Low spread brokers

In the Forex market, there is always a difference between the actual prices of Ask (sales) and Bid (purchases) orders that are currently available. It is called spread (from the English spread – spread) and occurs because the organizers of trading-banks, exchanges, brokerage companies in this way receive a small Commission from each transaction. This page shows the rating of brokers with a low spread, that is, with a low Commission when making transactions. The spread is measured not in money, but in points (from the Latin punctum-point). The term "point" refers to the minimum number of the smallest possible changes of any value. For example, if a quote has three decimal places, its change cannot be less than 0.001, and the point size is 0.001. The spread for different trading instruments can vary from units to several hundred points.

The smaller the spread, the easier the asset can be sold or bought at the best price, or the higher its liquidity (from the Latin liquidus - flowing, liquid). The most liquid currency pairs, such as EUR/USD or GBP/USD, have the smallest spread. The broker's profit from working with them can be significantly higher than from "exotic" ones, with a huge spread of Bid and Ask, but traded in small volumes of USD/ZAR or CAD/PLN pairs.

Best low spread currency pairs

For example, the data was taken from the broker Roboforex (Review) , the spread may differ for other brokers, but the General principle of price formation is similar.

How to find the best Forex broker with a low spread

1. First, you need to Google "BROKER name contract specification".
2. Find the spread of the instruments you are going to trade.
3. Find out if the broker charges an additional Commission for the transaction, in addition to the spread.
4. Compare the results and choose the best broker with a low spread.
5. Also, don't forget that a reliable broker is more important than a low Commission.

Since in the Forex market, each broker simultaneously organizes purchases and sales, it can set its own fixed spread value for clients. It includes all third-party commissions and its own remuneration. But in some situations, the spread can be significantly increased. For example, if during a crisis the state actively restricts the volume of sales of its national currency in order to stabilize the exchange rate, the broker's spread inevitably increases. And if there is an excessive decrease in liquidity, trading may even temporarily stop.

ECN brokers that provide direct interaction between market participants usually offer their clients a floating spread that constantly fluctuates. Its values can vary from zero to the maximum values specified in the agreement. This is due to the fact that trading conditions are different at each time, and the liquidity of all financial instruments is also different.

Some companies offer their clients a "zero" spread. In fact, this is a marketing trick - it is impossible to trade this way due to the very nature of the Forex market. But the broker can put the average values of the Bid and Ask price difference either in a fixed Commission for each transaction, or slightly change the quotes. This is not essential for long-term trading. But when working inside the day, especially when "scalping", the choice of broker can be determined by widthy spread-the profit on the trade must be significantly higher than its limit values.