Lowest Spread Forex Brokers For Major Pairs

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On any trading platform, there are two prices for each financial instrument – the Bid and the Ask. When buying or going long, traders use the Ask Price, while the Bid Price is used for selling or going short. The difference between the Bid and Ask Price represents the spread. It is an income for the broker (fee), which is also a cost for the trader. Therefore, a lower spread would be much better for traders.

For most traders, Major Currency Pairs like EUR/USD, GBP/USD, USD/JPY, etc. are the best choice due to their liquidities. These pairs are known to be the most active currency pairs on the forex market, with more than 100 pips daily price movement. If you wish to trade with the lowest spread forex brokers for Major Pairs, the list below could be a great help for you.

May 10 2024

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	Broker	EUR/USD	GBP/USD	USD/JPY	USD/CHF	USD/CAD	NZD/USD
773	JustMarkets	0	0	0	0.2	0.1	0	Review Website
70	HF Markets	0	0	0.4	0	0.1	0.9	Review Website
120	ThinkMarkets	0.1	0.2	0	0.4	0.4	0.6	Review Website
717	FXGT	0.3	0.5	0.3	0.6	0.7	0.7	Review Website
55	Orbex	0.5	0.7	1	1.1	1.4	1.1	Review Website
684	AvaTrade	0.9	1.3	1.3	1.3	1.8	1.4	Review Website
660	Fxview	4	7.2	6.9	5.5	8.6	1.4	Review Website

Additional FAQ

What are the drawbacks of fixed spreads in forex trading?

While fixed spreads offer stability and predictability, they may come with some drawbacks, including:

Potentially higher trading costs during low volatility, as the fixed spread remains constant.
Limited flexibility, as traders do not benefit from tighter spreads in calmer market conditions.
There is less opportunity for cost savings when spreads naturally narrow.

Continue Reading at ECN vs Fixed Spread, Which Type is Better?

Why do scalpers need low spreads?

A scalper can open and close 30 positions in a day. Say the broker charges a spread of 3 pips for every position, the profit average is 5 pips, the loss average is 3 pips, and the scalper makes 20 winning trades and 10 losing trades. The total profit and loss without the spread are:

(20 x 5) - (10 x 3) = 70 pips

If the spread is charged:

((20 x 5) - (10 x 3)) - (30 x 3) = -20 pips

The result is disappointing, right? Although they have made twenty profitable trades, the total profit/loss turns to minus once the spread is applied.

Continue Reading at The Secrets of Successful Scalping Strategy

How to find out if my broker marks up the spreads?

Believe it or not, you can ask the broker directly. Some ECN/STP brokers openly state that they mark up spreads because they feel they have the right to do so.

You can also check the authenticity of spreads from an ECN/STP broker that (perhaps) covers up its spread mark-up by directly comparing the broker's spread with the actual market spread.

Continue Reading at Forex Broker Cheats and How to Anticipate Them

Why do spread vary among brokerages?

Spreads in trading can differ from one brokerage to another. Brokers aim to attract traders by offering lower spreads, which can make trading more cost-effective.

Continue Reading at Hidden Costs in Forex Trading You Should Be Aware of

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