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Britons who want to enjoy optimum returns should trade with a low spread forex broker. Tight spreads lower costs and increase potential returns. That said, while choosing the best low spread brokers, you must consider other factors, too, including security, licensing, and regulation. Our team has researched countless UK brokers and identified 5 outstanding service providers with low spreads and other positive attributes. We’ve reviewed these entities in our guide while focusing on providing factual, unbiased information.
Hundreds of thousands of Brits trade forex regularly. Sadly, many of these people have yet to realise their dreams of attaining phenomenal success. Why? For starters, they are trading with brokers that don’t have traders’ best interests at heart. These entities have inferior services and, above all, expose traders to high spreads.
One of the best ways to catalyse your journey to the top is by finding and trading with a low spread forex broker. That is advisable because low spreads help you avoid high expenses and increase your profit potential. With that in mind, we vetted hundreds of service providers in the UK and isolated 5 forex brokers with low spreads. Note that we didn’t focus on spreads alone while picking these service providers. Our experts also paid close attention to regulatory status, reputation, fees, and other factors.
List of the Best Low Spread Forex Brokers
- FP Markets – Overall Best Low Spread UK Forex Broker
- Pepperstone – Best Low Spread Forex Broker for Leverage Trading in the UK
- AvaTrade – Best Low Spread Broker for Forex Beginners in the UK
- Interactive Brokers – Best Low Spread Forex Broker for Professionals in the UK
- eToro – Best Low Spread Forex Broker for Investors in the UK
In This Guide
UK Forex Brokers with Low Spread: Comparison Table
Did you know there are thousands of forex brokers? The numbers have skyrocketed in recent years thanks to increased global connectivity and a spike in the demand for trading platforms. But here’s the catch: many of the available service providers have high spreads. You should avoid such entities because high spreads translate into increased trading costs and reduced potential profits.
That said, while choosing a good low spread forex broker, you also need to consider other indispensable factors. They range from licensing and regulation to fees and supported financial instruments. Let’s start with the most important factors, which we’ve highlighted in our first comparison table of the best low spread forex brokers.
| Best Low Spread Forex Broker | Licence & Regulation | Support Service | Software | Payment Method | Demo Account |
|---|---|---|---|---|---|
| FP Markets | FCA, MAS, FSCA, ASIC, CMA, CySEC, FSA | 24/7 | MT4, MT5, TradingView, cTrader, WebTrader, Mobile App, Copy Trading | Credit/debit cards, Neteller, Skrill, Bank transfer, Google Pay, Apple Pay | Yes |
| Pepperstone | FCA, MAS, ASIC, FSCA, DFSA, CySEC, CMA, SCB, BaFin | 24/5 | TradingView, MT4, MT5, cTrader, Pepperstone Trading Platform, Social trading | Visa, Mastercard, Bank transfer, Neteller, Skrill, PayPal | Yes |
| AvaTrade | FCA, MAS, FSCA, CBI, CySEC, PFSA, ASIC, B.V.I FSC, FSA, ADGM, ISA | 24/5 | WebTrader, AvaOptions, AvaTrade App, Mac Trading, MT4, MT5, Automated Trading | Credit/debit cards, Neteller, Skrill, Wire transfer, WebMoney | Yes |
| Interactive Brokers | FCA, SEC, FINRA, ICS, CBH, ASIC, SFC, MAS | 24/5 | IBKR Desktop, IBKR Trader Workstation (TWS), IBKR Mobile, IBKR GlobalTrader | Check, wire transfer, direct bank transfer (ACH) | Yes |
| eToro | FCA, MAS, CySEC, FSCA, ASIC, SFSA ADGM, MFSA, FSAS, GFSC, SEC | 24/5 | eToro investing platform and app, Multi-asset platform, Social Trading, Copy Trader, Smart Portfolios | Credit/debit cards, Bank transfer, Klarna, PayPal, Skrill, Neteller | Yes |
Brokers Short Overview
Paying close attention to every service provider’s fees is crucial since, like high spreads, excessive fees eat into your profit margins. For that reason, you should avoid trading platforms with exorbitant charges. Additionally, you must be keen and evaluate everything thoroughly since some brokers have hidden fees and ambitious fee-related mandates. Use the provided support channels to seek clarification if anything’s unclear or suspicious.
