Lowest Spread Forex Brokers

I rated OANDA as the best broker overall, scoring it 92/100 in my broker review. The Standard account has low spreads of 1.40 pips on the EUR/USD, and provides the fastest execution speeds in the USA. This translates to excellent trading conditions for all trading styles.

OANDA is also the most trusted broker from my tests, as it is licensed by 10 major regulators. The range of 68+ forex pairs is one of the best I’ve seen in the industry.

For platforms, you have a choice of TradingView, MT4, and OANDA Trade. All these platforms provide top trading tools. In particular, I like OANDA Trade, with its Open Order indicator for volume-based technical analysis.

Lowest Spreads With The Standard Account

With my OANDA account, I tested the EUR/USD spreads to see how much they cost during New York trading sessions. On average, I was getting between 1.40 and 1.50 pips, with little variation. This means the broker’s spreads are quite stable, which is good to see.

If a broker can’t offer me this stability, it makes trading difficult, there’s too much uncertainty in the costs.

Here’s how the average spreads measure up on EUR/USD:

OANDA’s competitive spreads can improve your overall trading costs, especially when you factor in the lack of commission on the Standard account.

Fast Execution For Better Trading Conditions

OANDA provides solid trading conditions. Ross’ results found OANDA was the fastest execution broker in the USA. Market orders were filled at 84 ms, while limit orders executed as fast as 86 ms.

As a Market Maker broker, OANDA’s execution speeds are fast, reducing the chances of slippage with your limit orders. In other words, your stop-loss orders are executed at the exact price you set.

OANDA Trade Is A Top Trading Platform

OANDA supports multiple trading platform options, including TradingView and MetaTrader 4. However, I think the OANDA Trade platform is a top all-rounder for both beginner and experienced traders.

I use OANDA Trade because it includes TradingView charting. This means I get the top technical indicators, for example, there’s an excellent Order Book indicator I use to gauge market sentiment. The mobile trading app brings these same powerful features to your phone, letting you trade with institutional-grade execution on the go.

If you want custom indicators or automated trading features, I recommend using TradingView or MetaTrader 4. The OANDA Trade platform, unfortunately, doesn’t offer these.

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I chose FOREX.com as my number 2 pick. Its wide choice of trading platforms includes MetaTrader 4, MT5, TradingView, and FOREX.com’s proprietary platform. You can trade 91 forex pairs on these platforms.

You get access to Trading Central, for professional technical analysis. I found this really valuable for my day trading strategy, as I got a consistent stream of new trading ideas. Also included is Performance Analytics, which monitors and suggests trading improvements. On top of this, I found client sentiment tools that can be used across all four platforms.

The broker is one of a few in the U.S. that offers a Raw account, giving you spreads from zero pips with commissions of $7 per lot traded. This is an appealing option for traders of all types, but especially scalpers.

Choose From Four Forex Trading Platforms

FOREX.com provides you with several trading platforms. These include TradingView, MetaTrader 4, MT5, and FOREX.com’s own Web Trader platform.

I personally like using the full version of TradingView, as you have complete access to the platform’s top features. This includes market scanning tools and thousands of pre-built and community-built indicators. For example, I like to use Volume Profile indicators, available as default on TradingView but hard to find on other platforms.

However, MT4 and MT5 are my choices for automated trading, thanks to their Expert Advisors. If you know how to code them, you can automate all of your trading and risk management strategies with these EAs.

Tightest Spreads On The Raw Account

In testing, I found the broker has tight spreads on its Raw account. These spreads average around 0.1 pips on the EUR/USD during the London and New York trading sessions.

Depending on volatility, I did find I could get zero pip spreads on EUR/USD and GBP/USD, which is decent if you’re scalping or automating your trade. That said, FOREX.com’s commission on the Raw account is $7.00 per lot traded, paying this is the only way to get such tight spreads.

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74% of retail investor accounts lose money when trading CFDs and FX with this provider.

I chose Interactive Brokers for its cheap trading fees. The broker’s commissions are $2.00 per lot traded, or even just $1 for professional traders, while the spreads start at 0.10 pips.

