Number of Currency Pairs 330+
Spread for EUR/USD From 0.7 pips
Max Leverage 30:1
Accepts U.S. Clients? No

What we like:

  • Over 330 currency pairs to trade
  • No minimum deposit threshold
  • ‘Precision pricing’ feature

9. Forex.com – Industry-Leading Broker with STP Account

forex.com review As the name implies, Forex.com is a trading platform that specializes in currency trading, having been launched back in 2001. This platform is heavily regulated worldwide and policed within the US by the CFTC. Furthermore, Forex.com’s parent company is also listed on the NASDAQ.

Forex.com offers over 90 FX pairs to trade, with max leverage of 30:1 for major pairs – although US-based traders can trade with up to 50:1 leverage. Minors and exotics can be traded with 20:1 leverage, and all fees are built into the spread. However, average spreads are slightly higher than other options on our list, usually hovering above one pip for EUR/USD.

Forex.com FX trading

Users can also opt for a commission-based account, which offers lower spreads but a $5 fee for every $100,000 traded. Finally, Forex.com even offers a straight-through processing (STP) option, which sets spreads as low as 0.1 pip for EUR/USD – although commissions can be high for traders who do not trade regularly.

Number of Currency Pairs 90+
Spread for EUR/USD As low as 0.1 pips
Max Leverage 50:1
Accepts U.S. Clients? Yes

What we like:

  • STP account offered
  • Up to 50:1 leverage
  • Listed on the NASDAQ exchange

10. E*TRADE – Best Low Spread Platform to Trade Currency Futures

E*TRADE reviewRounding off our list of the best low spread forex brokers is E*TRADE. E*TRADE is a highly-respected trading platform within the investment industry since it is now a subsidiary of Morgan Stanley. Furthermore, E*TRADE is heavily regulated in the US by the SEC and FINRA.

The critical thing to note is that E*TRADE doesn’t offer FX trading in the traditional sense. Instead, users can trade currency futures contracts, which will appeal to more advanced investors. There are nine futures contracts to trade, featuring top currencies like EUR, GBP, and JPY.

E*TRADE FX trading

The price per contract is only $1.50, and E*TRADE has no short-selling restrictions, allowing investors to trade both sides of the market. There is also no minimum deposit threshold with E*TRADE, although users can only fund their accounts via checks, ACH transfer, or wire transfer.

Number of Currency Pairs 0 (9 currency futures contracts)
Spread for EUR/USD N/A ($1.50 per contract)
Max Leverage N/A
Accepts U.S. Clients? Yes

What we like:

  • Division of Morgan Stanley
  • Regulated by the SEC and FINRA
  • No minimum deposit threshold

Top Low Spread Forex Trading Platforms Compared

The low spread forex brokers reviewed above have been derived through extensive research and testing, ensuring there’s an option for all investor types. To help streamline the decision-making process even further, the table below compares the asset selection, spreads, leverage, and accessibility of the ten brokers discussed in the previous section:

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Platform Number of FX Pairs Spread for EUR/USD Max Leverage Accepts U.S. Clients?
XTB  48 0.1 pips 30:1 No
Vantage 40+ 0.0 – 0.2 pips 30:1 Yes
Libertex 50+ 0.0 pips 30:1 No
AvaTrade 55 From 0.9 pips 30:1 No
Trade Nation 25+ 0.4 pips 30:1 No
Interactive Brokers 105 No spread (commission based on monthly trade volume) 400:1 (for professional traders) Yes
TD Ameritrade 70 Variable 50:1 Yes
CMC Markets 330+ From 0.7 pips 30:1 No
Forex.com 90+ As low as 0.1 pips 50:1 Yes
E*TRADE 0 (9 currency futures contracts) N/A ($1.50 per contract) N/A Yes

How Do Spreads Work in Forex?

Before we answer this question, it’s important to know what the forex industry is. As such, for any readers who want a crash-course in currency pair trading then you can read our article on what is forex trading as well.

