In this post, you will find the best forex brokers with the lowest spreads in EURUSD. You can see how I chose them from 200 brokers and why they definitely have the lowest spreads + commission for EURUSD. I also look at this pair from different angles that can help you when it comes to changing it.
But before all that, let me introduce these forex brokers.
You will see in this article:
The best forex brokers with the lowest spreads in EURUSD
The following is a list of the top ten brokers with the lowest EURUSD spreads according to our independent study of them:
Methodology: How did I find low-value currency brokers on EURUSD?
Some Forex brokers post their spreads or, in some cases, the average spreads on their website, but not all brokers do. Also, those who publish their spreads are sometimes not entirely honest about it.
What you will find on all review websites are the spreads posted by forex brokers. Some of these review sites don’t even know much about intermediaries ’spreads and commissions, or so they seem.
For example, they list a lot of agents with differences like 0 or 0.1 pips for EURUSD, which we all know there is no such thing. Even if sometimes a broker can provide 0.1 pips as a spread, they charge a commission that needs to be added, for example, $ 7 per lot. So what you really pay for is 0.8 pips and not 0.1 pips. Also, most of the time, this is not the average difference of a pair, but it is the lowest difference you receive.
In addition, all this is true when we give runners the advantage of doubts and take their words for granted. We don’t know if they’re completely honest about it when we don’t have an unbiased place to check it out again.
You mean we never know the real differentials of brokers unless we open a real account with them, you may ask for it, this is not even possible because there are broker providers out there.
Well, I had a solution for that. There is a website called myfxbook with many registered brokers and over ten thousand real accounts connected to these brokers. The site publishes the spreads that these real accounts receive from their brokers.
I went through all the currency brokers that were there and monitored their spreads in EURUSD for about a month in order to find the currency brokers with the lowest spreads for EURUSD.
Because the lowest trading commission is usually related to a type of broker account called ECN or Zero spreads, and there is a commission charged for that type of account, what you see here is actually the spreads + broker commission for EURUSD.
EURUSD volatility and average daily range
EURUSD is the most quoted currency pair among all currency pairs. As a result, it’s the most liquid pair, which means there are always buyers and sellers, so you barely see gaps, especially above the 15-minute deadline.
All this places EURUSD in the middle category in terms of volatility. According to the study we did, the average daily range or average daily movement of EURUSD is 84 pips (the study runs from 2014 to 2021)
Because EURUSD is the highest liquid pair, it has the lowest spreads between all major and minor currency pairs. As a result, it is one of the best pairs for scalpers or day traders.
The correlation between currency pairs occurs when there is a significant relationship between the movements of two pairs. It can be positive or negative. In the positive correlation, the pairs move in the same direction and, in the negative correlation, choose a different path opposite each other.
Among exotic currency pairs, EURUSD has the strongest positive correlation with EURSGD. The correlation between them is usually around 90%.
The strongest negative correlation between EURUSD and an exotic pair is between EURUSD and USDCZK, which is around -90%.
When it comes to the correlation between EURUSD and major / minor pairs, GBPUSD has the strongest positive correlation with a + 85% correlation and USDCAD is the most negative with a -70% correlation. Of course, USDCHF is also one of the pairs that most often has a strong negative correlation with EURUSD.
So now, can you ask me how positive or negative correlations help me?
Well, the answer is that you can use them as confirmation.
Sometimes you’ve found a setup that fits your strategy, but it’s not clear enough and you’re not sure which trade it will open. Here correlation can help.
For EURUSD, you can check for example EURSGD or GBPUSD to see if you can see the same settings but of course clearer. You can also look at pairs with negative correlations to see if you find opposite signals.
What is the average difference of EURUSD in forex brokers?
The average EURUSD difference between all the currency brokers in the industry is around 1 pip. There are some runners with a smaller difference, such as 0.6 pips and others who charge up to 2 pips.
Typically, forex brokers that use an ECN system and / or have larger liquidity providers can offer you better spreads, so most reputable brokers do not charge you more than an average pipe for EURUSD.
Note that when we talk about the spread here, we are talking about the spread alone or spread + commission in case you choose an ECN or zero spreads account.
To clarify this, let’s take a look at the different types of forex brokers ’accounts.
Account type with the lowest spreads in EURUSD
As you have probably seen, Forex brokers offer different types of accounts to meet the different needs of their clients. The names of these types can vary from broker to broker, but there are usually a few types of accounts.
Standard: This type of account is usually an STP account, which means no fees are charged and you only pay spreads. Calculations are variable and not fixed, so you are very likely to receive differential differentials each time you open an operation.
ECN / zero difference: here you will also receive variable differentials, but the differentials are lower than the standard account, but you are charged a commission. For example, the difference is 0.1 pips, but you also charge a 0.6 pip commission, so technically you pay 0.7 pips.
Mini / Micro / Cent: As its name suggests, the most important feature of this type of account is a low minimum income, which means that in some cases you can open an account for only $ 1. This can be useful for new traders who want to get their feet wet. While this minimum deposit may be an advantage in this case, you should know that you receive larger accounts in this type of account. For example, if a broker charges 1 pip to their ECN account for EURUSD, they may charge 2 pips per pair to their Cent account.
Fixed broadcast: There are no fees on this type of account and you only pay fixed spreads, but these fixed spreads are usually higher than the ECN account and in most cases higher than the standard or STP account.
There are other types of accounts with names such as Prime, VIP, etc. which offer better conditions, but usually need to deposit and operate with a larger amount of money.
So what kind of account has the lowest spreads for EURUSD?
You probably guessed it … yes, it’s the ECN account. In general, you pay less to your ECN account, but you should know that the differentials for this type of account fluctuate more than other types. For example, once you could get 0.7 pips and again 1 pip.
This fluctuation is less on STP accounts and you generally don’t pay much more than the ECN rate. It is more suitable for traders who need to see more predictable spreads, such as news traders.
Not to mention the best conditions and the lowest EURUSD spread you can have is related to the primary or VIP account type of forex brokers.
Average spread of EURUSD in low-exchange currency brokers
We saw that the average EURUSD differential in the industry is about 1 pip, but what is the average EURUSD differential in the currency brokers with the lowest differentials?
First, the differentials mentioned here are related to the type of brokers ’ECN accounts, so they are actually distributed + commission. Second, some brokers, as I said earlier, offer better terms and lower differences if you choose certain types of accounts, such as principal or VIP.
What you see here is related to the ECN accounts of brokers with a minimum income, so if you open a large-sized account or, in some cases (e.g. FXOpen or Admiral Markets), trade more batches (batch sizes plus large), you will receive smaller commissions and consequently lower spread + EURUSD commission.
The average EURUSD difference in the lowest difference currency brokers is around 0.78 pips
EURUSD Low Disclosure Brokers (Comparison Chart)
In the table below you will see the information of the 10 best Forex brokers with the lowest spreads in EURUSD. Note that the file information general information i Average difference sections is related to brokers’ ECN accounts and may change to some extent if you choose other account types.
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