Tue. Oct 19th, 2021

There are lots of forex brokers claiming they offer low spreads or in some cases the lowest spreads but are they really true to their words? How we can figure out if they’re telling the truth and they really have the lowest spreads?

Well, for finding that out, I knew where to look into.

Obviously registering in hundreds of forex brokers out there is not a viable option and even if I did, that I couldn’t calculate the average spread for every one of them and even I could do that, the gained spreads were only from one account, mine, while we need several accounts if we’re looking for accurate results.

Luckily, there’s a website, Myfxbook, with more than 200 registered forex brokers on which you can find the average spreads of those registered forex brokers.

COOOL!

Yep, we can have access to the real spreads of real forex accounts in more than 200 forex brokers so the data are extremely reliable and we can expect to see the spreads like what you see there in our real accounts.

The costs of trades are not only related to spreads. Commission plays a role in the ECN type of accounts of forex brokers as well. Since the ECN accounts of the brokers have the lowest costs, we examined this type of account in this review so the costs are not just spreads but spreads + commissions.

Without further ado, let’s become familiar with low spreads forex brokers

You’ll See in This Article:

Forex Brokers with the Lowest Spreads

Here’s a list of top 9 forex brokers with the lowest spreads according to our study:

1- FXOpen

FXOpen is one of the reputable and highly acclaimed forex brokers founded in 2005.

The spreads of FXOpen are the lowest ones in our list of forex brokers in total. From the 9 forex pairs tested here, FXOpen has the lowest spreads on 5 of them and is in the second-best on the 4 others. However such low costs is if you have a big size account and/or trade a large number of lots.

The spreads examined here are related to the ECN account of FXOpen which has the lowest spreads among the types of FXOpen accounts. The commission of FXOpen is one of the lowest in the industry and starts from $1.5 per side for one standard lot.

This type of low commission is if you either trade more than 50 lots monthly or have an account larger than $25000.

If your account is under $1000, you pay $3.5 per side for each lot so you don’t pay such low spreads + commission in this case however, the spreads + commission are still low even in this condition.

With that said, you can get a better deal in our next brokers if you don’t have that kind of amount in your account.

Anyway, FXOpen also has other types of accounts including Micro account which has nano lot size starting from 0.0001 lots. You can open such an account with only $1. Note that the spreads in the Micro account are much higher.

FXOpen is highly regulated by 2 top tier regulatory bodies; FCA which is UK regulatory body, and ASIC that regulates forex brokers in Australia. As a result, your funds are completely safe in this broker.

FXOpen Average Spreads + commissions

Pairs EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.52 0.74 0.58 0.49 0.87 0.54 0.57 1.32 0.86

FXOpen Information

Regional offices: Nevis, UK, Australia

Spread + Commission Score: A+

Regulated By: ASIC, FCA

Regulation Score: A+

Maximum Leverage for ECN account: 1:500

Minimum Deposit for ECN Account: $100

Minimum Deposit: $1

Instruments: Forex, Indices, Commodities, Metals, Stocks, and a big range of Cryptocurrencies

Trading Platform: MT4 and MT5 (for Desktop, Web, Mobile)

Banned Countries: U.S, Belgium

Payment Methods: Bank Wire, VISA, MasterCard, Neteller, Skrill, Webmoney, UnionPay, Perfect Money, QIWI Wallet, Yandex Money, FasaPay, Paysafecard, Local bank for Malaysia and Indonesia

No fees on deposit – Payment methods charge some fees on withdrawal, FXOpen doesn’t charge extra fees.

  FXOpen Website


2- FP Markets

FP Market is another reputable forex broker on our list which was established in 2005.

The spreads of FP markets are the second-best among our tested forex brokers and probably the best ones for smaller-size accounts, since FXOpen commission is higher in small accounts.

The spreads here are related to the ECN account of the broker called RAW. The RAW accounts are charged with a $3 commission per side for every lot which is average in the industry.

They also have other accounts, in which they charge a commission, related to IRESS trading platform. This platform charges $55 per month and the minimum deposit for opening IRESS type of account in FP Markets is $1000.

