Best Forex Brokers for Low Cost Trading
Forex brokers with lowest fees:
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Exness - Avg. EUR/USD spread 0.1 pips, ECN account fee - $3.5 per lot
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RoboForex - ECN account fee is only $2, avg. EURUSD spread - 0.1 pips
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IC Markets - Zero fees on Standard accounts, deposits and withdrawal are both free
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Pepperstone - Lowest EUR/USD spread is only 0.09 pips, ECN account fee - $3.5 per lot
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FP Markets - Avg. EUR/USD spread is 0.1 pips, cheapest account fee - $3 per lot
The Forex market is one of the most active markets in the world with so much money to be made speculating on currency movements. If you are new to Forex, the last thing you want is to lose money because of high trading costs.
Our team of experts reviewed a variety of trading platforms to determine those that charge the lowest trading fees. In this article, we will reveal eight top Forex brokers that offer the lowest trading costs in the Forex industry.
What are Forex Broker Typical Fees?
There are optional costs for things like news, analysis, and connections that you might want to purchase. But there are also compulsory expenses that all traders end up paying, such as commissions and the bid-ask spread.
The most common fees traders have to pay are the commissions and spreads, which are usually determined by the broker regardless of the success rate. Take a look at some of them.
Forex Spread
To understand the spread concept, consider how your trading broker charges you for each trade. For example, your broker will list two prices for every currency pair they offer: the bid and ask price. The difference between the bid and ask price is the spread, and it forms part of the fees most brokers will charge.
Trading Fees
When you buy or sell shares, you will incur trading fees, which you’ll pay to the broker for facilitating your trade.
Zero Spread Forex brokers only charge a commission fee. Apart from the lack of spreads, this account also provides more precise revenue forecasts and higher profit possibilities because of its reduced commission rate of $3-20 per lot.
Non Trading Fees
Non-trading fees are unrelated to trading, but they are still applicable to the overall charges incurred while using a broker.
Inactivity Fees
When an investor has not bought or sold anything in their account for a defined period, they will be charged an inactive fee.
These fees might not affect active investors who trade a lot, but passive investors might take more of a hit. Some sites let you compare the trading and investing costs for different companies.
Conversion fees
The fee to close an open position is called the conversion fee, which can be seen when trading in different currencies. For example, if a person trades a green position for a blue one, the conversion fee will only apply if the account does not hold blue assets.
Withdrawal fees
Brokers may charge fees of up to $50 per withdrawal. Therefore, compare different brokerage platforms to find the one with the best trade-offs for you and your trading needs.
Account Maintenances
Brokers usually charge account maintenance fees per year, and the criteria for the fee may be that the account has to stay above a certain value.
Lowest Commission Forex Brokers
To rank the best Forex brokers for beginners, we considered only regulated user-friendly web-based platforms with low commissions.
| Broker | Min. Deposit | Leverage | Regulation | |
|---|---|---|---|---|
|
$1 |
1:30 to 1:1000 |
CySEC, FCA, SFSA |
|
|
|
$10 |
1:30 to 1:1000 |
CySEC, IFSC |
|
|
|
$200 |
1:30 to 1:500 |
ASIC, CySEC |
|
|
|
$200 |
1:30 |
ASIC, FCA, DFSA, SCB, CMA, CySEC, BaFIN |
|
|
|
$100 |
1:30 |
ASIC, CySEC |
|
|
|
$0 |
1:40 |
US SEC, CFTC, ASIC, FCA |
|
|
|
$200 |
1:30 to 1:500 |
ASIC, FCA, CySEC, EFSA |
|
|
|
$100 |
1:30 to 1:500 |
FCA, CySEC, SFSA |
|
Forex Brokers Spread and Fees Comparison
Brokers offer the lowest spreads on ECN/Raw spread accounts than standard accounts. For traders who use standard accounts, the average spread varies significantly between brokers.
| Broker | EURUSD avg. | GBPUSD avg. | USDJPY avg. | AUDUSD avg. | EURGBP avg. | ECN/Low Spread Fee | |
|---|---|---|---|---|---|---|---|
|
0.1 |
0.1 |
0.1 |
0.2 |
0.4 |
$3.5 per lot |
|
|
|
0.40 |
0.90 |
0.20 |
0.50 |
1.20 |
$2 |
|
|
|
0.1 |
0.5 |
0.2 |
0.3 |
0.6 |
$3.5 per lot |
|
|
|
0.09 |
0.28 |
0.14 |
0.17 |
0.27 |
$3.5 per lot |
|
|
|
0.10 |
0.30 |
0.20 |
0.20 |
0.50 |
$3 |
|
|
|
0.1 |
0.1 |
0.1 |
0.1 |
0.1 |
$0 |
|
|
|
0.10 |
0.60 |
0.30 |
0.50 |
0.60 |
$3 |
|
|
|
0.3 |
0.7 |
0.6 |
0.2 |
1.2 |
$2 |
|
Forex Brokers Non Trading Fees Comparison
The table below shows the non-trading fees of the cheapest Forex brokers.
| Bank Transfer Withdrawal | Credit/Debit Card With Withdrawal | Inactivity fee | Conversion fee | |
|---|---|---|---|---|
|
$0 |
$0 |
$0 |
$7 |
|
|
$0 |
$2 |
$0 |
$0 |
|
|
$0 |
$0 |
$0 |
$3.5 |
|
|
$3 |
$20 |
$0 |
$7 |
|
|
$0 |
$3 |
$0 |
$6 |
|
|
$10 |
$10 |
$1 |
$1 |
|
|
€1 |
$0 |
€10 |
€10 |
|
|
$0 |
$100 |
$0 |
$5.1 |
Forex Brokers With Low Fees - How Do They Compare?
