- What Are Low Spreads in CFD Trading?
- Top Low Spread CFD Brokers Comparison Table
- How to Choose a Low Spread CFD Broker
- Low Spread Trading Strategies
- Commission vs. Spread-Only Accounts: Which is Better?
- Low Spread Brokers and Market Conditions
- Popular Trading Platforms for Low Spread Trading
- FAQ about Demo Accounts
What Are Low Spreads in CFD Trading?
Low spreads in CFD trading are crucial for minimizing trading costs. The spread represents the difference between the buying and selling price of an asset. In CFD trading, where traders do not own the underlying asset but speculate on its price movement, a low spread allows for better execution and potentially higher profits. A lower spread means you pay less to enter and exit trades, which is especially important for those who make frequent trades or use strategies like scalping.
Spreads are often expressed in pips (percentage in points). While tight spreads (1-2 pips) are ideal for active traders, some brokers offer spreads as low as 0.0 pips, though they might charge commissions to make up for the reduced spread. Understanding the different types of spreads and how they affect your trading costs is essential to optimizing your strategy.
Top Low Spread CFD Brokers Comparison Table
Choosing the right low spread broker depends on several factors, including the spread type, account types, minimum deposit requirements, leverage, and commissions. Here’s a comprehensive comparison of the top low spread CFD brokers for 2025, considering these key aspects.
| Commision | Instruments | Min Dep | Leverage | Platforms | ||
|---|---|---|---|---|---|---|
 Exness | No commission fees, cost through spreads | Forex Crypto Metals Indices Commodities | $10 | Up to 1:2000 | MT4 MT5 Web Terminal Mobile App | |
 IC Markets | $3-$7 per lot | Forex Indices Commodities Stocks Futures | $200 | Up to 1:500 | MT4 MT5 cTrader TradingView Web Mobile | |
 Pepperstone | $0-$3 per lot | Forex Indices Commodities Stocks Cryptocurrencies | $200 | Up to 1:500 | MT4 MT5 cTrader | |
 Interactive Brokers | $0.08-$0.20 per lot (tiered pricing) | Forex Stocks Options Futures Crypto | $0 | Up to 1:50 | Trader Workstation IBKR Mobile | |
 Capital.com | $0 | Forex Indices Commodities Stocks Cryptocurrencies | $20 | Up to 1:30 | Proprietary platform MT4 Web Mobile TradingView integration |
Best Overall Low Spread Broker: Exness
Exness stands out as the best low spread broker for 2025, offering consistently low spreads from 0.1 pips on major currency pairs, including EUR/USD and GBP/USD. This makes it an ideal choice for traders who want to minimize their trading costs without compromising on speed and execution quality. Exness provides a wide variety of account types, including Standard accounts with no commission charges, making it highly accessible for both new and experienced traders.
Key Features:
- Spreads starting from 0.1 pips: Exness offers ultra-tight spreads on major currency pairs, which can be crucial for scalpers and active traders.
- No commission on most account types: Traders can enjoy trading without additional commission charges, lowering the overall cost of trading.
- Leverage up to 1:Unlimited: With unlimited leverage on some accounts, Exness allows traders to customize their risk and reward based on their strategies.
- Available on MT4 and MT5: These platforms offer advanced charting tools and features, suitable for traders at all levels.
Best for Zero/Raw Spread Trading: IC Markets
For traders seeking zero or raw spreads, IC Markets is the top choice. Known for its raw spread accounts that start from 0.0 pips, IC Markets is particularly popular among scalpers and algorithmic traders who depend on the smallest price fluctuations. While these raw spreads come with commissions, the overall cost is often much lower than brokers with wider spreads and no commissions. IC Markets is also renowned for its robust trading infrastructure, making it suitable for high-frequency trading strategies.
Key Features:
- Available on MT4 and MT5 platforms: These platforms provide the necessary tools for professional traders, including automated trading through Expert Advisors (EAs).
- Raw spreads from 0.0 pips: Ideal for traders looking to minimize costs, especially those who trade high volumes.
- Commission per trade: Although commissions apply, they are typically lower than the additional cost incurred from wider spreads.
- Leverage up to 1:500: High leverage options allow traders to amplify their positions.
Best for Forex Scalping with Low Spreads: Pepperstone
Pepperstone’s Razor account is built for traders who engage in scalping. With spreads starting from 0.0 pips on major pairs and low commissions, Pepperstone offers excellent conditions for traders looking to capitalize on small price movements. The broker is also known for its low slippage, fast execution times, and high liquidity, all of which are essential for successful scalping.
Key Features:
- Available on MT4 and MT5 platforms: Both platforms are equipped with the tools necessary for technical analysis and automated trading.
- Spreads starting from 0.0 pips: Tight spreads are a key feature for traders looking to make quick, small profits.
- Commission-based accounts: Razor accounts come with commissions, but the overall trading cost is often much lower than wider spreads with no commission.
