Trading costs directly affect investment performance, especially for traders who open positions frequently, trade short term or run scalping strategies. Among those costs, the spread is charged the moment a position is opened and can make a noticeable difference to profits once trading volume grows.
Choosing among low spread forex brokers does more than cut the cost of each individual trade — it helps a strategy stay viable over the long run. That said, a low spread does not automatically mean the cheapest total cost, because traders also need to compare spreads alongside commission, overnight fees, slippage and execution quality.
In this article, Backcom.io walks through a forex broker comparison covering IC Markets, Vantage, Exness, HFM, XM and EC Markets, and shows how to optimize trading costs based on account type, instrument and your actual trading style.
What Are Low Spread Forex Brokers?
Low spread forex brokers are brokers that offer a small difference between the buying price (Ask) and the selling price (Bid) of an instrument. This difference is a cost recorded the instant a trader opens a position.
Put simply:
- Ask price: The price a trader pays to open a buy order.
- Bid price: The price a trader receives to open a sell order.
- Spread: The gap between the Ask price and the Bid price.
For example, if EUR/USD has a Bid of 1.1000 and an Ask of 1.1001, the spread is 1 pip. The smaller the spread, the shorter the distance a trade has to travel to break even. That is exactly why many traders seek out low spread forex brokers when they trade at high frequency.
Most low spread forex brokers offer one or more of the following account types:
- Standard: No separate commission; the cost is built into the spread.
- Raw Spread: Raw spreads with a commission charged by volume.
- Zero or ECN: Spreads that can start from 0 pips on selected instruments.
Keep in mind that “from 0 pips” is a starting figure, not a guarantee that every order is filled at a zero spread. Which account suits you depends on the instrument, your trading frequency and your strategy. Picking the right account type is the first step toward being able to optimize trading costs.
Criteria for Evaluating Forex Brokers With Low Spreads
To identify genuinely low spread forex brokers, traders should not rely on the advertised minimum spread alone. A useful forex broker comparison has to be based on costs under real trading conditions, plus any fees that can arise while a position is held.
Real spreads on EUR/USD and XAU/USD
EUR/USD and XAU/USD are two useful reference instruments when you compare spreads across brokers:
- EUR/USD: Highly liquid, with spreads that are typically lower and more stable than most other pairs.
- XAU/USD: Popular with retail traders, but its spread can swing sharply from session to session.
When you compare spreads, check them at the same moment, on the same account type and under comparable market conditions. Instead of looking only at the “from 0 pips” figure, track the average spread across the Asian, European and US sessions for a result that reflects reality.
Commission, overnight fees and execution quality
A low spread will not help you optimize trading costs if the other fees are too high. Traders should check all of the following at once:
- Commission: Charged per lot or per side of a trade.
- Overnight fees: Incurred when a position is held into the next trading day.
- Slippage: The gap between your requested price and the price actually filled.
- Execution speed: Particularly important for scalping, news trading and EAs.
Any of the low spread forex brokers worth considering should deliver consistent execution, limit adverse slippage and publish the fees that apply to each account type clearly.
Top 6 Low Spread Forex Brokers Worth Considering
Below are 6 low spread forex brokers offering Standard, Raw Spread, Zero or ECN accounts. Each one calculates spread and commission differently, so the right choice depends on your trading frequency and style.
IC Markets – Raw Spread account built for scalping and EAs
IC Markets stands out with its Raw Spread account on MT4 and MT5, offering spreads from 0 pips. The broker publishes an average EUR/USD spread of roughly 0.1 pips, paired with a commission of 3.5 USD per lot per side. It is one of the names that comes up most often whenever traders compare spreads between international brokers.
This account suits:
- Scalping and short-term trading.
- Traders running EAs or algorithmic strategies.
- Anyone opening a high number of positions.
If you do not yet have an IC Markets trading account, you can register using the details below to receive trading rebates from Backcom.io
Register a IC Markets account to unlock a new-trader BONUS and full Backcom 100% privileges today!
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Vantage – Flexible choice between Raw ECN and Standard STP
Vantage offers two popular options:
- Raw ECN: Spreads from 0 pips with a commission of 3 USD per lot per side.
