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Risk Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% 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. Clients can lose more than they deposit. All trading involves risk.

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Low Spread Forex Brokers in Uganda for 2025

Edited by
Author
Alison Heyerdahl
Edited by
Alison Heyerdahl
Head of Content
Learn more about Alison Heyerdahl
Chris Cammack
Author
Chris Cammack
Partner Manager and Financial Writer

Chris manages the relationships with our partners to provide the best Forex trading experience possible for our users. Chris has 15+ years of research, and editorial and design experience for political and financial publications. His background has given him a deep understanding of international financial markets and the geopolitics that affect them.

Learn more about Chris Cammack

Profit is central to a trader’s choice of broker. Wide spreads can eat into your profit, which is one reason why both beginners and experienced traders often choose low-spread Forex brokers.

However, there are advantages and disadvantages to using brokers with this profile. Of course, these brokers have other sources of profit to compensate for their low spreads. Additionally, low-spread Forex brokers might not suit every trader. In this guide, we’ll explain how low-spread brokers operate and generate revenue, and guide you in selecting an appropriate broker based on your individual trading needs.

The brokers below were selected based on their low spreads, low commissions, and great trading platforms and trading tools.

Trusted. Transparent. Tested.

For over a decade, we’ve set the standard in forex broker reviews—collecting thousands of data points yearly to deliver unbiased, expert-backed insights.

Skip the trial and error! Below, you’ll find the best forex brokers for Ugandan traders for 2025—thoroughly tested, verified, and ranked, so you can trade with confidence.

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Lowest Spread Forex Brokers in Uganda for 2025

You can either use the arrow button or swipe on mobile

Visit Broker Website
Account Name
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
Trading Commission
Compare
Visit Broker
75.3% of retail CFD accounts lose money
cTrader Razor
USD 7
6 USD / lot
0.10 pips
Visit Broker
72.90% of retail CFD accounts lose money
Zero
USD 7
6 USD / lot
0.10 pips
Visit Broker
71.67% of retail CFD accounts lose money
Pro Raw Spread MT4
USD 7
7 USD / lot
0 pips
Visit Broker
70.81% of retail CFD accounts lose money
RAW - MetaTrader
USD 7.20
7 USD / lot
0.02 pips
Visit Broker
74% of retail CFD accounts lose money
Raw
USD 7
6 USD/lot
0.10 pips
Visit Broker
75.18% of retail CFD accounts lose money
XM Ultra Low
USD 1
Spread Only
0.10 pips
Visit Broker
75.6% of retail CFD accounts lose money
MT4 Pro Account
USD 7
7 USD / lot
0.00 pips
Visit Broker
89% of retail CFD accounts lose money
Zero
USD 4.50
4.5 USD/lot
0 pips
Visit Broker
75% of retail CFD accounts lose money
FxPro cTrader
USD 11
7 USD/ lot
0.40 pips
Visit Broker
69.21% of retail CFD accounts lose money
USD 7
0.70 pips
Pepperstone
4.6
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Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
cTrader Razor
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 7
Min. Deposit
The minimum deposit required to trade using the selected account
USD 0
Trading Commission
6 USD / lot
EUR/USD (Raw)
0.1 pips
HFM
4.4
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
Zero
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 7
Min. Deposit
The minimum deposit required to trade using the selected account
USD 0
Trading Commission
6 USD / lot
EUR/USD (Raw)
0.1 pips
Exness
4.3
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
Pro Raw Spread MT4
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 7
Min. Deposit
The minimum deposit required to trade using the selected account
USD 200
Trading Commission
7 USD / lot
EUR/USD (Raw)
0 pips
IC Markets
4.5
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
RAW - MetaTrader
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 7
Min. Deposit
The minimum deposit required to trade using the selected account
USD 200
Trading Commission
7 USD / lot
EUR/USD (Raw)
0.02 pips
Tickmill
4.6
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
Raw
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 7
Min. Deposit
The minimum deposit required to trade using the selected account
USD 100
Trading Commission
6 USD/lot
EUR/USD (Raw)
0.1 pips
XM
4.5
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
XM Ultra Low
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 1
Min. Deposit
The minimum deposit required to trade using the selected account
USD 5
Trading Commission
Spread Only
EUR/USD (Raw)
0.1 pips
Axi
4.4
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
MT4 Pro Account
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 7
Min. Deposit
The minimum deposit required to trade using the selected account
USD 5
Trading Commission
7 USD / lot
EUR/USD (Raw)
0.0 pips
Fusion Markets
4.4
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
Zero
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 4
Min. Deposit
The minimum deposit required to trade using the selected account
AUD 0
Trading Commission
4.5 USD/lot
EUR/USD (Raw)
0 pips
FxPro
4.4
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
FxPro cTrader
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 11
Min. Deposit
The minimum deposit required to trade using the selected account
USD 100
Trading Commission
7 USD/ lot
EUR/USD (Raw)
0.4 pips
FBS
4.3
Read Review

