Despite its obvious benefits for high-frequency trading, there are no zero spread brokers from USA to date.
Many traders are looking for zero spread brokers nowadays because they offer specific accounts that have no difference between bid and ask price. This type of account allows us to determine entry and exit levels more precisely while avoiding the pitfalls of wide spreads that may make it more difficult to reach our targets.
Zero spread brokers are very suitable for high-frequency autotrading, scalping, and day trading. Also, news traders that seek the thrill of profit during fundamental data releases may benefit from its minimum spread spike. In normal trading accounts, spread spike during such events may be as high as tens of pips in seconds.
Still, there are disadvantages to zero spread brokers. For one thing, brokers may tout "zero spread" as mere marketing jargon. At the bottom of the trading agreements or terms and conditions documents, they would write "spread may fluctuate during volatile markets" in small fonts. Traders should be aware of this tricky maneuver.
On the other hand, brokers that genuinely offer zero spread account may seek substitute payment in various other ways. Some examples are higher commissions, smaller leverage, higher initial deposit requirements, higher latency (slower execution speeds), tighter Stop Out Levels, and so on.
There are also zero spread brokers who offer zero spreads without any additional fees. However, they are dealing desk brokers who do not send clients’ positions into the open market (liquidity providers).
So, how do we determine whether or not zero spread brokers' offer is genuine? Most traders would look at the brokers' regulations and licenses. The better the licenses, the higher the probability of genuine zero spread offers.
Some of the most secure zero spread brokers came from Down Under, such as Pepperstone and IC Markets. Some others hold European or UK licenses, such as Tickmill, Exness, and XM. See the list of the most popular zero spread brokers here. You can also view the comparison of some of those brokers below:
|Feature||Go to IC Markets||Go to Exness||Go to Pepperstone|
rated by 22604 users
rated by 579 users
rated by 1367 users
|Office(s)||Australia, Hong Kong and Viet Nam||Cyprus, Seychelles and United Kingdom||Australia, UK, Kenya, The Bahamas, Cyprus, Dubai and Germany|
|Regulation|| ASIC ACN 123 289 109 |
Securities Commission of The Bahamas, SIA-F214
The Financial Commission, 25.11.2021
|Capital Markets Authority of Kenya, 30/05/2022 |
FCA (UK), 730729
FSA (Seychelles), SD025
FSC (BVI), SIBA/L/20/1133
FSC (Mauritius), 176967
FSCA (South Africa), 51024
The Financial Commission, 22.07.2021
|ASIC, 414530 |
Capital Markets Authority of Kenya, 128
DFSA (Dubai), F004356
|Minimum Position||0.01 lot||0.01 lot||0.01 lot|
|Payment||Bitcoin, BPAY, Credit/debit cards, FasaPay, Neteller, PayPal, Skrill, UnionPay and Wire transfer||Bitcoin, Credit/debit cards, Neteller, Perfect Money, Skrill, Tether (USDT), WebMoney and Wire transfer||Credit/debit cards, PayPal, UnionPay and Wire transfer|
|Official Website||Visit IC Markets||Visit Exness||Visit Pepperstone|
|Forex Demo Account|
|US traders are welcome|
|Requires sending documents via postal mail|
|Overnight interest rates (swaps)|
|Trading by telephone|
|Interest rate on funds|
Trading Platforms and Complements
|Trading via API|
|One-Cancels-Other (OCO) orders|
|Gold & silver|
|Website Languages||Chinese, English, Japanese, Russian||Arabic, Bengali/Bangla, Chinese, English, French, German, Hindi, Indonesian, Italian, Japanese, Korean, Portuguese, Russian, Spanish, Thai, Urdu, Vietnamese||Chinese, English, Russian|
|Traders Reviews|| |
Wilford FaustJun 24 2022
Can I trade cryptocurrency in the IC Markets using the same leverage as any other assets there? For example, I know that IC Markets offers 1:500 leverage for most of their instruments (ex: forex pairs). So, I wonder if I can get the same amount for cryptocurrency trading as well? Or will there be a different amount of leverage I can get?
Issac SturgillJun 24 2022
Does the ZuluTrade trading platform still available in IC Markets automatic trading features? I had my eyes on it for a while but at the time I wasn't sure to check it out. As you can see, automatic trading can have a bad reputation among some traders. But, lately, there are a lot of my friends starting to use it. Then I remember that IC Markets offered these features, so I was thinking to try it.
Madison JackmanMar 25 2022
Anyone also often experience server problems with EXNESS? I just experienced it myself. Hopefully it doesn't happen like this again. A little disappointed tho, I never have a problem when trading with EXNESS before.
ZoeyMar 24 2022
Each broker must have advantages and disadvantages of each. As a new trader, EXNESS must look very good. The features are quite complete. However, when you trade for a longer period of time and with more money, you will lose more often. Unreasonable price differences are often the cause of your lose.
AlannahMay 9 2022
I've just opened a live account with this broker. Very happy so far, tight spreads and great service. I am trading a standard account.
Love Cinninati LoveMay 9 2022
I've been with Pepperstone for one year. They've had their ups and downs but currently they are the best broker I use.
|Open Real Account||Open IC Markets Real Account||Open Exness Real Account||Open Pepperstone Real Account|
And how about brokerage companies from the country with the most celebrated forex licenses, the US of A? Are there Zero Spread Brokers from the USA? Unfortunately, there are no zero spread brokers from the USA to date.
US forex brokers usually excel at trading technologies. may offer exceptional execution speeds and advanced trading tools via proprietary trading platforms. However, US forex brokers are less likely to promote cheap fees and low spreads.
Most zero spread forex brokers came along with offshore licenses. This is where traders need to take careful considerations. Some offshore brokers have been in operation for dozen years and have a sufficient reputation, but some others are purposefully offering low-cost trading accounts in order to trap beginner traders.
See Also: Comparing US and Offshore Forex Brokers
In conclusion, here are some things you need to check carefully before joining any zero spread brokers:
- Licenses and legal documentation
- Total trading costs, including commission fees, swaps, and deposit/withdrawal fees.
- Leverage and deposit requirements
- Stop Out levels
- Execution speeds
- Additionally, you should also make sure whether zero spread would be applied on all pairs or only certain pairs.
Zero spread is good, but don't forget to check other brokers' spreads to see which one suits you the best.
All in all, you should always remember that there is no free lunch. To gain some, we sometimes have to sacrifice some other things. Set your priorities straight, and only then should you fill the registration form on your chosen forex broker.