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Most forex brokers offer commission-free trading, but you still have to pay a spread. In this guide, we review the 10 best low spread forex brokers for 2021 to help you keep a bigger portion of your trading profits.

Top 10 Low Spread Forex Brokers 2021

Here are the 10 best low spread forex brokers you can trade within 2021:

  • eToro – Overall Best Low Spread Broker
  • Libertex – Spread-free Broker with Ultra-low Commissions
  • Capital.com – Best Low Spread Forex Broker for Exotic Currency Pairs
  • Forex.com – Best High Leverage Low Spread Forex Broker
  • TD Ameritrade – Best Low Spread Full Service Broker
  • FXTM – Top Low Spread MetaTrader 4 & 5 Broker
  • Skilling – Best Low Spread cTrader Broker
  • Interactive Brokers – Lowest Spreads for Forex Trading
  • Plus500 – Beginner-friendly Forex Trading Platform with Low Spreads
  • FXCM – Multiple Platforms with Ultra-low Spreads

Best Low Spread Brokers UK Reviewed

Let’s take a closer look at each of the top 10 platforms in our low spread forex brokers list.

1. eToro – Overall Best Low Spread Broker

etoro brokereToro is our #1 pick for any forex traders in search of a low spread broker. This trading platform offers over 45 forex CFDs covering all the major and minor pairs, plus a few exotics. Spreads start from just 1.0 pips, which is extremely affordable.

eToro has a lot more than just forex, too. The broker carries more than 2,000 stocks and ETFs from markets around the world. You can also trade over 15 cryptocurrencies and dozens of commodities. Stocks and ETFs trade commission-free, and you have the option to buy them outright as well as to trade them via CFDs.eToro Forex Pairs

eToro has its own trading platform for the web and mobile devices. It’s very easy to use and includes over 100 built-in technical indicators. Another plus is that analysts at eToro offer in-depth reports on every forex pair, stock, and cryptocurrency to help guide your trading.

This broker is also one of the top social trading brokers. You can connect with millions of other eToro traders from around the world to share ideas, learn new strategies, and discuss trending market news. eToro also supports copy trading, which makes it easy to put your forex portfolio on autopilot.eToro copy trading

Past performance does not guarantee future results.

eToro is regulated by the UK’s Financial Conduct Authority (FCA). The broker requires a minimum deposit of just $200, and you can pay by credit card, debit card, PayPal, Neteller, Skrill, or bank transfer. eToro also offers 24/5 customer support in case you need help with your account.

Pros:

  • Forex spreads from 1.0 pips
  • Trade forex, crypto, stocks, ETFs, and more
  • Easy to use trading platform for web and mobile
  • Supports social trading and copy trading
  • Accepts credit, debit, and e-wallet payments
  • Regulated by the UK FCA

Cons:

  • Doesn’t support forex signals for trading

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Libertex – Spread-free Broker with Ultra-low Commissions

libertex brokerLibertex takes a different approach to forex trading fees than most other CFD brokers. Instead of charging variable spreads, this platform charges fixed commissions.

That’s a huge plus for frequent traders, since you always know how much it will cost to trade a specific currency pair. Libertex’s commissions start from just 0.008%, too, which makes it incredibly cheap.

Libertex has its own proprietary trading platform for web and mobile. That said, most advanced traders will be more interested in using MetaTrader 4 and 5, which Libertex supports. These platforms enable you to trade with forex signals, create custom technical indicators, and backtest your strategies.Libertex Trading Platform

Libertex doesn’t charge deposit or withdrawal fees, and you can open a new account with just a $10 minimum deposit. The broker offers trading on over 60 currency pairs, so you won’t find the selection lacking. Major forex pairs can be traded with leverage up to 30:1.Libertex Forex Pairs
Libertex is regulated by the Cyprus Securities and Exchange Commission (CySEC). The broker is widely considered trustworthy and offers customer service by email.

Pros:

  • Fixed commissions instead of variable spreads
  • Supports MetaTrader 4 and 5
  • Dozens of currency pairs to trade with leverage up to 30:1
  • Minimum $10 deposit
  • Regulated by CySEC

Cons:

  • Limited customer support available

83% of retail investor accounts lose money when trading CFDs with this provider.

