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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.


Apr 20 2024

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Score Broker EUR/USD GBP/USD USD/JPY USD/CHF USD/CAD NZD/USD
Additional FAQ

Spread affects the kind of strategies that a trader can use. For instance, scalping is a popular trading strategy in which traders open several trades throughout the day to make a series of small profits. However, if the spread is too high, it might end up consuming most of the profits made by the trader via this strategy.

The implication of this is that many profitable strategies are rendered useless when the spread is too high since the trader will only keep losing money.

Continue Reading at Spread Comparison: Exness Vs Tickmill

Scalping should only be used on an account with low spreads. If the EUR/USD bid price is 1.19610 and the ask price is 1.19620, then the spread of that pair is 1 pip, about 10 percent of a scalper's profit target if they intend to gain only 10 pips each trade.

If you aim for a few hundred or a thousand pips, one pip may seem minuscule. But that one pip can be a huge part of your trade if you only aim for 10-20 pips.

Continue Reading at Simple Scalping Strategy with EMA

Brokers offering weekend trading often charge higher spreads compared to weekdays. This practice is due to the lower trading activity and market availability during weekends.

Continue Reading at Forex on Weekends: To Trade Or Not to Trade

The following is an example of the difference in spread between major and cross pairs that exist at the IC Markets broker:

Major Pair

Major Pair

Cross Pair

Minor Pair

Please see the example below to compare the profits you get when trading on major and cross-pairs.

Vicky opened 10 positions on EUR/USD with a spread of 0.6 pips, resulting in a total cost of 6 pips to cover the spread. Each time she opened a position, she targeted a profit of 10 pips. Therefore, the total profit obtained after the spread was 94 pips (100 - 6 pips).

On the other hand, Timmy opened 10 positions on AUD/CAD with a spread of 1.68 pips, resulting in a total cost of 16.8 pips to cover the spread. Similar to Vicky, he targeted a profit of 10 pips per position. Therefore, the total profit minus spread that Timmy got would be 83.2 pips (100 - 16.8 pips).

As you can see, even though they had the same number of trades and profit targets, the choice of currency pair can influence the eventual gain because of the spread differences. Vicky, who traded on a major pair, gained more pips. On the other hand, Timmy earned smaller profits due to higher spreads charged in AUD/CAD which is a cross pair.

Continue Reading at How Does Spread Affect Profit in Forex?


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