Brokers are an essential part of your trading journey. There are a number of FX brokers available in the market, but selecting one is a challenging task. While choosing a broker, you need to consider various factors: one of the significant factors is spread. Selecting Low Spread Forex brokers 2021 becomes an essential requirement of every trader due to the competitive nature of the market.
Because of the nature of the market, profit-making has become a difficult task. Suppose you have to pay high spread charges in this condition, your profits are significantly less. So Always try to go with low spread FX brokers for trading. Here we are going to discuss What are the factors you need to consider while picking the Lowest Spread brokers.
What are Low Spread Forex Brokers?
Brokers who offer low spread and charges compared to the other brokers are known as Low Spread Forex brokers. As per the research, the lowest spread for EUR USD pairs is nearly 0.1 to 0.9 pips except for commission charges. The approximately EUR USD spread is 1.2 pips. Therefore the question must be difficult, Whether you have to consider the total price or only spread. As per our point of view, you must consider the entire fee, including swap, overnight charges, spread, commission, inactivity fee, etc.
What is Spread and How Spreads Affect Forex Trading?
The difference which appears between the ask and the bid price or provides exchange rates at which the market is ready to make a deal is known as a spread. Forex brokers are the mediators who create a connection between retail currency traders and makers.
All the transactions and buying & selling orders should be placed by the broker on behalf of traders. Generally, all forex brokers provide commission-free trading services on their websites. They usually generate income through spreads and other charges.
Directly and indirectly, they are generating income from you. That is why picking Low spread forex brokers is necessary for both professional as well as retail traders. To understand spread more appropriately, you need to clear your doughnuts about bids and asks.
Bids and Asks
The offered price or the ask is the exchange rate at which a market maker or trader is ready to sell a security or currency pair. Must note that the bid rate is usually lower than the “ask” rate. Whereas the bid or the purchase costs is the exchange rate at which the buyer and the broker are ready to purchase securities or currency pairs.
This rate may also depend on the clients at which they allow brokers to sell their security. Your broker deals with all these prices, So picking low spread forex brokers is necessary, which provides you with the small size of dealing spread which are generally mentioned in pips. Traders should know that a one pips should take place in the fourth decimal place according to the exchange rate quote that includes shifting of 0.0001 in the exchange prices.
Spreads
The size of the spread will get affected by some elements like trading volume, market volatility, and liquidity. The high spreads show the high risk and volatility. Whereas solid spreads show high liquidity and lower volatility.
Low spread forex brokers provide spread according to the market price. So it varies from currency to currency. Wider spreads are generally affected by market-sensitive news and sudden geopolitical events, which consist of prime FX market ramifications. A broader spread will appear because of the absence of liquidity, and this will take place while a prime capital centre closes due to holidays.
Investors must be careful, suppose the spread of your currency pair will increase when you hold a market position. In this case, you need to be prepared for a risky market movement. The major step you need to take should include decreasing the width of the position while using a high leverage ratio. Due to this, you can ignore a margin call, or it will automatically close your position while the market moves in the opposite direction of your trade.
So to protect yourself from these types of situations, you must use fixed spreads and variable spreads because fixed spreads are always constant and will not change as per the market conditions. Traders can open accounts on low spread forex brokers who provide fixed spread as well as variable spreads. It is generally fixed by the online brokers who act as market makers or dealing desk members.
Currency Quotes
Various currencies should get traded in the forex market. They all are traded in pairs. The value of the base currency should be set according to the exchange rate of currency pairs against of quote currency. Beginners must note that the base currency should be mentioned first, whereas the quoted currency will be mentioned at an alternative position of the base currency. For example, EUR/USD, GBP.USD, etc.
Key factor for selecting Low Spread Forex Brokers
While selecting low spread FX brokers, you need to do a lot of research work. Because not all forex brokers provide low dealing spreads. They do not provide guarantees that they will offer the same spread for all assets. Most forex brokers offer different spreads for all assets. Check here a few points you can keep in mind while picking the best FX broker for you.
- Be aware while a broker provides a fixed spread. It may be the broker is proving spread wider than generally spread. The other factors which you need to consider are high trading fees or brokers starting trading against you to act as a market maker.
