Jan 08 2021 2
Sometimes when you’re surfing the market, you can spot advertisements from brokers claiming they offer spreads of zero. Have you ever wondered “How can some forex brokers offer spreads of zero?” Well actually, everyone can offer zero spread, as long as they have true ECN account. True ECN accounts almost don’t have spread, but instead commission. When you don’t have to pay for spread, brokers will charge you commission. Now you understand what spreads of zero mean. Then how about regular accounts with low spread? Who have the lowest spreads in the market? Let me give you the answers today.
Which brokers have the lowest spread?
Now you have to understand this first. When you look for low spread brokers, you’re actually looking for brokers that offer low trading cost. Why? Because spread is not the only thing that decides the trading cost. There are more factors adding up to that. The brokers who truly have low spreads of all the brokers I have worked with are Exness and XM. Their spreads for regular account is as low as 0.7 pip. Yes, you might have seen brokers with lower spread rate like 0.3 or 0.4 pip. However, those brokers have way higher slippages, swaps, commissions, or gaps... than Exness and XM. Therefore, Exness and XM have the lowest trading cost, if that’s what you’re looking for.
How can they have lower spread than other brokers?
Unquestionably, the US and UK are considered to be largest forex market. On the other hand, their broker do not have a tendency to compete with each other about transaction cost. In terms of my recent finding, US and UK brokers tend to offer high spreads and commission than others. CySEC brokers offer the lowest spreads. Both Exness and XM have CySEC regulation, so they can keep their spreads low while maintaining security and safety for traders.
How can we choose best lower spread brokers?
Regulated brokers: It is advisable that traders should decide on regulated forex brokers in their regions. However, if you cannot find any regulated forex broker in your country, it is time for you to choose reliable ones. Brokers who have local payment systems: it is completely beneficial for traders to choose some brokers who possess their offices in trader’s countries. Because traders sometimes have to deal with so many tough times, and they need pressing support from their forex brokers. On the other hand, when traders choose brokers who do not have any office in their countries, maybe traders have to deposit and withdraw their money by using Visa, Credit card, Neteller, and Skrill. As a matter of fact, you will have no profit when you trade with these forex brokers. Of course we can't miss low spread and commission and good local support. To learn more about how some forex brokers offer spreads of zero, check here.