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This guide covers the best Forex brokers with spread zero and explains what you need to know to choose the best option for your needs.
Zero spread accounts are trading accounts offered by brokers that have no difference between the bid and ask price, or spreads whose average is close to zero.
However, there is still the possibility for spreads to widen and trading costs (commission for example) can still be added depending on the broker and account you choose.
Zero spread trading makes it easy to enter and exit a trade without having to worry about incurring trading costs, as long as there are no additional commissions or fees.
Note: Even if there is a commission instead of a spread, accounting can be easier when you know there was no spread when calculating trading costs, as commissions are usually shown in a separate column on most brokerage account reports.
Here are the best zero-spread accounts, including brokers offering near-zero spreads, available for 2022, based on our many hours of analysis and testing.
When you compare accounts offered by the best forex brokers for zero spread trading, in most cases the spreads can still fluctuate and you may incur other trading costs such as commissions. Therefore, it is essential to keep the details in mind when reading the fine print of zero spread trading.
As forex brokers usually offer multiple accounts, where certain features may vary, such as the execution method, the trading platform available, or the range of markets, depending on the account you select.
Whether you are trading spot Forex as a contract CFD, below we have covered the main differences you should know when trading Forex on margin with a zero spread broker.
A zero spreads account might make sense if your trading strategy is spread sensitive or if you just want to reduce your trading costs as much as possible — but there are possible trade-offs.
Factors to keep in mind include any additional commission and whether zero spreads are variable or fixed, especially during volatile market conditions when spreads can widen.
Bear in mind that execution quality may suffer on a zero spread account if your trading strategy relies on specific execution qualities such as avoiding slippage (i.e. where your order can be filled at a worse price).
Pros of zero spread pricing: A scalping strategy or other high frequency trading program based solely on latency, or price delays that cause arbitrage, will likely require you to have lower costs (i.e. cost sensitive) in order to be profitable.
Zero spread price cons: On the other hand, other high frequency algorithmic trades based on technical indicators may perform better with zero spreads even if there are execution delays or requotes during fast markets. However, this potential slippage also means that the effective spread could be greater than zero if your order is filled at a worse price.
Um forex broker zero spread attempts to offer a spread of zero pips. The spread is the difference between the bid price (where you can sell) and the ask price (where you can buy), measured in pips, fractions of a currency.
These seemingly small trading costs can add up quickly because Forex trading takes place from within a margin account (i.e. uses leverage), especially as your trading volumes increase.
In the interbank market, where prices originate from major brokers, spreads are quoted in fractions of a pip, also known as fractional pips.
A zero pip spread can range from 0 to several fractions of a pip, or even more during volatile market conditions.
A zero spread that is fixed and does not vary will likely include a commission; or the broker will be operating a dealing desk to try to make money when you trade, being on the opposite side of every trade.
The way brokers Forex and CFD make money depends on your business model and available execution methods. All brokers will ultimately do one or more of the following:
Tip: Some zero spread brokers combine some of these execution methods into a hybrid offering. Some brokers allow you to choose the type of execution on your account or to open a specific account for a particular execution method.
Narrow Tickmill offers the most spreads (averaging 0,13 pips on EUR/USD during August) among brokers ranked on our site, after taking into account trading costs (ie any commissions).
Avatrade closely follows in second place, also offering an almost zero pip spread with a small commission added per trade.
Tip: When measuring currency spreads, the most accurate way to determine which broker has the fairest spread is to calculate the average spread for a given period, such as a month. In addition, it is important to consider the reliability of the broker to ensure you have the best execution to pay the spread you deserve and avoid asymmetric slippage, for example.
Tickmill stands out as having the best spread because the overall cost you would incur to trade (spread + commission) is the lowest on average, based on August 2021 data using the EUR/USD pair.
Other brokers may advertise a lower spread, but they are more expensive because they charge a higher commission or have higher average spreads.
While it's good to avoid fees, a zero spread account can still be expensive. Depending on your trading strategy and needs, a zero spread account may not be right for you if certain order types or execution methods are not available, for example.
Also, the spread can potentially increase even on a zero spread account. The key is knowing what the average spreads are and whether there are any commissions per trade. Consider these factors when choosing which account is best for you.
No, Forex trading is conducted from within a brokerage account, which provides you with a certain degree of leverage (ie margin), along with access to a trading platform and variety of currency pairs.
you must always choose trusted forex brokers that have proper regulatory licenses to avoid becoming a victim of scams.
Tip: For cryptocurrency users looking to trade Forex with stablecoins, a decentralized exchange is also not a suitable option for forex; spreads can be significantly larger and there is no mechanism to guarantee the best execution even if no spread is announced, which could result in extreme slippage.
IC Markets is an excellent Forex broker for scalping. IC Markets is used by a significant number of traders and offers MetaTrader and cTrader platforms where you run high frequency automated trading programs such as scalping based strategies and can even place orders between the spread.
A standard account refers to the smallest trade size of 100.000 currency units, which is also known as the standard lot size.
A gross spread refers to the cost of trading reflected in the bid/ask price, where the broker is not adding any profit margin, but instead provides the price as is (i.e. gross spread) directly from their liquidity providers.
Tip: In most cases, gross spread Forex brokers will add a commission per trade to make money or act as market makers.
For our review of Most Trusted Forex Brokers, we evaluated several international brokers over a three-month period.
As part of our annual review process, all brokers have had the opportunity to provide important updates and milestones and fill in a profile of data that we feel are important.
Ultimately, our rigorous data validation process yields a very low error rate, providing site visitors with quality data they can trust.