Finding the lowest spread forex broker with no commission or extra fees can be challenging. There are tons of brokers with low spreads, but not all of them have the same features and benefits.
The forex exchange market has grown to be a diverse ecosystem primarily driven by forex brokers and traders. The world of Forex today is different from what it used to be in the 19th century where foreign exchanges were exclusively for the few elites, governments and financial institutions. Today, Forex is open to anybody who wishes to invest in it. However, for individuals and institutions to invest in Forex trading they have to register with a forex broker.
| Top Brokers | Minimum Deposit | Max Leverage | Regulations | |
|---|---|---|---|---|
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$200 | 1:30 | ASIC, CySEC, FCA, MiFID | VISIT BROKER 68% of retail CFD accounts lose money. eToro USA LLC does not offer CFDs, only real Crypto assets available. |
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$100 | 1:400 | MiFID | VISIT BROKER |
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$50 | 1:200 | IFSC | VISIT BROKER |
What are Low Spread Forex brokers?
In a nutshell, forex brokers are firms/companies that provide suitable platforms to traders so that they can be able to trade foreign currencies. Therefore, it is virtually impossible to trade forex without signing up with a forex broker unless you want to just exchange a few coins at your local bank.
The brokers normally allow traders to access the foreign exchange market 24-hours, 5 days a week. They offer services to both retail traders like you and me and institutions such as the investment banks.
Forex brokers give traders the advantage of trading foreign currencies without actually owning the currencies. Once a trader opens an account with a broker, he/she deposits funds into his/her trading account. Once the funds get into the trading account they are converted to a base currency like US dollars, Euros, Great Britain Pound (GBP), etc. a trading account can only have one base currency.
Most forex brokers also offer leveraged trading, which allows traders to open trades that are larger than their deposited funds. For instance, there are some brokers that allow trading even with $5. Once a trader deposits $5, the trader is given some leverage depending on the leverage he/she chooses. Leverage ranges from 1:50 to 1:1000.
When choosing a low spread, no commission forex broker, it is important to go for the broker that best suits your needs. Different forex brokers offer different services and it is good to look at the services each broker offers before opening an account with them. You should consider looking at the spreads, minimum deposit allowed, base currencies allowed, minimum lot size allowed, account types offered, available payment options (deposit and withdraw), and bonuses.
With that being said, let’s check out some of the forex brokers with the lowest spread offers on the market today.
Top Forex Brokers with Low Spreads in 2022
Here is a list of the best low spread forex brokers that have the lowest cost and commission fees in 2020.
Forex.com
Forex.com is one of the oldest forex brokers. It was founded in 2001 under the parent company, GAIN Capital Holdings that is listed on the New York Stock Exchange.
Forex.com is regulated by a number of countries including Singapore, the US, Japan, the UK, Canada, Australia, and the Cayman Islands. Due to the variations of laws in each of the countries, Forex.com offers a different product for each country. For example, the Contract for Difference (CFDs) is not tradable by US citizens.
It has a total asset value of over $1.28 billion and customer equity totaling to over $849 million.
Its trading platforms are one of a kind and they accommodate beginners and professionals. Traders can choose between using the MetaTrader 5, MetaTrader Web, MetaTrader Mobile, MetaTrader Apps, VPS Hosting or the MetaTrader 4.
Account Stats
- Demo Account: Yes
- Minimum deposits allowed: $100
- Base currencies: USD, EUR, CAD, GBP, AUD, CHF, and JPY.
- Minimum lot sizes:01
- Account types: Standard Account, Commission Account, and Direct Market Access (DMA) Account.
- Payment options: Debit, ACH, Wire and Check
- Bonuses: None
Pros
- No withdrawal fee.
- The low minimum deposit for the lowest account type.
- Deposit and Withdrawal of funds are free.
- The spreads are relatively low.
- Has a wide range of tradable assets including CFDs.
Cons
- Inactive accounts are charged an inactivity fee.
- Account verification takes an average of 3 days which is relatively slow.
- US citizens can’t trade CFDs.
Bottom line
Forex.com trader is the best fit for active traders especially the daily traders. It may not be a good fit for long term traders who place monthly trades or yearly trades since their accounts would be prone to an inactivity fee charge.
easyMarkets
easyMarkets broker was founded in 2001 under the name easyForex. It later rebranded in 2016 under the current name easyMarkets. It is managed by Easy Forex Trading Ltd, which is a sister company to Blue Capital Markets Groups. Its headquarters is in Majuro, Marshall Islands. However, it has other offices across the world.
The broker is regulated by the Cyprus Securities & Exchange Commission (CySEC) and the Australian Securities & Investment Commission (ASIC).