- Standard STP: Spreads from 1 pip and no separate commission.
Raw ECN suits traders who are active in the market and want to optimize trading costs on a per-lot basis, while Standard STP is easier for beginners who prefer to have the cost built straight into the spread.
If you do not yet have a Vantage trading account, you can register using the details below to receive Backcom 100% from Backcom.io
Register a Vantage account to unlock a new-trader BONUS and full Backcom 100% privileges today!
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Exness – A range of Pro, Zero and Raw Spread accounts
Exness offers three low spread account types, each with a different fee mechanism:
- Pro: Spreads from 0.1 pips with no commission.
- Zero: Spreads from 0 pips on selected instruments, with commission.
- Raw Spread: Raw spreads combined with a fixed commission per instrument.
That range makes it easier to match an account to your strategy and trading volume, and to compare spreads across account types before funding.
If you do not yet have an Exness trading account, you can register using the details below to receive Backcom 100% (up to $14.00/Lot XAUUSD) from Backcom.io
Register a Exness account to unlock a new-trader BONUS and full Backcom 100% privileges today!
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HFM – Zero account for traders who prioritise low spreads
HFM’s Zero account passes through raw spreads from liquidity providers with no markup added. Commission starts from 3 USD per lot, placing HFM among the low spread forex brokers with a fee structure that is separated out and easy to verify.
It is a good fit for traders who prioritise:
- Low spreads.
- Short-term trading.
- A fee model that is separate and easy to track.
If you do not yet have an HFM trading account, you can register using the details below to receive Backcom 100% (up to $18.00/Lot XAUUSD) from Backcom.io
Register a HFM account to unlock a new-trader BONUS and full Backcom 100% privileges today!
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XM – Ultra Low account with a simple cost structure
XM’s Ultra Low account targets high-volume traders, with spreads and overnight fees lower than on its standard account. The published minimum deposit is 5 USD.
This account suits anyone who wants to avoid a separate commission and prefers a simple cost structure that is easy to calculate when trying to optimize trading costs month to month.
If you do not yet have an XM trading account, you can register using the details below to receive Backcom 90% (up to $18.00/Lot GOLD) from Backcom.io
Register a XM account to unlock a new-trader BONUS and full Backcom 100% privileges today!
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EC Markets – ECN account for day traders and high-volume trading
EC Markets’ ECN account offers raw spreads from 0 pips with a fixed commission of 1.5 USD per lot per side. According to the broker, this account is aimed at day traders, scalpers, EA users and professional traders.
Beyond ECN, EC Markets also has an STD account with no commission and a PRO account for well-capitalised clients. At 1.5 USD per lot per side, its commission is among the lowest of the low spread forex brokers covered in this article.
If you do not yet have an EC Markets trading account, you can register using the details below to receive Backcom 100% (up to $38.00/Lot Gold) from Backcom.io
Register a ECMarkets account to unlock a new-trader BONUS and full Backcom 100% privileges today!
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Note: Spreads, commissions and account conditions can change depending on the instrument, the region you register in and the entity holding your account.
Spread and Fee Comparison Table for the 6 Brokers
The table below summarises the most cost-competitive account at each of the 6 low spread forex brokers. These figures are the starting rates published by each broker and do not represent a fixed spread in all market conditions.
| Broker | Reference account | Published spread | Commission | Best suited to |
|---|---|---|---|---|
| IC Markets | Raw Spread MT4/MT5 | From 0 pips; EUR/USD averages about 0.1 pips | 3.5 USD/lot/side | Scalping, EAs, high-frequency trading |
| Vantage | Raw ECN | From 0 pips | 3 USD/lot/side | Day trading, scalping |
| Exness | Raw Spread or Zero | From 0 pips | Raw Spread: up to 3.5 USD/lot/side; Zero: from 0.05 USD/lot/side | Traders who want more account options |
| HFM | Zero | From 0 pips on forex | From 3 USD/lot, depending on instrument | Short-term trading, raw spread priority |
| XM | Ultra Low | Varies by instrument | Check by instrument and region of registration | Traders wanting a simple cost structure |
| EC Markets | ECN | From 0 pips | 1.5 USD/lot/side | Scalping, EAs, day trading |
Points to keep in mind:
- Spreads from 0 pips is the floor, not a level that is maintained continuously.