Our broker ratings are derived from rigorous testing by industry experts and experienced traders. We thoroughly evaluate regulatory compliance, security, transparency, trading performance, and customer service. We never accept payment for higher scores, ensuring our ratings remain unbiased, factual, and trustworthy—so you can confidently choose a reliable broker for your financial safety and trading success.

For detailed information about our testing methodology click here.

Account Name
Trading Cost
Raw Spread Account: Total trading cost at the time of last update, for 1 lot of EUR/USD. Includes spread and commission.
USD 7
Min. Deposit
The minimum deposit required to trade using the selected account
USD 0
Trading Commission
EUR/USD (Raw)
0.7 pips
Find Your Ideal Forex Broker

Compare Forex Brokers

  • Find the best broker for your trading needs
  • Compare spreads, fees, and platforms
  • Read in-depth reviews and analysis

How Brokers Are Scored

FxScouts’ Broker Score and Trust Rating constantly evolve to reflect the forex market’s dynamics. We ensure transparency by incorporating regulator data and user insights. Our in-depth reviews consider over 200 metrics across seven key categories. The radar chart to the left shows how important each category is when calculating a broker’s final score.

  • Trust Rating: Assessment of broker reliability and reputation
  • Trading Costs: Spreads and fees for clear comparisons
  • Platforms: User-friendliness and features 
  • Asset Selection: Forex, stocks, and other available instruments
  • Deposit and Withdrawal: Simple and free deposits & withdrawals
  • Education: Support for beginners and developing traders
  • Customer Support: Accessibility, responsiveness, and expertise

 

Learn how we set the standard for broker reviews. Explore our in-depth review process here.

Pepperstone

Best For: Ugandan scalpers and EA users seeking institutional-grade spreads with global regulatory protection

Pepperstone
4.61
75.3% of retail CFD accounts lose money

Min. Spread

0 pips

Regulation

CMA, BaFin, SCB, DFSA, ASIC, FCA, CySEC

Min. Deposit

USD 0

Platforms

Pepperstone Platform, TradingView, cTrader, MT5, MT4

Max Leverage

30:1

Why Pepperstone Stands Out

  • ECN-Like Execution

    True no-dealing-desk model with average spreads from 0.0 pips and no requotes—ideal for scalpers in Uganda.

  • FCA, ASIC, CMA Regulated

    Fully regulated in the UK, Australia, and Kenya, it offers local trust and fund protection to Ugandan traders.

  • Zero Minimum Deposit

    Start trading without upfront funding, ideal for cost-conscious traders or those transitioning from demo to live accounts.

  • Platform Power

    Supports MT4, MT5, cTrader, TradingView, and an in-house platform—including advanced automation and charting tools.

  • Local Support Access

    Dedicated East African support via email and call-back—increasingly rare among global brokers.

Why Pepperstone Falls Short

  • Limited Asset Range for Share CFDs

    While strong on Forex, it's weaker in individual stocks compared to multi-asset brokers.

  • Complicated commission structure

    Commission changes depending on your trading platform and base currency

Pepperstone | Best For: Ugandan scalpers and EA users seeking institutional-grade spreads with global regulatory protection

Final Verdict: Is Pepperstone right for you?

Trade if:

  • You Want Lowest-Cost Spreads with Top-Tier Regulation
  • You Use MT4/MT5 and Need Scalping/EA capability.

Consider Alternatives:

  • You Prefer a Broker with Crypto or Stock-CFD Focus
  • You Rely on Proprietary Trading Platforms for Simplicity
Visit Broker
Accepts Ugandan Clients. Average spread EUR/USD 1.00 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone Group is regulated by the FCA, ASIC, and the DFSA.