The broker is best for trading large lot sizes. This is because the $2.00 commission is the minimum trading cost, so it’s a bit more expensive if you’re trading positions smaller than one lot.

There are eight trading platforms altogether, but the main one is the IBKR Trade Workstation. This gives you professional analysis tools and level II pricing.

I found that IB is a truly multi-asset broker, as they offer a broad range of products. This includes more than 50,000 bonds and treasuries, 4,000+ ETFs, 43 indices, and four cryptocurrencies. Of course, this is on top of their 117 forex pairs, which is a good selection itself.

Lowest Trading Fees For Experienced Traders

Interactive Brokers has the lowest trading commissions out of the brokers I’ve tested. Fees start from only $2.00 per lot traded, around 70% better than FOREX.com.

The lower commissions make trading far cheaper than other US brokers, and can save you a fortune. This is especially true for high-volume traders, as you can get a discount based on your monthly trading volume. With this discount, you could get commissions as low as $1.00 per lot.

An issue I found with the typical commission was that $2.00 is the minimum cost. So, if you trade anything less than 1 lot, you’ll still pay the full-lot minimum, which becomes expensive.

But overall, the costs are very good. All spreads on the Interactive Brokers account start from 0.10 pips on EUR/USD, so it definitely qualifies as a low-spread broker.

Solid Trading Platforms For Advanced Users

You have a selection of 8 trading platforms to choose from with IBKR. Each has different interfaces and settings depending on your trading objective.

The core IBKR Trade Workstation is their desktop platform with multiple technical indicators ranging from MACD to VWAP, allowing for advanced volume-based technical analysis. You can get real-time access to top research houses like Morningstar and Zacks, providing the best fundamental analysis tools.

Large Selection Of Markets

Interactive Brokers has one of the broadest product selections, providing 50,000+ tradable assets across their full range of asset classes. This range means you can trade everything from major forex pairs to niche markets off the Russell 3000, a broad array of new opportunities daily.

I picked Trading.com as the best broker for MetaTrader 5, as I found the broker’s trading conditions complemented the platform’s advanced tools, like automated trading and Depth of Markets. With MT5, you can trade all of the broker’s 71 forex pairs, and fund your account with only a $50 minimum deposit.

The T1 account has some of the lowest spreads, averaging 1.20 pips on EUR/USD. There are also no commissions, and leverage is available up to 1:50. So you can make trades without putting so much of your own capital down.

Trading.com Has MT5

Trading.com is one of the few brokers in the US that supports MT5. I think MetaTrader 5 is a solid trading platform, with access to 35+ technical indicators like RSI and Bollinger Bands. I also like the top technical analysis tools like Fibonacci and Elliott Wave.

It has improved features like the Depth of Markets tool. By using this tool to view the liquidity providers’ order flow, you can gauge hidden support or resistance levels. The native economic calendar is a nice touch too; it overlays upcoming data releases, helping you avoid entering the markets before periods of potential volatility.

MetaTrader 5 is one of the best algorithmic trading platforms. Expert Advisor trading bots are designed to follow specific trading rules. So the EA can scan for opportunities based on your entry requirements, enter itself the position, and manage risk without your input.

Not sure what trading platform is best for you? Use my forex trading platform tool to find which software suits your trading style:

Trading Accounts and Products

The T1 account is the broker’s Standard account, with spreads starting at 0.90 pips on EUR/USD. However, while using the T1 account during the New York session, I found EUR/USD averaged 1.20 pips. This is a typical spread for US-regulated forex brokers.

Trading.com has a low minimum deposit requirement of $50, while providing leverage of 1:50 for forex majors, allowing you to trade with smaller margins. Before risking real capital, you can test the broker’s spreads and MT5 platform using their best forex demo accounts, which gives you $10,000 in virtual funds to practice with.

I found that Trading.com only provides forex trading. You can access a range of 71 currency pairs, including major, minor, and exotic combinations. If you wish to trade other markets, like indices or gold, I recommend trying FOREX.com.