3. Capital.com – Best Low Spread Forex Broker for Exotic Currency Pairs

Capital.com  Capital.com is one of the best low spread forex brokers if you’re interested in trading exotic currency pairs. The platform offers CFD trading on over 140 currency pairs, many of which you won’t find at other forex brokers. In addition, Capital.com offers leverage up to 30:1 for major forex pairs.

This broker has its own trading platform, which we really like. It’s easy to use and offers a wide range of technical indicators to help you find trading opportunities. The platform supports price alerts on mobile devices and it’s easy to set up watchlists to monitor your favorite currencies.Capital.com Forex Pairs

Another neat thing about the Capital.com platform is its use of AI. The platform will automatically detect patterns in your trading activity and make suggestions to help you trade more profitably. Whether you’re new to trading or a seasoned expert, these nudges can make a big difference in how you trade.Capital.com Trading PlatformYou can open a Capital.com account with as little as $20. The broker accepts credit cards, debit cards, and bank transfers, so it’s easy to move money in and out of your account. On top of that, Capital.com doesn’t charge deposit or withdrawal fees and there’s no inactivity fee if you take a few months off of trading.

Capital.com is regulated by the FCA and CySEC. The broker offers 24/7 customer support by phone, email, and live chat, so it’s easy to get in touch if you have questions about your account.

Pros:

  • Trade over 140 forex pairs
  • Leverage up to 30:1
  • Uses AI to help improve your trading
  • Minimum $20 deposit
  • 24/7 customer support available
  • Regulated by the FCA and CySEC

Cons:

  • No price alerts for web interface

71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.

4. Forex.com – Best High Leverage Low Spread Forex Broker

Forex.comForex.com is, as the name suggests, one of the most popular places for traders to buy and sell currency. This US-based broker allows you to trade over 80 forex pairs, including dozens of exotics. You can also trade with leverage up to 50:1, which makes this platform attractive if you’re starting out with just a small account.

Forex.com isn’t the cheapest forex broker on our list, but it charges very competitive spreads. You’ll pay just 1.0 pips to trade the popular EUR/USD trading pair and 1.3 pips to trade the GBP/USD pair. Forex.com doesn’t charge deposit or withdrawal fees, and you can open an account with as little as $50.Forex.com Trading Platform
Forex.com is packed with tools to help you trade profitably. The broker has its own trading platform for web and mobile, which we found to be quite comprehensive. You can choose from over 50 technical indicators and 10 chart types, plus get market analysis from experts. Forex.com even offers pivot point analysis to help you find trading opportunities.Why Choose Forex.com

This broker also supports MetaTrader 4 and 5, which is a huge plus if you’re already used to these platforms. You can even get access to VPS hosting for your account if you need faster trade execution.

Forex.com is regulated in the US by the Commodities Futures Trading Commission (CFTC). It’s also regulated by the UK FCA and the Australian Securities and Investment Commission (ASIC).

Pros:

  • $50 minimum deposit
  • Trade over 80 forex pairs
  • Leverage up to 50:1
  • Supports MetaTrader 4 and 5
  • Open to US traders
  • Regulated by the CFTC, FCA, and ASIC

Cons:

  • No social trading features

Your capital is at risk.

5. TD Ameritrade – Best Low Spread Full Service Broker

TD Direct LogoTD Ameritrade is one of the major full-service US brokerage firms, so you might be surprised to hear that it’s also one of the top brokers with low spreads. When it comes to forex trading, TD Ameritrade charges spreads as low as 1.0 pips for most major currency pairs. There’s no additional commission to worry about, and TD Ameritrade prides itself on eliminating hidden account fees.

One of the best things about TD Ameritrade is that it’s extremely trustworthy. The broker is publicly traded and has over 11 million customers in the US. It’s regulated by the CFTC and FINRA, the Financial Industry Regulatory Authority. It also holds a banking license in the US.

