Forex spreads 4

Best Zero Spread Forex Brokers in 2023.

The annual forex broker review (six years running) is the most cited in the industry. With over 50,000 words of research across the site, we spend hundreds of hours testing forex brokers each year. Here's how we test.

Trading costs continue to decline each year as forex brokers compete to win you as a client, and many now offer zero spread trading accounts as an extra enticement.

Be aware: Some zero spread account offerings can be marketing gimmicks to lure you in as a trader. It's therefore important to be able to read the fine print and understand what to look for when deciding which broker to choose. This guide covers the best zero spread forex brokers and explains what you need to know to choose the best option for your needs.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What is a zero spread account?

Zero spread accounts are trading accounts offered by brokers that have no difference between the bid and ask price, or spreads that average close to zero. However, there still exists the potential for spreads to widen, and there can still be added trading costs (commissions, for example) depending on the broker and account you choose.

Trading with a zero spread account makes it easy to enter and exit a trade without the need to worry about incurring trading costs, provided there are no additional commissions or fees.

Note: Even if there is a commission instead of spread, accounting can be easier when you know there was no spread when calculating trading costs, as commissions are usually shown on a separate column in most brokerage account reports.

Lowest Spread Forex Brokers.

Here are the best zero spread accounts, including brokers that offer spreads close to zero, available for 2023, based on 113 variables.

Best overall for low costs.

Minimum Initial Deposit $100 Trust Score 82 Tradeable Symbols (Total) 295.

Of Tickmill’s three accounts (Classic, Pro, and VIP), it was the competitive commission-based pricing for professionals available through its VIP and PRO accounts that helped the broker finish 1st overall for Commissions and Fees again in our 2022 annual review. Read full review.

Highly competitive pricing Above-average research and education offerings Small range of markets available for trading.

Spreads as low as 0.0 pips.

(76% of retail CFD accounts lose money)

Best web trading platform, consistent pricing.

Minimum Initial Deposit $0 Trust Score 99 Tradeable Symbols (Total) 12377.

CMC Markets is a low-cost leader that features consistently low spreads for all customer segments and account types, and competitive pricing for active traders – though the availability of discounts and rebate programs will depend on your country of residence. Read full review.

Low trading costs Excellent web and mobile platforms Robust research materials Educational offering could be improved.

Best for professionals, excellent pricing.

Minimum Initial Deposit $0 Trust Score 99 Tradeable Symbols (Total) 8500.

Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets and competitive fees – though given the minimum commission of $2 per side, trading anything less than 100,000 units of currency becomes proportionally more expensive. Read full review.

Robust platform for professional traders Wide range of global markets Thorough research offering Trader Workstation platform is likely too complicated for inexperienced traders.

Quotes as tight as 1/10 of a pip.

(66% of retail CFD accounts lose money)

Great for beginners, competitive pricing.

Minimum Initial Deposit $20 Trust Score 77 Tradeable Symbols (Total) 6000. stands out for its quality research, strong educational content, and innovative web platform. holds fewer regulatory licenses and offers a narrower range of markets than some of the best brokers, but still significantly outperforms the industry average. Read full review.

High-quality educational articles and courses Newsroom-grade research articles Offers over 400 crypto CFDs MetaTrader 5 not available Respectable range of tradeable symbols, but fewer than industry leaders.

CFDs on 3,700+ markets.

(87.41% of retail CFD accounts lose money)

Great for MetaTrader, low average spreads.

Minimum Initial Deposit $200 Trust Score 86 Tradeable Symbols (Total) 3583.

IC Markets offers competitive pricing across all account types, with low average spreads and modest minimum deposit requirements. Further discounts are also available for traders that trade over 100 standard lots per month. Read full review.

No. 1 MetaTrader broker for 2022 Excellent automated copy trading strategies Competitive pricing Research and education are limited Regulated primarily by one Tier-1 regulator (in Australia)

(74-89% of retail CFD accounts lose money)

Full MetaTrader suite, competitive pricing.

Minimum Initial Deposit $100 AUD Trust Score 86 Tradeable Symbols (Total) 9956.

FP Markets shines as a low-cost broker for trading forex and CFDs – as long as you use the MetaTrader platform. Ultra-competitive spreads are also available by way of its commission-based Raw ECN account. Read full review.

Very competitive spreads Industry-leading pricing on MetaTrader Room for improvement in education Mobile trading app lacks features offered by industry leaders.

Trade on highly competitive interbank.

(Retail CFD accounts lose money)

Excellent education, great active trader pricing.

Minimum Initial Deposit £250.00 Trust Score 99 Tradeable Symbols (Total) 19537.

IG’s fantastic all-around experience has us ranking IG as the best overall broker for our 2022 annual review. While we wouldn’t consider IG a discount broker, it shines for the active trader pricing available through its Forex Direct accounts. Read full review.

