To identify the best low spread forex brokers our calculator compared average spreads and commissions to find the June 2021 lowest spread forex broker. Only regulated forex brokers were compared.
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Our June 2021 lowest spread forex broker list is.
You can calculate forex brokerage based on current forex crosses, commissions and spreads below for the major base currency and currency pairs. You can also click on the ‘+’ sign to view the fees that led to the final forex brokerage displayed.
FP Markets offers ECN pricing with allows them to offer some of the lowest spreads of any broker. The below table compares the published average spreads for a range of brokers (updated monthly) and shows FP markets have either the best or very competitive spreads on many of the major currency pairs.
Data taken from broker website. Accurate as at 04/06/2021
FP Markets gives you a choice of two trading accounts:
If you are new to trading or a beginner trader, you may prefer the Standard Account. While this account does have higher spreads, there are no commissions which means a simpler cost structure.
The FP Markets Raw account is the recommended account for most traders, as it offers the tightest spreads and low commissions. The commission rate is based on your chosen base currency, if you are in Australia, then your commission will likely be in Australian Dollars (AUD) which means commissions of $3.50AUD per side for each lot you trade. , Other base currency options include British Pounds (GBP) of £2.25 per side, Euros (EUR) of €2.75, and US dollars of USD $3 per side.
Regardless of which account you choose, FP Markets offers great spreads regardless of the financial instruments you choose. These instruments include:
Choosing the Raw account means your trading execution will use straight-through processing (STP) to connect you directly with a large pool of liquidity providers. This process means extra charges through a dealing desk are bypassed and ensures your spreads remain low. This is why spreads can be as low as 0.0 pips and fast execution speed of under 40 ms.
FP Markets offers MetaTrader 4 (MT4) which is the world’s most popular forex trading platform. MT4 is popular for a number of reasons including
The next most popular trading platform FP Markets offers is MetaTrader 5 (MT5). The main difference between MT4 vs MT5 is the ability to trade Share CFDs and some other more sophisticated trading tools. The trading tools include detachable charts, more indicators, 21 time frames, 38 technical indicators, 6 pending order types, and depth of market.
Overall, if you are looking to trade more than forex and want the best features MetaTrader to have to offer, then it is recommended to consider choosing the MT5 platform.
Traders in Australia can also choose IRESS. IRESS is unique as it gives traders Direct Market Access (DMA). DMA is a variation on STP and ECN trading which allows you to see your order in the trading queue which makes it especially ideal for trading stocks. This software has unique perks for Australians including faster execution speeds and the ability to trade a large number of shares but the Iress trading community is smaller and not international.
FP Markets has no deposit or withdrawal fees, allows advanced trading strategies (including scalping), and also has:
Overall, if you’re looking for the lowest fees when trading forex and CFDs then the FP Markets Raw account is the best option. Most traders should select the MetaTrader 4 account and select the base currency of the country they live in which determines the commission rate of the account.
View FP Markets Review >>Visit FP Markets >>
The overall rating is based on review by our experts
If you are looking for the tightest spreads with no commission costs then you may wish to consider Pepperstone. Choosing the Pepperstone Standard account means you can have spreads as low as 0.60 pips for the EUR/USD currency pair with added commission costs.
The below table which we compile every month using the average or typical spreads that brokers publish on their website, suggests that Pepperstone spreads for standard accounts are consistently among the best for most currency pairs.
These spreads Pepperstone offers, not only make them among the best options for a Standard account but a competitive option even when compared to an ECN pricing account.
There are two types of accounts available with Pepperstone. These are the Standard Account and the Razor account. Pepperstone is unique in the Forex broking industry as they are one of the few to offer competitive spreads for standard accounts and ECN pricing accounts.
As demonstrated above, Pepperstone spreads for the standard accounts are ultra-competitive with EUR/USD spreads starting from 0.6pips. Choose this account if you are new to trading, only trade occasionally, or just don’t want to pay commissions.
If you wish to trade frequently or just want to have the lowest spreads possible then choose the Razor account.
Regardless which account you choose you will have access to Pepperstone’s entire range of CFD products. However, if you wish to trade shares then make sure you choose the MetaTrader 5 trading platform.
Pepperstone has the lowest self-reported execution speeds with most orders executed by Pepperstone Group Limited of 30 milliseconds. This is the time taken to process an order once it’s received by the broker. To verify this speed, a comparison using broker demo accounts resulted in Pepperstone having the fastest Market Order Execution Speed of any broker.
Pepperstone offers the choice of the three most popular forex trading platforms. They are MetaTrader 4, MetaTrader 5 and cTrader. They offer fast execution speeds across these platforms with award-winning customer service.
