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Best Forex Brokers with Low Spreads 2026
EUR/USD from 0.0 Pips

We analysed 7 top brokers on raw spread data, all-in costs, regulation and platform quality. Here's who wins on EUR/USD in 2026.

By CompareFX Editorial Team Updated: April 25, 2026 7 Brokers Compared

What Is a Spread and Why Does It Matter?

The spread is the difference between the bid (sell) price and the ask (buy) price quoted by your broker. When you open a trade, you immediately pay the spread — it is your first and most direct trading cost.

For example, if EUR/USD is quoted at 1.08500 / 1.08510, the spread is 1.0 pip (0.1 pips = $1 per micro lot, 1.0 pip = $10 per standard lot). You need the market to move in your favour by at least that spread just to break even.

The Compounding Cost at Volume

If you trade 100 standard lots per month on EUR/USD:

Spreads also affect scalpers and algorithmic traders disproportionately, since they open dozens or hundreds of positions daily. Even a 0.1 pip improvement compounds into significant savings over a year.

Types of Spreads: Fixed vs Variable

Brokers offer two main spread structures. Understanding the difference is essential before choosing an account type.

Feature Fixed Spreads Variable Spreads
Spread size during normal hoursConstant (e.g. always 2.0 pips)Changes with market liquidity
Spread during news eventsStays fixedCan widen 5–20x
Minimum possible spreadHigher floor (typically 1.5–3 pips)Can reach 0.0 pips
Cost predictabilityFully predictableUnpredictable at peak times
Best forBeginners, news tradersScalpers, high-volume traders
CommissionUsually noneOften charged on ECN/Raw accounts

Forex Broker Spread Comparison Table 2026

All EUR/USD spread data represents average figures during London/New York session overlap. All-in cost = spread cost + round-trip commission per standard lot (100,000 units).

# Broker EUR/USD Avg Spread All-In Cost (per lot) Account Type Regulation
1 IC Markets 0.02 pip $3.52 Raw Trader ASIC
2 Pepperstone 0.09 pip $3.59 Razor ASIC / FCA
3 FP Markets 0.09 pip $3.09 Raw ASIC
4 XM 0.6 pip $6.00 Ultra Low ASIC / CySEC
5 AvaTrade 0.9 pip $9.00 Standard ASIC / FSCA
6 Plus500 0.8 pip $8.00 Standard FCA / ASIC
7 eToro 1.0 pip $10.00 Standard FCA / CySEC

Top 5 Broker Reviews

IC Markets
Best Overall for Low Spreads
#1 Pick

IC Markets is the gold standard for raw spread trading. Connecting to multiple tier-1 liquidity providers via ECN, the broker consistently delivers the tightest EUR/USD spreads available to retail traders — often touching 0.0 pips during peak liquidity. Based in Sydney and regulated by ASIC, it serves over 180,000 clients globally.

EUR/USD Avg Spread
0.02 pip
Commission (per lot)
$3.50 RT
All-In Cost
$3.52
Regulation
ASIC
Min Deposit
$200
Platforms
MT4, MT5, cTrader

Pros

  • Lowest EUR/USD spreads in the industry
  • Deep liquidity — no last look rejections
  • Supports MT4, MT5 and cTrader
  • Excellent execution speed (<40ms avg)
  • VPS hosting available for algo traders

Cons

  • No bonus promotions (ASIC rules)
  • Limited educational content
  • Not ideal for complete beginners

Best for: Scalpers, high-frequency traders, algo traders and anyone prioritising absolute lowest all-in cost.

Pepperstone
Best for Multi-Regulation Coverage
#2 Pick

Pepperstone is an award-winning broker regulated in both Australia (ASIC) and the UK (FCA), giving traders in multiple regions access to raw spread accounts. The Razor account offers some of the most competitive spreads available, backed by institutional-grade liquidity and ultra-fast execution. The broker is particularly popular among professional traders and those using expert advisors.

EUR/USD Avg Spread
0.09 pip
Commission (per lot)
$3.50 RT
All-In Cost
$3.59
Regulation
ASIC / FCA
Min Deposit
$0
Platforms
MT4, MT5, cTrader, TW

Pros

  • Dual ASIC + FCA regulation
  • No minimum deposit requirement
  • Outstanding platform selection
  • Negative balance protection (FCA)
  • Strong customer support 24/5

Cons

  • Slightly higher spreads than IC Markets
  • Inactivity fee after 1 year
  • CFD products only (no stocks/ETFs)

Best for: UK and Australian traders wanting strong regulatory protection alongside very competitive raw spreads.

FP Markets
Lowest All-In Cost in Our Test
#3 Pick

FP Markets stands out with an all-in cost of just $3.09 per standard lot — the lowest in our 2026 comparison. The ASIC-regulated broker sources liquidity from 10+ tier-1 providers, giving it consistently tight spreads. Its Raw account pairs well with cTrader for automated and semi-automated trading strategies.

EUR/USD Avg Spread
0.09 pip
Commission (per lot)
$3.00 RT
All-In Cost
$3.09
Regulation
ASIC
Min Deposit
$100
Platforms
MT4, MT5, cTrader, IRESS

Pros

  • Lowest all-in cost per lot ($3.09)
  • Access to IRESS platform for direct market
  • Low minimum deposit ($100)
  • Social trading via Myfxbook AutoTrade

    • Cons

    • Customer support can be slow at peak times
    • Fewer educational resources than larger brokers

    Best for: Cost-conscious traders who want the absolute lowest all-in cost and access to professional-grade direct market access.

