| Updated: September 1, 2025Finding a forex broker that offers tight spreads and competitive trading conditions is a top priority for traders who insist on cost-efficiency and optimal trade execution. The tighter the spread – the difference between the bid and ask prices of forex pairs – the more potentially profitable the trading experience becomes. With this in mind, the team at RationalFX has spent countless hours researching the forex brokers that offer the most competitive spreads on the market.
Expert opinion by Christopher Lewis:Below we list the best forex brokers with the lowest spreads:
Top 8 Low Spread Forex Brokers
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
Trading InstrumentsDeposit Methods- Commodities CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
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Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Tickmill
- Classic and Raw accounts available to suit various trading needs and requirements.
- Popular trading platforms, such as MT4 and MT5.
- Regulated by reputable authorities: ASIC and CySEC.
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Stock CFDs
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FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| Global Prime | |
$0 |
| Axi | |
$0 |
| Tickmill |  |
$100 |
| FxPro | |
$100 |
| IC Markets | |
$200 |
| ActivTrades | |
$0 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| Global Prime | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC) |
| Axi | |
1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA) |
| Tickmill | |
1:500 (CySEC | Pro Account), 1:500 (FCA | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:1000 (FSAS) |
| FxPro | |
1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:10000 (SCB | Retail Account) |
| IC Markets | |
1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:1000 (FSAS | Retail Account) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, TradingView |
| Global Prime | |
MetaTrader 4 |
| Axi | |
MetaTrader 4 |
| Tickmill | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web |
| FxPro | |
cTrader, MetaTrader 4, MetaTrader 5 |
| IC Markets | |
cTrader, MetaTrader 4, MetaTrader 5 |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
Comprehensive Comparison of the Best Forex Brokers with Low Spreads
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.96 pips |
|
|
 |
$0 |
|
AVG 0.1 pips |
|
|
 |
$100 |
|
AVG 1.7 pips |
|
|
 |
$100 |
|
AVG 0.5 pips |
|
|
 |
$200 |
|
AVG 0.82 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
Understanding Spreads in Forex Trading
A spread is the difference between the bid price (the price at which a currency can be sold) and the ask price (the price at which it can be bought). This difference is one of the primary ways by which forex brokers earn money. The tighter the spread, the less it costs traders to execute orders, making low-spread brokers especially attractive for active traders.
Importance of Low Spread Forex Brokers
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Why Low Spreads Matter
Low spreads directly affect the cost-effectiveness of trading, especially for day traders and scalpers. These traders place multiple trades throughout the day, so transaction costs can accumulate quickly. Lower spreads let them trade frequently without their profits being eroded by high fees. Reducing these costs translates into a more competitive and profitable trading experience.
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Types of Forex Spreads
- Fixed Spreads: The difference between the bid and ask prices remains constant, regardless of market volatility.
- Variable (Floating) Spreads: The spread fluctuates with market conditions. During times of high liquidity, these spreads tend to be narrow; however, they can widen during periods of low activity or high volatility.
Low-spread brokers are attractive because they give traders the opportunity to enter and exit positions more efficiently, without excessive costs.
Features of Low Spread Forex Brokers
- Tight Spreads Across Major Currency Pairs
Many low-spread brokers offer particularly narrow spreads on major currency pairs such as EUR/USD, GBP/USD and USD/JPY. These are the most liquid pairs, and brokers tend to provide more favourable conditions for trading them.
- Efficient Execution of Orders
Low-spread brokers typically provide fast order execution. With tight spreads, any delay can result in unfavourable price changes, eating into potential profits. Therefore, brokers that promise minimal slippage are preferred by active traders, as they aim to ensure that orders are filled at the desired price with little deviation.
- Transparency and Low Fees
Some brokers offer transparent pricing structures, meaning traders are not hit with hidden commissions or fees on top of the low spread. Transparent brokers allow traders to understand the true cost of each trade and often explain how their spreads are derived.
- Excellent Liquidity
Top-tier low-spread brokers rely on large liquidity pools from major banks, providing competitive pricing and the ability to handle large orders without significantly affecting market prices. This liquidity is essential for keeping spreads narrow, especially during volatile conditions.