One of its greatest features is that it offers fixed spreads. It also offers over 250 trading assets including CFDs. Some of the assets offered include currencies, indices, agricultural commodities, metals, vanilla options and energy.
Traders can choose to use the easyMarkets Platform, or the MetaTrader 4 (MT4) to trade.
Account Stats
- Demo Account: Yes
- Minimum deposits allowed: $100
- Base currencies: USD, AUD, EUR, NZD, CAD, HKD, CNY, GBP, JYP, and SGD
- Minimum lot sizes:01
- Account types: Standard Account, Premium Account, VIP Account, and Super VIP account
- Payment options: Credit Card, Skrill, Bpay, Wire Transfer, Fasapay, SOFORT, Webmoney, iDEAL, and Neteller,
- Bonuses: 50% bonus of up to $30, on the initial deposit for new traders and a $2000 bonus for refereeing a friend.
Pros
- It offers fixed spreads.
- It has no slippage.
- It does not charge commissions on trades.
- 50% first deposit bonus for new traders and a maximum of $2000 bonus for referring a friend.
- Responsive and professional client support
Cons
- It does not allow USA clients and other 20 countries.
- Relatively high spreads compared to other brokers.
Bottom line
easyMarkets is a great forex broker for European based traders. However, its minimum deposit for its base account is quite high and is best suited for traders with some experience in trading.
Pepperstone
Pepperstone forex broker is based in Australia with its headquarters located in Melbourne. It was founded in 2010. In 2015, the broker also opened another office in London.
It is regulated by the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC).
Since it is quite a new broker, it currently offers few tradable assets. It has over 20 currency pairs including gold and silver.
Traders can choose to use MetaTrader 4, MetaTrader 5, MT Mobile, or the WebTrader.
Account Stats
- Demo Account: Yes
- Minimum deposits allowed: $0
- Base currencies: EUR, AUD, USD, GBP, JPY, CAD, CHF, SGD, NZD, and HKD
- Minimum lot sizes:01
- Account types: Standard and Razor
- Payment options: Bank transfer, Credit/debit cards, PayPal, Neteller, Skrill, POLi, and BPay.
- Bonuses: 50% bonus of up to $30, on the initial deposit for new traders and a $2000 bonus for refereeing a friend.
Pros
- It has a very low requirement for the initial deposit. Traders can start with their least possible amount.
- It doesn’t charge an inactivity fee.
- The base account, which is the standard account, does not have commissions.
Cons
- It charges a high bank withdrawal fee of $20 for clients outside the EU and Australia.
Bottom line
Since Pepperstone is one of the lowest spread forex brokers in Australia, it’s great for traders in Australia and Europe. It is a great choice for beginners looking for a broker where they can invest the least possible amount for a start.
IC Markets
IC Markets forex broker was founded in 2007. It is managed by International Capital Markets PTY. Its headquarters are in Sydney, Australia.
It is licensed and regulated by the Australian Securities & Investments Commission (ASIC). It is also a member of the Financial Ombudsman Service (FOS).
Traders can choose between three of its trading platforms, which include: Metatrader 4 (MT4), Metatrader 5 (MT5) and CTrader. The CTrader is specifically designed to make auto trading easy.
Account Stats
- Demo Account: Yes
- Minimum deposits allowed: $200
- Base currencies: AUD, EUR, USD, CAD, GBP, HKD, SGD, NZD, JPY, and CHF
- Minimum lot sizes:01
- Account types: Standard account, True ECN account, Islamic account, and cTrader ECN account
- Payment options: Credit and Debit Cards, Bank Wire Transfers, PayPal, WebMoney, BPay Deposit, Skrill, Neteller, QIWI, China Union Pay, Branch Cash Deposit, and FasaPay.
Pros
- It has one of the lowest spreads.
- Their base account, the standard account, has no commission on trades.
- It gives an option for opening any of the accounts either as an individual, joint, or a corporate.
Cons
- Withdrawing funds to international banks outside Australia costs $25 AUD.
- The initial deposit is quite high, especially for beginners.
- It does not allow clients from the US, Canada, Japan, and New Zealand.
Bottom line
It is a preferred choice for traders using automated trading. It is a great choice for Australian and Europe based traders.
It is also a perfect choice for beginners due to the education section on its website.
FXTM
ForexTime, better known as FXTM broker was founded in 2011 and its headquarters are in Cyprus. It is regulated by the Cyprus Securities and Exchange Commission (CySEC) of Cyprus, Financial Conduct Authority (FCA) of UK, Financial Sector Conduct Authority (FSCA) of South Africa, and Financial Services Commission of the Republic of Mauritius.
