Compare Brokers Spreads
When trading currencies, one of the key costs you’ll encounter is the “spread.” Understanding spreads is essential for managing your trading expenses and making informed decisions.
What Are Broker Spreads?
In forex trading, the spread is the difference between the bid (sell) price and the ask (buy) price of a currency pair. This difference represents the broker’s profit for facilitating the trade. For example, if the EUR/USD pair has a bid price of 1.1200 and an ask price of 1.1202, the spread is 2 pips.
Types of Broker Spreads
There are two main types of spreads:
Fixed Spreads
Fixed spreads remain constant regardless of market conditions. They are typically offered by brokers who operate as market makers, setting their own bid and ask prices. Fixed spreads provide predictability in trading costs, which can be beneficial in volatile markets.
Variable Spreads
Variable spreads, also known as floating spreads, fluctuate based on market volatility and liquidity. During periods of high volatility or low liquidity, variable spreads can widen significantly. They are commonly offered by brokers using a non-dealing desk model, passing on prices from liquidity providers without intervention.
Comparing Broker Spreads
Below is a comparison of 50 forex brokers, focusing on their average spreads for major currency pairs and their regulatory jurisdictions. This information can help you assess the cost-effectiveness and reliability of each broker.
| Broker | Regulation | EUR/USD Spread (pips) | GBP/USD Spread (pips) | AUD/USD Spread (pips) |
|---|---|---|---|---|
| OANDA | CFTC, NFA (USA) | 0.6 | 0.9 | 0.7 |
| FOREX.com | CFTC, NFA (USA) | 0.2 | 0.4 | 0.3 |
| IG | FCA (UK) | 0.6 | 0.9 | 0.6 |
| Saxo Bank | FSA (Denmark) | 0.4 | 0.7 | 0.5 |
| CMC Markets | FCA (UK) | 0.7 | 0.9 | 0.7 |
| Interactive Brokers | SEC, CFTC (USA) | 0.1 | 0.3 | 0.2 |
| TD Ameritrade | CFTC, NFA (USA) | 1.0 | 1.2 | 1.0 |
| Pepperstone | ASIC (Australia) | 0.0 | 0.2 | 0.1 |
| XM | CySEC (Cyprus) | 0.1 | 0.3 | 0.2 |
| FXCM | FCA (UK) | 0.2 | 0.4 | 0.3 |
| AvaTrade | Central Bank (Ireland) | 0.9 | 1.1 | 0.8 |
| eToro | CySEC (Cyprus) | 1.0 | 2.0 | 1.0 |
| Plus500 | FCA (UK) | 0.6 | 0.9 | 0.6 |
| Alpari | FSA (St. Vincent) | 0.3 | 0.7 | 0.4 |
| HotForex | FSC (Mauritius) | 0.1 | 0.3 | 0.2 |
| FXPro | CySEC (Cyprus) | 0.2 | 0.4 | 0.3 |
| IC Markets | ASIC (Australia) | 0.0 | 0.2 | 0.1 |
| RoboForex | IFSC (Belize) | 0.4 | 0.6 | 0.5 |
| OctaFX | CySEC (Cyprus) | 0.2 | 0.4 | 0.3 |
| FBS | IFSC (Belize) | 0.5 | 0.8 | 0.6 |
| Exness | CySEC (Cyprus) | 0.1 | 0.3 | 0.2 |
| Admiral Markets | FCA (UK) | 0.6 | 0.8 | 0.6 |
| HYCM | CIMA (Cayman Islands) | 0.2 | 0.4 | 0.3 |
| Tickmill | FCA (UK) | 0.0 | 0.2 | 0.1 |
| ThinkMarkets | ASIC (Australia) | 0.1 | 0.3 | 0.2 |
| FXOpen | FCA (UK) | 0.0 | 0.2 | 0.1 |
| IronFX | CySEC (Cyprus) | 0.7 | 1.0 | 0.8 |
| City Index | FCA (UK) | 0.5 | 0.8 | 0.6 |
| LCG | FCA (UK) | 0.5 | 0.8 | 0.6 |
| Swissquote | FINMA (Switzerland) | 1.1 | 1.3 | 1.0 |
| Markets.com | CySEC (Cyprus) | 0.6 | 0.9 | 0.6 |
| FXTM | CySEC (Cyprus) | 0.1 | 0.3 | 0.2 |
| Pepperstone | FCA (UK) | 0.0 | 0.2 | 0.1 |
| IC Markets | FCA (UK) | 0.0 | 0.2 | 0.1 |
| LiteForex | CySEC (Cyprus) | 0.8 | 1.1 | 0.9 |
| JustForex | FSC (Mauritius) | 0.3 | 0.6 | 0.4 |
| SuperForex | IFSC (Belize) | 1.2 | 1.5 | 1.1 |
| Eightcap | ASIC (Australia) | 0.0 | 0.2 | 0.1 |
| EasyMarkets | CySEC (Cyprus) | 0.9 | 1.2 | 0.9 |
| Dukascopy | FINMA (Switzerland) | 0.2 | 0.4 | 0.3 |
| XTB | FCA (UK) | 0.5 | 0.8 | 0.6 |
| Vantage | ASIC (Australia) | 0.0 | 0.2 | 0.1 |
| FP Markets | ASIC (Australia) | 0.1 | 0.3 | 0.2 |
| FreshForex | IFSC (Belize) | 1.0 | 1.3 | 1.0 |
| BDSwiss | FSC (Mauritius) | 0.3 | 0.6 | 0.4 |
| ForexVox | FCA (UK) | 0.5 | 0.8 | 0.6 |
| FiboGroup | FSC (Mauritius) | 0.2 | 0.4 | 0.3 |
| Valutrades | FCA (UK) | 0.6 | 0.9 | 0.6 |
| Land-FX | FCA (UK) | 0.3 | 0.6 | 0.4 |
| LegacyFX | CySEC (Cyprus) | 0.4 | 0.7 | 0.5 |
| NordFX | IFSC (Belize) | 0.6 | 0.9 | 0.7 |
| Oanda (Europe) | FCA (UK) | 0.8 | 1.1 | 0.9 |
| Swissquote (UK) | FCA (UK) | 0.9 | 1.2 | 0.9 |
*Note: The information provided above is based on publicly available data as of March 2025.
Final Thoughts
Always compare brokers based on your trading strategy, regulatory compliance, and overall trading conditions. A lower spread is great, but reliability and safety should always come first! 🚀