We tested 40+ forex brokers by opening live accounts and measuring actual spreads during the three major trading sessions. No demo data, no broker-supplied numbers. Here are the brokers that consistently deliver the tightest spreads across EUR/USD, GBP/USD, USD/JPY, and other major pairs.
Why Spreads Matter More Than You Think
Every trade you open costs you the spread. On a standard account with a 1.5 pip EUR/USD spread, each lot costs you $15 round-trip. A 0.6 pip spread costs $6. If you trade 5 lots per day, the difference is $45 per day, $1,125 per month, or $13,500 per year. That is the difference between profit and loss for many traders.
Spread is not the only cost. Some brokers offer 0.0 pip "raw" spreads but charge $7 per lot in commission. The total cost (spread + commission) is what matters. We calculate and compare total trading cost per lot in every review.
Our Top 5 Lowest Spread Brokers
1. Exness — 0.6 Pips Standard, 0.0 Pips Raw
Exness consistently delivers the tightest spreads in our testing. Their Standard account averages 0.6 pips on EUR/USD with no commission. The Zero account offers 0.0 pip spreads on the top 30 instruments for 95% of the trading day, with a $3.50 per lot per side commission.
- EUR/USD Standard: 0.6 pips avg (no commission)
- EUR/USD Zero: 0.0 pips ($3.50/lot/side)
- Total cost per lot (Zero): $7.00
- Regulation: FCA, CySEC, FSA
- Min deposit: $10
- Withdrawal speed: 22 seconds average
Trade with the Lowest Spreads
Exness offers spreads from 0.0 pips and instant withdrawals in 22 seconds.
Open Exness Account2. XM — 0.8 Pips Standard, 0.1 Pips Ultra Low
XM's Ultra Low account averages 0.6 pips on EUR/USD with no commission, making it one of the cheapest standard accounts available. Their Zero account starts from 0.0 pips with a $3.50 per lot commission. XM also offers a $30 no-deposit bonus, making it the best choice for traders who want to test conditions before committing funds.
- EUR/USD Standard: 0.8 pips avg
- EUR/USD Ultra Low: 0.6 pips avg (no commission)
- EUR/USD Zero: 0.1 pips ($3.50/lot/side)
- Regulation: CySEC, ASIC, IFSC
- Min deposit: $5
- Bonus: $30 no-deposit
Get $30 Free Trading Credit
Open an XM account and trade with tight spreads — no deposit needed to start.
Open XM Account — $30 Free3. IC Markets — 0.8 Pips Standard, 0.1 Pips Raw
IC Markets is a favorite among scalpers for its deep liquidity and stable raw spreads. The Raw Spread account averages 0.1 pips on EUR/USD with a $3.50 commission per side. During London session, we frequently saw 0.0-0.1 pip spreads on major pairs.
- EUR/USD Raw: 0.1 pips avg ($3.50/lot/side)
- Regulation: ASIC, CySEC, FSA
- Min deposit: $200
4. Pepperstone — 1.1 Pips Standard, 0.2 Pips Razor
Pepperstone's Razor account offers consistent pricing with minimal spread widening during news events. Their execution speed is among the fastest we have measured, averaging under 30ms on their Equinix NY4 servers.
- EUR/USD Razor: 0.2 pips avg ($3.50/lot/side)
- Regulation: FCA, ASIC, CySEC
- Min deposit: $200
5. FP Markets — 1.2 Pips Standard, 0.1 Pips Raw
FP Markets offers competitive raw pricing with ECN execution. Their Raw account averages 0.1-0.2 pips on EUR/USD during peak hours, with a $3.00 per lot commission per side — slightly cheaper than the industry standard $3.50.
- EUR/USD Raw: 0.1 pips avg ($3.00/lot/side)
- Regulation: ASIC, CySEC
- Min deposit: $100
Complete Spread Comparison Table
| Broker | EUR/USD Std | EUR/USD Raw | GBP/USD Raw | Commission | Total Cost/Lot |
|---|---|---|---|---|---|
| Exness | 0.6 | 0.0 | 0.2 | $3.50/side | $7.00 |
| XM | 0.8 | 0.1 | 0.3 | $3.50/side | $8.00 |
| IC Markets | 0.8 | 0.1 | 0.4 | $3.50/side | $8.00 |
| Pepperstone | 1.1 | 0.2 | 0.5 | $3.50/side | $9.00 |
| FP Markets | 1.2 | 0.1 | 0.3 | $3.00/side | $7.00 |
All spreads in pips. Measured during London session (08:00-16:00 UTC), March 2026. Total cost = average raw spread converted to USD + round-trip commission.
How We Measure Spreads
Our methodology is simple and transparent:
- Live accounts only: We open and fund real accounts with each broker. Demo spreads are often artificially tighter.
- Multi-session tracking: We record spreads during Asian (00:00-08:00 UTC), London (08:00-16:00 UTC), and New York (12:00-21:00 UTC) sessions.
- Multiple pairs: We track EUR/USD, GBP/USD, USD/JPY, AUD/USD, and EUR/GBP at minimum.
- News event testing: We note how much spreads widen during NFP, CPI, and central bank announcements.
- Monthly re-testing: Broker conditions change. We re-test quarterly at minimum.
Standard vs Raw: Which Is Cheaper?
The answer depends on your trading volume. Here is the break-even calculation:
A standard account with 0.8 pip spread and no commission costs $8 per lot. A raw account with 0.1 pip spread and $7 commission costs $8 per lot. In this example, the total cost is identical. The raw account becomes cheaper only when the raw spread drops below 0.1 pips, which happens frequently during peak hours.
For most traders, the raw/zero account is slightly cheaper on a per-trade basis. For beginners who trade infrequently, the standard account's simplicity (no separate commission) is an advantage.
Bottom Line
Exness and XM dominate our 2026 rankings. Exness wins on pure spread cost, while XM wins on accessibility (lower minimum deposit, $30 bonus, and more instruments). Both are well-regulated and offer MT4/MT5 platforms.
If you are switching brokers to reduce costs, start by calculating your current average cost per trade and compare it against the numbers in our table above. Even a 0.3 pip improvement adds up to thousands of dollars annually for active traders.
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 understand how CFDs work and whether you can afford to take the high risk of losing your money. This article contains affiliate links.