Outstanding platforms and tools Over 19,000 tradeable instruments Competitive pricing No predefined layouts on the flagship web platform Limited product range on MT4.

(77% of retail CFD accounts lose money)

Is there a broker with 0 spread?

While many brokers advertise zero spreads, it can be misleading to look only at the minimum spread or the lowest spread of the day -- it's possible that the spread is worse (higher) the majority of the time.

That is why it is important to only trust the average spreads to determine the true cost of a broker claiming to offer zero-pip spreads. A zero spread implies there is no difference in pips between the bid price and ask price; they are exactly the same price when the spread is 0.

In our research, there are only a few brokers that truly average close-to-zero-pip spreads on the EUR/USD, but you still must pay a per-trade commission, thus the effective spreads average out to be higher. Any broker claiming to offer zero pips with no commissions should be considered carefully, as it could turn out to be either a scam or offer questionable execution practices. That's why it's always important to only use trusted, highly regulated brokers.

For example, Tickmill, FP Markets, and IC Markets feature spreads close to 0 for their commission-based accounts, with their effective spreads averaging anywhere from 0.42 to 0.62 on the EUR/USD pair (using monthly spread data obtained during our 2023 annual review), helping them finish best in class in this category.

How do you compare zero spread accounts?

When you compare accounts offered by the best forex brokers for zero spread trading, spreads will still vary in most cases, and you may incur other trading costs such as commissions. Therefore, it is essential to keep the subtle details in mind when reading the fine print for zero spread trading.

Forex brokers often offer multiple accounts, where certain features such as the execution method, the trading platform available, or the range of markets will vary depending on which account you select.

Whether you are trading spot forex as a CFD or as a non-deliverable rolling contract, this guide covers some of the key takeaways for trading forex on margin with a zero spread broker. If you are interested in learning more about CFDs (and you want to read about our favorite CFD trading platforms), check out our guide to the Best CFD Brokers and Trading Platforms.

Should I choose a zero spread account?

An account with zero spreads can make sense if your trading strategy is spread-sensitive or if you just want to reduce your trading costs as much as possible -- but there are potential trade-offs.

Factors to keep in mind include any added commission and knowing if zero spreads are variable or fixed, especially during volatile market conditions when spreads may widen.

Consider that execution quality can suffer in a zero spread account if your trading strategy relies on specific execution qualities, such as avoiding slippage (where your order can get filled at a worse price).

Pros of zero spread pricing: A scalping strategy or other high-frequency trading program based solely on latency, or price delays that cause arbitrage, will likely require that you have lower costs (i.e., cost-sensitive) to be profitable. Cons of zero spread pricing: Conversely, other high-frequency algorithmic trading based on technical indicators can perform better on zero spreads, even if there are execution delays or price requotes during fast markets. However, this potential slippage also means that the effective spread can be greater than zero if your order is filled at a worse price.

About zero spread forex brokers.

A zero spread forex broker attempts to offer a spread of zero pips. The spread is the difference between the bid price (where you can sell) and the ask price (where you can buy), measured in pips (fractions of a currency). These seemingly small trading costs can quickly add up, because trading forex takes place from within a margin account (that is, uses leverage), especially as your trading volumes increase.

Sample EUR/USD spread 10 years ago: 3 pips Sample EUR/USD spread today: 0.8 pips Sample EUR/USD spread at a zero spread broker: 0.1 pips.

In the interbank market, where prices originate from major dealers, spreads are quoted in fractions of a pip, also known as fractional-pips. A zero pip spread may range from 0 to several fractions of a pip -- or even more during volatile market conditions.

Zero spread investment offerings comparison.

Using our forex brokers comparison tool, here's a summary of the spread pricing offered by the best zero spread forex brokers.

Company Average Spread EUR/USD - Standard All-in Cost EUR/USD - Active Active Trader or VIP Discounts Execution: Agency Broker Execution: Market Maker IG 0.86 (September 2022) 0.5957 (September 2022) Yes Yes Yes Interactive Brokers 0.6 (Aug 2022) 0.6 (Aug 2022) Yes Yes No CMC Markets 0.51 (August 2022) 0.51 (August 2022) Yes No Yes FP Markets 1.2 (August 2022) 0.7 (August 2022) Yes No Yes IC Markets 0.62 (August 2021) 0.62 (August 2021) Yes Yes Yes Tickmill 0.51 (August 2022) 0.31 (August 2022) Yes Yes Yes HYCM (Henyep) 0.6 (Sept 2021) 0.6 (Sept 2021) Yes Yes Yes.

Note: Brokers listed in the above table ranked best in class for Commissions & Fees in the 2023 review.

How does a zero spread forex broker earn money?

A zero-pip spread that is fixed, and doesn't vary, will likely include a commission. The broker may also be operating a dealing desk to attempt to make money when you trade, by being on the opposite side of each trade.