- Leverage up to 1:500: Scalpers can benefit from high leverage, which can maximize profits on small price moves.
Best Low Spread Broker for Beginners: Capital.com
Capital.com is an excellent choice for beginners, offering competitive spreads that start from 0.6 pips with no commission charges. The broker’s user-friendly WebTrader platform and educational resources make it easy for newcomers to learn the ropes of CFD trading. Additionally, with leverage up to 1:30, Capital.com ensures that beginners can manage risk effectively while building their trading skills.
Key Features:
- WebTrader and MT4 platforms: Capital.com’s easy-to-use WebTrader platform is complemented by the powerful MT4, providing flexibility for traders as they grow.
- Spreads starting at 0.6 pips: A low spread with no commission, making it affordable for new traders.
- No commission on most accounts: Keeps costs predictable and simple, ideal for those just starting out.
- Leverage up to 1:30: Suitable for beginners who want to control their exposure to risk while learning.
Best for Professional Traders: Interactive Brokers
Interactive Brokers caters to professional traders with its highly competitive spreads and advanced trading tools. With spreads starting from 0.1 pips and access to a vast range of financial instruments, it’s a prime choice for professional traders who need precision and speed. Interactive Brokers’ professional accounts offer advanced charting, algorithmic trading options, and access to various asset classes across global markets.
Key Features:
- Trader Workstation platform: This platform provides access to advanced features and a comprehensive suite of analysis tools, ideal for high-level traders.
- Spreads from 0.1 pips: Professional accounts offer tight spreads on major pairs, perfect for experienced traders looking for precision.
- Professional trading accounts: Designed for seasoned traders, with access to advanced tools and features.
- Leverage up to 1:50: Suitable for professional traders who require lower leverage for more controlled risk management.
How to Choose a Low Spread CFD Broker
Selecting a low spread CFD broker goes beyond just the size of the spread. To ensure that the broker fits your trading needs, there are several other aspects to consider. The broker’s pricing model, platform offerings, account types, and regulatory status all play a crucial role in deciding the right broker for your trading activities. Here are the key factors to evaluate when choosing a low spread CFD broker.
Spread Type
- Fixed Spreads: These remain the same regardless of market conditions, providing certainty. However, they tend to be higher than variable spreads.
- Variable Spreads: These fluctuate based on market conditions, meaning they can widen during periods of volatility but offer lower costs in calmer markets.
- Raw Spreads: These spreads reflect the market’s true buy/sell price but are usually accompanied by commissions.
Commissions
Some brokers charge a commission per trade on top of the spread. When comparing brokers, make sure to calculate the total cost of trading, which includes both spreads and commissions, to determine which broker offers the most competitive pricing.
Account Types
Brokers often offer different types of accounts, such as standard accounts, ECN (Electronic Communication Network) accounts, or raw spread accounts. Each has its own benefits, depending on your trading style:
- Standard Accounts: Usually offer fixed or variable spreads with no additional commission.
- ECN Accounts: Offer raw spreads and charge a commission per trade, ideal for high-frequency traders or scalpers.
- Raw Spread Accounts: Provide spreads based directly on market rates, often with commission charges.
Platform Offerings
The platform is where all your trading takes place, so it’s important to ensure it’s intuitive, reliable, and offers the tools you need. Brokers that offer popular platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), or their own proprietary platforms should provide you with the ability to trade efficiently.
Regulation and Trust
To ensure your funds are safe, select a broker that is regulated by a reputable financial authority such as the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), or the Australian Securities and Investments Commission (ASIC). A regulated broker adheres to strict standards, ensuring a higher level of protection for clients.
Are Zero Spread CFD Brokers Trustworthy?
Zero spread brokers can seem very attractive due to their low cost of entry. However, it is important to look beyond the spread size and consider the broker’s overall cost structure. Many zero spread brokers compensate for the lack of spread by charging higher commissions or wider spreads during volatile market conditions. Moreover, some might have additional fees for overnight financing or offer less competitive liquidity.
Before choosing a zero spread broker, ensure they are properly regulated and transparent about their pricing and fee structure. It’s also useful to check reviews from other traders to gauge their experiences with such brokers. While zero spread brokers can be trustworthy, caution is necessary when evaluating their services to ensure there are no hidden costs that may end up negating the benefits of low spreads.
Low Spread Trading Strategies
Low spreads are highly beneficial for certain trading strategies, where minimizing transaction costs is essential for success. Whether you’re a scalper, day trader, or swing trader, understanding how low spreads can influence your strategy is crucial. Here are some common strategies that benefit from low spreads:
- Scalping
Scalping is a short-term trading strategy where traders aim to capture small price movements in quick succession. This strategy requires low spreads to ensure that each small move is profitable. Tight spreads allow scalpers to minimize trading costs and make multiple trades throughout the day without losing too much to the spread. - Day Trading
Day traders open and close positions within the same trading day, taking advantage of intraday market fluctuations. Low spreads are essential for day traders because they increase profitability by reducing the cost of entering and exiting trades frequently. Especially during volatile market conditions, having a broker with tight spreads can make a significant difference. - Swing Trading
Swing traders hold positions for several days or weeks, aiming to capture medium-term trends. While low spreads are important for swing traders to reduce trading costs, the risk-to-reward ratio for each trade should also be carefully considered. Even with low spreads, swing traders must ensure they are managing risk properly and positioning themselves effectively for profitable trades.