FP markers is regulated by the Australian regulatory body, ASIC, so your account will be safe in this broker.

FP Markets Average  Spreads + Commissions

Pair EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.54 0.72 0.68 0.56 0.87 0.59 0.95 1.2 0.79

FP Markets Information

Regional offices: Australia

Spread + Commission Score: A+

Regulated By: ASIC

Regulation Score: B+

Maximum Leverage for ECN account: 1:500

Minimum Deposit for ECN Account: AUD $100

Minimum Deposit: AUD $100

Instruments: forex pairs, Metals, Indices, Commodities, Cryptocurrencies

Trading Platform: MT4 and MT5 (for Desktop, Web, Mobile), IRESS

Banned Countries: U.S, Japan, New Zealand, Syria, North Korea, Iran

Payment Methods: Credit/Debit Card, bank wire, Neteller, Skrill, Fasapay, PayPal, Paytrust88, Ngan Luong, Online Pay, Broker to broker

Usual fees of the payment methods are charged, FP Markets doesn’t charge extra fees

 FP Markets Website


3- RoboForex

Founded in 2009, Roboforex is one of the forex brokers offering low spreads in its ECN type of account.

RoboForex has two types of ECN account with low spreads + commissions: ECN- Pro and Prime.

You can open those types of accounts with only $10. The commission of the Prime account is better so you pay less as spreads + commission, however, the max leverage of this type account is 1:300 while it’s 1:500 for the ECN-Pro.

The spreads + commission examined here are related to the ECN-Pro; therefore, if you open a Prime account, you will pay even less so the costs of trades decrease.

For ECN-Pro accounts, you pay $2 per side for every lot as commission while it’s $1 in the Prime account. That’s why the costs of trades are even lower in Prime accounts and lower than what are listed here.

RoboForex is regulated by one regulatory body, IFSC (The International Financial Services Commission) which is in charge of the regulation of forex brokers internationally.

RoboForex Average Spreads + Commission

Pair EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.58 1.04 0.84 0.89 1.16 0.74 1.26 1.33 0.86

RoboForex Information

Regional offices: Belize

Spread + Commission Score: A+

Regulated By: CySEC, IFSC

Regulation Score: B

Maximum Leverage for ECN account: 1:300 for ECN-Pro and 1:100 for Prime

Minimum Deposit for ECN Account: ECN-Pro $10 and Prime $5000

Minimum Deposit: $10

Instruments: Forex, Indices, Commodities, Metals, CFDs, Cryptoindices, and Cryptocurrencies (Bitcoin, Ethereum, Dash, Litecoin, and Ripple)

Trading Platform: MT4 and MT5 (for Desktop, Web, Mobile), cTrader, R Trader (proprietary platform)

Banned Countries: U.S and Canada

Payment Methods: Bank Wire, VISA, MasterCard, ePayments, FasaPay, Neteller, PaySec, Poli, Qiwi, Skrill, UnionPay, WebMoney, Perfect Money, AdvCash, Yandex Money and more

No extra fees on deposit. Some fees on Withdrawal for bank transfers in a few countries. All the fees are free of charge twice a month, it’s a promotion given to clients by RoboForex

 Roboforex Website


4- Forex ee

Forex ee was established in 2004 and has some of the lowest spreads based on our study.

The broker has different types of ECN account with different commission structures. In general, the accounts with bigger size pay lower commissions in this broker; therefore, spreads + commissions become lower.

There are three types of ECN accounts. Basic ECN is the account that you can open with $200 and the commission is 3.5 units of base currency (base currency is the first one in a forex pair). For opening an Advanced ECN account, you need to deposit $1000 and the commission decreases to 2.5 units of the base currency. If you want to pay even less, you should open Premium ECN where the minimum deposit is $25000, however, you pay 1.8 units of the base currency as the commission.

The spreads + commission listed here are a combination of all account types so you may pay more or less regarding the type of account you choose.

The broker is regulated by MKM which is the regulatory body of Estonia. This regulation is neither strong nor weak and considered average in the industry, a tier 2 regulation.