I picked Charles Schwab for its large range of trading products. You can trade 60,000+ markets, including 65+ forex pairs and other markets like crypto. The spreads for Charles Schwab are slightly wider than the industry standard, averaging 1.4. But I found this is offset by the convenience of the broker, you get so many asset types on a single account.

The Thinkorswim platform provides excellent technical analysis tools, including market scanners and over 400 indicators. You also have access to Charles Schwab’s expert analysis across all markets, keeping you in the loop with key events.

Large range of markets

With 60,000+ markets, Charles Schwab has one of the largest collections of markets available to trade. This range includes 65+ forex pairs, two crypto futures, and 8 options exchanges. If you’re looking to trade best gold trading platforms alongside your forex positions, Charles Schwab offers competitive access to precious metals markets within the same account.

I found that you can only trade North American stocks like NYSE, NASDAQ, and OTC. They do not offer UK, European, or Asian stocks, which limits your portfolio diversity.

Access Charles Schwab’s Expert Analysis

Part of the appeal of choosing Charles Schwab is that you can tap into the knowledge of their experts. You’ll get professional commentary on indices, sectors, and breaking news, as well as regular market reports.

They also have the Schwab Trading Activity Index (STAX), which gives you sentiment-based insights based on the real-time trading behavior of their users. I found this useful, as I could see if other traders were bullish or bearish on the markets I wanted to trade.

Thinkorswim Trading Platform

Available on desktop, web, and mobile, I found thinkorswim includes many features similar to MetaTrader 4. However, I did enjoy some added benefits, like Depth of Market views and more trading tools.

The thinkorswim desktop platform provides a variety of analysis options, including simulations, and volatility and probability analyses. I also liked having access to the Economic Data indicator, and options back-testing.

For technical analysis, you can benefit from over 400 studies, advanced charts like Monkey Bars and Renko, and up to 20 drawing tools. There are also eight Fibonacci tools to enhance your trading strategies.

However, I did find that the broker relies quite heavily on thinkorswim. It doesn’t offer much in the way of third-party integrations, and doesn’t support the best social trading platforms.

The Tastyfx Web Platform provides you with a solid range of features, like trading indicators and trading signals that help traders improve their skills. Signal Center provides professional trading signals across the broker’s 80+ forex markets, allowing you to easily copy trades.

Tastyfx now offers three live account types: Standard (commission-free with spreads starting from 0.8 pips on EUR/USD), Zero+ (spreads from 0.0 pips with $5/lot commission), and Prime (spreads from 0.6 pips for $50K+ accounts with up to 8% APY).

The broker also provides Demo accounts and IRA accounts. This positions Tastyfx as one of the lowest-spread brokers on the list. For educational resources, Tastyfx delivers a solid range of online lessons, which go into detail on subjects like learning how to trade forex.

Top Trading Platform For Beginners

The Tastyfx Web Platform has a simple interface that is customizable to your liking, hiding news modules if you find them distracting. I found the platform comes with 25+ indicators, including moving averages and Ichimoku Cloud. There are also 17 drawing tools, so you can perform solid technical analysis.

I found the Signal Center really helpful. It scans the 80+ currency pairs to find new trading opportunities using chart and candlestick patterns. You can then set up alerts based on this, and even learn how to trade, as each alert features professional commentary.

Tastyfx also supports MT4, MT5, TradingView, and ProRealTime. I prefer these to the Tastyfx platform. Each one offers more technical analysis tools and automated trading features than the proprietary software.

Tight Spreads On Standard Account

I found Tastyfx’s spreads to be low, starting from 0.8 pips on EUR/USD with no commissions. They also remain stable. The spreads I encountered remained around the minimum during the New York session, which should help you keep your costs low.

You can trial the broker’s spreads and trading platform through their demo account. Here, you’ll receive $10,000 in virtual funds to practice with. For beginner traders, this combination of low spreads, educational resources, and user-friendly platforms makes Tastyfx an ideal starting point among forex brokers for beginners.

Excellent Educational Resources

Tastyfx has 20+ online lessons, where you can learn the basics of forex trading. I felt the lessons were decent, each going into detail with plenty of images to help reinforce the points. Although I was disappointed there were no videos.