Forex brokers with low spreads are especially popular among scalping supporters, because this trading strategy means opening a lot of deals within one day, and under these conditions a commission may amount up to 100 pips. To cut their costs on forex operations the traders opt for dealing desks with low spreads. There are traders who consider this to be the main selection criterion. Due to low spreads financial losses decrease, which favorably compares with the basic principles of a trader: to make profit and to secure personal funds. Brokers which are listed here offer floating and fixed spreads of different values, but always either on minimal or medium levels. Of course, it is possible to make a big initial deposit, but brokers offering micro and mini accounts allow trading bit-by-bit anyway.
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.
What are Low Spread or Zero Spread Brokers?
The Lowest Spread brokers offer the lowest Forex Spreads or zero spreads. Trading costs declined over the recent years as forex brokers compete to win more clients. Many offer zero spreads as an extra enticement, but it is essential to know the terms and conditions before choosing a broker. Our guide covers everything you need to know, so read on.
What is considered a good spread?
Spreads are considered good when they are as close to zero as possible. Those usually have an average of below 1 pip. An example of a good spread would be 0.5 pips for a currency pair. It is also important to base your calculations on average price data over an extended period.
What is the lowest spread in Forex?
0 pips is the lowest spread (zero spread) in forex. 0 pips spreads are offered by ECN-STP brokers. To calculate which broker has lower spreads, it is essential to calculate all trading costs. While some brokers offer zero spreads, they still charge per-trade commissions, which could end up costing you more.
What is a zero-spread account?
Zero Spread Trading Account is a forex trading account that has no difference between the bid and ask price or the spread is close to zero. Spreads can widen depending on the trading conditions, account type, and whether or not the broker charges commissions.
How To Compare Low Spread Accounts?
To compare low-spread forex accounts, you need to take into account factors such as commissions per trade, spreads, trading platforms, regulation, security, and currency pairs offered.
Raw Spread Account vs. Standard Account
In Forex, a Standard Account refers to a standard lot size, which is 100,000 units of currency. A Raw Spreads account refers to the cost where the broker doesn’t add a price markup but offers the price directly from liquidity providers.
How does a good spread make a difference?
The lower the spread, the cheaper it is to place a trade order. It means that the cost of trading is less. Incorporating spreads into your strategy is a key way to make higher profits.
On the other hand, make sure you check what other commissions your broker charges. Some charge higher commissions to make a profit.