Lowest Spread Forex Broker Comparison

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 commission rates found on forex broker websites offering Raw (ECN accounts) and published in March 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.

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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.

Pepperstone Spread Comparison	AUD/USDEUR/JPYUSD/JPYUSD/CADEUR/USD	AUD/USDEUR/JPYUSD/JPYUSD/CADEUR/USD	AUD/USDEUR/JPYUSD/JPYUSD/CADEUR/USD	AUD/USDEUR/JPYUSD/JPYUSD/CADEUR/USD	AUD/USDEUR/JPYUSD/JPYUSD/CADEUR/USD
	0.17	0.39	0.25	0.31	0.09
	0.20	0.30	0.20	0.50	0.10
	0.20	0.40	0.10	0.40	0.10
	0.20	n/a	0.20	0.30	0.20
	0.42	0.30	0.20	0.83	0.44
	0.30	0.68	0.24	N/A	0.17
	0.40	0.70	0.30	0.70	0.20
	0.50	0.80	0.30	1.10	0.10
	0.50	0.50	0.30	0.60	0.30
	1.01	0.73	0.29	1.11	0.40

Data taken from broker website. Accurate as at 03/03/2021

More Information About Pepperstone

Pepperstone has regulation with:

• ASIC (Australia)
• DFSA (Dubai)
• BaFin (Germany)
• CMA (Kenya)
• SCB (The Bahamas)
• CySEC for the rest of Europe.

Pepperstone are also 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.

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IG Offers The Lowest Standard Account Spreads (For Beginners)

Standard forex accounts (OTC 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 CFD brokers website on March 2021 from FxPro to CMC Markets.

Standard Account Spreads	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPY	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPY	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPY	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPY	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPY
	0.86	0.74	1.62	1.19	1.76
	0.70	1.30	3.00	1.30	1.40
	0.80	0.90	2.80	1.70	2.30
	1.00	0.80	1.20	1.00	1.30
	1.30	1.50	2.20	2.00	2.40
	1.10	1.20	1.40	1.40	1.30
	1.10	1.20	1.40	1.40	1.50
	1.20	1.30	1.70	1.60	1.50
	1.09	1.17	1.55	1.36	1.39
	1.20	1.20	1.40	1.40	1.20
	1.20	1.20	1.40	1.40	1.40
	1.20	1.50	2.30	1.50	1.60
	1.30	1.02	2.20	2.30	2.10
	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	1.80	3.30	2.00	2.30

Data taken from broker website. Accurate as at 03/03/2021

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 online trading conditions

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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.

Fixed Spreads	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USD	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USD	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USD	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USD	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USD
	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	2.10
	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

Data taken from broker website. Accurate as at 03/03/2021

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.

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FXPro Has 0 Spreads On Selected Forex Pairs

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.

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FXTM Is The Best Low Spread Broker With High Leverage

ForexTime (FXTM) is a global broker best known for the high leverage available. There are two sets of accounts offered by FXTM. The first is the standard account, also known as a ‘non-commission trading account’. As the below table highlights, the cent account has maximum fixed leverage between 25:1 and 1000:1. The Standard Account on the other-hand has up to a 200:1 leverage, which is the highest of any regulated forex broker.

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 Pro account is more designed for institutional traders with a high minimum deposit of $25k.

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. If you consider a high leverage broker, make sure it’s regulated with a tier 1 regulator unlike a broker such as Vantage FX. FXTM has many regulated entities including the Financial Services Commission of the Republic of Mauritius and the FSCA in South Africa. They also have regulation in Europe by CySEC and the FCA, which have strict leverage caps. This means if you are a resident within Europe, you won’t be able to get the leverage levels shown above.

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HotForex Is the FSCA Best Forex Broker

The best forex brokers for South African traders are locally regulated with 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.

eToro Is The Best Copy Trading Low Fee Broker

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 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 Regulation

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.

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