- Few Low Spread Forex brokers charge high deposit fees from their clients.
- Most Forex brokers provide different spreads for all currency pairs. Even sometimes, it may also vary from account to account. Few brokers charge commission on beginners’ accounts. In that case, they offer low spreads, whereas they do not charge a commission to the professional traders, but they provide them with higher spreads.
Top 10 Low Spread Forex Brokers
Check here the list of top 10 low spread FX brokers. We mentioned brief details about these brokers, including spread, available assets, trading platform, and commission charges. All these things will help you to determine which one is best for you. So let’s begin with the leading FX broker of the market.
ROinvesting
ROinvesting allows you to trade 350+ assets such as forex, indices, stock, cryptocurrency, commodity, and so on. The broker will provide you with three types of accounts: Silver account, Gold account, and Platinum account. Here you can enjoy commission free trading on all three accounts. The broker provides you with a fixed spread for all currency pairs as per account type.
Traders do not need to pay any extra charges on the ROinvesting website rather than an inactivity fee. You need to submit a minimum deposit of $250 for opening an account on the ROinvesting online portal. Here you get access to MetaTrader 4 platform. It holds the first position in the list of top 10 Low Spread Forex Brokers. Check spread for all available currency pairs from the bullet point given below.
Account wise Spread (in points) details for major currency pairs.
- Silver account spread for all currency pairs: 28 point
- Gold account spread for all currency pairs: 20 points
- Platinum account spread for all currency pairs: 18 points
101investing
101investing broker provides you trading over 400 tradable assets like stocks, cryptocurrency, indices, forex, metals and others. Here you can access any one account from the three options: Silver account, Gold account, and Platinum account.
Traders need to pay a minimum deposit of $250 for taking benefits of commission-free trading. Traders can enjoy trading over the Metatrader 4 platform on the 101investing website. The broker does not provide forex spread for all currency pairs.
The provider will mention different spreads for three accounts. The broker holds the second position in the list of low spread forex brokers. Check the available spread for all major currency pairs.
Available spreads on 101investing for major currency pairs are:
- EUR/USD: 2.2
- GBP/USD: 2.8
- USD/JPY: 2.3
- AUD/USD: 2.8
- USD/CHF: 1.6
- USD/CAD: 2.9
- NZD/USD: 3.1
- EUR/GBP: 2.6
TradeATF
Traders can enjoy trading over 350+ tradable instruments like cryptocurrency, stock, indices, commodities, and forex. The broker offers zero commission trading services to their clients. Here you get three types of accounts: Silver account, Gold account, and Platinum account to their clients.
The minimum spread offered by the broker is 0.03 pips. Check here spread details for all major currency pairs. Here you will get access to the MetaTrader 4 platform, which enhances your trading experience. The minimum deposit is $100 for opening an account on TradeATF’s website. In the list of Low spread forex brokers, TradeATF holds the third position in the list.
Spread for major currency pairs for Silver account
- EUR/USD: 30
- GBP/USD: 35
- USD/JPY: 35
- AUD/USD: 85
- USD/CHF: 41
- USD/CAD: 41
- NZD/USD: 85
- EUR/GBP: 41
ABinvesting
ABinvesting is an online portal that offers trading services over 350 tradable assets such as forex, stocks, commodities, indices, and cryptocurrency. Investors may not be required to pay commission over trade on the ABinvesting website. Traders can select any one account from the given options, such as Gold, Silver and Platinum accounts.
The broker is providing one of the most popular trading platforms, MT 4, to their clients. Here traders need to pay inactivity changes. Check the spread available for major currency pairs. This broker holds the fourth position in the list of top 10 Low spread forex brokers.
Spreads available for major forex pairs
- EUR/USD: 2.2
- GBP/USD: 2.8
- USD/JPY: 2.3
- AUD/USD: 2.8
- USD/CHF: 2.6
- USD/CAD: 2.9
- NZD/USD: 3.1
- EUR/GBP: 2.6
Capixal
Capixal is a regulated broker that offers its trading services over 350 assets such as cryptocurrency, commodity, forex, indices, and others. The broker provides three types of accounts: Silver account, Gold account, and Platinum account. Here you can perform trading at zero commission.
