Top picks for low spreads
Best low-spread broker - CMC Markets
| Company |
Overall Rating |
Minimum Deposit |
Average Spread EUR/USD - Standard |
 CMC Markets
|
 |
$0 |
0.61 info |
CMC Markets has long been a leader within our Commissions & Fees category and delivers some of the lowest average spreads in the industry.
Low average spreads: CMC Markets' average spreads are typically very close to their minimum spread, across both their account offering on MT4 and Next Generation, including their FX Active pricing. Their spreads are very consistent, especially when compared to brokers whose average spreads can be much higher than their advertised minimum spreads.
Zero-spread pricing: A key move that has helped CMC Markets build its position even more as a low-cost leader is the launch of its FX Active program. This program is akin to a zero-spread account (minimum spreads of 0 pips) coupled with low per-trade commissions of $2.50 per trade. CMC's commission-based pricing under FX Active delivers average spread values that are among the lowest I have seen.
Active trader discounts: Aside from its FX Active pricing, CMC Markets offers competitive spreads in its spread-only pricing model. Additionally, if you are an active trader, CMC Markets offers an active trader rebate program (in jurisdictions where rebates are permissible) to help you offset trading costs when you surpass certain volume thresholds each month. Read more about CMC Markets' fees and features.
Excellent pricing for professional traders - Interactive Brokers
| Company |
Overall Rating |
Minimum Deposit |
Average Spread EUR/USD - Standard |
 Interactive Brokers
|
|
$0 |
0.59 info |
Interactive Brokers has long been known for its competitive pricing and wide offering of tradeable instruments across global markets, including forex where its spreads remain among the lowest in the industry.
Low effective spreads: When it comes to its forex pricing, Interactive Brokers stands out for two reasons. First, it offers low average spreads: 0.19 pips on the EUR/USD as of Q3 2024 (not including commissions). Second, it has a low per-trade commission: starting at 0.40 pips per round turn, which helps bring its all-in cost (effective spread) to among the lowest in the industry - nearly 0.59 pips based on the above example.
Agency execution: It’s worth noting that Interactive Brokers operates an agency execution model for its forex business, where it aggregates pricing from major liquidity providers (LPs). This means that when you trade with IBKR, it sends your order to the dealer with the lowest price, only adding a small per-trade commission. For traders who don't need dealer execution, IBKR is a great choice thanks to its low effective trading costs.
High-volume discounts: Although IBKR has competitive pricing, its minimum trade size and commission could be a hurdle for low-budget traders. However, if you trade actively or in large volumes, even more discounts can be unlocked thanks to its active trader program. Forex commissions can drop as low as $1 per order if you trade over $5 billion in monthly trading volume, making Interactive Brokers a great choice for professional traders seeking a zero-spread broker.
Great for beginners and low-cost trading – Capital.com
| Company |
Overall Rating |
Minimum Deposit |
Average Spread EUR/USD - Standard |
 Capital.com
|
 |
$20 info |
0.67 info |
Capital.com stands out as an excellent low-cost broker, combining a user-friendly platform with competitive pricing and great educational resources, making it a good choice for beginner and intermediate forex traders.
Competitive spreads for cost-conscious traders: With an average spread of just 0.67 pips on the EUR/USD (April 2024), Capital.com offers pricing that’s lower than the industry average, ensuring cost-efficient trading. Unlike some competitors that have different pricing across account types and platforms, Capital.com’s spreads remain consistent across its proprietary platform and its MetaTrader 4 (MT4) offering.
Innovative and intuitive trading platform: The Capital.com web platform offers rich features, balancing powerful trading tools with an easy-to-use platform. Features in the platform I enjoy include integrated market sentiment data, pre-defined watchlists, and advanced charting tools.
Active trader appeal: Though Capital.com doesn’t have a dedicated active trader offering, the fact that it offers low spreads coupled with zero commissions could make it an appealing option for more active forex traders.
Lowest spread investment offerings comparison
FAQs
What is a zero spread forex broker?
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 having 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.
What is a spread in forex?
The spread in forex is simply the difference between the bid price and the ask price for a given currency pair. The “ask” price is the rate (or, counter-currency price) at which you purchase the base currency in a forex currency pair. The “bid” price, on the other hand, is the rate at which you sell the base currency in a forex pair.
Let’s look at a hypothetical example. If the EUR/USD exchange rate is 1.1234 for the ask price and 1.1232 for the bid price, that means the spread is two pips.
(1.1234 - 1.1232 = 0.0002, or two pips).