Forex ee Average Spread + Commission

pair EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.58 0.85 0.71 0.62 1.09 0.6 0.71 1.4 1.09

Forex ee Information

Regional offices: St. Vincent and the Grenadines

Spread + Commission Score: A+

Regulated By: MKM

Regulation Score: B

Maximum Leverage for ECN account: 1:500 Basic ECN and Advanced ECN, 1:200 for Premium ECN

Minimum Deposit for ECN Account: Basic ECN $200, Advanced ECN $1000, Premium $2500

Minimum Deposit: $50

Instruments: Forex pairs, Gold, Silver

Trading Platform: MT4 (for Desktop, Web, Mobile)

Banned Countries: U.S

Payment Methods: Bank Wire, FasaPay, Neteller, Skrill, UnionPay, WebMoney, Perfect Money, Bitcoin, Litecoin, Ethereum

Usual fees of the payment methods are charged, Forex ee doesn’t charge extra fees

Forex ee Website


5- Axi Trader

Founded in 2007, Axi Trader is one of the reputable Australian forex brokers. It’s regulated by FCA and ASIC, two of the best regulatory bodies in the industry.

Standard and pro accounts are the accounts that this broker offers.  The standard account is an STP type of account which means the spreads are variable and there is no commission.

The Pro account is the ECN account of this broker in which spreads are very low and you pay a commission.

The spreads + commission of the ECN account are usually lower than the Standard account, however, the spreads for the Standard account is more stable and suitable for volatile situations where market moves fast.

Axi Trader Average Spreads + Commission

Pair EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.84 1.17 1.15 1.11 1.37 0.61 0.83 1.79 1.17

Axi Trader Information

Regional offices: Australia, UK, and New Zealand

Spread + Commission Score: A

Regulated By: FCA, ASIC

Regulation Score: A+

Maximum Leverage for ECN account: 1:500

Minimum Deposit for ECN Account: $1

Minimum Deposit: $1

Instruments: 140+FX pairs, Indices, Commodities, Metals, Gold and Silver, and oil

Trading Platform: MT4 (for Desktop, Web, Mobile)

Banned Countries: U.S, Japan, Israel, Central African Republic, Congo, Eritrea, Ethiopia, Guinea-Bissau, Haiti, Iran, Iraq, Kyrgyzstan, Liberia, Libya, North Korea, Sahrawi Republic, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Yemen, Zimbabwe 

Payment Methods: Bank Wire, Debit and Credit Cards, BPAY, Neteller, Global Collect, Skrill, UnionPay

Usual fees of the payment methods are charged, Axitrader doesn’t charge extra fees

Axi Trader Website


6- Admiral Markets

Founded in 2001 Admiral Markets is one of the long-serving forex brokers in the industry. It’s regulated with top two tier-1and one tier-2 regulatory bodies so it’s highly regulated.

This broker has two types of MT4 and two types of MT5 accounts. The ECN accounts of the broker called Zero.MT4 and Zero.MT5 have the ones with the lowest spreads.

The commission charged for this account starts from $1.8 per side for every lot, however, you receive such a commission if you trade more than 500 lots per months. In this case you pay the lowest spread + commission in this broker (for example 0.52 pips for EURUSD)

If you trade under 100 lots monthly, which most retail traders do, a commission of $3 per side is charged for one lot so for example you receive something around 0.75 pips as spread + commission for EURUSD on average.

The spread + commission here is an average of all types of accounts, so you may receive a little bit more or less depending on the number of lots you trade per month.

Admiral Markets Average Spreads + Commission

Pair EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.63 1.06 0.94 1.8 1.8 0.8 1 2.33 1.24

Admiral Markets Information

Regional offices: Australia, Cyprus, and UK

Spread + Commission Score: B+

Regulated By: ASIC, FCA, CySEC

Regulation Score: A+

Maximum Leverage for ECN account: 1:500

Minimum Deposit for ECN Account: $100

Minimum: $100

Instruments: Forex, Indices, Metals, Stocks, Commodities, Bonds, ETF, Cryptocurrencies

Trading Platform: MT4 and MT5 (for Desktop, Web, Mobile)

Banned Countries: US, and some other countries (N/A)

Payment Methods: For deposit: Bank Wire, VISA, MasterCard, iBank&BankLink, iDEAL, Klarna, Neteller, Safetypay, Przelewy24, Skrill. Withdrawal: Bank Wire, Neteller, Skrill

Usual fees of the payment methods are charged, Admiral Markets doesn’t charge extra fees

 Admiral Markets Website


7- IC Markets

IC Markets is another low spread forex broker on our list. The broker was founded in 2007.