The minimum deposit is $249 for opening an account on the broker’s website. The broker offers the MetaTrader4 platform to their clients. The brokers hold the fifth position in the list of low spread forex brokers. Check here spread available over major currency pairs:
Check here spread for major currency pairs
- EUR/USD: 30
- GBP/USD: 35
- USD/JPY: 35
- AUD/USD: 85
- USD/CHF: 41
- USD/CAD: 41
- NZD/USD: 85
- EUR/GBP: 41
HFTrading
Investors can enjoy trading over 300 tradable assets such as forex, share, forex, indices and so on. Traders can register on any account from the given options such as Silver account, Gold account, and Platinum account. Traders need to pay a minimum deposit of $ 250 for opening an account.
The broker provides commission-free trading on its website, but you need to pay inactivity changes if your account has been inactive for more than a month. MetaTrader 4 platform is available for enhancing your trading experience.
HFTrading holds the sixth position in the list of Low spread forex brokers. They offer fixed spreads to their clients. Check here account wise spread for major forex pairs.
- Silver account spread for all forex pairs: 2.8
- Gold account spread for all forex pairs: 2.0
- Platinum account spread for all forex pairs: 1.8
ETFinance
ETFinance is an online brokerage firm that offers trading over 750 assets like forex, metal, indices, stocks, commodities, and others. The broker is providing commission-free services to their clients. Here you get access to the three accounts : Silver account, Gold account, and Platinum account. For opening an account on the broker website, you need to pay a minimum deposit of $250.
Investors will get access to the MetaTrader 4, which helps you to improve your trading strategies. The broker is offering fixed spreads to their clients. ETFinance holds the seventh position in the list of Low spread forex brokers. Check the spread available on major currency pairs.
Spread available on major forex pairs
- EUR/USD: 2.20
- GBP/USD: 2.8
- USD/JPY: 2.3
- AUD/USD: 2.8
- USD/CHF: 2.6
- USD/CAD: 2.9
- NZD/USD: 3.1
- EUR/GBP: 2.6
Pepperstone
Pepperstone allows you to trade on 180 tradable instruments such as Forex, Indices, Commodity, stocks, cryptocurrency and others. Traders can pick any one account as per their requirements from the given options. The broker provides you with both MetaTrader 4 and MetaTrader 5 trading platforms.
To open an account on the Pepperstone website, you need to pay $200 as the minimum deposit. This broker will charge a very small commission for performing trade on its website. Pepperstone stands in the eighth position in the top 10 low spread forex brokers. This broker does not provide fixed spreads for all currency pairs.
Spreads available on major forex pairs
- EURUSD : 0.69
- GBPUSD : 0.88
- USDJPY : 0.74
- EURGBP : 1.27
- USDCAD : 0.95
- USDCHF : 0.92
InvestBy
InvestBy offers trading services on 350 tradable instruments like forex, commodities, cryptocurrency, stocks, and indices. Here three types of accounts are available such as Silver account, Gold account, and Platinum account. The Minimum deposit is $250 for opening an account on the broker’s website.
Investors will get access to the MetaTrader 4 trading platform, which is very popular among forex traders. InvestBy holds the ninth position in the Top 10 Low spread forex broker list. Check here spreads for major currency pairs from here.
Account wise spread for major currency pairs
- Silver account spread for all forex pairs: 28
- Gold account spread for all forex pairs: 20
- Platinum account spread: 18
HotForex
HotForex is known as HF Markets. The broker offers trading services over 1000 assets such as forex, metal, stocks, energies, indices and so on. The providers provide three types of accounts: Silver, Gold, and Platinum accounts. Here you get access to MT 4 and MT 5 trading platforms.
The broker provides variable spread for all currency pairs. Traders can enjoy commission-free trading. The brokers do not provide fixed spreads to their clients. This is because it holds the tenth position in the list of top 10 low spread forex brokers.
Conclusion:
Now we reach the button of this article where you have the top 10 Low spread forex brokers from which you can pick anyone as per your requirements. Here we provide you brief details about all ten brokers through which you can estimate which one is best for you. Read this article to understand properly what is spared and how it affects your forex trading.
