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Best Zero Spread Forex Brokers

May 09, 2022
Last modified May 20, 2022

Zero-spread forex trading. Sounds like a great deal, right?

Let's be clear; zero-spread forex trading does not mean zero-cost forex trading. The same goes for low spreads - just because a broker claims low average spreads (or even a zero spread), it doesn't mean that you can count on your trading costs being lower.

Given this harsh truth, it's best to be wary when you find yourself staring at an ad for zero-spread accounts. And remember that some zero spread offerings are really just marketing gimmicks designed to lure in inexperienced traders. At BrokerNotes we like to remind traders of all experience levels to always read the fine print.

All that being said, the team at BrokerNotes dove deep into the world of zero-spread forex brokers and conducted our own rigorous research on the subject, to create this guide designed to help traders familiarize themselves with the realities of zero-spread accounts.

Below, we do our best to explain the benefits (and drawbacks) of zero-and-low-spread accounts, why your effective spread is ultimately what matters in the end, and to help you pick the best zero-spread (or low-spread) forex broker.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Lowest Spread Brokers

When it comes to forex and CFD trading, the brokers with the lowest spreads in 2022 are as follows:

  • Tickmill - 7.8/10 Overall
  • FP Markets - 7.9/10 Overall
  • CMC Markets - 9.4/10 Overall
  • IC Markets - 8/10 Overall
  • HYCM (Henyep) - 7.7/10 Overall
  • Interactive Brokers - 9.2/10 Overall
  • IG - 9.7/10 Overall
  • Plus500 - 8.2/10 Overall
  • Admiral Markets - 8.1/10 Overall
Overall Rating
7.8 / 10
Minimum Deposit
$100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.27 (September 2021)
All-in Cost EUR/USD - Active0.47 (September 2021)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2014
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses1
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)87
Forex Pairs (Total)62
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformNo
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)30
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
7.9 / 10
Minimum Deposit
$100 AUD
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard1.2 (September 2021)
All-in Cost EUR/USD - Active0.7 (September 2021)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2005
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses1
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)9790
Forex Pairs (Total)63
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)30
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.4 / 10
Minimum Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.73 (August 2021)
All-in Cost EUR/USD - ActiveN/A
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1989
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses5
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)11927
Forex Pairs (Total)158
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)86
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8 / 10
Minimum Deposit
$200
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.62 (August 2021)
All-in Cost EUR/USD - Active0.62 (August 2021)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2007
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses1
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)3583
Forex Pairs (Total)61
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformNo
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)30
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
7.7 / 10
Minimum Deposit
100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.6 (Sept 2021)
All-in Cost EUR/USD - Active0.6 (Sept 2021)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1977
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses2
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)245
Forex Pairs (Total)71
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformNo
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)30
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsNo
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.2 / 10
Minimum Deposit
$0
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.6 (From 09/25/21 - 10/02/21)
All-in Cost EUR/USD - Active0.6 (From 09/25/21 - 10/02/21)
PayPal (Deposit/Withdraw)No
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)No
Regulationexpand_moreexpand_less
Year Founded1977
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses8
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)7400
Forex Pairs (Total)91
BitcoinNo
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)127
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
9.7 / 10
Minimum Deposit
£250.00
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.828 (September 2021)
All-in Cost EUR/USD - Active0.365 (May 2020)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)No
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded1974
Publicly Traded (Listed)Yes
BankYes
Tier-1 Licenses7
Tier-2 Licenses2
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)19537
Forex Pairs (Total)100
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)32
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


Overall Rating
8.2 / 10
Minimum Deposit
€100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.6 (as of Aug 2018)
All-in Cost EUR/USD - Active-1
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2008
Publicly Traded (Listed)Yes
BankNo
Tier-1 Licenses4
Tier-2 Licenses3
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)1896
Forex Pairs (Total)71
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Proprietary PlatformYes
Social Trading / Copy TradingNo
Charting - Indicators / Studies (Total)110
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsNo
Daily Market CommentaryYes
Forex News (Top-Tier Sources)No
Economic CalendarYes


