Forex Brokerage Fees

Below we look at the different types of forex brokerage fees and costs

Broker Review Our Rating Regulation Standard
EUR/USD
Spread
Standard
GBP/USD
Spread
Standard
AUD/USD
Spread
Raw
EUR/USD
Spread
Raw
GBP/USD
Spread
Raw
AUD/USD
Spread
Commissions
(USD Base)
MetaTrader 4 MetaTrader 5 cTrader Execution Speed Minimum Deposit Currency Pairs Crypto CFDs Retail Leverage Prof. Leverage Visit Broker
80 ASIC,CySEC
FSCA,FSA-S,FSC-M
1.1 1.3 1.3 0.10 0.20 0.20 $3.00 225ms $100 70+ 10+ 30:1 500:1 Visit Site
98 SCB, ASIC
FCA, CySEC
1.10 1.40 1.20 0.10 0.40 0.20 $3.50 77ms $0 62+ 12+ 30:1 500:1 Visit Site
82 ASIC, VFSA, FSA-S 0.93 1.08 0.92 0.13 0.21 0.12 $2.25 79ms $0 90+ 10+ 500:1 500:1 Visit Site
64 ASIC, FSCA
CBI, KNF, CIRO
ADGM, FSC-BVI
- - - - - - - 160ms $100 55+ 15+ 30:1 400:1 Visit Site
71 ASIC, FCA, BaFin
FINMA, NFA/CFTC, MAS
CySEC, DFSA, FMA
JFSA, BMA, FSCA
1.13 1.66 1.01 0.16 0.59 0.29 $6.00 174ms $450 100+ 12+ 30:1 200:1 Visit Site
68 FCA, FSCA
ASIC, FSA-S, CySEC
1.1 1.3 1.1 0.1 0.3 0.2 $3.50 161ms $0 46+ 21+ 30:1 500:1 Visit Site
 

What Are The Different Types Of Forex Brokerage Fees?

Brokerage fees are a big factor in evaluating your overall trading costs. They usually take into account commissions the broker charges and spread costs. Below, we have come up with a list of forex brokers with the best brokerage fees based on a unique advantage.

1. FP Markets Best Broker For Scalping

FP Markets

Forex Panel Score

80

Average Spread

EUR/USD = 0.1
GBP/USD = 0.2
AUD/USD = 0.1

Trading Platforms

MT4, MT5, cTrader, TradingView

Minimum Deposit

$100

Why We Recommend FP Markets

In our assessment, FP Markets proves to be an ideal choice for scalping, providing low costs and access to MetaTrader 4 and 5 platforms. Tests conducted by our team member Ross Collins reveal an impressive 0.41 pips average RAW spread for EUR/USD, surpassing competitors like Admirals with their 0.79 pips average.

Along with a $3.00 per lot commission, FP Markets stands out among brokers for its low brokerage fees. Combining these advantages with MT4/5 and an efficient one-click trading feature, FP Markets is highly recommended for scalping.

Pros & Cons

  • Low average RAW spreads
  • Good variety of trading products
  • Top choice of trading platform and tools
  • The mobile trading app is basic
  • Educational resources are limited
  • A high minimum deposit for an IRESS account

Broker Details

In our testing, we found FP Markets RAW account spreads to be excellent, averaging 0.1 pips on EUR/USD, making the broker competitive against the rest of the industry. We think this is a solid average spread if you are a scalper, as it allows you to take advantage of tight pricing when aiming to capture small intraday price movements. The narrow spreads help reduce the cost of entering trades, allowing you to maximise potential gains on each scalp.

BROKER EUR/USD
FP Markets 0.1
Tickmill 0.1
IC Markets 0.02
Fusion Markets 0.13
ThinkMarkets 0.1
FXTM 0
TMGM 0.1
HYCM 0.1
XM 0.1
Industry Average 0.22

While executing trades on FP Market’s RAW account, we found the commission charged was low at just $3.00 per lot traded, lower than the industry average by almost $0.50. This may not seem significant initially, but these savings accumulate substantially for scalpers who trade frequently. This is why we like that the low commissions allow you to retain more of your profits, especially when scalping multiple times throughout the trading session.