Don’t forget to check supported tradable assets before signing up with any broker. As a forex trader, you need a service provider that offers your favourite currency pairs and other assets for portfolio diversification. Here’s an overview of the assets and fees we discovered while researching and evaluating the best low spread brokers in the UK.
Fees
| Best Low Spread Forex Broker | Minimum Deposit Requirement | Commission/ Spreads | Deposits/ Withdrawals | Inactivity Fee |
|---|---|---|---|---|
| FP Markets | £100 | From 0.0 pips | Free | £0 |
| Pepperstone | £0 | From 0.0 pips | Free | £0 |
| AvaTrade | £100 | From 0.9 pips | Free | £50 after every 3 consecutive months of inactivity |
| Interactive Brokers | £0 | From 0.1 pips | Free | £0 |
| eToro | £100 | From 1.0 pips | £5 withdrawal fee | £10 monthly |
Assets
| Best Low Spread Forex Broker | Stocks | Forex | Crypto | Commodities | Indices | ETFs | Options |
|---|---|---|---|---|---|---|---|
| FP Markets | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Pepperstone | Yes | Yes | Yes | Yes | Yes | Yes | No |
| AvaTrade | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Interactive Brokers | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| eToro | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Our Expert’s Opinion about the Best Low Spread Forex Brokers UK
Let’s explore what we discovered while testing and evaluating the best low spread forex brokers in the UK. Before we dive in, note that all of the recommended service providers are regulated by the FCA. They are also licensed by numerous authorities in different jurisdictions, such as ASIC and CySEC. That makes these brokers 100% legit and credible.
1. FP Markets – Overall Best Low Spread Forex Broker in the UK
Our top pick is FP Markets, a company that’s headquartered in Sydney, Australia. Its users have access to 70+ FX assets, including popular pairs like GBP/USD, EUR/GBP, and GBP/AUD. Moreover, the trading platform allows traders to boost potential returns with flexible leverages of up to 500:1.
FP Markets offers some of the best spreads today. If you open a Raw account with this broker, you’ll enjoy low spreads starting from 0.0 pips. Standard account users also get the opportunity to benefit from ultra-competitive spreads starting from 1.0 pips. As if that isn’t alluring enough, this broker supports free transactions and charges zero inactivity fees.
We also consider FP Markets the best low-spread broker because the platform has countless additional financial instruments besides FX pairs. Currently, this broker’s customers have unlimited access to 10,000 tradable instruments, including CFDs on shares, cryptocurrencies, and precious metals.
FP Markets
✔10,000+ tradeable financial instruments
✔Free deposits and withdrawals
Pros & Cons
Fees
Trading Assets
Pros
- Over 10,000 instruments are offered here, including 70+ currency pairs
- Forex traders can enjoy low spreads starting from 0.0 pip
- High leverages of up to 500:1
- Excellent 24-hour support available 7 days a week
- Islamic forex trading accounts are provided
- Third-party platforms like MT4 and TradingView are available
- No account inactivity fee
Cons
- Limited educational resources
- Iress accounts have a £1,000 minimum deposit requirement
Before going any further, note that the FP Markets minimum deposit is £100. You can’t fund your account with anything less than the mandated amount. Also, as a trader, expect to cover stipulated FP Markets fees and commissions. Let’s expound on that.
FP Markets has different trading and non-trading fees. However, the costs you will likely incur depend on where you are from. Take London as an example. If you’re from this city, you’ll incur a 0.10% commission per side while trading equity CFDs. You’ll also have to pay a £60 monthly fee if you use Iress Trader or ViewPoint.
