Lowest Spread Forex Brokers in 2025
Written by Akash Khanna
Edited by Samuel Black
Fact-checked by Lisa Khan
Last Updated – 13 June 2025
Searching for the lowest spread forex broker in 2025? This guide breaks down everything you need to know—from how spreads affect your profits to what makes one broker cheaper than another. Whether you’re scalping, day trading, or just trying to keep more pips in your pocket, we cover the top options, key features, and tips to help you trade with tighter costs and smarter strategies.
Low spreads = less cost = more profit. Simple as that.
- The Spread That Eats Your Bread
- Why Low Spreads Matter in Forex Trading
- Types of Forex Spreads: Fixed vs. Variable
- Factors That Affect Forex Spreads
- Top 3 Lowest Spread Forex Brokers in 2025
- Side-by-Side Forex Broker Comparison Table
- Tips for Choosing a Low Spread Forex Broker
- So Which Forex Broker Should You Go With?
- FAQs – Everything You Were Too Shy to Ask About Spreads
- The Last Word on Forex Spreads
The Spread That Eats Your Bread 🍞
Let’s face it—trading forex isn’t just about choosing the right pair or timing the market like a psychic wizard. It’s also about surviving the tiny, sneaky charges that slowly chip away at your profits—like the spread.
A spread is the difference between the buy (ask) and sell (bid) price of a currency pair. Think of it as the broker’s toll fee—sometimes small, sometimes outrageous, and always there. And if you’re a frequent trader, a scalper, or just allergic to hidden costs, you need a broker with the lowest spreads possible.
In 2025, three brokers have really stepped up their low-spread game: Octa, XM, and FBS. They’ve become trader favorites for tight pricing, lightning-fast execution, and fee structures that won’t eat your wallet alive.
But which one is really the best for you? Let’s find out.
Why Low Spreads Matter in Forex Trading
Spreads may seem tiny—fractions of a cent—but don’t be fooled. If you’re making 50 trades a week, even a 0.5 pip difference can mean hundreds of dollars lost or saved over time.
Let’s break it down:
High spreads = higher entry cost.
Low spreads = better profit margins.
Zero spreads = sounds amazing… until the commission hits you in the face.
Example: Spread Impact on Profit
| Trade Volume | Spread (1 pip) | Spread (0.3 pip) | Difference |
|---|---|---|---|
| 1 lot (100,000 units) | $10 | $3 | $7 saved per trade |
Multiply that across 100 trades, and you’re either buying a steak dinner—or ramen noodles for a month. The math doesn’t lie.
Types of Forex Spreads: Fixed vs. Variable
Forex brokers offer two kinds of spreads:
Fixed Spreads: These stay the same no matter what. Great during news events. Not-so-great when markets are calm—you might still be overpaying.
Variable Spreads: They fluctuate depending on market volatility. Usually tighter during calm sessions, but they widen like crazy during high-impact news.
Which one’s better? If you trade during normal hours and want the lowest possible spreads, variable is the way to go. If you’re allergic to surprises, fixed might be your friend.
Factors That Affect Forex Spreads
Spreads aren’t just random numbers. They’re influenced by:
Liquidity: More traded pairs (like EUR/USD) usually have tighter spreads.
Market Hours: Spreads are tighter during London/New York overlap; wider during off-peak hours.
Volatility: Spreads balloon during big news events (think NFP, rate hikes, or Elon Musk tweeting about interest rates).
Broker Model: ECN/STP brokers usually offer tighter spreads than market makers.
Knowing these helps you avoid getting caught off guard when that “0.1 pip” spread suddenly becomes 3 pips and your stop loss cries for help.
Top 3 Lowest Spread Forex Brokers in 2025
Here’s the main event. Let’s break down how Octa, XM, and FBS handle low spreads—and why each might (or might not) suit your trading style.
1. Octa – The Clean-Cut Spread Slayer
Octa is like the minimalist trader’s dream. They don’t throw gimmicks at you—just clean spreads, no commissions (in most cases), and a mobile app that actually works.