The reason FP Markets can offer these low trading costs is that it’s an ECN broker, which provides direct access to interbank liquidity pools. As a scalper, this is beneficial because you can trade on raw, unfiltered price feeds with minimal risk of requotes or slippage. The depth of liquidity from institutional players also ensures your scalping orders can be filled swiftly, even during volatile market conditions.

With the broker using the ECN model, our analyst Ross Collins tested how fast its market order execution speed is and compared it with other brokers with the MetaTrader 4 platform.

Impressively, FP Markets achieved an average speed of 96 ms, one of the fastest we tested. Surprisingly, it is faster than other well-known fast execution brokers such as Pepperstone and IG Group.

Broker Market Order Rank Market Order Speed
Fusion Markets 1 77
FP Markets 2 96
Pepperstone 3 100
FXCM 4 123
IG 5 141
ThinkMarkets 6 248

We think this is crucial for scalpers because you have to have fast execution speeds – especially when it comes to instant market orders. Delays of even milliseconds can mean missing your intended entry or exit point, impacting your scalping strategy’s profitability.

While testing FP Markets, we found their range of trading platforms extensive, with popular options like cTrader, MetaTrader 5, and TradingView. However, we felt that MetaTrader 4 is a top choice for scalping with its 30+ indicators, three chart types, and nine timeframes that go as low as tick charts.

The feature we think pairs well with scalping is the one-click trading setting, which reduces the time it takes to place your orders. This can help you capture your scalps faster and maximise profit margins on each successful trade.

FP Markets ReviewVisit FP Markets

Broker Screenshots

2. Pepperstone Top Broker for Zero Spreads

Pepperstone

Forex Panel Score

98

Average Spread

EUR/USD = 0.1
GBP/USD = 0.4
AUD/USD = 0.2

Trading Platforms

MT4, MT5, cTrader, TradingView

Minimum Deposit

$0

Why We Recommend Pepperstone

Our recommendation for zero spreads goes to Pepperstone for its Razor account. Not just a marketing ploy, as proven by our tests, Pepperstone maintained a 0.0 pip spread on EUR/USD 100% of the time (outside rollover).

With an impressive 98/100 review score, Pepperstone excels in customer service, offers a wide array of markets to trade and has MT4, MT5,cTrader and TradingView platforms. For traders valuing tight spreads, quick execution, and reliable service, Pepperstone is a solid and commendable choice.

Pros & Cons

  • Tight spreads from 0.0 pips
  • Advanced tools for MT4
  • Solid range of markets
  • Lacks guaranteed stop-loss order
  • Demo accounts expire
  • Educational resources are limited

Broker Details

Pepperstone gives you the choice of two trading accounts:

  • The standard account has no commission, but you pay the spreads.
  • The RAW account charges a small commission with tighter spreads.

Pepperstone advertises spreads from 0.0 pips on major pairs with the RAW account, so our analyst Ross Collins tested to see how frequently the broker offered them this low. Surprisingly, his findings showed that zero pips spreads were offered 100% of the time on major pairs, which was one of the only brokers to do so in our tests.

Zero Spread Testing
Broker Time At Minimum Spread
Pepperstone 100%
City Index 100%
Fusion Markets 98.55%
ThinkMarkets 97.93%
IC Markets 97.83%
TMGM 97.83%
FP Markets 97.83%
Eightcap 97.83%

We think this makes the RAW account ideal for scalpers; not only will you enter with zero spreads, but your trading costs will also become fixed thanks to the commission charged. With fixed commissions and zero spreads, your trading costs will be the same in both volatile and liquid markets.

During our tests, we found the Standard account’s spreads low, averaging 1.12 pips on EUR/USD, below the industry average of 1.24 pips. With the price included as one cost, we think this option is ideal if you are a beginner, as it simplifies your trading costs.

YouTube video

We value that the broker offers a range of trading platforms, including MetaTrader 4, MT5, cTrader and TradingView, all of which provide excellent trading tools from which you can choose.