Overall Rating
8.1 / 10
Minimum Deposit
$100
Trust Score
Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard0.8 (July 2021)
All-in Cost EUR/USD - Active0.7 (July 2021)
PayPal (Deposit/Withdraw)Yes
Skrill (Deposit/Withdraw)Yes
Visa/Mastercard (Credit/Debit)Yes
Regulationexpand_moreexpand_less
Year Founded2001
Publicly Traded (Listed)No
BankNo
Tier-1 Licenses2
Tier-2 Licenses1
Investment Optionsexpand_moreexpand_less
Forex TradingNo
Trading - Forex or CFDsYes
Tradeable Symbols (Total)8425
Forex Pairs (Total)50
BitcoinYes
Trading Platformsexpand_moreexpand_less
Virtual Trading (Demo)Yes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Proprietary PlatformYes
Social Trading / Copy TradingYes
Charting - Indicators / Studies (Total)30
Apps & Toolsexpand_moreexpand_less
Android AppYes
Apple iOS AppYes
Has Education - Forex or CFDsYes
Daily Market CommentaryYes
Forex News (Top-Tier Sources)Yes
Economic CalendarYes


What are zero-spread accounts?

Zero-spread accounts are trading accounts that have no difference between the bid and ask price - or spreads that average close to zero pips. Such accounts allow traders to know in advance what their entry and exit levels will be when they open positions.

What does this mean for traders? Zero spread accounts are helpful for calculating non-trading losses (such as slippage) and are ideal for some forex strategies, such as high-frequency scalping and day trading. Zero spread accounts also offer new traders the opportunity to try out forex trading without being exposed to high transaction costs.

Pros & Cons of Zero Spread Accounts

Pros:

  • Changing direction can be expensive. If you have an open long position, for example, and decide you want to change the direction of your trade to go short, it can be less pricey to do so with a zero spread account - compared to paying a spread to close and reverse your trade.
  • Sometimes, every little bit counts. Some strategies - like scalping or high-frequency trading - are mostly (or solely) based on latency (or, pricing delays that cause arbitrage), and require the lowest costs possible in order to be profitable.

Cons:

  • Zero-spread doesn't mean zero-cost. Don't forget; forex brokers have to cover their costs and make money, and they'll still find ways to do so - with fixed commissions, larger deposit requirements, tighter margin calls, and other tactics designed to make up for their zero-or-low spread offers.
  • Spreads that "start" at zero don't always stay there. The potential always exists for the spread to widen - even in a zero spread account, and even if the account is commission-free.

What is the spread in forex?

Typically measured in a unit called a "pip", the spread communicates the difference in price between the rate at which you buy (known as the "ask price") a currency pair and the rate at which you can sell (known as the "bid price").

When trading in financial markets there will always be a bid/ask spread, even if it is very small (or even zero). It's always important to be aware of the spread when you are trading, and it's also important to remember that the spread is a type of trading cost that you may incur even if you are using a commission-free trading account.

How do zero-spread accounts work?

In theory, zero-spread accounts can offer traders the chance to compute their executions precisely, without having to navigate the issue of tightening or widening spreads. The reality, however, is that your realized effective spread is what really matters - not just the advertised spreads.

For example, say you have an open long position, and you've decided you want to change the direction of your trade to go short. If you have a zero-spread account, it'll probably be less expensive to do so, because you won't be paying a spread to close and then reverse your trade. Traders will often change direction during significant news events.

Imagine you find yourself trading on the wrong side of a USD/JPY move during a huge fundamental data release, like the Rate Decision of the Bank of Japan. During such a volatile market event (and other momentous situations), having a zero-spread account can allow you to change your trade bias without sinking your money into the spread.

That being said, any savings you make in the spread might end up being minuscule and can be quickly offset by the losses you'd sustain if the market moves abruptly against you. Your broker's execution quality (and any applicable fast-market trading policies) must be taken into consideration - not just the spread, or your broker's per-trade commissions.