Spreads Overview:
Classic Account: Spreads from 0.6 pips (no commission)
MT5/Pro-style Account: Spreads as low as 0.2 pips (still commission-free)
Standout Features:
No commission on most accounts
Tight spreads across major pairs
MT4, MT5, mobile and browser platforms
Fast execution ideal for scalping and intraday trading
Pros and Cons:
| 👍 Pros | 👎 Cons |
|---|---|
| No commission on low spread | Limited variety of account types |
| User-friendly mobile experience | Less ideal for long-term holders |
| No-frills, clean pricing | Smaller range of instruments |
Octa is best for: Traders who want simplicity, tight spreads, and mobile-first experience.
2. XM – The Veteran With a Spread Menu
XM comes in swinging with more account types than a buffet has salads. From beginners to pros, everyone gets something—and they’ve got tight spreads on the menu too.
Spreads Overview:
Standard & Micro Accounts: Spreads from 1.0 pip (no commission)
Ultra Low Account: Spreads from 0.6 pip (tightest no-commission offering)
XM Zero Account: Spreads from 0.0 pip + $7 per lot round trip
Standout Features:
Scalping, hedging, and EAs allowed
Multi-regulated across several regions
Negative balance protection
$30 no-deposit bonus (if available in your region)
Pros and Cons:
| 👍 Pros | 👎 Cons |
|---|---|
| XM Zero = ultra-tight spreads | Commission charged on Zero acct |
| Strong educational resources | Ultra Low not available in all regions |
| Regulated & trusted brand | Some promotions vary by region |
XM is best for: Scalpers and strategy traders who want ECN-style spreads with a trusted brand.
3. FBS – The High-Leverage Hustler With Tiny Spreads
If FBS had a motto, it might be: “Leverage? We’ve got you. Spreads? Hold my beer.”
Spreads Overview:
Standard Account: Spreads from 0.5 pip (no commission)
Zero Spread Account: Fixed 0.0 pip + commission (~$20/lot)
ECN Account: Raw spreads + commission (~$6/lot)
Standout Features:
Leverage up to 1:3000
MT4, MT5, mobile trading
Accepts crypto and alternative deposits
Bonus-heavy broker: 100% deposit bonus, cashback
Pros and Cons:
| 👍 Pros | 👎 Cons |
|---|---|
| Ultra-tight ECN pricing | High commission on Zero account |
| Suits scalpers and EAs | Bonus T&Cs can be strict |
| High leverage for high-risk traders | Not ideal for low-risk traders |
FBS is best for: Aggressive traders and scalpers who want ECN conditions and bonus fuel.
Side-by-Side Forex Broker Comparison Table
| Feature | Octa | XM | FBS |
|---|---|---|---|
| Lowest Spread | From 0.2 pips | From 0.0 pips (Zero) | From 0.0 pips (Zero/ECN) |
| Commission | None (mostly) | $7/lot (Zero account) | $6–20/lot (varies) |
| Min Deposit | $5 | $5 | $1–$500 (by account) |
| ECN Option | ❌ | ✅ (XM Zero) | ✅ (ECN Account) |
| Scalping Allowed | ✅ | ✅ | ✅ |
| Leverage | Up to 1:500 | Up to 1:1000 | Up to 1:3000 |
| Regulation | CySEC, FSA | ASIC, CySEC, FSC | IFSC, CySEC |
| Bonus Offers | Up to 50% bonus | $30 no-deposit (limited) | 100% deposit bonus |
Tips for Choosing a Low Spread Forex Broker
So, how do you pick the right one for you?
Don’t look at spreads alone. Always calculate total trading cost (spread + commission).
Check for slippage and order execution speed. A tight spread means nothing if you get filled 5 pips away.
Read the fine print on bonuses. That “100% deposit bonus” may come with withdrawal traps.
Test with a demo or small deposit. You want to see real-world conditions before going all in.
So Which Forex Broker Should You Go With?