Much like the process investors must take to buy stocks, there are certain fees to be aware of when trading forex. The most significant charge is called the ‘spread’, or the ‘bid/ask spread’, which represents how each trading platform is compensated for facilitating FX trades. Spreads can vary from broker to broker and may be fixed or variable.

Spreads work like this – whenever a currency pair’s price is quoted on a trading platform, it will have a ‘bid’ and an ‘ask’ (or a sell/buy) price. This setup tends to look like this:

  • GBP/USD – 1.3055/1.3058

The number on the left represents the price for which the platform will buy the currency, while the number on the right is the price for which the platform will sell the currency. The difference between the two prices is defined as the ‘spread’.

Forex low spread brokers

Naturally, the number on the left (the ‘bid’ price) will be less than the number on the right (the ‘ask’ price) since each trading platform will be looking to buy a currency pair for less than they’re willing to sell it – thus making a ‘cut’ on each trade.

This cut is measured in ‘pips’, which is the change in the fourth decimal place on a price quote. So, using the presented earlier, there would be a three pip spread on the broker’s GBP/USD offering.

What’s Considered a Low Spread?

As the name implies, low spread brokers offer relatively tight bid/ask spreads, thereby allowing traders to make more profit on each trade. However, each broker will have a slightly different approach, whether that be a ‘dynamic’ (or ‘variable’) spread or a fixed spread.

Dynamic spreads change depending on market conditions, so spreads tend to be lower when liquidity is high. On the other hand, when momentum is down, and not many people are trading, spreads are more elevated. The difference in spreads between busy and quiet trading hours can be pretty drastic – which is why most traders opt to trade during peak times.

eToro fx spreads

Fixed spreads remain at the same level, regardless of the time of day.

However, in terms of what is considered a ‘low spread’, this is all relative. A general rule of thumb is that spreads of 1 pip or below are relatively low, so traders tend to gravitate towards platforms that offer these levels. Some brokers provide ECN or STP trading, which can mean spreads are as low as 0.1 pips – although these brokers usually charge a commission for facilitating trades.

Other Forex Trading Fees

Although low spread brokers look to limit the bid/ask spread size, there are often other trading fees to be aware of. These can either be trading fees or non-trading fees.

Trading Fees

Those who invest in stocks will know that buying or selling financial assets usually involves paying some form of trading fee. Regarding FX trading, this usually comes in the form of a spread, which we have discussed above.

However, certain brokers (especially those that offer ECN or STP approaches) will charge a commission, which tends to be based on each user’s monthly trading volume. Thus, although spreads may be lower (or non-existent), the commissions charged by the broker tend to wipe out any cost savings – or may even be more expensive.

Non-Trading Fees

Non-trading fees are defined as any fees that occur outside of placing trades. The most common fees within this area are deposit and withdrawal fees, which tend to be a set charge when a user funds their account or opts to withdraw money.

Other non-trading fees include inactivity fees, which are charged when no activity takes place on a user’s account for an extended period – usually 12 months. Conversion fees may also be charged when a user deposits a non-supported currency. Finally, some platforms may even charge a ‘management fee’ or ‘account fee’, which is essentially a monthly or yearly subscription to use the service – although this is relatively rare.

Platform Other/Non-Trading Fees
XTB Deposits, withdrawals, and inactivity fee
Libertex Withdrawal fee (specific payment methods), inactivity fee
AvaTrade Inactivity fee
Interactive Brokers Withdrawal fee (first withdrawal every month is free)
Trade Nation None
TD Ameritrade Withdrawal fee (for wire transfers)
CMC Markets Inactivity fee
Forex.com Inactivity fee
E*TRADE Withdrawal fee (for wire transfers)

Best Low Spread Forex Brokers – Conclusion

To summarize, this guide has reviewed a selection of low-spread forex brokers, highlighting their fees, features, and asset selection. Choosing which broker to partner with can be challenging at first – but by reviewing the information presented in this guide, investors can be sure to find a platform that suits their needs.

FAQs

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