When testing the platforms, we tried MetaTrader 4 and found it has 30+ indicators, three chart types, nine timeframes down to tick charts, customisable indicators, and automated trading through Expert Advisors. We also found that the broker offers its own Smart Trader Tools and an additional 13 Expert Advisors you can access with a live trading account.

One of the EAs that stood out to us was the Mini-Terminal, which we think filled in some of the gaps the MT4’s one-click trading lacked. For example, you can add a default stop-loss and take profit levels to get added to every trade you make – saving you time and potentially protecting you from future mistakes.

As you can see in the image below, we entered the default lot size as 0.01, with a stop loss of 10 pips and take profit of 20 pips. These settings will be used when you click the buy and sell buttons.

Broker Screenshots

3. Fusion Markets Great Broker For Lowest Commissions

Fusion Markets

Forex Panel Score

82

Average Spread

EUR/USD = 0.13
GBP/USD = 0.21
AUD/USD = 0.12

Trading Platforms

MT4, MT5, cTrader

Minimum Deposit

$0

Why We Recommend Fusion Markets

Fusion Markets earns our recommendation for its blend of low trading costs and swift execution speeds in our testing.

In our examination of its Zero account, the EUR/USD spread averaged 0.22 pips—the lowest observed. With a $2.25 per lot commission, Fusion Markets stands out as a cost-effective choice compared to most brokers.

Ranked second in execution speed at 77ms in our tests, and offering MT4, MT5 and cTrader platforms, Fusion Markets earned a 79/100 overall score in our review.

Pros & Cons

  • Fast execution speeds
  • Low standard and RAW average spreads
  • Wide range of trading tools
  • No TradingView platform
  • Charges an inactivity fee
  • Limited choice of trading products

Broker Details

We found Fusion Markets to have the lowest commissions, charging just $2.25 per lot traded, much lower than the industry average of $3.29. In fact, Fusion Markets’ commissions are 32% cheaper than the industry standard in our findings.

Broker AUD
Fusion Markets $2.25
CMC Markets $2.50
Fair Markets $2.50
Go Markets $3.00
City Index (Web Trader) $3.00
VT Markets $3.00
FIBO Group $3.00
FlowBank $3.25
City Index (MT4) $3.50

We feel these ultra-low commissions are excellent if you trade frequently, as you’ll save a fortune (an average of $1.04 per lot) when you execute multiple trades.

To test Fusion Market’s spreads, we opened their Zero account, which is the broker’s commission-based trading account with tight spreads. Our analyst, Ross Collins, used this account to measure the average spreads, finding Fusion Markets provided very competitive raw spreads averaging just 0.16 pips on EUR/USD. Combining the low commissions and these razor-thin spreads helps minimise your trading costs.

EURUSD Average Spread
Fusion Markets 0.16
TMGM 0.15
Tickmill 0.15
IC Markets 0.19
Pepperstone 0.19
FP Markets 0.2
EightCap 0.2
Admiral Markets 0.21
CityIndex 0.22

The broker also impressed us with their execution speeds. Our analyst used Fusion Market’s Zero account to test the broker’s execution speed on MetaTrader 4 and compare the results against 14 other brokers.

His findings showed that Fusion Markets had the fastest market execution speed, clocking in at 77 ms, and came second place for its limit order speed of 79 ms. We think these rapid execution times are crucial as they reduce the chance you will get slippage, a hidden expense to trading that can cost you dearly in volatile markets.

Broker Overall Limit Order Speed Limit Order Rank Market Order Speed Market Order Rank
Fusion Markets 2 79 3 77 1
Pepperstone 3 77 2 100 5
TMGM 5 94 5 129 7
FXCM 6 108 8 123 6
City Index 6 95 6 131 8
Axi 8 90 4 164 16
Eightcap 9 143 12 139 10

With excellent execution services and low trading costs, we feel you can effectively take advantage of these benefits across the broker’s diverse range of trading instruments, including 90+ forex, 100+ stock CFDs, 10+ indices, 23+ commodities, and 10+ cryptocurrencies.

fusion markets account types products brief australia

4. AvaTrade Good Fixed Spread Broker For Day Trading

AvaTrade

Forex Panel Score

64

Average Spread

EUR/USD = 0.9
GBP/USD = 1.5
AUD/USD = 1.1

Trading Platforms

MT4, MT5, AvaTradeGo, AvaOptions

Minimum Deposit

$100

Why We Recommend AvaTrade

We find AvaTrade an excellent choice for day trading, thanks to its fixed spreads. The broker offers fixed spreads from 0.9 pips on EUR/USD with no commission, meaning your trading costs remain constant even when the markets are volatile.

