Lowest Spread Forex Brokers
|Rank||Broker Name||Trust Score||Reviews|
|1||FXGlobe||88 / 100||FXGlobe Reviews|
|2||XM||99 / 100||XM Reviews|
|3||HotForex||94 / 100||HotForex Reviews|
|4||LiteForex||75 / 100||LiteForex Reviews|
|5||Plus500||89 / 100||Plus500 Reviews|
The above table contains the top ranked forex brokers in our database with low spreads.
What is a spread in forex?
The spread refers to the difference between the buy and sell price of a currency pair in forex.
It is generally expressed in pips and what it means is that as soon as you take up a position (buy or sell a currency), you will already be in the negative by the number of pips shown as the spread. Generally speaking, this is how the forex brokers make their money. Think of it as a markup on the actual cost of the underlying currency. We have assessed the brokers in our database to score them in the following categories:
- Spreads - How low the spreads are for major currency pairs compared to other brokers
- Currency pairs - The number of currency pairs available to trade
- Minimum deposit - How much is required to open an account
Spreads are either variable or fixed. You choose the type of spread when you open your account with the broker. Which type you choose is up to you and should typically be decided after considering your trading style.
As a basic rule, if you plan to do most of your trading during sessions where the market is expected to be volatile (e.g., major economic announcements) then it is advisable to trade with fixed spreads. The reason for this is, even with major currency pairs there can be a lot of volatility around key events and announcements which could cause variable spreads to be quoted at a much larger range. If you trade on a fixed spread account, you always know that you will be paying the same price for every trade regardless of the time.