Are low spreads good in forex?

Many brokers advertise low spreads, but their actual (effective) average spreads may be far worse in reality.

While spreads are an important factor in determining your trading costs, it's also important to consider the overall execution type, quality of execution, as well as per-trade commissions. If a broker has questionable execution methods (or charges steep commissions), the execution will end up being poor and will likely end up costing you more - even if the spread happens to be low.

Take it from us; the best brokers for zero-spread trading (or low-spread trading) also deliver a great selection of account types, offer high-quality execution methods, and feature low commissions - in addition to zero-or-low average spreads.

Is there a forex broker with 0 spread?

Even if a broker is a market-maker that establishes their own pricing, a true zero-pip spread is exceptionally rare - even at the interbank market level, where large banks and inter-dealer brokers (IDBs) trade amongst each other.

Often, when a broker offers a zero-pip spread it is tied into some kind of promotional offer or marketing campaign. These promotions may not reveal the true cost of trading with that broker.

It's important to think beyond the spread when choosing which broker is right for your needs. Always consider your broker's execution quality, as well as the kind of trading strategy you plan on adopting. Most importantly, check to see if the broker publishes any recent average spreads for the currency pair you want to trade. Hopefully, you'll be able to judge for yourself whether their spreads are truly low.

What forex brokers have the lowest spreads?

When it comes to commissions and fees, the best forex brokers in 2022 with the lowest overall effective spreads are as follows:

  • Tickmill - Best overall for low costs
  • FP Markets - Full MetaTrader suite, competitive pricing
  • CMC Markets - Best web trading platform, excellent education
  • IC Markets - Best overall for MetaTrader
  • HYCM - Competitive pricing on RAW account
  • Interactive Brokers - Best for professionals, excellent pricing
  • IG - Excellent education, most trusted

Which forex broker has the tightest spread?

After conducting our own rigorous research, we determined that Tickmill features the overall tightest spreads in 2022. To calculate the effective spread, we factor the average spread (where available) and any per-trade commissions across broker account types.

Tickmill's Pro account features low average spreads and per-trade commissions, resulting in tight effective spreads. Those effective spreads drop even further in Tickmill's VIP account, where commissions are slashed in half.

Tickmill's listed average spread data for the month of September 2021 (for the EUR/USD) came to 0.07 pips on its Pro account (which only requires a $100 deposit to get started). The resulting effective spread at Tickmill comes to 0.47 pips, after including a per-side commission of $2.00, or, roughly the equivalent of 0.4 pips per round-trip (the opening and closing of one trade is referred to as one complete "round-turn" or "round-trip").

Meanwhile, Tickmill's VIP account brings the effective spread down to 0.27, with the only caveat being that you must maintain a minimum balance of $50,000 to access this superb VIP pricing.

What forex account types have lower spreads?

Forex account types vary from one broker to another, but - on average - you'll find that commission-based accounts (or, accounts that offer agency execution) tend to feature the lowest spreads.

Commission-based accounts are often referred to as Electronic Communication Network (ECN) or no-dealing-desk accounts. In these cases, your broker acts as an agent and sends your offer to other market-makers for execution. With agency execution, the market-maker establishes the spread and your broker only charges a commission (though your broker may also be receiving a rebate or markup on the spread from the liquidity provider).

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About the Author

Steven Hatzakis

Steven is the Lead Writer and Director of Research at BrokerNotes since 2021, and at ForexBrokers.com since 2016. Steven has been gathering accolades and credentials in the finance industry for over 20 years. He’s served as a registered commodity futures representative for both domestic and internationally regulated brokerages, and he’s held a Series III license in the U.S. as a Commodity Trading Advisor (CTA) for over ten years. He’s published over 1,000 articles covering the forex industry, and he has been writing about Bitcoin and cryptocurrency for almost ten years. Steven continues to contribute to open-source technology, consumer education, and self-regulatory initiatives.


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