    XM
    Best for Beginners Wanting Low Costs
    #4 Pick

    XM's Ultra Low account offers 0.6 pip average EUR/USD spreads with no commission — making cost calculation simple and predictable. With over 1,000 instruments, 35+ international awards and a world-class educational centre, XM is one of the best all-round brokers for developing traders who want competitive pricing without the complexity of raw accounts.

    EUR/USD Avg Spread
    0.6 pip
    Commission (per lot)
    $0
    All-In Cost
    $6.00
    Regulation
    ASIC / CySEC
    Min Deposit
    $5
    Platforms
    MT4, MT5

    Pros

    • Very low $5 minimum deposit
    • No commission on Ultra Low account
    • Extensive free education and webinars
    • 1,000+ instruments available
    • Reliable 24/5 multilingual support

    Cons

    • Higher all-in cost than raw-spread brokers
    • No cTrader platform
    • Bonuses unavailable in some regions

    Best for: Beginner to intermediate traders who value simplicity, education, and competitive commission-free spreads.

    AvaTrade
    Best for Fixed Spread Traders
    #5 Pick

    AvaTrade offers fixed spreads on its standard accounts, providing full cost predictability regardless of market conditions. Regulated across multiple jurisdictions including ASIC and FSCA, AvaTrade is a trusted global broker with 300,000+ clients. Its 0.9 pip EUR/USD fixed spread is competitive among commission-free brokers, and the platform suite includes AvaTradeGO and AvaOptions.

    EUR/USD Avg Spread
    0.9 pip
    Commission (per lot)
    $0
    All-In Cost
    $9.00
    Regulation
    ASIC / FSCA
    Min Deposit
    $100
    Platforms
    MT4, MT5, AvaTradeGO

    Pros

    • Fixed spreads — no surprise widening
    • Regulated in 7+ jurisdictions globally
    • AvaOptions for vanilla options trading
    • Automated trading via ZuluTrade/DupliTrade

    Cons

    • Higher all-in cost than ECN brokers
    • Inactivity fee after 3 months
    • No raw/ECN account option

    Best for: Traders who prioritise cost certainty and multi-jurisdiction regulation over the absolute tightest spreads.

    How Are Spreads Measured?

    Forex spreads are measured in pips (percentage in point). For most major pairs, 1 pip = the 4th decimal place. For JPY pairs, 1 pip = the 2nd decimal place.

    Calculating Real Cost Per Trade

    The formula is: Spread (pips) × Pip Value × Lot Size = Cost

    EUR/USD Worked Example:

    You buy 1 standard lot (100,000 units) of EUR/USD at a broker with a 0.09 pip spread + $3.50 round-turn commission.

    Spread cost: 0.09 pips × $10/pip (standard lot) = $0.90
    Commission: $3.50
    Total entry cost: $4.40
    To break even, EUR/USD must move 0.44 pips in your favour before your position is profitable.

    For mini lots (10,000 units), divide all figures by 10. For micro lots (1,000 units), divide by 100. This makes low-spread brokers even more attractive for position sizing flexibility.

    When Do Spreads Widen?

    Even on raw spread accounts, spreads are not always at their minimum. Understanding when they widen helps you avoid unnecessary costs.

    Key Periods of Spread Widening

    Practical Tips to Avoid Wide Spreads

    Low Spread vs Commission-Free: Which Is Actually Cheaper?

    Many traders are drawn to "commission-free" accounts, assuming they are cheaper. In reality, the cost is baked into a wider spread. Here is a volume-based breakeven analysis:

    Monthly Volume (Lots) ECN: 0.0 pip + $3.50 commission Commission-Free: 0.6 pip spread Commission-Free: 1.0 pip spread Winner
    10 lots$35$60$100ECN
    50 lots$175$300$500ECN
    100 lots$350$600$1,000ECN
    5 lots (low frequency)$17.50$30$50ECN

    ECN/raw spread accounts are cheaper at every volume level for EUR/USD, as long as the all-in cost (spread + commission) is less than the commission-free broker's spread cost. The only exception is very small retail traders who value simplicity over marginal savings.

    Frequently Asked Questions

    What is the lowest possible forex spread?
    The theoretical minimum spread is 0.0 pips. IC Markets regularly quotes 0.0 pips on EUR/USD during peak London/New York liquidity. However, a commission is charged per trade on raw/ECN accounts, so the all-in cost is never truly zero — typically $3–$4 per standard lot round-turn.
    Are low-spread brokers safe?
    Yes — the top low-spread brokers in our list (IC Markets, Pepperstone, FP Markets) are all regulated by ASIC (Australian Securities and Investments Commission) and/or the UK FCA. These are among the strictest financial regulators in the world. Client funds are held in segregated accounts.
    Is a 0.0 pip spread better than a 0.5 pip spread?
    Not necessarily in isolation. What matters is the all-in cost: a 0.0 pip spread with a $3.50 commission equals $3.50 per lot, while a 0.5 pip spread with no commission equals $5.00 per lot. Always compare all-in costs rather than raw spread figures alone.
    Which account type offers the lowest spreads?
    ECN, Raw or Razor account types typically offer the lowest spreads, as the broker passes through raw interbank pricing and charges a separate commission. Standard accounts include the broker's markup in the spread. For active traders, raw spread accounts are almost always cheaper.
    Do spreads differ between MT4, MT5 and cTrader?
    Spreads are generally the same across platforms at the same broker — they reflect the underlying liquidity pool, not the platform. However, cTrader sometimes offers depth-of-market (DOM) functionality and may have slightly better execution on certain brokers. The platform choice is more about features and user preference than spread size.