TD Ameritrade also comes with one of the most powerful trading platforms we’ve seen from any low spread forex broker: Thinkorswim. Thinkorswim enables you to create custom technical indicators, backtest your strategies against historical data, and even build forex signals. The platform does have a steep learning curve, but if you can master it the analytical power it provides is well worth your effort.TD Ameritrade Thinkorswim

While TD Ameritrade also has simple order entry platforms, including a beginner-friendly mobile forex app, it doesn’t support some of the more popular trading platforms like MetaTrader 4 or 5. This broker also doesn’t offer copy trading, which can be somewhat disappointing if you want to learn from other traders.TD Ameritrade Mobile App

TD Ameritrade doesn’t require a minimum deposit to open an account. You can fund your account with a bank transfer, but not with a credit card or debit card.

Pros:

  • Extremely trustworthy and heavily regulated in the US
  • Spreads from 1.0 pips for major forex pairs
  • Includes powerful Thinkorswim trading platform
  • Build custom forex signals
  • No minimum deposit

Cons:

  • Doesn’t accept credit/debit cards
  • No support for MetaTrader platforms

Your capital is at risk.

6. FXTM – Top Low Spread MetaTrader 4 & 5 Broker

FXTM LogoFXTM is another popular low spread broker that leverages the MetaTrader suite to help you trade profitably. The broker provides its own set of forex signals built for MT4 to get you started, and you can also take advantage of an economic calendar and news feed to stay ahead of the market.

FXTM also offers its own analysis of the forex market. The expert team behind this brokerage firm has developed a custom pivot points strategy that you can use on its own or import into MetaTrader 4.FXTM Trader app

It’s worth noting that FXTM also has its own trading app, which we found very easy to use. It’s not quite as powerful as MT4, but it’s a good option if you’re just getting started with forex trading and want a seamless user experience.FXTM Account Types

FXTM’s spreads start from 1.5 pips with a standard account, but you can get spread-free trading by upgrading to an Advantage account. This requires a minimum deposit of $500, but increases your leverage limit to up to 3,000:1! Advantage accounts do carry a commission, which can range from $0.40 to $2.00 per trade.

This MT4 broker is regulated by the FCA and CySEC. You can open a standard trading account with a $50 minimum deposit and pay by credit, debit, or bank transfer. The broker offers 24/5 customer support by phone, email, and live chat.

Pros:

  • Includes forex signals for MT4
  • Pivot points trading strategy
  • Advantage account is spread-free
  • Regulated by the FCA and CySEC
  • 24/5 customer support available

Cons:

  • Above-average spreads for standard account

Your capital is at risk.

7. Skilling – Best Low Spread cTrader Broker

Skilling logo  Skilling is one of the best low spread forex brokers for traders of all skill levels. The broker has multiple platforms to trade with, including its own user-friendly Skilling Trader platform. Available for web and mobile, this platform offers dozens of built-in technical studies, a news feed, watchlists, and more.

If you want more technical analysis capabilities, you can use Skilling cTrader or MetaTrader. Both platforms enable you to build custom forex signals or copy signals from other traders. cTrader is particularly nice because you can also create automated trading strategies easily.Skilling Trader App

Another plus to Skilling is that it supports copy trading. The broker’s platform enables you to choose from thousands of different traders and strategies to copy. Even better, there’s no additional charge for copy trading. If you’ve built your own custom strategy using Skilling cTrader, you can also allow other traders to copy you and earn money just for trading.

Skilling’s selection of forex pairs is quite wide, with over 70 CFDs to trade. Notably, the broker also offers trading on stocks, ETFs, commodities, indices, and cryptocurrencies. So, you can get low spreads across a huge range of global markets. Spreads for forex trading start at just 0.7 pips, but can vary widely even for major currency pairs. For example, the EUR/USD pair trades at 0.7 pips, but the USD/GBP pair trades with a spread of 1.9 pips.skilling homepage

Skilling is regulated by CySEC. You’ll need $100 to open a new account and you can pay by credit card, debit card, or bank transfer. The broker offers 24/7 support in case you need help with your account.

Pros:

  • Multiple trading platforms including cTrader
  • Over 70 forex pairs to trade
  • Supports copy trading
  • Spreads as low as 0.7 pips
  • 24/7 customer support
  • Regulated by CySEC

Cons:

  • Doesn’t provide forex signals to help you start trading
  • Highly variable spreads on major forex pairs

Your capital is at risk.