Pepperstone has regulation with:
Overall we recommend Pepperstone for any trader looking for the lowest no commission spread account. The fact that Pepperstone has a strong reputation, the best forex trading platforms, and customer service is a bonus.
View Pepperstone Review >>Visit Pepperstone >>
There are different types of short term traders and these include:
Regardless of which type of short-term trader you are, all forms rely on the tightest possible spreads as each trade you open or close incurs a cost. For this reason, it is essential to choose a broker with ECN style pricing and fast execution.
Brokers that offer ECN pricing and have no dealing desk connect you directly with a pool of liquidity providers for the best possible quotes.
ThinkMarkets minimum spreads for most currency pairs on their Standard account start from 0.4 pips which is the most competitive spreads for a no-commissions account you can find.
In a similar vein, spreads on ThinkMarkets ThinkZero account 0 pips and have commission costs from $3.50 per side (100,000).
Every nanosecond counts for frequency traders otherwise there is a real risk of slippage. For this reason ThinkMarkets hosts servers in the same data centre or near the same data centres that the major liquidity providers, exchanges, buy-side, and sell-side firms host their servers.
ThinkMarkets has partnered with Equinix in New York, London, and Hong Kong so that no matter where in the world you are trading from and which market you want to trade, ThinkMarkets are positioned to give you the fastest trading possible.
Key factors about the IG standard account include:
View ThinkMarkets Review >>Visit ThinkMarkets >>
The reason we recommend IG as a low spread broker for beginners is for 2 reasons
Beginner forex brokers often prefer a standard forex account, as it’s easier to calculate profit/losses of trades, and the fees are built into the prices. This allows traders to focus on improving their trading without the commission costs as a distraction.
IG Markets standard accounts alone aren’t anything special for beginner traders, but combined with their risk management tools, IG Markets have a point of difference to most brokers. IG offers the following risk management tools that only some brokers offer.
TO make the most of these risk management tools, make sure you choose one of IG Markets custom-built trading platforms. It on these platforms that you will find most of IG risk management tools available.
View Full IG Review >>
FxPro is a no dealing desk forex broker adopting straight-through technology (STP) to execute trades. In 2020, this lead to no requotes on 99.32% of trades. It also leads to fast execution speeds with most orders filed in 11.06 milliseconds.
FxPro offers fixed spreads on limited forex pairs and floating spreads on the forex trading platforms MT4, MT5 and cTrader. Floating spreads will vary by market conditions and for major currency pairs such as the EUR/USD to AUD/JPY can be 0 spreads at times.
View Full FxPro Review >>
Fixed spread brokers are designed for low-risk forex traders looking for transparent fees and advanced features such as guaranteed stop-loss orders. These market maker brokers help traders avoid slippage, which is a key factor making CFD trading high risk but increases the fees (spreads) charged by the broker. Below compares the top fixed spread accounts.
As the above shows, AvaTrade has the lowest fixed spreads of any broker. They don’t charge for withdrawals or deposits but have an inactivity fee after a quarter of no activity. This inactivity is $50 per quarter. They offer a range of CFDs, EFTs, and currency pairs.
View AvaTrade Review >>
ForexTime (FXTM) is a global broker best known for the high leverage available. Leverage will depend on the FXTM trading account and the country you trade from.
The Advantage and Advantage Plus user floating or tiered leverage. This means the more you trade, the lower the leverage you can trade with. Trades under $50,000 USD can access leverage of 1:2000 (0.05% margin) while trades between $50,000 and $200,000 allow leverage up to 1:1000 (0.1% margin).
Leverage puts your capital at risk, especially when market volatility is experienced. Losses can exceed your deposit. Account types with high leverage should only be chosen by forex traders that understand the risk. In this respect, it is good that FXTM limit the available leverage for large trades.
Leverage for clients in the UK and Europe is more limited due to FCA and CySEC regulation.
Regardless if you choose a Micro, Advantage, or Advantage Plus account the maximum leverage is 1:30 for major currency pairs and 20:1 for minor and exotic currency pairs.
With FXTM you can choose from 3 different accounts.
The first account is their Micro account. Choose this account if you want to start trading with FXTM’s lowest minimum deposit ($50). Trading with this account has instant execution which means you will have the chance to confirm or reject requotes. The main limitation of this account is that Forex and Metals
The next set of FXTM accounts are ECN broker style with a spread and commission combination. This is the choice of more experienced traders of those using scalping. There are three main sets of accounts with the main two ECN accounts offering leverage up to 2000:1 while the Pro account has up to 200:1. The Advantage Plus account is more designed for institutional traders with a high minimum deposit of $25k.