Commission vs. Spread-Only Accounts: Which is Better?
When choosing between a commission-based account and a spread-only account, traders need to carefully assess their trading style and strategy. Both types of accounts have distinct advantages, depending on how frequently you trade and how large your position sizes are.
- Spread-Only Accounts
Spread-only accounts typically do not charge commissions but include the spread in the cost of each trade. These accounts are more suitable for casual traders who make fewer trades or for those who prefer a simple, predictable pricing structure. However, the spread may be wider than raw spreads offered by commission accounts, which could result in higher costs for high-frequency traders. - Commission Accounts
Commission-based accounts offer raw spreads, typically from 0.0 pips, but charge a commission per trade. These accounts are ideal for high-frequency traders, such as scalpers or algorithmic traders, who make multiple trades in a day. While commissions are an additional cost, the low raw spreads allow traders to capitalize on small price movements without losing too much to the spread. For active traders, commission accounts can be more cost-effective, even with the commission charges.
Low Spread Brokers and Market Conditions
While low spread brokers offer significant advantages during stable market conditions, traders should be aware that spreads can widen during periods of high volatility. Market events like economic announcements, geopolitical developments, or unexpected market shocks often cause spreads to widen temporarily, particularly for brokers that offer variable spreads.
For instance, during major news releases or market openings, spreads can widen due to increased uncertainty or lack of liquidity. In such times, low spread brokers might adjust their spreads to reflect the increased risk. To mitigate the impact of wider spreads, traders can use risk management strategies such as stop-loss orders to protect against unexpected market shifts and ensure they are not overexposed.
Popular Trading Platforms for Low Spread Trading
The trading platform is where all trades are executed, so it’s essential that the platform not only supports low spreads but also offers the necessary tools to manage and analyze trades effectively. Below are some of the most popular trading platforms for low spread trading:
- MetaTrader 4 (MT4)
MT4 is one of the most widely used platforms in the CFD trading world, known for its flexibility, advanced charting features, and compatibility with automated trading strategies through Expert Advisors (EAs). MT4 supports low spread accounts and is popular for its user-friendly interface and stable performance. - MetaTrader 5 (MT5)
MT5 is the upgraded version of MT4 and comes with additional features like more timeframes, improved charting tools, and an expanded range of trading instruments. MT5 offers a better trading experience for those who need advanced features while still enjoying tight spreads on their trades. - WebTrader Platforms
For traders who prefer not to download any software, WebTrader platforms provide browser-based trading. These platforms offer flexibility and high accessibility while maintaining competitive spreads and all necessary tools for managing trades. WebTrader platforms are ideal for traders who are constantly on the go or those who want a lightweight solution.
FAQ
What is considered a low spread in forex trading?
In forex trading, a spread is the difference between the buying and selling price of a currency pair. A spread of under 1 pip is generally considered low, especially for major currency pairs like EUR/USD and GBP/USD. These pairs tend to have the tightest spreads because of their high liquidity and constant demand. However, what is considered “low” can also depend on the asset being traded, the broker’s pricing model, and market conditions. For instance, raw spreads or those offered by ECN accounts can start from as low as 0.0 pips but may come with additional fees or commissions.
- Major Pairs: EUR/USD, GBP/USD, USD/JPY
- Low Spread Criteria: Typically under 1 pip for high liquidity pairs.
For traders engaging in high-frequency trading, every fraction of a pip saved can significantly impact overall profitability. Choosing a broker with spreads below 1 pip is generally advantageous.
Are zero spread forex brokers legitimate?
How do low spread brokers make money?
Which currency pairs typically have the lowest spreads?
Is a low spread or low commission more important?
What is the difference between raw spread and standard accounts?
Which brokers offer the lowest spreads for major pairs?
Are fixed or variable spreads better for day trading?
How can I verify a broker’s advertised spread claims?
What minimum deposit is typically required for low spread accounts?
Conclusion
In 2025, selecting the right CFD broker with low spreads can make a significant impact on trading profits. Brokers like Exness, IC Markets, and Pepperstone offer excellent low spread trading conditions that cater to both beginners and professional traders. While tight spreads are essential, traders should also consider other factors like leverage, commissions, and platform features to ensure they select the best broker for their trading strategy. By understanding the nuances of spread types, account options, and overall cost structures, traders can make well-informed decisions that align with their trading goals.