8. Interactive Brokers – Lowest Spreads for Forex Trading

Interactive Brokers LogoInteractive Brokers is one of the most popular brokers in the US among advanced traders. That’s in large part because of its trader-friendly pricing structure. Interactive Brokers charges spreads as low as 0.2 pips for major currency pairs. The only catch is that each trade carries a minimum fee of $2, so you’ll want to trade at least $100,000 worth of currency to get that low spread.

The broker has over 100 currency pairs available for trading, along with US stocks, ETFs, commodities, options, and more. Trade execution is incredibly fast thanks to the fact that Interactive Brokers offers real-time quotes from 17 different liquidity providers.Interactive Brokers PricingInteractive Brokers has a few different platforms available, including a simple online Client Portal and a more advanced Trader Workstation. The Trader Workstation is an incredibly powerful tool for active forex traders and includes a built-in news feed, algorithmic trading, and more.Interactive Brokers Trader Works

As a US broker, there are some limitations to how you can use Interactive Brokers. The platform doesn’t integrate with MetaTrader 4 or 5, and it doesn’t offer copy trading. You can also only make deposits by bank transfer, not by credit card or debit card.

There’s no minimum deposit required to open an account with Interactive Brokers. The broker is regulated by the SEC, CFTC, and FINRA.

Pros:

  • Ultra-low forex spreads
  • Over 100 forex pairs to trade
  • Very fast order execution with deep liquidity
  • Powerful Trader Workstation platform
  • Heavily regulated in the US

Cons:

  • Doesn’t accept credit/debit card deposits
  • No integration with MetaTrader 4 or 5

Your capital is at risk.

9. Plus500 – Beginner-friendly Forex Trading Platform with Low Spreads

Plus500 is one of the best low spread brokers for new traders. That’s because the platform has its own, custom trading platform that’s incredibly easy to use. You can create watchlists, customize premade technical indicators, and set alerts all from a seamless user interface.

Even better, the Plus500 trading platform is available for both the web and mobile devices. We love that the mobile app supports full-screen charts, which makes it easy to trade forex on the go.Plus500 Trading Platform (1)

Plus500 carries more than 40 currency pairs and has a lot more to offer. This CFD broker offers over 1,500 global shares, dozens of commodities and cryptocurrencies, indices, and more.Plus500 Price Alerts

Trading with Plus500 is also fairly inexpensive. The broker charges spreads from 1.0 pips for major forex pairs and you can trade with leverage up to 30:1. Plus500 never charges commissions, and there are no deposit or withdrawal fees.

Plus500 is regulated by the UK FCA and offers 24/7 customer support for traders. You can get started with a $100 deposit and transfer funds by bank transfer, credit card, or debit card.

Pros:

  • Very user-friendly trading platform
  • Full screen charts on mobile app
  • Trade forex, shares, crypto, and more
  • 24/7 customer support
  • Regulated by the FCA

Cons:

  • Not the best platform for advanced technical analysis

76.4% of retail investor accounts lose money when trading CFDs with this provider.

10. FXCM – Multiple Platforms with Ultra-low Spreads

FXCM is a low spread forex broker with numerous trading platforms to choose from. With this broker, you can pick between MetaTrader 4, MetaTrader 5, NinjaTrader, ZuluTrade, TradingView, and more. FXCM also offers its own proprietary platform, TradingStation, for forex traders who are just getting started in the market.

The inclusion of ZuluTrade on FXCM is especially notable because it gives you access to social trading. You can connect with other forex traders from around the world – including traders using other brokerage platforms – to share ideas, learn new strategies, and find trading opportunities.FXCM Currency Pairs

The broker also stands out for its selection of currency pairs to trade. The platform offers dozens of major, minor, and exotic currency pairings with leverage as high as 500:1. In addition, FXCM has “forex baskets,” which allow you to hedge by investing in multiple currencies at once.FXCM Forex Basket

Spreads at FXCM start as low as 0.7 pips, which makes it one of the most affordable options on our low spread forex brokers list. This high leverage broker doesn’t charge deposit or withdrawal fees, and the inactivity fee is just $50 per year – not per month, like most competing brokers.