Key factors about the FXTM include:
View FXTM Review>>
The best forex brokers for South African traders are locally regulated by the Financial Services Conduct Authority (FSCA). The broker officially is named HF Markets SA (PTY) Ltd with the Financial Service Provider (FSP) licence number 46632. Key reasons HotForex are recommended is their size and reputation with the broker operating for over a decade with over 2 million forex accounts opened.
The forex provider offers high leverage levels of 1000:1 and the choice of MetaTrader 4 or MetaTrader 5 forex trading platforms. Other key features of HotForex are low spreads (from 0.1 for EUR/USD), a range of account types and a range of online trading tools.
South African forex traders should consider the FSCA regulated broker that balances a local presence, leverage and trading costs.
Key factors about the HotForex include:
Visit HotForex >>
The commission charge for ECN brokers is set on the base currency chosen. These are based per side (100k traded) and if calculating per round-turn lot, the amounts below should be doubled. This was based on commission rates found on forex broker websites offering Raw (ECN accounts) and published in June 2021.
As the graph shows, Fusion Markets is the best broker when it comes to low commissions. They are advertised as the lowest ASIC (Australia) regulated forex broker, focusing primarily on the MetaTrader 4 (MT4) forex trading platform. In addition to the low commissions, there are also no fees on deposits or commissions.
The lowest minimum deposit is $0 for opening an online trading account with Fusion Markets. Deposits can be made fee-free via Skrill, Neteller, Visa or MasterCard.
Fusion Markets Full Review >>Visit Fusion Markets >>
Those looking for social trading features should consider eToro which is built around its copy trading capability. It has one of the largest communities of retail traders that can be reviewed and copied. This means that once you select a trader, you will automatically make the same trades as that individual.
eToro has 0% commission stocks allowing retail traders to buy shares across the world from Australia, USA to Japan with no commissions charged. Like the best forex brokers, they also offer low spreads (spreads = bid – ask price) but have some unique fees such as a withdrawal fee. This can make them more expensive from other brokers, especially when market volatility is experienced.
eToro is regulated in the UK by the FCA, ASIC in Australia, while in the rest of Europe they have CySEC regulation. If you are looking for a social trading (copy trading) specialist CFD broker, eToro is your best low fee option. That said, there are lower spread and commission brokers such as Pepperstone that offer this type of trading but not as their core offering.
FP Markets is the lowest spread forex broker. This is based on the average spreads of their Raw Spread trading account, with the account also offering low commissions.
Fusion Markets is an ASIC regulated forex broker offering the lowest commissions worldwide. View our commission comparison to see how the broker compares to other ECN brokers.
Market maker forex brokers widen the spreads (the difference between the buy/sell price) to make a profit. By selling a currency at a more expensive price or buying at a cheaper price, they can make money from the widened margin. Retail traders who want market-based spreads should view our ECN broker comparison.
The lowest spreads and overall fees are based on ECN accounts (Raw accounts). FP Markets in June 2021 had the lowest spreads including:
The commissions charged by FP Markets as analysed above are also competitive, including:
There are no inactivity fees, funding fees, or withdrawal fees. The broker offers MetaTrader 4, MetaTrader 5 and IRESS. If you choose IRESS, please view their website as some commission rates differ for this unique forex platform. The company is regulated by the Australian Securities and Investments Commission (ASIC) and Cyprus Securities and Exchange Commission (CYSEC). The leverage offered through the ASIC subsidiary is up to 30:1 which combined with low fees is why experienced and automated traders choose FP Markets across the globe.
This comparison was made based on the published forex broker average spreads at the time this article was created and revised. Many high-profile brokers from FXTM, HotForex, FBS, OctaFX, VantageFX, and forex.com were not included primarily due to the lack of standard spread information. This includes brokers who claim to have zero spread accounts or floating variable spreads but won’t publish average spreads. Forex market conditions can impact capital markets impacting the asking price and sell price spreads. This can lead to the actual spreads been quite different from the average spread which will be displayed by the forex broker. Before you start trading, understand the risks of leverage and CFD trading first.
Brokers that offer the lowest spreads
This table lists the published spreads that brokers list on their websites. These spreads are for ECN style (sometimes called a zero spread account) trading account which means traders will pay a commission to open and close their position. Spreads are lower than standard accounts as there is no dealing desk and because the spreads do not include commission costs in the spread.
A number of comparison pages exist on CompareForexBrokers that are country-specific factoring in the relevant regulator. This includes the best UK forex Brokers, Forex brokers in Australia and South African Brokers. You can also view the review page to compare the reviews of each forex broker worldwide.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.