Published February 28, 2023
Profitability of Forex trading largely depends on the size of the spread, as high fees can cut a big chunk of profit. TU experts selected Forex brokers with the lowest spread.
Fees and spread are among key factors that need to be considered when choosing a broker. The higher the fees per trade, the lower your profit. This is particularly important for scalpers, whose profits amount to several pips per trade. Traders Union experts selected the best forex brokers with the lowest spread. In this article, traders will learn about brokers that offer the best conditions.
What is a Forex spread?
A spread in the Forex market is the difference between the Bid price and the Ask price. This difference is charged as a fee in favor of the brokerage company. Different brokers charge different fees. In fact, the fees may differ also depending on the trading account, and the asset a trader decides to trade.
There are two types of spreads in the Forex market:
- Fixed – remains the same during the entire trading session;
- Floating – changes in the course of the trading session.
As a rule, traders can decide which spread to use, fixed or floating, depending on the trading account they choose.
Forex brokers with lowest spread
Traders Union experts analyzed more than 100 Forex brokers and selected companies that offer the tightest spreads and attractive trading conditions. The following companies were included on the list:
- Admiral Markets
- Interactive Brokers
- TD Ameritrade
- IC Markets
- FP Markets
In terms of spread, AvaTrade was recognized as the best brokerage company. The platform offers spreads from 0 pips.