This broker has two types of ECN accounts, MT4 Raw Spread and cTrader Raw Spread. You can open an ECN account with $200 in both of those accounts. The main differences between them are trading platform and commission.

Meta trader is the platform of MT4 Raw and you pay $3.5 per side for every lot in this type of account while cTrader is the platform for the cTrader Raw accounts where the commission is $3 per side for one lot.

So basically the spreads + commissions in cTrader accounts are lower and you may pick this account unless you use EAs.

The spreads + commission listed here are probably the combinations of both types of accounts — the type of account isn’t mentioned on myfxbook.

IC Market is regulated by Australian regulatory agency, ASIC so it’s considered safe.

IC Markets Average Spreads + Commission

Pair EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.78 1.12 1.01 0.97 1.24 0.9 1.1 1.39 0.93

IC Markets Information

Regional offices: Australia

Spread + Commission Score: A

Regulated By: ASIC

Regulation Score: B+

Maximum Leverage for ECN account: 1:500

Minimum Deposit for ECN Account: $200

Minimum Deposit for Other Accounts: $200

Instruments: FX pairs, Shares, Futures, Indices, Commodities, Bonds, Cryptocurrencies

Trading Platform: MT4 and MT5 (for Desktop, Web, Mobile), cTrader

Banned Countries: U.S, Canada, Israel, North Korea, and Iran

Payment Methods: Credit and debit cards, Paypal, Neteller, Skrill, Union Pay, Wire transfer, Bpay, Fastpay, Broker to Broker, Poli, Thai Internet Banking, Rapidpay, Klarna, Bitcoin wallet, Vietnamese Internet Banking. If you deposit with Fastpay, Poli, Bpay, Skrill bitcoin, and Rapidpay; you have to withdraw via bank transfer.

Usual fees of the payment methods are charged, IC Markets doesn’t charge extra fees

IC Markets Website


8- Just2Trade

Just2trade online is a low spread forex broker founded in 2006.

The low spread or ECN accounts in this broker are called Forex ECN and MT5 Global. The platform of Forex ECN is MT4 and you can open this type of account with $200. The commission of Forex ECN is $3 per side for each lot. The costs of traders are lower in MT5 Global because the commission that’s charged in this type of accounts is $2 per side so spreads + commission drop proportionally. The minimum amount of money that you need to open an MT5 Global account is $100.

The spreads + commission on myfxbook (our source) are probably from both types of accounts so you would probably see a little difference regarding the types of your account.

Just2trade online is regulated by CySEC so your money is safe with them.

Just2Trade Average Spreads + Commission

Pair EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.7 1.1 0.92 1.4 1.5 0.9 1.3 1.7 1.02

Just2Trade Information

Regional offices: Cyprus

Spread + Commission Score: B+

Regulated By: CySEC

Regulation Score: B+

Maximum Leverage for ECN account: 1:500

Minimum Deposit for ECN Account: $100 for MT5 Global, $200 for Forex ECN

Minimum Deposit: $100

Instruments: FX pairs, Metals, Indices, Oil for MT4 plus Stocks, Cryptocurrency, and future for MT5

Trading Platform: MT4, MT5 (for desktop, Web, Mobile), ROX, CQG

Banned Countries: N/A

Payment Methods: Wire transfer, Union Pay, Mastercard, Visa, Skrill — there are some other methods for depositing but the mentioned ones are available for withdrawal

Usual fees of the payment methods are charged on withdrawal, Just2trade doesn’t charge extra fees. The owners of an account with FINAM Bank may transfer funds to it instantly and without commission.

Just2trade Website


9- Hotforex

Hotforex is the next broker on our list that has an ECN account with low spreads. It was founded in 2010.