HFM

Best For: Beginner and budget-conscious Ugandan traders seeking high leverage with local-friendly support

HFM
4.43
72.90% of retail CFD accounts lose money

Min. Spread

0.0 pips

Regulation

CMA, FSA-Seychelles, FSC, DFSA, FSCA, FCA

Min. Deposit

USD 0

Platforms

HFM Trading App, MT5, MT4

Max Leverage

2000:1

Why HFM Stands Out

  • Zero Minimum Deposit
    Start trading from $0—an unmatched entry point for Ugandans new to Forex.
  • Licensed in Uganda's Trade Partners
    Regulated in South Africa (FSCA) and Dubai (DFSA)—aligns with Uganda’s growing financial ties.
  • Educational Hub
    One of the most extensive free Forex education portals includes webinars, videos, and PDFs tailored for beginners.
  • Micro Account & High Leverage
    Trade micro-lots with leverage of up to 1:2000—ideal for scaling small capital.
  • Regular Local Promotions
    Runs frequent deposit bonuses and competitions tailored to African traders.

Why HFM Falls Short

  • Variable Spreads on Standard Accounts
    Spreads can widen significantly during volatility, especially on non-ECN accounts.
  • Some withdrawal methods carry fees
    Fees may apply for Skrill/Neteller, depending on the amount and region.

HFM | Best For: Beginner and budget-conscious Ugandan traders seeking high leverage with local-friendly support

Final Verdict: Is HFM right for you?

Trade if:

  • You Want Ultra-Low Entry & Micro-Lot Trading
  • You Value Ongoing Education and Support in East Africa

Consider Alternatives:

  • You Require Consistently Tight Spreads for Scalping
  • You Prefer Commission-Based ECN Trading
Visit Broker
Accepts Ugandan Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

Exness

Best For: Ugandan traders prioritizing unlimited leverage and crypto deposit options

Exness
4.32
71.67% of retail CFD accounts lose money

Min. Spread

0.1 pips

Regulation

JSC, CMA, FSA-Seychelles, FSC, B.V.I FSC, FSCA

Min. Deposit

USD 3

Platforms

Exness Terminal, MT5, MT4

Max Leverage

Unlimited:1

Why Exness Stands Out

  • Unlimited Leverage
    Offers up to 1:unlimited leverage for qualified accounts – ideal for strategy testers and high-frequency traders.
  • Instant Crypto Deposits
    Accepts Bitcoin and Tether, making it practical for Uganda’s rising crypto adoption.
  • Ultra-Low Spread Account
    Raw spreads start from 0.0 pips with a $3.5 commission—top-tier pricing for the region.
  • 24/7 Account Funding
    Automated, round-the-clock deposit and withdrawal systems via multiple methods.
  • Mobile-First Portal
    Highly rated Exness mobile app with integrated account management, charts, and AI risk alerts.

Why Exness Falls Short

  • Market Maker Model on Some Accounts
    Some order types may face conflict of interest concerns under B-book execution.
  • Complex Leverage Rules
    Unlimited leverage comes with volume-based restrictions and resets that may confuse new users.

Exness | Best For: Ugandan traders prioritizing unlimited leverage and crypto deposit options

Final Verdict: Is Exness right for you?

Trade if:

  • You Need Flexible Leverage and Crypto Payments
  • You Trade Around the Clock and Value Fast Execution

Consider Alternatives:

  • You Want a Fully ECN or STP Only Broker
  • You Prefer a Simpler Leverage Structure
Visit Broker
Accepts Ugandan Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage Unlimited:1. Islamic account available. MT4, MT5, Exness web trader platforms supported. Exness is regulated by CySEC, FCA, and the FSC.

IC Markets

Best For: Experienced Ugandan traders seeking true ECN access and global liquidity

IC Markets
4.46
70.81% of retail CFD accounts lose money

Min. Spread

0.1 pips

Regulation

CMA, FSA-Seychelles, SCB, CySEC

Min. Deposit

USD 200

Platforms

TradingView, cTrader, MT5, MT4

Max Leverage

30:1

Why IC Markets Stands Out

  • True ECN Broker
    Institutional-grade execution with spreads from 0.0 pips and $3 commission per lot.
  • Raw Spreads + No Dealing Desk
    Direct market access with no requotes or trading desk intervention—ideal for scalpers.
  • Strong Platform Ecosystem
    Offers MT4, MT5, and cTrader with built-in support for algorithmic and social trading tools.
  • Multiple Global Servers
    Low-latency execution from data centers in London, New York, and Tokyo benefits high-speed traders.
  • Transparent Fee Structure
    Zero hidden markups; a detailed pricing model is published, along with an average spread history.