The way forex and CFD brokers earn money depends on their business model and available execution methods. All brokers will ultimately do one or more of the following:

Add a spread markup or earn a rebate (agency broker) when you trade with them, as they route your order to a third-party market-maker in return for compensation. Charge a commission (agency broker) in lieu of any spreads when routing your order. Manage risk as a dealer (agency broker or market maker) on zero spread accounts.

Pro tip: Some zero spread brokers combine some of these execution methods into a hybrid offering. Some brokers let you choose execution type from within your account or open an account specific to a particular execution method.

Which broker has lower spreads?

In order to really know which broker has lower spreads compared to the competition, we obtained average spread data and factored in any per-trade commissions to arrive at the effective spreads, which allow you to determine your true trading costs.

Brokers with the lowest effective spreads in 2023 are as follows, based on average price data obtained by our research for the EUR/USD pair:

Tickmill - 0.47 (September 2021) on Pro account FP Markets - on 0.7 (October 2021) Raw ECN account CMC Markets - 0.73 (August 2021) on all accounts IC Markets - Average 0.62 (August 2021) on cTrader account HYCM - Average 0.6 pips (September 2021) on Raw account Interactive Brokers - 0.6 pips (Week ending Oct. 6, 2021) IG - Deeper discounts on Forex Direct account.

currency exchange Pro tip:

Read our guide to the best forex brokers to see how these low-cost brokers stack up to the best brokers in the industry, and check out our guide to the best forex trading apps to see which low-cost brokers deliver the best mobile trading experience.

Which forex broker has the tightest spread?

Tickmill provides the tightest spreads (averaging 0.13 pips on the EUR/USD during August) from among the 39 brokers ranked in the 2023 Annual Broker Review, after factoring in trading costs (i.e., any commissions). FP Markets follows closely in second place, also offering a nearly zero pip spread with a small commission added per trade.

Pro tip: When measuring forex spreads, the most accurate way to determine which broker has the tightest spread is to calculate the average spread for a given period -- such as one month. In addition, it is important to factor in the trustworthiness of the broker, to ensure you are provided with the best execution to pay the spread you deserve and avoid pitfalls like asymmetrical slippage.

Which broker has the best spread?

Tickmill stands out as having the best spread, as the overall trading cost (spread + commission) is 0.47 pips, which is the lowest on average based on September 2021 data using the EUR/USD pair on its Pro account offering. Other brokers might advertise a lower spread, but end up being more expensive because they charge a higher commission or have higher average spreads.

Is a zero spread account good?

While it's nice to avoid fees, a zero spread account can still end up costing you a per-trade commission, and even worse -- spreads can potentially widen in a zero spread account even if it is commission-free.

Depending on your strategy and trading needs, a zero spread account might not be good for you if certain order types or execution methods are not available. The key is knowing what the average spreads are, and whether there are any per-trade commissions -- this allows you to calculate the effective spread.

Can I trade forex without a broker?

No, forex trading is conducted from within a brokerage account, which provides you a certain degree of leverage (margin), along with access to a trading platform and a range of currency pairs. You should always choose trusted forex brokers that hold proper regulatory licenses to avoid becoming a victim of scams.

Pro tip: For cryptocurrency users looking at forex trading with stablecoins, a decentralized exchange is also not a suitable option for forex. Spreads can be significantly wider, and there is no mechanism to ensure the best execution even if zero spreads are advertised -- which could result in extreme slippage.

Which forex broker is best for scalping?

IC Markets is an excellent forex broker for scalping, and provides zero spreads (plus commission) via its Raw Spread Account. IC Markets is used by a significant number of algorithmic traders and provides access to cTrader and MetaTrader. These platforms allow you to run automated high-frequency trading programs such as scalping-based strategies and can even place orders in between the spread. If you want to learn more about algorithmic trading and automated high-frequency trading systems, check out our guide to high-frequency trading.

Pro tip: Whether brokers claim to offer Straight Through Processing (STP) or an Electronic Communications Network (ECN), these descriptions are not as important as how your broker's business model actually operates, including its order execution policy during fast markets when spreads can widen.

What's the difference between raw spread and a standard account?

A standard account refers to the smallest trade size of 100,000 units of currency, which is also known as a standard lot size. A raw spread refers to the cost of trading reflected in the bid/ask price, where the broker is not adding any markup but instead provides the price as is (i.e., raw spread) straight from their liquidity providers.

Pro tip: In most cases, raw spread forex brokers will add a per-trade commission to make money or act as market makers. 2023 Overall Ranking.

Here are the Overall rankings for the 60+ online brokers who participated in our 2023 Annual Review, sorted by Overall ranking.

Company Overall Rating Offering of Investments Commissions & Fees Platform & Tools Research Education Mobile Trading Trust Score Visit Site IG 99 Visit Site.