BRKV - Choosing lowest spread brokers can be seen as a desirable thing of the number of traders. Hence, I have received many emails from different traders that they aspire to find lowest spread brokers. To my mind, it does not take me a lot of time and effort to make a list of five lowest spread brokers. In fact, I do not know exactly whether these people know something about my list. It is the main reason why I want to write this article in order to show them some complicated aspects that they might do not understand. As we all know, Spread is the difference between the Bid and the Ask prices. It is considered to be the fee that you must pay for your brokers or banks. Hence, the multitude of forex traders have a lust for coming to lower spread brokers. In contrast, there are still some traders who do not really care about this.
1. What should we know about two types of traders?
Indeed, we have two kinds of traders who are scalpers and long term investors.
Long-term investor are those who can keep their positions open more than 1 month. How about scalpers? They cannot keep their position more than 1 month because they open and close a lot of positions in short time.
From my perspective, it is better for you to choose reliable brokers as the first priority. It would be really helpful because it can prevent us from risky situations when trading with reliable and regulated brokers. As we all know, there are a lot of traders who lost the amount of money because of scam forex brokers. One more important matter that we should take into consideration is transaction cost.
As a result, I myself believe that you can ultimately know how to determine what kind of broker you are.
If you are long term investor, you do not need to care about spreads.
If you are scalpers, spread and commission are two important aspects. You can check it here.
2.How to choose lowest spread broker?
As I mentioned already, it is insignificant for long-term investors to consider lower spread brokers. What this type of broker should pay much attention is swap. On the other hand, lower spread brokers are always the top of choice of scalpers.
In reality, it is a tough task for you to find best low spread broker. Therefore, we should follow some certain conditions which are prerequisite for you to look at some lower spread brokers easily. Click here.
If you see regulated brokers in your countries because you can actually have no risk when trading with these brokers. However, when we have no regulated brokers in our countries, we should opt for reliable and lowest spread brokers.
It is better for you to trade with brokers who support you to pay by local payment system. In contrast, some lower spread brokers who do not have local payment system, you should not trade with these brokers. To be honest, when you trade with these brokers, you have to deposit a lot of money which is considered as a fixed fee.
Additionally, low spread and commission can be two vital aspects that we should take a notice of.
Last but not least, good local supporters can also be seen as important thing.
Here are top 5 best forex broker:
3.Are there any difference between Spread and Commission?
In fact, we have three types of forex brokers who are Market Maker, STP, and ECN. Now we just consider the first two types of brokers, Market Maker and STP. Indeed, spreads are their main income which lead to their spreads are far higher than that of ECN brokers. In terms of ECN brokers, it requires them to charge commission which can be seen as their chief income.
Now we can see the differences below. Check it here.
- Main income of Market Maker and STP brokers are spreads.
- Main income of ECN brokers are commission.
- For ECN accounts, you are charged spread and commission, yet these spread are approximately zero. That is the reason why you have to pay the commission as the main fee.
To help you make a good decision, I will show the list of five lower spread brokers here.
Here are top 5 lowest spread brokers:
4.US and UK brokers have higher spreads
In terms of transaction cost, US and UK brokers do not need to compete with others. In reality, as we all know they are two largest forex market in the entire world. However, after my research, it is evident that US and UK brokers often offer high spreads and commission than others. From my own experience, if you want to find lowest spread brokers, you should choose CySEC. Click here.
To help you have a better understanding about this, here are the table which is about spreads of top forex brokers.
Here are the spreads for EUR/USD of top forex brokers:
1. Exness : 0.7 Pip (Classic account) - CySEC, FCA
2. Hotforex : 1.1 Pip (Premium account) - Vincent
3. FBS : 1.1 Pip (Standard account) - Belize
4. XM : 1.7 Pips (Zero account) - FCA (UK)
5. FXTM : 1.7 Pips (Standard account) - Belize
6. Forex.com : 1.8 Pips - NFA (US)
7. FxPro : 1.7 Pips - FCA (UK)
Thanks to this table, we can obviously see that Exness broker offers the lowest spreads compared to others. Therefore, it can be a smart choice for you to choose this broker if you aspire to enjoy the lowest spread. You can check it here.
I hope that through this article, traders can choose lowest forex brokers.
Hey there, this is Fanara Filippo. I'm the author of this article and I'm currently collaborating with Brokerreview.net, or BRKV in short. My articles are mainly for forex traders from Thailand, Indonesia, India, Bangladesh, and South Africa.
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