Which US Forex Broker has Zero Spread?

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:

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.

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.