Low commission fees help limit Forex trading costs. Below, we provide a brief review of brokers that charge the lowest Forex fees in the industry.
Exness
Exness is a trade broker with hundreds of thousands of active clients and trillions in trading volume. The company offers more than just Forex, delivering a wide variety of markets to help fill the needs of any trader.
Exness
Like its competitor, Fusion Markets, Exness is an award-winning organization offering zero spread trading and no minimum deposits. The broker is regulated by Cyprus Securities and Exchange Commission (CYSEC) and the Financial Conduct Authority (FCA) in the United Kingdom.
👍 Pros
• Unlimited leverage
•Commission-free trading available
•MT4/MT5 Suite available
•Fee-free deposits and withdrawals
•Competitive Spreads
👎 Cons
•Not available in all regions
•No Bonuses/Promos
RoboForex
The list of the cheapest brokers cannot be complete without RoboForex. Established in 2009, the company has grown tremendously over the years and is currently providing services in over 169 countries globally. The broker has over 3.5 million users around the world and offers innovative technological solutions.
RoboForex is also licensed and regulated by top regulators meaning that client security is a top priority for the company. As a trusted Forex broker, RoboForex is liked by both novice and seasoned traders. RoboForex clients enjoy tight spreads from 0 pips, high order execution speeds, and instant deposit and withdrawal of funds.
When it comes to innovative technology, RoboForex offers liquidity aggregation which gives the broker a huge competitive edge. Their tight spreads starting from 0 pips also appeal to their clients. This has made the company a great fit for the list of lowest spread Forex brokers.
IC Markets
Sydney-based IC Markets was founded in 2007 and is regulated by the Australian Securities and Investments Commission (ASIC) and the Seychelles Financial Services Authority (FSA).
According to the broker's website, $646 billion in trading volume was processed in April 2019. The broker charges zero fees on Standard accounts and $3.5 per standard lot round turn on Raw Spread accounts.
IC Markets
👍 Pros
•Deposit and withdrawal are both free
•Trustworthy ECN broker with institutional-grade liquidity
•MetaTrader and cTrader are desktop, web, and mobile applications
👎 Cons
•The variety of markets and platforms may overwhelm new traders available
•Support for live chat is slow
•Non-EU clients have no investor protection
Pepperstone
The Pepperstone Group has developed a trading portal for foreign exchange, securities, indices, commodities, and cryptocurrencies. It opened its doors in 2010 and has grown to be a top-tier player. Besides the countries where Pepperstone operates, the broker is regulated in Australia, the United Kingdom, Cyprus, Germany, Kenya, the United Arab Emirates, and the Bahamas.
Pepperstone
Pepperstone simplifies the trading process, gives Forex discounts, and allows traders to focus on complicated trading tasks. The broker’s intuitive platform, efficient customer support, and multiple interface options make it a preferred option for many beginner traders.
👍 Pros
•Low currency spreads
•FCA (UK) regulated
•Provides safety for UK customer accounts
👎 Cons
•Poor website maintenance
•There is no definite stop loss
FP Markets
First Prudential Markets is easy to use and offers low fees. You can activate your account with as little as $500, deposit funds quickly, and access educational tools.
Liquidity is broad at FP Markets, and there is fierce pricing competition. It is regulated by top-tier regulators like the ASIC, CYSEC, and the Financial Services Authority of St. Vincent.
FP Markets
👍 Pros
•Low Forex Commissions
•Account Opening Was Simple and Quick using MetaTrader 4 and 5
•Deposits and withdrawals are processed quickly
•A Variety of Account Types
👎 Cons
•Expensive stock CFD fees
•Some accounts have a high minimum deposit
Interactive Brokers
Interactive Brokers is another strong contender in the cheapest Forex broker class. The broker attracts traders with low fees, a wide selection of investment options, and competitive pricing. They offer commission-free trades on securities, including foreign stocks and ETFs.
The FCA authorizes and regulates Interactive Brokers (UK) Limited, and the UK FSCS secures its licensed products.
Interactive Brokers
Interactive Brokers offers its service for free, but clients can step up to its more robust Pro tier. This tier has better trade execution, and clients can access no-transaction-fee mutual funds for various investment opportunities.
👍 Pros
• Low Forex Commissions
•Account Opening Was Simple and Quick using MetaTrader 4 and 5
•Deposits and withdrawals are processed quickly
•A Variety of Account Types
👎 Cons
•Expensive stock CFD fees
•Some accounts have a high minimum deposit
Admiral Markets
Admiral Markets is undoubtedly one of the best forex brokers for low cost trading; a trusted ECN broker based in Tallinn, Estonia, and is regulated by CYSEC, ASIC, and the FCA. The broker was founded in 2001 in Estonia and now operates worldwide. You can start investing with just $1 and choose between 6 different account types.