Why IC Markets Falls Short

  • No African Regulatory License
    Currently not licensed with the FSCA or CMA—operates from Australia with global access.
  • High Minimum Deposit
    A $200 entry point may deter smaller Ugandan retail traders.

IC Markets | Best For: Experienced Ugandan traders seeking true ECN access and global liquidity

Final Verdict: Is IC Markets right for you?

Trade if:

  • You Trade High Volume and Require ECN Conditions
  • You Run EAs or Bots That Need Tight Spreads

Consider Alternatives:

  • You Need Local Regulation or Ultra-Low Entry
  • You Are a Casual Trader Needing Simpler Tools
Visit Broker
Accepts Ugandan Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC, ASIC, the SCB, and the FSA .

Tickmill

Best For: Professional Ugandan traders seeking cost-efficiency with strong regulation and fast withdrawals

Tickmill
4.58
74% of retail CFD accounts lose money

Min. Spread

0.0 pips

Regulation

FSA-Seychelles, DFSA, FSCA, FCA, CySEC

Min. Deposit

USD 100

Platforms

TradingView, MT5, MT4

Max Leverage

30:1

Why Tickmill Stands Out

  • Lowest Trading Costs
    Spreads from 0.0 pips with $2 commission per lot on VIP accounts—industry-leading rates.
  • FCA & CySEC Regulated
    Top-tier licensing ensures the safety of funds and protection against negative balances for Ugandan traders.
  • Fast Withdrawals
    Processes withdrawals within 24 business hours—rare consistency among global brokers.
  • Scalping & EA Friendly
    No limits on strategies—100% open to automated and high-frequency trading.
  • Free VPS & Tools
    Eligible traders get access to VPS hosting, Autochartist, and copy trading platforms.

Why Tickmill Falls Short

  • Platform Limitation
    No proprietary platform; depends on MT4/MT5 only, which may limit innovation for some users.
  • Higher Minimum Deposit on Pro Accounts
    To access the lowest spreads, $100+ is required—not ideal for beginners.

Tickmill | Best For: Professional Ugandan traders seeking cost-efficiency with strong regulation and fast withdrawals

Final Verdict: Is Tickmill right for you?

Trade if:

  • You Need Consistent, Low-Cost Execution
  • You Value Regulation and Fast Withdrawals

Consider Alternatives:

  • You Want a Proprietary Mobile App
  • You’re Starting with Under $100
Visit Broker
Accepts Ugandan Clients. Average spread EUR/USD 0.00 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles.
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What Is a Spread?

The spread is the difference between the broker’s sell price and buy price when trading a Forex pair.

In other words, the spread is the difference between the bid price (the price at which you can sell) and the ask price (the price at which you can buy). Brokers charge spreads as a fee for enabling the trades.

When learning to trade Forex, the spread is one of the first concepts you need to grasp. It affects your trading costs, which impacts your profit. 

Spread values can fluctuate a lot. Factors like the currency pair you are trading, the time of day, and the economic conditions that surround that pair can change your spread.

Why are low spreads important?

Cost Reduction: Low spreads can help traders to reduce their trading costs. Each time a trade is executed, the trader has to overcome the spread cost to get into a profitable position. The lower the spread, the less the price needs to move in the trader’s favour before they start to make a profit, and the more the price can move against the trader before they start to incur a loss.

Higher Frequency Trading: Traders, especially those using high-frequency trading strategies like scalping and day trading, must enter and exit the markets frequently. Lower spreads mean they pay less to execute these trades.

Increased Potential Profits: When the spread is lower, the distance to a profitable trade decreases. This can potentially increase a trader’s profitability, especially in volatile markets.

How do brokers with low spreads make money?

In the world of Forex trading and other types of investment, brokers typically earn money in one of two ways: through spreads and commissions.

A spread is the difference between the buying price and the selling price of a financial instrument. The spread is essentially the broker’s profit on each trade a trader makes.

On the other hand, a commission is a fee that a broker charges for its services. This is generally a flat fee per trade or a percentage of the total volume of the trade.