In Mauritius, the broker operates under the name Exinity Limited while in the UK it operates under the name ForexTime UK Limited.
It has a wide range of trading platforms that traders can choose from. They include: MT4 windows, MT5 windows, MT4 iPhone/iPad, MT5 iPhone/iPad, MT4 Android, MT5 Android, MT4 Windows Mobile, MT5 Windows Mobile, MetaTrader 4/5 for Linux, and MetaTrader 4/5 for Mac
Account Stats
- Demo Account: Yes
- Minimum deposits allowed: $1
- Base currencies: EUR, GBP, USD, and NGN
- Minimum lot sizes:01
- Account types: Standard account, CENT Account (Micro lots), Shares Account, ECN Account, ECN ZERO Account, ECN Strategy Account, FXTM Pro account, and ECN Zero Strategy Account.
- Payment options: Credit and Debit cards, Bank Wire Transfer, Neteller, Skrill, Bitcoin (BTC), LiteCoin (LTC), DASH, Ethereum (ETH), Western Union, Quick Pay, Alfa-Click, Yandex.Money, QIWI, VLOAD, WebMoney, Perfectmoney, Fasapay, TC Payment, GlobePay, Ngangluong, DixiPay, DusuPay, CashU, and Konnexone.
- Bonuses: $50 for each friend referred and 30% back for every amount a trader deposits over a period of 30 days.
Pros
- Its minimum deposit of $1 for the cent account is quite fair especially for beginners
- Its cent account gives beginners a perfect chance of trading
- It has great educational tools.
- It offers ECN accounts.
- Allows copy trading.
- It has a very wide variety of payment options.
Cons
- It charges inactivity and withdrawal fees.
Bottom line
FXTM is a perfect choice for both forex beginners and forex professionals. To the beginners, it offers the cent account where they can actually trade in terms of cents thus reducing the risk of losing too much money.
For professionals, they can choose from a wide range of ECN accounts.
FxPro
FxPro was founded in 2006 and it is managed by FxPro Group Limited. Its headquarters are in London, UK. It is regulated by the Financial Conduct Authority of the UK, the Dubai Financial Services Authority, Cyprus Securities and Exchange Commission, Financial Sector Conduct Authority (‘FSCA’) and the SCB.
In the UK it operates as FxPro UK Limited. In Dubai, it operates as FxPro Global Markets MENA Limited while in Cyprus it operates as FxPro Financial Services. To the rest of the world, it operates under the name FxPro Global Markets Ltd.
Its clients/traders can choose from a variety of trading platforms, which include: FxPro MT4, FxPro MT5, FxPro CTrader and FxPro Edge for online trading. The trading platforms are also available on iOS AND Android devices.
Account Stats
- Demo Account: Yes
- Minimum deposits allowed: $500
- Base currencies: USD, EUR, GBP, CHF, AUD, JPY, PLN, and ZAR
- Minimum lot sizes:01
- Account types: MT4 account, MT5 account, cTrader account, Edge Account, VIP Account, Joint Account, and Islamic Account.
- Payment options: Credit cards, Bank Wire Transfer, Neteller, PayPal, Skrill, and UnionPay
- Bonuses:
Pros
- Depositing and withdrawing funds is free.
- It has zero slippage on trade executions.
- The FxPro Academy where traders can sharpen their trading skills.
Cons
- Its trading fees are relatively high.
- Its minimum initial deposit is quite high, especially for forex beginners.
Bottom line
FxPro is a well-known forex broker and is a perfect choice for traders in Europe and preferably the UK. It allows automated trading and therefore a good fit for traders looking to use EAs to trade.
HYCM
HYCM is a trading name of HYCM (Europe) Ltd, Henyep Capital Markets (UK) Limited, HYCM Limited and Henyep Capital Markets (DIFC) Limited. All these companies are operated by the Henyep Capital Markets group is holding company. The Henyep Capital Markets (UK) Limited is regulated by Financial Conduct Authority, the HYCM (Europe) Ltd is regulated by Cyprus Securities and Exchange Commission, the HYCM Ltd is regulated by Cayman Islands Monetary Authority, and the Henyep Capital Markets (DIFC) Limited is regulated by Dubai Financial Services Authority.
It was founded in 1997 and its headquarters are in London, UK.
HYCM provides traders with two platforms for trading: Prime Trader, which is HYCM’s state-of-the-art exclusive multi-asset platform, and the MetaTrader4 (MT4) platform. It also provides a They can also HYCM mobile app for trading on the go.
Account Stats
- Demo Account: Yes
- Minimum deposits allowed: $100
- Base currencies: USD, EUR, GBP, CHF, AUD, JPY, PLN, and ZAR
- Minimum lot sizes:01
- Account types: Fixed account, Classic account, Islamic account, and Raw account.