This can be a big plus for day trading, where market announcements can happen and impact the spreads – fixed spreads give you predictability over your trading costs. You can enjoy fixed spreads across the 1,250+ markets available.

Pros & Cons

  • Low fixed spreads
  • Top risk management tools
  • Commission-free trading
  • No RAW spread pricing options
  • Risk management tools only on AvaTradeGO
  • Charges high inactivity fees

Broker Details

Fixed spreads aren’t as common compared with variable spreads because variable spreads tend to be lower more frequently. However, with AvaTrade, we noticed their spreads to be competitive even with a fixed model.

Using AvaTrade’s Standard account, we tested their spreads and found they offered 0.9 pips on EUR/USD, which is cheaper than most of our variable spread broker’s averages based on our testing, which surprised us. Fixed spreads will not rise or fall during volatile conditions and price spikes, saving you money when day trading, as you’ll always know your exact trading costs upfront.

Broker Avg. EUR/USD Spread
(Standard Account)
Fixed/Variable Spread
AvaTrade 0.90 Fixed
Fusion Markets 0.93 Variable
FP Markets 1.10 Variable
ThinkMarkets 1.10 Variable
Pepperstone 1.12 Variable
IG Group 1.13 Variable

AvaTrade offers fixed spreads on a range of markets, including 55 forex pairs, 632 shares, 33 indices, 27 commodities, and 17 crypto markets. This varied product range is valuable as it allows you to apply your day trading strategies across multiple asset classes while benefiting from the broker’s competitive fixed pricing.

In addition, the broker has a platform called AvaTradeGO, which offers decent charting tools with 40+ indicators and access to Trading Central. We think AvaTradeGO’s impressive market sentiment feature provides insights by showing you how AvaTrade’s clients view market movements, which can complement your day trading analysis and help validate your trades.

While fixed spreads offer cost certainty, AvaTrade’s AvaTradeGO platform further enhances your day trading tools by giving you a real-time pulse on market sentiment. Access to this data alongside your technical analysis can help validate your trading ideas or alert you to potential opportunities you may have missed.

If you want advanced trading platforms that let you customise your charts, AvaTrade also offers MetaTrader 4 and MetaTrader 4.

avatrade brief account types and products

Broker Screenshots

5. IG Group Largest Range Of Trading Products

IG Group

Forex Panel Score

71

Average Spread

EUR/USD = 0.16
GBP/USD = 0.59
AUD/USD = 0.29

Trading Platforms

MT4, IG Trading Platform, L2 Dealer, ProRealTime

Minimum Deposit

$0

Why We Recommend IG Group

IG Group sets the bar high for brokers when it comes to financial products, offering an impressive range of over 17,000 markets. It even has trading on less common products like futures, options and sectors.

The broker has low brokerage fees, too, with commission-free trading and low average spreads from 1.13 pips on EUR/USD – keeping your brokerage costs low. Having low average spreads and a wide range of markets helped IG Group score 81/100 in our review, along with its selection of trading platforms and customer service.

Pros & Cons

  • Extensive choice of markets
  • IG Trading platform is user-friendly
  • Decent educational resources with IG Academy
  • Requires a minimum deposit
  • Lacks social trading tools
  • MT4 can’t access all products

Broker Details

In our testing, we found IG Group to offer an impressive 17,000+ markets, the most we’ve seen from a CFD broker. These markets include 80+ currency pairs, 12,000+ shares, 130 indices, 41 commodities, and 6,000+ ETFs. We appreciate this extensive product range because it allows you to trade across multiple asset classes using a single account and platform.