Now, let’s consider brokers who offer low spreads. These brokers essentially offer to execute trades at prices very close to the market price. This can be attractive to traders because it reduces their trading costs. However, because these brokers make less money from the spread, they may charge a commission to compensate for the lower profit margins.

The commission can be seen as a fee for the broker’s service of facilitating the trade. For a broker offering low or even zero spreads, the commission may be their primary source of income.

"Wide spreads eat into your profit, which is why traders often choose low-spread Forex brokers."

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The Advantages and Disadvantages of Low Spreads

Each broker is unique, but some main features distinguish low-spread Forex brokers.

What are the advantages of trading with low spreads?

Lower Transaction Costs: The spread is the difference between the buy price and the sell price for a particular currency pair. The lower it is, the easier traders can profit from a transaction. This results in lower transaction costs for the trader, especially for those engaged in high-frequency trading, such as day traders or scalpers and can increase the net profit from each trade.

Transparent Pricing: Low spreads coupled with a commission-based pricing model tend to be more transparent. The broker makes money from the commission, and the spreads are closer to the underlying market prices. This can provide a clearer view of the market conditions and facilitate better trading decisions.

What are the disadvantages of trading with low spreads?

There are, of course, some downsides to low spreads. The most important disadvantages to using low-spread Forex brokers are the following:

Commissions Can Add Up: If you are a high-frequency trader, commission fees might get expensive as they add up. In these cases, it might be better to go for a higher spread with no commission.

Complex Fee Structure: Understanding and calculating costs can be more complex with a low spread and commission model. Traders need to consider both the spread and the commission in their cost analysis, which can be confusing, particularly for novice traders.

Whether a low spread and commission model is advantageous depends largely on the trader’s strategy and trading frequency. Each trader must understand their own trading habits, calculate their potential costs under different pricing models, and choose the broker that offers the most cost-effective solution for their specific needs.

What is the difference between fixed and variable spreads?

Fixed spread brokers offer spreads that do not change, no matter the market conditions, whereas variable spreads could be lower, but fluctuate throughout the trading day. 

In Forex trading, the difference between fixed spreads and variable spreads is important when deciding which broker to trade with. Here’s a breakdown of the main differences:

Fixed Spreads

Consistency: Fixed spreads remain the same no matter the market conditions.

Predictability: Since these spreads don’t depend on the markets, they are predictable for traders. And predictable often means safer.

Market Makers: Fixed spreads are usually offered by market makers, who set both the bid and the ask prices for their clients, taking the opposite side (or the counterparty) of their trades. This means that when the trader wins, the broker loses, and vice versa.

Higher Costs During Low Volatility: While fixed spreads provide stability, when there is low market volatility, they may be higher on average. This leads to potentially higher trading costs.

Variable Spreads

Market Conditions: Variable spreads fluctuate based on market conditions, including liquidity and volatility. This means the spread can be very low during times of high liquidity but can widen significantly during major economic announcements or market uncertainty.

Lower Costs Potentially: During periods of high liquidity, variable spreads can be lower than fixed spreads, potentially reducing trading costs.

ECN/STP Brokers: Variable spreads are often associated with ECN (Electronic Communication Network) or STP (straight-through processing) brokers, who pass the orders directly to liquidity providers without a dealing desk. This means traders are getting real market prices.

The choice between fixed and variable spreads depends on a trader’s strategy, trading style, and risk tolerance. Fixed spreads offer predictability and simplicity, which can be beneficial for beginners or those with straightforward strategies. Variable spreads, on the other hand, can offer lower costs under normal market conditions and are preferred by traders who can manage the risks associated with market volatility.

"Brokers with low spreads typically charge a fixed commission per trade, making the cost of trading predictable."

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Frequently Asked Questions

What traders should know about low spreads.

What is considered a low spread at Forex brokers?

In the world of Forex trading, a spread is considered low if it’s close to 0.0 pips. However, what constitutes a ‘low’ spread can depend on the currency pair being traded. For major currency pairs like EUR/USD, a low spread is typically anything under 1 pip. For less liquid currency pairs like the minors or exotics like the USD/ZAR, spreads are usually considerably wider.

What is considered a low commission for a Forex broker account?

