Brokers with the lowest spread are usually ECN/STP brokers with raw interbank spreads from 0.0 – 0.3 pips.
Since the broker doesn’t add a markup on the quotes derived from the ECN-network, they usually charge you a small commission.
The commission is typical from $7 per round lot traded, or $3.5 per side.
Lowest spread brokers 2022
Below are highly reputable brokers that’s regulated in several jurisdictions.
Pepperstone – Lowest Spread Broker 2022
Pepperstone offers raw interbank spreads from 0.0 pips with very low commissions from $3.5 per side/lot.
Pepperstone is regulated by several top-tier regulators such as FCA, ASIC, and BaFIN.
Pepperstone offers a full TradingView integration in addition to MT4, MT5, and cTrader.
🏆 Best TradingView Broker 2022
✅ 1:30 | 1:400 leverage
✅ MT4, MT5 & cTrader
✅ 1200+ instruments
✅ Raw interbank spreads
✅ Fast 24/5 customer support
Skilling – Best Overall Broker 2022
Skilling offers trading in more than 1000 instruments including 50+ cryptos.
Through their Premium account type, you can trade on raw spreads with super low commission.
Skilling also offers exchange pricing on cryptocurrencies with spreads from only 50 cents on Bitcoin!
🏆 Best Overall Broker 2022
✅ Up to 1:500 leverage
✅ Skilling Trader, MT4 & cTrader
✅ 900+ instruments
✅ Nordic Fintech
✅ Fast 24/5 customer support
What is a low spread broker?
Low spread is usually referred to as quotes as close to interbank as possible.
Low spread brokers are usually brokers who give you raw interbank spreads (from 0.0 pips) and charge a small commission.
Low spread vs average
The average industry spread for EURUSD is about 1.2 pips, without any commission.
If let’s say, you can trade 1 lot EURUSD at 0.2 pips through a low spread broker, then you save 1 pip, which equals $10.
However, if you are charged $3.50 per lot, then the total “cost” for opening the trade is $5.50.
Other charges
Always keep in mind other charges that the broker may impose. There is no point saving a couple of pips if they charge high fees on deposits, withdrawals, and swaps…
Conclusion
You can save a lot of money by using a low spread broker.
The higher the volume and frequency you trade, the higher the potential savings.
Always take other costs into consideration such as deposit/-withdrawal fees and swaps.