- Payment options: Visa, Bank Wire Transfer, Neteller, and Skrill.
- Bonuses:
Pros
- All accounts have an Islamic account option
- The minimum deposit required is relatively low.
- The classic and raw accounts allow EA trading.
- It has provisions for VIP accounts.
Cons
- Withdrawal using bank wire transfer is charged $30 if the total withdrawn sum is under $300.
- It allows very few methods of payments for withdrawals and deposits.
- The fixed account doesn’t allow EA trading.
Bottom line
HYCM has a great history of forex trading. It is considered one of the best forex traders for Middle East forex traders. In addition, if offers clients great liquidity and low spreads and also delivers efficient services.
It is a great choice for both forex beginners and experts.
HotForex
HotForex is one of the most renowned forex trading brokers around the world. It was founded in 2010 and it is managed by the HF Markets Groups. Its headquarters are located in Cyprus. However, it has another office in Kingston, St. Vincent & the Grenadines.
The HF Markets (DIFC) Ltd is regulated by the Dubai Financial Services Authority (DFSA), the HF Markets (Seychelles) Ltd is regulated by Financial Services Authority (FSA) and the HF Markets Ltd in the Republic of Mauritius is regulated by the Financial Services Commission (FSC).
Traders can choose to either use the MetaTrader 4 or MetaTrader 5.
Account Stats
- Demo Account: Yes
- Minimum deposits allowed: $5
- Base currencies: USD and EUR.
- Minimum lot sizes:01
- Account types: Fixed Micro Account, ZERO accounts, Islamic account, Auto account, HF Copy Account and Raw account.
- Payment options: Visa/Maestro and Master Cards, Bank Wire Transfer, China UnionPay, Neteller, a BitPay, Skrill, FasaPay, Ideal, SOFORT, Bitcoin, Bitcoin Cash, and MPesa.
- Bonuses: 100% Supercharged Bonus, 100% Credit Bonus and 30% Rescue Bonus.
Pros
- It has a very wide option for making deposits and withdrawals.
- Allows automated trading.
- It is an ECN/STP broker. Therefore there is no conflict of interest.
- Tight spreads which are as low as 0 pips.
- Well regulated by multiple regulations in different countries
- It offers multiple bonuses and contests, which makes trading fun.
- It offers flexible trading conditions.
Cons
- It does not allow US citizens
Bottom line
HotForex is a great choice for both forex beginners and experts. It has a great trading platform and a members’ area where clients can easily manage their accounts. Also, the fact that it has a wide variety of payment options makes it a perfect option for forex traders around the world.
Common Low Spread Broker Questions
Forex Low Spread vs Commissions vs Fees – What’s the Difference?
Different forex brokers charge different trading fees. Some charge on spreads while others charge a commission for every trade. There are also others that charge both spreads and commissions.
A spread is a difference between the Ask Price and the Bid price while a commission is a percentage charged on the trade.
Before choosing a forex broker, it is important to look at the amount of fees they charge. The lower the fees the better for you and the more the profits you shall make. Brokers with high spreads and high commissions end up being too expensive.
What is a low spread in forex?
Spread in Forex is the difference between the Ask and Bid price. Normally, it acts as the fee on which the broker charges for trades. A low spread is when the spread is small. Generally, a spread is considered as low when it is below 1 pip.
When the spread is low, the cost of trading is greatly reduced. For instance, with an average spread of 0.1 pips on EURUSD, traders will have greater profits.
It is worth noting that whenever a trader places a new trade, it enters into the market at a negative value which is normally equivalent to the spread. For a low spread, the trade turns into profits faster if it is in the right direction of the trend. That’s why its so important to find a forex broker with lowest fixed spread.
Can I trade Forex with $10?
The answer to this question is YES. It is possible to trade forex at only $10.
However, you will have to look for a forex broker that allows a minimum initial deposit of $10 or less. Examples of such brokers are HotForex brokers, Pepperstone broker and FXTM broker.
Summary
Choosing the best forex brokers with no commission is a very crucial step in forex trading since it determines your trading experience. There are a number of factors that a trader should consider before choosing to invest his/her funds with any specific broker.
To choose a good broker, you should go for that broker that suits your financial capabilities. For instance, if you have less than $100 dollars to invest, you should look for a broker that can allow an initial deposit of less than $100.
Also, you should go for the broker who shall allow you to employ the trading method that you intend to use. For example, if you want to use copy trading, you should look for a broker that allows copy trading. If you intend to use automated trading, you should look for a trader that allows the use of Expert Advisors for automated trading.