Commission rates can vary widely among Forex brokers, but a low commission is typically considered to be around 0.1% – 0.3% of the trade volume. In terms of fixed commissions, which are more common in ECN or STP brokers, anything around $6 – $10 per lot traded (100,000 units of currency) could be considered low.

Do some brokers offer zero-spread accounts? 

Yes, some brokers offer zero-spread accounts. Zero-spread Forex brokers offer trading accounts where a currency pair’s bid and ask price are the same. This means there is no difference between the bid price and the ask price of a currency pair. However, it’s essential to note that while the spread is zero, these brokers often compensate by charging a commission on trades or using other fee structures. Therefore, traders must understand the overall cost of trading, not just the spread, before choosing a broker.

Are low-spread accounts suitable for all traders?

While low-spread accounts can save costs for high-volume traders, they might not be as beneficial for less active traders. This is because the commission costs could outweigh the benefits of low spreads for traders who don’t trade frequently.

Which Forex broker has the tightest spread?

The broker with the tightest spread is not constant, as spreads fluctuate based on market conditions and the broker’s policies. However, brokers that consistently offer tight spreads often operate using an Electronic Communication Network (ECN) or Straight Through Processing (STP) model.

Can I trade Forex without a broker?

While it is technically possible to trade Forex without a broker, it’s not practical for most individuals. Brokers provide access to the trading platforms and the liquidity necessary to trade efficiently in the Forex market.

What’s the Difference Between Raw Spread and a Standard Account?

A standard account typically includes all trading costs within the spread. This means you won’t pay a separate commission on your trades. On the other hand, a raw spread account usually offers spreads close to zero, with brokers charging a separate commission on each trade. The choice between the two often depends on the trader’s strategy and volume of trades.

Which currency pairs have the lowest spreads?

The most heavily traded pairs, such as the EUR/USD, GBP/USD and USD/JPY, normally have the lowest spreads, while an emerging-market currency paired with the USD, such as the USD/ZAR, will have a wider spread. In other words, the more liquid the market, the narrower the spread. That’s because the high volumes traded generate lots of profit for brokers, even though the profit margins might be narrow.

"The most heavily traded pairs, such as the EUR/USD, GBP/USD and USD/JPY, normally have the lowest spreads."

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Meet the Experts Behind Our Unbiased Reviews

Chris Cammack

Partner Manager and Financial Writer

Chris Cammack

Chris Cammack is partner manager and senior financial writer at FxScouts, specialising in broker relations and forex market analysis. As the former Head of Content (2019–2024), he set editorial standards for all content published at FxScouts, including broker reviews, broker comparison pages and education.


With over a decade of experience in editorial management and partner relations, Chris builds and maintains our relationships with our partners to provide the best Forex trading experience for our users.


He also co-hosts the “Let’s Talk Forex” podcast with Alison Heyerdahl, where he explores trading strategies, industry news, and macroeconomic trends to help traders navigate the markets with confidence.


Alison Heyerdahl

Head of Content

Alison Heyerdahl
Alison joined the team as a writer in 2021. She is the Head of Content for FxScouts. She has a medical degree with a focus on physiotherapy and a bachelor's in psychology. However, her interest in Forex trading and her love for writing led her to switch careers. She has a passion for Forex trading and over a decade of editorial experience researching Forex and the financial services industry, producing high-quality content. She hosts a weekly podcast, "Let's Talk Forex", alongside Chris and has produced over 100 Forex educational videos for the FxScouts YouTube channel. She also writes weekly technical analyses and has tested and reviewed over 120 Forex brokers.

Ida Hermansen

Financial Writer

Ida Hermansen
Ida is a financial writer with a degree in Digital Marketing and a strong background in content writing and SEO. Her expertise extends beyond marketing and writing, with a keen interest in cryptocurrencies and blockchain networks. Ida's passion for crypto trading sparked a deeper fascination with Forex technical analysis and price movement. She is continually expanding her knowledge in Forex trading, staying informed about the latest trends and identifying the best trading environments for new traders.

Stefan de Clerk

Financial Writer

Stefan de Clerk
The newest member of our team, Stefan has a degree in Marketing and more than a decade of experience writing quality content in both finance and tech. Stefan's deep fascination with how factors like geopolitical events, big data and market sentiment influence the financial markets drives his passion for Forex trading. He believes that if you want to feel the pulse of the world economy, trade Forex, and if you want to trade Forex, you need well-researched, unbiased and objective information.

                

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