Traders searching for the lowest spread forex broker UK in 2025 prioritise execution speed, raw pricing, and FCA regulation. Ultra-tight spreads reduce transaction costs, especially for scalpers, intraday traders, and those trading high volumes. The best brokers offer raw ECN or STP spreads, often starting from 0.0 pips, combined with low commissions and fast execution.
This guide ranks the lowest spread brokers in the UK and compares their regulation, pricing structure, and ideal trader profiles.
What Are Raw Spreads?
Raw (or interbank) spreads are the true bid/ask prices from liquidity providers, with no markup from the broker. Instead, brokers charge a commission per trade — offering transparency and cost efficiency.
Spread Structure Comparison
| Model | Spread Type | Commission | Total Cost (avg) |
|---|---|---|---|
| ECN (Raw) | 0.0–0.2 pips | Yes (£4–£6) | ✅ Lowest |
| STP (Standard) | 1.0–1.8 pips | No | ❌ Higher overall |
Best Lowest Spread Forex Brokers in the UK (2025)
1. Pepperstone UK – Best Overall Raw Spread Broker
- Regulation: FCA (FRN 684312)
- Spreads: From 0.0 pips (Razor)
- Commission: £4.50 round-trip per lot
- Platforms: MT4, MT5, cTrader, TradingView
- Execution: <30ms via Equinix LD5 London
- Best For: Scalpers, EAs, and algorithmic traders
2. IC Markets – Best ECN Broker for Low Latency
- Regulation: ASIC, CySEC (UK clients accepted)
- Spreads: Avg 0.1 pips (Raw Spread)
- Commission: $7 (~£5.60) per lot
- Platforms: MT4, MT5, cTrader
- Execution: Ultra-fast, suitable for HFT
- Best For: Professional traders and volume scalpers
3. Intertrader – Best FCA Broker with Fixed Tight Spreads
- Regulation: FCA (FRN 597312)
- Spreads: Fixed from 0.6 pips
- Commission: None
- Platforms: MT4, WebTrader
- Execution: Low-latency UK servers
- Best For: Traders wanting no spread fluctuation or surprises
4. TibiGlobe – Best High Leverage ECN Broker with Tight Spreads
- Regulation: Offshore
- Spreads: From 0.2 pips (ECN)
- Commission: $6 per lot
- Platforms: MT5
- Leverage: Up to 1:1000
- Best For: Advanced traders needing raw spreads + leverage
5. Vantage – Best FCA-Accessible Raw Broker with MT5
- Regulation: ASIC, CIMA (UK clients accepted)
- Spreads: From 0.0 pips (Raw ECN)
- Commission: $6/lot
- Platforms: MT4, MT5, TradingView
- Best For: UK traders wanting pro-style trading tools
Broker Comparison Table
| Broker | FCA Regulated | Spread From | Commission (per lot) | Platform(s) | Execution Type | Best For |
|---|---|---|---|---|---|---|
| Pepperstone | ✅ | 0.0 pips | £4.50 | MT4, MT5, cTrader | ECN | Scalping and EA trading |
| IC Markets | ❌ (ASIC only) | 0.1 pips | £5.60 (~$7) | MT4, MT5, cTrader | ECN | Ultra-fast ECN trading |
| Intertrader | ✅ | 0.6 pips | None (Fixed Spread) | MT4, WebTrader | STP | No commission, predictable costs |
| TibiGlobe | ❌ (Offshore) | 0.2 pips | $6 | MT5 | ECN | High leverage + tight pricing |
| Vantage | ❌ (FCA exit) | 0.0 pips | $6 | MT4, MT5 | ECN | Raw spread pro traders |
How to Choose the Right Low Spread Broker
| Factor | What to Consider |
|---|---|
| FCA Regulation | Essential for UK trader protection and FSCS coverage |
| Execution Speed | Key for scalpers — look for LD5 London infrastructure |
| True ECN Access | Brokers like Pepperstone and IC Markets deliver this |
| Commission vs Spread | Total cost per lot matters more than spread alone |
| Platform Choice | MT4/MT5/cTrader all support raw pricing and EAs |
Key Takeaways
- Pepperstone UK offers the tightest raw spreads under FCA regulation — perfect for scalping and algorithmic trading.
- IC Markets is a global leader in ECN execution, but lacks FCA regulation for UK clients.
- Intertrader provides fixed tight spreads with no commissions, ideal for flat-cost traders.
- TibiGlobe delivers raw pricing + up to 1:1000 leverage — great for high-risk/high-reward strategies.
- Always calculate all-in trading cost: Spread + Commission + Slippage.
Frequently Asked Questions
Which UK forex broker has the lowest spreads?
Pepperstone UK offers raw spreads from 0.0 pips with commissions as low as £4.50 per lot.
Are raw spread accounts better for scalping?
Yes. Raw (ECN) accounts are ideal for scalping and EA trading due to their tight pricing and transparent costs.
Does FCA regulation guarantee better spreads?
Not necessarily — it ensures safety and fairness. But some offshore brokers may offer lower raw pricing with fewer protections.
What is the cheapest way to trade forex in the UK?
Choose a raw spread broker (e.g. Pepperstone or IC Markets) and trade high-liquidity pairs during peak hours.
Are fixed spread brokers better than variable spread ones?
Fixed spreads (like Intertrader’s) are better in volatile markets, while variable raw spreads are cheaper in calm conditions.
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