A forex broker low spread is essential for cost-efficient trading, particularly for scalpers, intraday traders, and algorithmic systems that operate on tight margins. A broker with consistently low spreads helps reduce trading costs, maximise profitability, and improve execution precision — especially during peak trading hours.
This guide outlines the top low-spread forex brokers in 2025, explains how spread-based costs work, and helps you compare options based on trading style, platform, and account type.
What Is a Low Spread in Forex?
Definition
The spread is the difference between the bid and ask price of a currency pair. It’s essentially the broker’s markup and one of the core trading costs.
- Low spread: 0.0 to 0.6 pips on majors like EUR/USD
- High spread: 1.5+ pips, common on exotic or low-volume pairs
Why Low Spread Matters
- Reduces entry and exit costs
- Crucial for scalping, news trading, and high-frequency strategies
- Enables tighter stop-loss and take-profit placement
Best Forex Brokers With Low Spreads in 2025
1. Vantage – Raw ECN Account
- Spread: From 0.0 pips (EUR/USD avg: 0.1)
- Commission: $3 per side ($6/lot)
- Execution: True ECN via Equinix servers
- Platform: MT4, MT5, ProTrader
- Best For: Scalpers, EAs, and volume traders
2. TibiGlobe – Ultra-Low Spread ECN
- Spread: From 0.0 pips (EUR/USD avg: 0.2)
- Commission: Volume-based pricing, from $5/lot
- Platform: MT5
- Execution: STP with direct liquidity provider routing
- Best For: Institutional-grade low-spread trading
3. Intertrader – Spread Betting & DMA CFD
- Spread: From 0.6 pips (fixed on majors)
- Commission: None (spread-only model)
- Platform: MT4, WebTrader
- Best For: UK clients seeking low-tax, all-inclusive pricing
4. AvaTrade – Fixed Spread Model
- Spread: From 0.9 pips (EUR/USD)
- Commission: Zero
- Platform: MT4, MT5, AvaTradeGO
- Best For: Beginners needing spread consistency
5. IC Markets – Raw Spread
- Spread: From 0.0 pips (EUR/USD avg: 0.1)
- Commission: $3.5 per side ($7/lot)
- Platform: MT4, MT5, cTrader
- Best For: Professional-level raw spread traders
Spread Comparison Table (EUR/USD, Typical Conditions)
| Broker | Spread Type | Avg Spread | Commission | Total Cost (per lot) |
|---|---|---|---|---|
| Vantage | Raw ECN | 0.1 | $6 | ~$7 |
| TibiGlobe | ECN | 0.2 | $5 | ~$7 |
| Intertrader | Fixed | 0.6 | None | ~$6 (all-in spread) |
| AvaTrade | Fixed | 0.9 | None | ~$9 |
| IC Markets | Raw | 0.1 | $7 | ~$8 |
When Low Spreads Matter Most
Scalping
Low spreads are crucial when opening multiple short-term positions in fast-moving markets.
News Trading
During volatile economic releases, low-spread brokers help minimise slippage and execution costs.
Algorithmic Trading
Robotic systems require precise fill prices — low spreads increase consistency in strategy performance.
Hedging & Grid Systems
Frequent entries across multiple levels perform better with minimal entry costs.
What Else Affects Spread?
- Market hours: Spreads tighten during London–New York overlap
- Volatility: Sudden news can spike spreads temporarily
- Pair liquidity: Majors like EUR/USD have the lowest spreads
- Account type: ECN/Raw accounts offer tightest spreads with commissions
Key Takeaways
- Vantage and TibiGlobe offer some of the lowest spreads in forex — from 0.0 pips — ideal for scalpers and pros.
- Always calculate total cost per trade: spread + commission = real fee.
- Intertrader and AvaTrade are better for traders preferring fixed, commission-free models.
- Use demo accounts to compare real-time spreads before going live.
- Spreads are one part of the equation — also evaluate execution, platform speed, and slippage control.
Frequently Asked Questions
What is considered a low spread in forex?
A spread between 0.0 and 0.6 pips on major pairs like EUR/USD is considered low. Anything below 1 pip is generally competitive.
Which broker has the lowest spread in 2025?
Vantage and TibiGlobe currently offer some of the lowest raw spreads in the market, with averages near 0.1–0.2 pips on EUR/USD.
Are low spread brokers better for scalping?
Yes. Scalping relies on opening and closing trades quickly, so tight spreads reduce friction and improve net profitability.
Do low spreads guarantee low trading costs?
Not always. You must factor in commissions for raw accounts to determine the true cost per trade.
Can spreads widen even on low-spread accounts?
Yes. Spreads are dynamic and may widen during news events, low liquidity periods, or market turbulence.
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