Low Spread Forex Brokers

Written by Miro Nikolov

Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: September 16, 2025

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• Jump to:
• Curated List of The 10 Best Forex Brokers with Low Spread
• How Forex Trading Works for Traders and Brokers
• FAQ
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Our team of expert traders has tested several regulated and trustworthy forex brokers and compiled a top list of the best low-spread brokers for trading currencies. Each broker received a quality score based on several factors, including its Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service, and more.

1. 

   Plus500 US

   Rating: 4

   This content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.

2. 

   eToro

   Rating: 4.2

   61% of retail investor accounts lose money

3. 

   Fusion Markets

   Rating: 4.8

   74-89% of retail's CFD accounts lose money

4. 

   FP Markets

   Rating: 4.9

   73.85% of retail investor accounts lose money

5. 

   Global Prime

   Rating: 4.7

   74-89% of retail CFD accounts lose money

6. 

   Pepperstone

   Rating: 4.4

   75.5% of retail investor accounts lose money

Below you can find a comparison table of forex brokers that offer low spreads for trading major and exotic currency pairs. We rank them based on several factors, including regulation, spreads and commissions, Trustpilot rating, trading instruments, trading platforms, and deposit and withdrawal methods.

Our team has thoroughly evaluated all brokers listed below using TradingPedia’s exclusive methodology.

Curated list of the 10 best forex brokers with low spreads

The spread of a currency pair is one of the most important aspects of a broker. The lower the spreads, the cheaper it is to trade, as the spread incorporates the fee you pay to a broker for using its platform.

Other characteristics of a great broker can include an extensive library of educational resources, a catalogue of different forex pairs, as well as other trading instruments such as indices and stocks, various payment solutions, the broker’s reputability, and more. Keeping track of all of this while searching for your broker of choice is easier said than done, especially for an aspiring investor. You can therefore use the following list to find the broker that offers competitive spreads and best suits your preferences.

The modern forex market’s origins can be traced back to the early 1970s, when forex officially switched to a free-floating system. The market as a whole was still very different from currency trading as we know it today, however, since retail trading was practically non-existent. Hedge funds, banks, and other large entities were the only participants that could take part in forex trading.

The 1990s marked retail investors’ official entry into the foreign exchange market, as this was when the very first online brokers were introduced. This sparked a demand for more brokers that would offer their services on the World Wide Web, which, over time, resulted in investors having an array of websites to choose from. Although forex is still largely dominated by large entities, retail traders now make up a small but evident portion of the participants in FX trading.

How forex trading works for traders and brokers

The forex market is characterised by its unmatched liquidity. It is also notable that there is no physical exchange. Forex trading is conducted electronically, which designates it as an over-the-counter market.

When you trade a currency pair, you are exchanging the quoted currency for the base currency, and there are several key components of forex trading that novice investors should be well acquainted with.

Knowing what the bid (sell) price and the ask (buy) price are goes a long way towards understanding the spread. The former is the price for selling the base currency, while the latter is the price for buying it. The difference between the two is what we refer to as the spread. Instead of charging a commission for forex trades, brokers tend to incorporate the fee into the spread itself. The wider the spread, the more expensive trading an instrument is, which is what makes low spreads appealing to investors. The spread is measured in pips.

Lots are the unit of measurement investors use when they trade currency pairs. Each lot contains a set number of currency units, and there are several lot types in terms of size, each comprising a specific number of units. The first and most common lot is the one referred to as Standard, and it contains 100,000 units. Next is the Mini lot, which is smaller at 10,000 units. Finally, the lot size that is typically the smallest is the Micro lot, as it contains just 1,000 units.

Pips express the value change of a pair. The term stands for percentage in point, and the pip is typically the fourth decimal place of a price quote. If the pip count of a pairing’s spread is small, this suggests minimum volatility and that trading the instrument in question is not expensive.

Leverage is a major component of forex trading, as it is very difficult to make a significant profit without it. It involves using money borrowed from your broker in order to invest more funds than you have available for the trade in question. This has its own pros and cons.

On the one hand, the amount by which leverage can amplify how much money you make in the FX market is significant. This, however, also means that leverage can cause you to lose far more money than you would otherwise.

Volatility is similar when it comes to the risk factor, as it, too, can be a double-edged sword for unsuspecting investors. Volatility describes the fluctuation of a currency’s value. It provides numerous opportunities to profit from trading a forex pair, but it can also lead to unpredictability if a sudden upswing or downswing occurs.