Who Is The Lowest Spread Forex Broker?

IC Markets is the 2020 lowest spread broker while Fusion Markets has the lowest commissions. Our brokerage calculator shows that when both spreads and commissions are combined that Fusion is the overall cheapest forex broker.

Compare the best low spread forex brokers below.

Justin Grossbard

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.

Updated: 05/08/2020

What Changed?

Each month we update average spreads data published by the brokers the retail brokers lose %

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10 Lowest Spread Forex Brokers

Here is our list of the lowest spread forex brokers in August 2020.

IC Markets – Lowest raw spread forex broker
Fusion Markets – Lowest ECN broker commission rates
Pepperstone – Low spread forex broker for scalping
IG Markets -Best low spread and no commission broker
AvaTrade – Top Fixed Spread Broker Spread Rates
FxPro -0 spread forex broker on selected forex pairs
Plus500 – Best low spread broker for beginners
HotForex – Good FSCA regulated low spread broker
ForexTime – FXTM has the highest 2000:1 leverage
eToro – Copy Trading with $0 commissions on shares

Use Our Calculator To Compare Forex Brokerage

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Commission

Spread Costs

Total

The Lowest ECN Spreads Are Offered By IC Markets

An ECN broker account has a spread plus a commission. This way, a forex broker can pass on the ‘pure’ spread rate of the market and charge a transparent commission rate in addition based on volume. The lowest spread forex broker accounts all use pricing method. While all spreads should be ‘market rates’ the main difference impacting the actual spread rates are access to liquidity from banks to dark pools.

The average spreads displayed below were published on ECN broker’s websites as of August 2020. It’s critical to note these are not ‘minimum spreads’ but average spreads which are the true spread measurement on major currency pairs by a broker. This is how a scalper benchmarks brokers with the spreads shown in pips.


0.10	0.20	0.40	0.40	0.30
0.13	0.18	0.48	0.51	1.39
0.12	0.22	0.62	0.59	0.94
1.10	0.30	0.61	0.49	1.15
0.20	0.20	0.40	0.50	1.50
0.30	0.50	0.50	0.50	N/A
0.30	0.40	0.50	0.60	N/A
0.44	0.42	0.40	0.85	1.30
0.16	0.29	0.54	0.60	N/A
0.20	0.40	0.50	0.60	10.00
0.10	0.50	0.60	0.60	1.30
0.40	0.70	0.60	0.70	1.80
0.34	0.99	0.92	1.12	1.64

IC Markets has tight spreads followed by Pepperstone and FP Markets. With straight-through processing (STP) ensuring a fast trading experience. While the all ECN low spread brokers don’t mark-up spreads, superior liquidity provider access is how IC Markets achieves lower spreads. Below shows their commissions which are based on the base currency selected by the trader. Based on current exchange rates the Australian Dollar (AUD account) is the lowest which at current exchange rates is approx $2.16 USD per lot (per side).

Other key facts about IC Markets are:

An initial deposit requirement of $200 and no deposit or withdrawal fees
ASIC (Australia) and CYSEC (Cyprus) and FSA (Seychelles) regulated
Scalping trading allowed and other automated trading strategies
A range of CFDs including Cryptocurrencies such as Bitcoin
MetaTrader 4, MetaTrader 5 and cTrader forex trading platform
Strong customer support based in multiple locations worldwide

View IC Markets Review>>

ebvisitbtn-green” href=”https://www.compareforexbrokers.com/landing-redirect/?pid=ic-markets” rel=”nofollow”>Visit IC Markets >>

Our Rating

The overall rating is based on review by our experts

8.83

Spreads

10 / 10

Leverage

10 / 10

Trading Platform

10 / 10

Risk Management

5 / 10

Range of Markets

8 / 10

Customer Service

10 / 10

Fusion Markets Offers The Lowest Commissions

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 rates found on forex broker websites offering Raw (ecn accounts) and published in August 2020.

Commissions	USD	GBP	AUD	EUR	CHF	SGD	HKD	CAD	JPY	NZD
Fusion Markets	$2.25	£1.78	$2.25	€2.03	2.23	$3.10	$17.65	$3.00	247.5	$3.45
GO Markets	$2.50	£2.00	$3.00	€2.00	2.50	$3.50	$20.00	$3.00	N/A	$3.50
FP Markets	$3.00	£2.25	$3.50	€2.75	N/A	$3.50	$20.00	$3.50	250	N/A
Admiral Markets	$3.00	£2.40	$4.00	€2.60	3.00	N/A	N/A	N/A	N/A	N/A
IC Markets	$3.50	£2.50	$3.50	€2.75	3.30	$4.50	$27.13	$3.50	350	$4.50
AxiTrader	$3.50	£2.25	$3.50	€3.25	3.63	$5.00	$22.25	$4.50	425	$5.50
Pepperstone	$3.76	£2.20	$3.50	€2.61	3.30	$4.55	$28.17	$3.50	303	$4.75
FXTM	$4.00	£4.00	$4.00	€4.00	N/A	N/A	N/A	N/A	N/A	N/A
XTB	$4.00	£3.00	N/A	€3.50	N/A	N/A	N/A	N/A	N/A	N/A
London Capital Group	$5.00	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Dukascopy	$5.00	£3.50	N/A	N/A	4.00	N/A	N/A	N/A	N/A	N/A
ATC Broker	$5.00	£3.00	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
IG	$6.00	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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 a trading account with Fusion Markets. Deposits can be made fee-free via Skrill, Neteller, Visa or MasterCard.