FXCM is regulated by the UK FCA. The broker offers 24/5 customer support by phone, email, and live chat. Plus, you can get started with just a $50 minimum deposit.

Pros:

  • Numerous trading platforms to choose from
  • Social trading with ZuluTrade
  • Leverage up to 500:1
  • Invest in forex baskets instead of individual currency pairs
  • $50 minimum deposit

Cons:

  • Accessing all features requires using multiple trading platforms

Your capital is at risk.

Low Spread Brokers Fees Comparison

Table comparing the approximate spreads of each broker for USD/GBP and another key forex pair

USD/GBP Spread EUR/USD Spread Deposit/Withdrawal Fees Inactivity Fees
eToro 1.4 pips 1.0 pips $5 per withdrawal $10 per month after 12 months
Libertex 1.3 pips 0.8 pips None $5 per month after 6 months
Capital.com 1.4 pips 0.8 pips None None
Forex.com 1.3 pips 1.0 pips None $15 per month after 12 months
TD Ameritrade 1.0 pips 1.0 pips None None
FXTM 2.0 pips 1.5 pips None $5 per month after 6 months
Skilling 1.9 pips 0.7 pips None None
Interactive Brokers 0.2 pips 0.2 pips None $10 if less than $10 in commissions per month
Plus500 1.4 pips 1.0 pips None $10 per month after 12 months
FXCM 1.2 pips 0.7 pips None $50 per year after 12 months

What Are Forex Spreads?

The spread for a forex trade is the difference between the bid (buy) and ask (sell) price of a currency pair.

Typically, when you buy a currency, you’ll pay slightly more than the seller receives for selling that currency. That difference is the spread, and it goes to your broker as a fee for mediating the trade.

Many forex brokers are now fully commission-free, so the spread is the main way they make money when you trade currencies.

What is Considered a Low Forex Spread?

What is considered a low forex spread depends on the currency pair you’re trading. Major pairs have the lowest spreads, while minor pairs and exotics have higher spreads.

The EUR/USD currency pair is one of the most frequently traded forex pairings in the world and is frequently used to compare brokers’ spreads. The industry average spread for the EUR/USD pair is around 1.0 pips. So, any broker that charges less than 1.0 pips for this trading pair is considered a low spread forex broker.

Keep in mind that other major pairs can vary more widely in price. So, the broker that’s cheapest for trading EUR/USD might not be the cheapest for trading USD/GBP. If you plan to trade one currency pair more than any others, look for a broker that offers especially low forex spreads for that pair.

How to Get Started with a Low Spread Broker

Ready to start trading forex with a low spread broker? We’ll show you how to trade EUR/USD with eToro, which offers spreads from just 1.0 pips.

Step 1: Open an Account

To open an eToro account, head to the broker’s website and click ‘Join Now.’ Enter your email and a password to sign up for a new account, or sign up using Google or Facebook.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify Your Identity

eToro is regulated by the UK FCA and follows Know Your Customer (KYC) rules. As a result, you need to verify your identity before you can start trading. Upload a copy of your driver’s license or passport along with a copy of a recent utility bill or bank statement.eToro verify Identity

Step 3: Deposit Funds

Next, deposit at least $200 into your eToro account. The broker accepts credit cards, debit cards, bank transfers, and e-wallets like PayPal, Neteller, and Skrill.eToro Deposit Funds

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 4: Start Trading

Now you’re ready to trade forex with eToro. Use the search bar at the top of the dashboard to enter ‘EUR/USD’ and click on ‘Trade’ when it appears. Enter the amount of money you want to invest in the EUR/USD trading pair and choose your desired leverage.eToro Trade EUR USD

When your trade is ready, click ‘Open Position.’

Conclusion

Trading forex gives you access to the massive global currency market. Most brokers charge spreads instead of commissions for forex trading. So, it’s important to make sure you’re getting the lowest possible spreads so that you can keep more of your profits.

Ready to start trading with the best low spread forex broker in 2021? Click the link below to sign up for an eToro account today!

eToro – Overall Best Low Spread Forex BrokereToro stock broker

67% of retail investor accounts lose money when trading CFDs with this provider.

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