Indian forex traders lose thousands of rupees annually to unnecessarily wide spreads. The difference between the cheapest and most expensive broker for a trader doing 5 lots per day is over $10,000 per year. We tested live spreads at brokers available to Indian traders to find which ones offer genuinely tight pricing.
Spread Rankings for Indian Traders
All measurements from live accounts during London-New York overlap (most liquid period), March 2026. These are the brokers most commonly used by Indian traders.
| Rank | Broker | EUR/USD | GBP/USD | Gold | Commission (RT) | UPI Deposit |
|---|---|---|---|---|---|---|
| 1 | Exness (Raw) | 0.0 pips | 0.1 pips | $0.06 | $7.00 | Yes (instant) |
| 2 | IC Markets | 0.1 pips | 0.3 pips | $0.10 | $7.00 | No |
| 3 | Pepperstone | 0.1 pips | 0.4 pips | $0.12 | $7.00 | No |
| 4 | XM (Zero) | 0.0 pips | 0.2 pips | $0.18 | $7.00 | Yes |
| 5 | Octa | 0.5 pips | 0.7 pips | $0.25 | $0.00 | Yes |
| 6 | FBS | 0.3 pips | 0.6 pips | $0.20 | $6.00 | Yes |
Exness dominates across all three instruments. Their Raw Spread account offers 0.0 pips on EUR/USD, 0.1 pips on GBP/USD, and 6-cent gold spreads. Combined with instant UPI deposits (5-second average), Exness is the clear winner for Indian traders who prioritize trading costs.
India-Specific Considerations
UPI Deposit Availability
Not all low-spread brokers accept UPI. IC Markets and Pepperstone, while having competitive spreads, do not currently offer UPI deposits for Indian traders. You would need to use bank wire or credit card (which Indian banks often block for international transactions). Exness and XM both offer UPI with instant processing.
INR to USD Conversion
When you deposit INR via UPI, the broker converts it to USD for your trading account. The conversion rate varies between brokers. Exness offers rates approximately 0.2% from the interbank rate, while other brokers may mark up by 0.5-1%. This conversion cost adds to your effective spread cost.
Indian Bank Compatibility
Exness has the best UPI compatibility with Indian banks. In our testing with SBI, HDFC, ICICI, and Axis Bank, Exness achieved a 100% deposit success rate. XM achieved 95%, with occasional failures on SBI during peak hours.
Annual Cost Comparison for Indian Traders
For an Indian trader depositing INR 80,000 (~$1,000) and trading 2 lots of EUR/USD per day:
| Broker | Spread Cost/Trade | Commission/Trade | Daily Cost | Annual Cost |
|---|---|---|---|---|
| Exness Raw | $0 | $7.00 | $14.00 | $3,528 |
| IC Markets | $2.00 | $7.00 | $18.00 | $4,536 |
| XM Zero | $0 | $7.00 | $14.00 | $3,528 |
| Octa | $10.00 | $0 | $20.00 | $5,040 |
The difference between the cheapest (Exness/XM at $3,528) and most expensive (Octa at $5,040) is $1,512 per year. That is approximately INR 1,25,000 saved annually just by choosing the right broker.
Best Overall Choice for Indian Traders
Considering both spread costs and India-specific factors (UPI deposits, conversion rates, bank compatibility), Exness Raw Spread is the best choice for cost-conscious Indian traders. XM Zero is a close second, with the added advantage of a $30 no-deposit bonus for testing.
For a deeper dive into Exness pricing, see our Exness spreads review. For account type comparisons, see raw spread vs standard.
Trade with the Lowest Spreads
Exness offers the tightest spreads among regulated brokers. Zero account from 0.0 pips. Instant withdrawals.
Open Exness AccountFrequently Asked Questions
Which broker has the lowest spread for Indian traders?
Exness Raw Spread account offers 0.0 pips on EUR/USD with $3.50 per side commission. Combined with instant UPI deposits, it is the most cost-effective option for Indian traders.
Does IC Markets accept UPI deposits from India?
No. IC Markets does not currently offer UPI deposits. Indian traders would need to use bank wire or international card payments, which often fail due to bank restrictions. Exness and XM both accept UPI.
Is XM or Exness cheaper for Indian traders?
Both offer similar spread costs (0.0 pips + $7 commission on raw accounts). Exness edges ahead with tighter gold spreads, instant UPI withdrawals, and a slightly better INR conversion rate. XM offers a $30 no-deposit bonus which provides initial value.
Trading forex and CFDs carries a high level of risk. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford the high risk of losing your money. This article contains affiliate links.