Adding to its diverse product range, IG Group offers access to over 7,000 options markets. Options are derivative contracts that grant you the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific timeframe.

We think these instruments allow you to potentially enhance returns by taking advantage of anticipated price direction, especially in volatile market conditions. If your forecast is accurate, options enable you to capture price movement that can be accelerated by the volatility of the price movement, giving you potentially higher returns vs. a CFD. Plus, options have a limited downside risk defined by the upfront premium, meaning you’ll never lose more than the premium paid.

IG Group only provides a Standard account, which is a spread-only account with no commissions, as the pricing is bundled into the spread (which is why it’s wider). We tested this account to see how competitive IG Group’s spreads were across the forex majors and found the broker averaged 1.13 pips on EUR/USD. This is below the industry average and put it in line with other low-spread brokers like Pepperstone.

IG Group offers several trading platforms, including MetaTrader 4, ProRealTime, L2 Dealer and its proprietary IG Trading Platform. While testing the broker, we found the IG Trading Platform to be the best overall, as you can trade all of the markets offered by IG Group, while MetaTrader 4 and the others are limited in comparison.

While IG Group’s platform is web-based, making it easier to access as you just need an Internet connection and any browser to load. We tried the platform and found its charting tools expansive, including over 40 technical indicators and five chart types like line, bar, and candlesticks.

We also liked that you can trade options directly on the same platform, unlike some brokers like AvaTrade, which require separate platforms. This can disrupt workflow and make managing positions clunky.

Broker Screenshots

6. ThinkMarkets Top Broker For VPS Services

ThinkMarkets

Forex Panel Score

70

Average Spread

EUR/USD = 0.1
GBP/USD = 0.3
AUD/USD = 0.2

Trading Platforms

MT4, MT5, ThinkTrader

Minimum Deposit

$0

Why We Recommend ThinkMarkets

We highly recommend ThinkMarkets for its outstanding VPS services and low average spreads, making it perfect for automated trades across various time zones.

The standard account offers attractive average spreads of 1.1 pips on EUR/USD, while the ThinkZero account goes even lower at 0.1 pips, with a $3.50 per lot commission. Trading platforms include MT4, MT5 and ThinkTrader.

We also like that you can buy shares, allowing you to trade CFDs and equities from one broker.

Pros & Cons

  • Low brokerage costs
  • Offers VPS services
  • Good customer service
  • Limited trading tools available
  • ThinkZero account requires a minimum deposit
  • Lacks TradingView platform

Broker Details

If you are looking for a broker to maximise your potential with automated trading, choosing one with a VPS is the next logical step. ThinkMarkets is a standout pick for us because it offers low trading costs and top-class VPS service.

The broker offers a VPS service with servers located next to the exchange to maximise your execution speed and reduce lag. We think this service is excellent if you automate your trades, as you can set up your MT4 platform on the VPS and run it remotely 24/7 with a 99.9% uptime guarantee. This ensures your trading strategies can execute around the clock without interruptions from your local internet connection or computer downtime.

If you want the tightest spreads, you can choose the ThinkZero account. This account gives you access to average spreads from 0.1 pips on EUR/USD, but you pay a commission of $3.50 per lot traded—in line with the industry average. We think this account works best with the VPS, as your commissions will remain fixed, even when the markets are more volatile.

In fact, in our testing, the broker offered zero-pip spreads 94.93% of the time, as recorded by our analyst Ross Collins across the major pairs. Combining the VPS with razor-thin spreads allows your automated strategies to capture even the smallest price movements with precision and minimal trading costs.

Broker AUDUSD EURUSD GBPUSD USDCAD USDCHF USDJPY Grand Total
ThinkMarkets 95.65% 100.00% 91.30% 91.30% 91.30% 100.00% 94.93%

Alternatively, the standard account is best if you want to avoid commissions and have a one-off trading cost. In our tests, the spreads were more competitive, offering their standard account spreads at 1.1 pips on EUR/USD with no commissions. This spread-only pricing model may appeal to those who prefer a straightforward, all-inclusive cost structure for automated trading activities.

Broker Screenshots