Here’s our honest take:
Choose Octa if you want a simple, commission-free experience with competitive spreads. It’s great for new traders or those who hate math.
Go with XM if you want low spreads with regulatory muscle and account variety. The Zero account gives you raw ECN-style pricing with tight control.
Pick FBS if you’re a bonus-chaser, scalper, or love high-leverage adrenaline trading. Just make sure you can handle the risk.
Still unsure? Use their demo accounts and run test trades—nothing beats hands-on experience.
FAQs – Everything You Were Too Shy to Ask About Spreads
1. What is a “spread” in forex trading, anyway?
It’s the difference between the buy and sell price of a currency pair. Brokers pocket this difference as part of their earnings. It’s tiny—but it adds up fast.
2. Why should I care about low spreads?
Because high spreads quietly drain your profits. The tighter the spread, the less you pay to enter and exit trades. It’s like paying less toll each time you cross the trading bridge.
3. What’s considered a good spread in 2025?
For major pairs like EUR/USD or USD/JPY, a spread of 0.5 pips or less is considered excellent. Anything under 1 pip is decent. Over 2 pips? Meh—keep looking.
4. Do “zero spread” accounts mean I don’t pay anything?
Not quite. The spread may be zero, but these accounts usually charge a commission per trade, so your cost is still there—it’s just moved to a different column.
5. Should I choose a broker with zero spread or low spread and no commission?
Depends on your style. Scalpers and high-frequency traders usually benefit more from raw spreads + commission. But casual traders often prefer simple low spreads with no commissions.
6. Which is better for scalping—Octa, XM, or FBS?
All three allow scalping, but FBS ECN and XM Zero are scalper favorites due to their raw spreads and fast execution. Octa also performs well, especially for mobile scalpers.
7. Do spreads change during news events?
Oh yes. Volatility spikes = spreads widen. Even with “tight” brokers, spreads can balloon temporarily during major economic releases or political drama.
8. Are low spreads only available on major currency pairs?
Typically, yes. Exotic pairs and some crosses often have wider spreads. Brokers focus on offering tight spreads on high-volume pairs like EUR/USD, GBP/USD, and USD/JPY.
9. Is spread the only cost I should worry about?
Nope. Keep an eye on commissions, overnight swap fees, deposit/withdrawal fees, and even inactivity charges. Low spread doesn’t always mean low total cost.
10. Can I use Expert Advisors (EAs) with low spread accounts?
Yes, all three brokers—Octa, XM, and FBS—support EAs on MT4 and MT5. Just check if your account type allows automated trading and ensure latency is minimal.
11. What happens if spreads widen mid-trade?
Your stop loss or take profit might get triggered earlier than expected, especially during volatility. It’s not a glitch—it’s just the market being spicy.
12. Which broker offers the best spread for gold or XAU/USD?
FBS and Octa both offer tight spreads for gold, often dipping below 20 cents per pip. XM also competes closely, especially on the Ultra Low and Zero accounts.
13. Can I try these brokers without risking real money?
Yes! All three brokers offer demo accounts. XM sometimes even throws in a no-deposit bonus, so you can trade live without risking your cash—nice, right?
14. Are spreads the same on mobile platforms?
Generally, yes. The spread doesn’t change based on device. What might change is your execution speed depending on your internet—so maybe don’t trade NFP using hotel Wi-Fi.
15. Can I switch between account types later on?
Most brokers let you open multiple account types under one login. So yes, you can start with a standard account and switch to a zero-spread or ECN account later if you wish.
The Last Word on Forex Spreads
In the ever-competitive world of forex trading, spreads are like sneaky goblins nibbling at your profits. Choose wisely, and you’ll keep more of your hard-earned pips.
Octa, XM, and FBS are three of the best low-spread brokers in 2025—and they each offer something different. Whether you’re a careful planner or a high-speed trader with 10 tabs open, there’s a low-spread broker out there for you.
Ready to trade smarter? Pick your fighter, open a demo, and feel the spread-slaying power for yourself.