How Low Spread Forex Brokers Benefit Traders
- Cost Efficiency
By reducing spreads, traders can significantly cut transaction costs. For day traders, scalpers and even swing traders who trade large volumes, a series of low-cost trades can lead to greater overall profits.
- Better Scalping Opportunities
Scalpers, who aim to capitalise on tiny price movements, benefit immensely from low-spread brokers. Because they enter and exit trades within seconds or minutes, lower spreads allow them to operate effectively by minimising the spread’s drag on profits. A scalper would much rather trade in an environment where they can move in and out of the market quickly, with little cost.
- Market Access
With lower spreads and quicker execution, traders can access deep, liquid markets with minimal delays. They can enter positions swiftly when prices are favourable or exit when an opportunity to take profits arises, increasing their chances of success in volatile markets.
- Reduced Risk of Losses Due to Slippage
Slippage occurs when the execution price differs from the price at which a trade was expected to be placed. Tight spreads, coupled with fast order execution, minimise slippage and reduce the risk of unexpected losses caused by market volatility.
Choosing the Best Low Spread Forex Broker
Factors to Consider
When evaluating which low-spread forex broker to choose, consider the following aspects:
- Spreads
The spread offered on specific currency pairs is the main criterion for selecting a broker. Look for brokers that offer consistent, competitive spreads in both normal market conditions and periods of volatility.
- Liquidity Provider Network
A key factor determining how low a broker can set its spreads is access to liquidity. Brokers with strong relationships with liquidity providers – large global banks and financial institutions – tend to provide tighter spreads. Check whether the broker sources liquidity from tier-one institutions or uses a market-making system, which could lead to wider spreads.
- Account Types
Many brokers offer multiple account types with varying minimum deposits, leverage ratios and spread policies. Low-spread brokers often have premium accounts tailored to experienced traders who prioritise cost-effectiveness over other features. Choose an account that aligns with your trading goals, risk tolerance and volume.
- Regulation and Reputation
The broker should be regulated by reputable authorities such as the FCA (Financial Conduct Authority) in the UK or the NFA (National Futures Association) in the United States. Research brokers carefully to ensure safety, transparency and compliance with industry standards.
- Trading Platforms
Selecting a broker with a user-friendly, feature-rich platform that complements your trading style is vital. Leading brokers often provide platforms like MetaTrader 4 or 5, which include advanced charting tools, technical indicators and automated trading capabilities, as well as mobile versions for trading on the go.
- Customer Support
Low-spread brokers should also deliver comprehensive customer service, including help with technical issues, fee structures and withdrawal or deposit processes. Look for brokers offering 24/7 support, preferably in multiple languages.
- Additional Fees and Costs
Investigate all costs associated with trading. While the spread may be low, some brokers charge hidden commissions, overnight financing costs (swap rates) or withdrawal fees. Make sure you understand the complete fee structure before opening an account.
Advantages and Challenges of Low Spread Forex Brokers
Advantages
- Reduced Trading Costs: For active traders, low spreads mean cost savings over a large number of trades.
- Favourable for Scalpers: These brokers are well-suited to scalpers who require quick executions and tight spreads.
- Increased Profit Potential: By minimising trading costs, traders can retain a greater share of their profits.
Challenges
- Higher Minimum Deposit: Some low-spread brokers require higher minimum deposits or use commission-based accounts that offset lower spreads.
- Slippage During Volatile Times: Even with tight spreads, slippage can still occur during periods of high volatility, such as major economic releases or geopolitical events.
Conclusion
Low-spread forex brokers play an essential role in creating a trading environment that is efficient, cost-effective and potentially lucrative for active traders. Choosing a low-spread broker can significantly reduce transaction costs, particularly for strategies involving frequent trading, such as scalping or day trading. Traders should evaluate broker offerings based on spreads, liquidity, regulation, platforms, support and additional fees. Although low-spread brokers offer clear advantages, it is important to be mindful of risks such as slippage and to select a provider that aligns with your trading style and objectives.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 20 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2,500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.