Fusion Markets Full Review >>Visit Fusion Markets >>

Pepperstone Is The Best For Low Spread Scalping Accounts

Scalpers require a CFD broker that has fast execution speeds and low fees. Based on these two criteria as explained below Pepperstone was the best broker.

1) Pepperstone Execution Speeds

Pepperstone has the lowest self-reported execution speeds with most ordered 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.

2) Pepperstone Spread Comparison

While IC Markets has the lowest spreads overall, Pepperstone is a close second and actually beats IC Markets for a number of spreads. Below shows some major forex pairs that Pepperstone beats most competitors when it comes to spreads.


0.18	0.27	0.13	0.24	0.13
0.20	0.30	0.20	0.50	0.10
0.30	0.44	0.36	0.58	1.10
0.20	0.50	0.20	0.30	0.20
0.42	0.30	0.20	0.83	0.44
0.29	0.68	0.24	N/A	0.16
0.40	0.70	0.30	0.70	0.20
0.50	0.80	0.40	1.10	0.10
0.70	0.80	0.50	0.80	0.40
0.99	0.77	0.45	1.21	0.34

More Information About Pepperstone

Pepperstone has regulation with ASIC (Australia) and DIFC (Dubai). They also are UK regulated with the FCA which means they lowest spread UK forex broker. The broker offers MT4, MT5 and the cTrader forex trading platform with award-winning customer support.

View Pepperstone Review >>Visit Pepperstone >>

IG Offers The Lowest Standard Account Spreads (For Beginners)

Standard forex accounts are designed for beginner forex traders with no commissions charged to traders. This means the main brokerage is the spread making this element more important than ever. Below compares the standard spreads shown on each forex brokers website on August 2020 from FxPro to CMC Markets.


0.86	0.76	1.39	1.33	1.61
0.70	1.90	4.30	1.30	2.10
0.80	0.90	2.80	1.70	1.90
1.10	0.70	1.20	1.20	1.50
1.20	1.30	2.40	1.80	2.10
1.10	1.20	1.40	1.40	1.30
1.10	1.20	1.40	1.40	1.50
1.19	1.40	1.68	1.59	1.54
1.13	1.14	1.33	1.41	1.22
1.20	1.20	1.40	1.40	1.20
1.20	1.20	1.40	1.40	1.40
0.90	2.30	1.90	1.50	1.80
1.40	0.90	1.30	2.40	1.90
1.20	1.40	1.50	1.40	1.60
1.58	1.96	3.36	1.74	2.09
1.40	1.20	3.10	2.20	3.00
1.70	1.90	3.30	2.00	2.30

As the data above shows, IG has the lowest forex broker spreads in the standard account category. This could be attributed to IG large liquidity pool access as it is the largest retail foreign exchange broker globally. While spreads are the main way IG makes money they do have other charges including forex conversions, overnight fees and inactivity fees. If trading share CFDs there are also commissions to note. Below shows an example of how IG charges a spread that is different from the market value.

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. Key factors about the IG standard account include:

Worldwide regulation including ASIC, FCA, FSCA, IFSC
A range of financial instruments and in some locations financial services such as stockbroking
A range of forex platforms available on mobile, webtrader and desktop devices
Risk management tools for various trading conditions

View Full IG Review >>

AvaTrade Offers The Lowest Fixed Spread Rates

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.


0.90	1.10	1.50	1.80	1.60
1.20	1.50	2.00	2.20	1.70
1.60	1.70	1.70	1.80	1.80
1.60	1.90	1.70	2.40	1.70
1.80	2.50	3.20	3.70	2.50
3.00	3.00	3.00	3.00	3.00
4.00	4.00	3.00	5.00	5.00
3.00	4.00	4.00	6.00	4.00

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.

Forex Spread FAQs

Which forex broker has the best spreads?

IC 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.

What broker has the lowest 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.

How does forex broker make money from spread?

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. Traders who want market-based spreads should view our ECN broker comparison.

The Overall Lowest Spread Forex Broker Is IC Markets

The lowest spreads and overall fees are based on ECN accounts (Raw accounts). IC Markets in August 2020 had the lowest spreads including:

EUR/USD = 0.1
AUD/USD = 0.2
USD/JPY = 0.3
EUR/GBP = 0.4

The commissions charged by IC Markets as analysed above are also competitive including:

GBP base currency = £2.50
AUD base currency = $3.50
USD base currency = $3.50

There are no inactivity fees, funding fees or withdrawal fees. You can view the IC Markets spreads page for more fee information. The broker offers MetaTrader 4, MetaTrader 5 and cTrader. If you choose cTrader please view their website as some commission rates differ for this unique forex platform. The company is regulated with the Australian Securities and Investment Commission (ASIC) and Cyprus Securities and Exchange Commission (CYSEC). The leverage offered through the ASIC subsidiary is up to 500:1 which combined with low fees is why experienced and automated traders choose IC Markets across the globe.

View IC Markets Review>>Visit IC Markets >>

Background To This Low Spread Broker Analysis

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 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 ask price and sell price spreads. This can lead 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.

Top Brokers By Region

A number of comparison pages exist on CompareForexBrokers that are country-specific factoring in the relevant regulator. This includes UK Brokers, Australian Brokers and South African Brokers. You can also view the review page to compare the reviews of each forex broker worldwide.

About the author: Justin Grossbard