- Commission can differ by instrument and by the base currency of the account.
- Trading conditions can change by region and by the entity managing the account.
- For an accurate comparison, total up the cost of one complete trade including both the opening and closing side.
For that reason, the table above should only be used as a starting reference. Before opening a live account, check the EUR/USD and XAU/USD spreads and the commission directly on MT4 or MT5 at the time you actually plan to trade.
How to Optimize Trading Costs in Forex
Beyond choosing between low spread forex brokers, traders can cut costs further by using the right account type, trading at the right time and taking advantage of a reputable rebate programme.
Match the account type to your trading volume
Each account type charges in a different way:
- Standard accounts: No separate commission, but the spread is usually wider.
- Raw, Zero or ECN accounts: Tighter spreads, but commission is charged by volume.
Traders who open few positions may prefer a Standard account for simpler cost management. Scalpers, EA users and anyone trading large lot sizes should add up the total spread plus commission to work out whether a Raw or ECN account genuinely helps optimize trading costs.
Trade when market liquidity is high
Spreads tend to be more competitive when the market is active and there is plenty of buying and selling. According to the Bank for International Settlements (BIS) Triennial Central Bank Survey, the United Kingdom is the largest foreign exchange trading centre in the world by turnover — which is why spreads on many instruments are more stable during London hours. Traders can prioritise:
- The hours when the London session is open.
- The overlap between the London and New York sessions.
- Times when the instrument being traded has steady liquidity.
Avoid opening positions around rollover, close to the weekend or immediately before major news releases. When liquidity thins out or the market turns volatile, spreads can widen and push costs above expectations — even at low spread forex brokers.
Take advantage of a transparent trading rebate programme
Backcom.io returns the entire partner commission that a broker pays out. Once an account is validly linked to the Backcom.io system, the trader still trades directly on the broker’s own platform and can receive a rebate based on the volume generated.
This approach brings a few benefits:
- It lowers the real cost paid on every lot traded.
- Rebates can be received whether a trade wins or loses.
- Rebate amounts and trade history are tracked in the system.
- It does not change spreads, execution conditions or a trader’s strategy.
To use it, a trader needs to register a new account through the partner link or transfer their partner code following each broker’s own procedure, for the brokers Backcom.io supports. Before signing up, check the rebate rate, which instruments qualify, the payment schedule and the account linking conditions. You can see every supported broker on the Backcom.io homepage.
Pairing an account that has a suitable spread with a transparent rebate programme lets traders optimize trading costs more effectively, particularly when trading frequently or in large size.
Conclusion
Choosing among low spread forex brokers can lower the cost of every trade, especially for scalping, EAs and other high-frequency strategies. Even so, the spread is only one part of the total cost and has to be weighed alongside commission, overnight fees, slippage and execution quality.
IC Markets, Vantage, Exness, HFM, XM and EC Markets all offer account types aimed at competitive costs, but the right fit will depend on:
- The instruments you trade most.
- Your volume and how often you open positions.
- How long you hold a position.
- Your individual trading style.
Alongside running your own forex broker comparison and picking the right account type, you can use the rebate solution from Backcom.io to cut real costs further. Always check the latest trading conditions and fee rates before opening an account or placing a trade.
Frequently Asked Questions (FAQ)
Are low spread forex brokers always the better choice?
No. Traders also need to look at commission, overnight fees and execution quality.
Does a 0 pip spread mean trading is free?
No. Accounts with spreads from 0 pips almost always still charge a commission.
How do I compare spreads between brokers accurately?
Check the same instrument, the same account type and the same point in the session, then add the commission on top to arrive at the true total cost of one complete trade.
Which account should a beginner choose?
A Standard account is usually easier to work with. Raw Spread or ECN accounts suit traders who are active in the market.
When are spreads typically lowest?
Spreads are usually tighter when market liquidity is high, particularly during the London and New York sessions.
Do rebates change the spread?
Normally no. Traders still trade directly with the broker and receive part of the fee back through Backcom.io.