Important note about spreads: Though many brokers may advertise “zero spreads” or “zero minimum spreads,” the best way to get a reasonable sense of a broker’s spread-based fees is to calculate the average spread. When rating brokers based on their Commissions & Fees, for example, I always calculate each broker’s average spread by taking all monthly price updates (tick data for the bid/ask prices) and computing the average 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.
A zero-pip spread may range from 0 to several fractions of a pip – or even more during volatile market conditions. An account that advertises zero spreads (or spreads close to zero) might 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.
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.
- High-frequency algo trading based on technical indicators can perform better on zero spread accounts, even if there are execution delays or price requotes during fast markets.
Cons of zero spread pricing:
- You'll need to watch out for added commissions and fees.
- 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).
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 potential forex 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 testing), helping them finish best in class in this category.
Are zero spread forex brokers trustworthy?
Yes, zero spread forex brokers can be as trustworthy as any other legitimate broker. These low spread account types simply provide a different cost or fee structure that may appeal to your specific trading strategy. That said, you must pay close attention to the actual fees and commissions you will be paying in order to assess if your overall trading costs will actually be less than an account with higher spreads but no commissions. Marketing ploys can abound when brokers advertise zero spreads.
It is also important to understand the execution method used by your broker, such as whether they are a market maker, to determine the possibility of a conflict of interest if the broker is taking the other side of your trades. This is where ensuring your broker is highly trustworthy is crucial. Learn more about how we rate all the forex brokers that we review for trustworthiness with our proprietary Trust Score.
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.
What forex brokers have the lowest spreads?
In order to really know which broker has lower spreads compared to the competition, we obtained average spread data for over 60 forex brokers and factored in any per-trade commissions to calculate their effective spreads. An effective average spread allows you to determine your true trading costs.
CMC Markets is our top pick due to its competitive FX Active pricing. FX Active features zero-pip spreads on select major currency pairs, along with low per-trade commissions. .
Brokers with the lowest effective spreads in 2025 are as follows, based on average price data obtained for the EUR/USD pair:
currency_exchangePro tip:
Read my guide to the best forex brokers to see how these low-cost brokers stack up against the top 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.
Is a zero spread account right for me?
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.
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 third-party trading platforms like 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. Want to use MetaTrader, but not sure which version to choose? My MT4 vs MT5 guide can help you make an informed choice (I've been using MetaTrader since 2005).
If you want to learn more about algorithmic trading and automated high-frequency trading systems, check out my guide to high-frequency trading or my guide to the best algo trading software.
Pro tip: Whether brokers are market makers or 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.
Our testing
Why you should trust us
Steven Hatzakis is a well-known finance writer, with 25+ years of experience in the foreign exchange and financial markets. He is the Global Director of Online Broker Research for Reink Media Group, leading research efforts for ForexBrokers.com since 2016. Steven is an expert writer and researcher who has published over 1,000 articles covering the foreign exchange markets and cryptocurrency industries. He has served as a registered commodity futures representative for domestic and internationally-regulated brokerages. Steven holds a Series III license in the US as a Commodity Trading Advisor (CTA).
All content on ForexBrokers.com is handwritten by a writer, fact-checked by a member of our research team, and edited and published by an editor. Our ratings, rankings, and opinions are entirely our own, and the result of our extensive research and decades of collective experience covering the forex industry.
Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors with quality data they can trust. Click here to learn more about how we test.
How we tested
At ForexBrokers.com, our online broker reviews are based on our collected quantitative data as well as the observations and qualified opinions of our expert researchers. Each year we publish tens of thousands of words of research on the top forex brokers and monitor dozens of international regulator agencies (read more about how we calculate Trust Score here).
Mobile testing is conducted on modern devices that run the most up-to-date operating systems available:
- For Apple, we use MacBook Pro laptops running macOS 15.3, and the iPhone XS running iOS 18.3.
- For Android, we use the Samsung Galaxy S20 and Samsung Galaxy S23 Ultra devices running Android OS 15.
All websites and web-based platforms are tested using the latest version of the Google Chrome browser.
Our researchers thoroughly test a wide range of key features, such as the availability and quality of watch lists, mobile charting, real-time and streaming quotes, and educational resources – among other important variables. We also evaluate the overall design of the mobile experience, and look for a fluid user experience moving between mobile and desktop platforms.
IG
CMC Markets
FOREX.com
XTB
eToro
AvaTrade
Plus500
Pepperstone
FP Markets
Tickmill
IG