Admiral Markets
Admiral’s software is high tech, with their oldest, MetaTrader 4, and newest, MetaTrader 5. This broker also offers a proprietary technology called MetaTrader Supreme Edition that provides services like hotkey arbitrage.
👍 Pros
•Real stocks are available for trading
•Offers both MT4 and MT5 platforms for trading
•The minimum deposit is as low as $1
👎 Cons
•The service is not available to traders in the US
•No fixed spread accounts
Tickmill
Tickmill is a currency broker regulated by the Financial Conduct Authority and other worldwide financial institutions in the UK. Its strict regulations make it a safe entity to do business with.
Tickmill
With Tickmill, you'll receive low-cost currency, a simple account opening process, and digital processing. Fees are not charged for deposits or withdrawals at any time.
👍 Pros
•Low foreign exchange fees
•Account creation is quick and simple
•Deposit and withdrawal are both free
👎 Cons
•Only FX and CFDs are permitted
•Platform design and functionality are out of date
What are Forex Cheapest Accounts?
The Forex Exchange Market has exploded in the last few decades and is now overseen by brokers and traders. Because there are many options, finding the best and cheapest forex broker can be challenging as not all offer the same benefits. ECN and Raw Spread accounts are the cheapest Forex accounts to operate.
ECN overlays are technology bridges that link Forex market participants with liquidity providers. ECN Brokers automatically match trading orders avoiding liquidity compression by directly forwarding trading orders to execution venues. There is no confusion between the trader and the broker because of interbank communication.
A raw spread trading account offers all assets at market prices. And operators of such accounts lose no money as Forex brokers do not charge hidden fees on assets. Prices are always low and transparent, but brokers collect a variety of commission fees depending on the trade. For example, some may charge per round-turn, and others, while opening and closing a trade.
How to Choose a Low Commission Forex Broker?
Typically, Forex brokers charge commissions to their clients for the services they provide. However, some Forex brokers may charge extra commissions for providing a platform, education, access to financial advisors, or some other service. So we recommend choosing a low-commission broker. To ease the process, we have outlined steps to take to make the best decision.
Step 1: Confirm regulatory compliance
Top-tier authorities like the FCA, CYSEC, and ASIC. should regulate the brokerage. Also, consider if it has membership with the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC).
A website that looks professional does not guarantee a broker's NFA membership but you can verify it by looking for an NFA number on their "About Us" page.
Step 2: Have a grasp of the different account features
Brokers have varied account options, and each is unique. Here are a few things to look for: leverage, margin, and commissions; initial deposits, Forex discounts, and ease of withdrawals. As you research foreign exchange brokers, find out how much they take from transactions and other benefits.
Step 3: Evaluate the trading platform
The trading platform is the user's way of accessing market information. You can start with a demo account to test out trading features and see how fast the platform handles transactions. Also, check if the platform has all the technical and fundamental data a trader needs.
Before investing in a forex broker, do extensive research. If you are confident in the company, you will have more time to analyze your strategies and compete in the Forex market.
Summary
Many Forex traders are wary of the high fees brokers charge on trading transactions and often seek platforms that offer much lower fees and tight spreads. We have reviewed some of the most popular brokers that charge the lowest and cheapest fees available in the Forex industry.
But traders still have to compare spreads across different brokers, as variable spreads that widen during volatile market conditions can increase costs.
When evaluating brokers, consider factors beyond just costs, like execution quality, trading platforms, and customer service. While costs are crucial, it's also important to choose a reliable broker that provides a good overall experience.
So, whether you are looking for the lowest commission Forex broker with the best currency pairs or free Forex brokers that offer the lowest spreads, following our recommendations will save you a lot of money.
FAQs
Do I need a Forex broker?
It is technically possible to trade Forex legally without a broker if you obtain the proper licensing and build operational infrastructure, but the costs and complexity make it infeasible for retail traders. Large financial institutions and traders can trade directly on the interbank Forex market without a broker. But they must maintain very high capital levels and creditworthiness. Retail traders cannot get direct access.
Are Forex brokers reliable?
You can find reputable, dedicated brokers, but each broker differs in their level of reliability. Most regulated brokers provide efficient and trustworthy services you can count on.
How do I choose the best Forex broker?
To ensure you're selecting the best online broker for your Forex trading needs, consider these three essential factors: licensing, trading platform perks, and pricing.
What is the best way to find out if my Forex broker is safe?
First, verify that relevant authorities have registered and regulated the broker. You can look for a registration number at the bottom of the homepage.
Methodology for compiling our ratings of Forex brokers
Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.
Find out more about the unique broker assessment methodology developed by Traders Union specialists.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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3
ECN
An ECN, or Electronic Communication Network, is a technology that connects traders directly to market participants, facilitating transparent and direct access to financial markets.
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4
Investor
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
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5
Leverage
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
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Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).