Zero Spreads is the name of Hotforex ECN account and is the one that we examined in this review. You can open this type of account with a minimum deposit of $200. The commission for the pairs listed here, except for USD/CHF, is $3 per side per lot and is $4 for other forex pairs.

So the spreads + commission on major pairs are lower in this broker.

Hotforex is regulated by several agencies including UK (FCA), Cyprus (CySEC), South Africa (FSCA), and Dubia (DFSA) so you won’t have any problems in terms of the safety of your fund in this broker.

Hotforex Average Spreads + Commission

Pair EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
Spread (pip) 0.95 1.21 1.26 1.45 1.61 0.96 1.48 1.7 1.57

HotForex Information

Regional offices: Cyprus, St. Vincent and the Grenadines, and South Africa

Spread + Commission Score: B+

Regulated By: FCA, DFSA, CySEC, FSCA, FSA

Regulation Score: A

Maximum Leverage for ECN account: 1:500

Minimum Deposit for ECN Account: $200

Minimum Deposit: $5

Instruments: FX pairs, Shares, Metals, Indices, Commodities, Bonds, Cryptocurrencies, Energies

Trading Platform: MT4, MT5 (for desktop, Web, Mobile)

Banned Countries: U.S, Canada, Sudan, Syria, and North Korea

Payment Methods: Wire transfer, Union Pay, Maestro, Mastercard, Visa, Bitcoin, Bitcoin Cash, Bitcoin by Skrill, Crypto Payments, Fastpay, Neteller, Skrill, Webmoney

HotForex covers transaction fees

 HotForex Website


Average Spreads Comparison Table

In the following table, you can see the spreads of our low spread forex brokers on 9 FX pairs.

You can sort out the table from the lowest spreads to the highest ones or vice versa. For doing so, you need to click on the heading you want to arrange the table based on — EUR/USD, GBP/USD, and etc.

Brokers EUR/USD GBP/USD AUD/USD USD/CHF USD/CAD USD/JPY NZD/USD GBP/JPY EUR/JPY
FXOpen 0.52 0.74 0.58 0.49 0.87 0.54 0.57 1.32 0.86
FP Markets 0.54 0.72 0.68 0.56 0.87 0.59 0.95 1.2 0.79
Forex ee 0.58 0.85 0.71 0.62 1.09 0.6 0.71 1.4 1.09
Axitrader 0.84 1.17 1.15 1.11 1.37 1.06 1.32 1.79 1.17
Go Markets 0.7 1.06 0.74 0.86 0.95 0.75 0.79 1.84 0.87
RoboForex 0.58 1.04 0.84 0.89 1.16 0.74 1.26 1.33 0.86
IC Markets 0.78 1.12 1.01 0.97 1.24 0.9 1.1 1.39 0.93
Just2Trade 0.7 1.1 0.92 1.4 1.5 0.9 1.3 1.7 1.02
Hotforex 0.95 1.21 1.26 1.45 1.61 0.96 1.48 1.7 1.57

Methodology

For finding forex brokers with the lowest spreads we use a third-party website called Myfxbook. There are more than 200 forex brokers with 10000+ real accounts registered on that website, therefore, our data are gathered from real accounts of an unbiased website.

Since the lowest spreads of forex brokers are related to their ECN accounts and ECN accounts come with commissions, the data here are not just spreads of forex brokers but they are spreads + commissions.

There are some miscalculations when you filter the data based on spreads + commission on myfxbook which is related to the commissions of brokers so we double-checked with the websites of the forex brokers and corrected the info where needed.

Other details on the information sections were collected from the websites of the forex brokers

FAQ

Which Forex Broker has the lowest spreads?

According to the study we conducted on the major forex pairs, plus 2 other pairs, FXOpen has the lowest spread in total, see the study

Which Forex broker has the lowest spreads on EUR/USD?

According to our study, FXOpen has the lowest spread on EUR/USD with an average spread of 0.52 pips. The second one is FP Markets with an average spread of 0.54 pips.

What type of account in forex brokers has the lowest spreads?

ECN account is the type of account with the lowest spreads in forex brokers. The spreads in this account are floating and normally start from 0. There’s a commission charged for every trade in ECN accounts.

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.

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