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FX brokers with the lowest spread 2021

To operate in the forex market it is necessary to have a reliable broker that adapts to the investor’s needs. In some cases the commissions can be unprofitable for large amounts of operations, so it is convenient to know which are the brokers with the lowest spread and thus select the one that can generate the highest profitability with the trading strategy used.

Broker Spread Regulation Min. Deposit Max. Leverage
Pepperstone 0.0 pips ASIC, FCA Depends N/A
IC Markets 0.1 pips ASIC $200 1:500
ActivTrades 0.5 pips FCA, FSCS, CNMV $1.000 1:30
IG 0.6 pips FCA, CNMV $1 1:20
XM 0.6 pips ASIC, CySEC $150 1:888
Admiral Markets 0.6 pips FCA, ASIC, EFSA, CySEC $200 1:500
Xtb 0.9 pips FCA N/A 1:30
AvaTrade 1.3 pips ASIC, FSB, FSA $100 1:30
Markets 2.0 pips CySEC, FSCA, ASIC, FSC, FCA $100 1:300
Trade 3.0 pips CMVC $100 1:300
eToro 3.0 pips CySEC, FCA, ASIC $200 1:500
  • In general, brokers charge commissions for the provision of their services.
  • However, some brokers do not charge commission, or charge it only for products aimed at professionals.

So how do they profit?

FX brokers - lowest spreadThese brokers deduct a profit for their services from the spread generated between each trade, thus forming part of the common expense that trades normally generate. This spread represents the difference that a trade acquires between the price at the entry order and the price at which the order finally closes.

This means that the price at which an order is expected to be sold ends up being different from the price at which it is bought, and vice versa. It is this difference in prices that brokers use to acquire payment for their services. Taking the power to determine the percentage of spread that each operation will generate before it is realized, a fact that does not additionally affect the investor’s finances.

On the other hand, when we talk about brokers with less spread, we look for brokers that determine fixed spreads, which usually maintain a low range and are ideal for short to medium term operations, being also a kind of insurance against market volatility. Remembering that not all brokers provide this service, it is important to know which are the brokers with the lowest spread.

Recommended for many simultaneous operations

Choosing a broker with the lowest spread is a recommended option for those investors who make many simultaneous operations, so that when all of them are put together, a considerable spread is accumulated.

Taking into account that most of the brokers with less spread offer it in products related to CFD, which present high risk of losses, but great profitability, a risk that the less experienced should think about.

It is also useful to take into account that there are trading operations whose profit depends on the spread of the operation, so trading with a broker with less spread is a convenient way to keep possible losses under control.

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Risk Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% 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. Trading with financial products (CFDs, Forex, Stocks, Cryptocurrencies, etc.) in general and with leveraged products especially is highly speculative and not suitable for all investors! The loss of your entire investment is possible. Never invest money you can`t risk losing! Decentralized and not regulated cryptocurrency markets are also a high risk and may lead to a significant loss.

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