But here’s the good news. You won’t incur additional costs while depositing or withdrawing money from your FP Markets trading account. Moreover, unlike many other brokers, this service provider doesn’t have inactivity fees for dormant accounts.
Please visit FP Market’s official site for a comprehensive overview of all fees and commissions.
2. Pepperstone – Best Low Spread Forex Broker for Leverage Trading in the UK
Leverage offers you the opportunity to access larger positions and increase potential returns while trading with limited capital. Having said that, Pepperstone is the best low spread broker for leverage trading.
Pepperstone is an Australian brokerage firm that was founded in 2010. It’s a favourite for thousands of Britons and for good reasons. We love this platform because it gives traders access to over 90 currency pairs. Available FX-related instruments range from majors like GPB/USD and minors like GBP/NZD to crosses like EUR/GBP, exotics like GBP/DKK, and NDFs like USD/BRL. You can start trading major pairs on this platform and enjoy a spread as sharp as 0.0 pips.
The other admirable quality that Pepperstone has pertains to hosted trading platforms. This service provider allows its customers to trade with robust solutions like TradingView, MetaTrader 4, and Meta Trader 5. What’s more, forex enthusiasts can use their Pepperstone accounts to reap the fantastic benefits of copy trading.
Pepperstone
✔24/7 customer support
✔No inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- Over 90 currency pairs are available
- Low spreads starting from 0.0 pips
- MT4, MT5, and other platforms are hosted
- Users can engage in copy-trading
- No minimum deposit requirement
- Zero inactivity fees
Cons
- Limited learning materials
- Mostly focuses on CFDs
After evaluating Pepperstone, we opened a trading account for conducting extensive tests. The process was quick and easy.
But what impressed us most was the Pepperstone minimum deposit requirement. This platform has no minimum deposit, which makes it ideal for low-budget and high-budget traders. If you are a beginner, joining this broker is advisable since you can start with a low amount and increase your stakes with time. To top it off, Pepperstone supports free deposits and withdrawals. This broker allows you to use diverse payment methods for free, from Visa debit and credit cards to PayPal and domestic bank transfers.
When it comes to spreads and commissions, Pepperstone is very cost-friendly. You can open a Razor account with this broker and enjoy 20 commission-free trades. Pepperstone’s Standard accounts also have zero commissions. On the other hand, spreads start from as low as 0.0 pips for forex pairs like EUR/USD and 0.5 for commodities like XAUUSD.
Finally, unlike most of its peers, Pepperstone charges zero inactivity fees. However, any positions you hold overnight with this platform are subject to swap rates. Visit Pepperstone’s pricing page for a detailed account of how this broker calculated swap rates for different financial instruments.
3. AvaTrade – Best Low Spread Broker for Forex Beginners in the UK
As a newbie, you can benefit immensely from low spread forex trading. But before you make any life-changing moves, sign up with AvaTrade. The broker’s educational arm, Ava Academy, has free online trading courses that will help you increase your knowledge base and trade like a pro. Moreover, the platform has quizzes that can help you gauge your understanding of the fundamentals of forex trading before diving into forex trading.
We also recommend AvaTrade because the official site and supported trading platforms have a user-friendly interface. Opting for this broker will reduce the learning curve and save you much-needed time. Moreover, the easy-to-navigate layout will enable you to find everything you need quickly, reducing frustration, which can cloud your mind and undermine your ability to make the best decisions.
Finally, AvaTrade offers competitive spreads starting from 0.9 pips for popular pairs like EUR/USD, GBP/USD, and EUR/GBP. You can also diversify your portfolio with instruments like stocks from reputable companies like Apple, Google, and Amazon and enjoy tight spreads starting from 0.13%.
AvaTrade
✔Free deposits and withdrawals
✔Beginner-friendly user interface
Pros & Cons
Fees
Trading Assets
Pros
- Unmatched, cost-free educational materials
- Beginners can practice with £100,000 in demo mode
- Intuitive, beginner-friendly user interface
- Excellent support services
- Hosts MT4 and MT5 trading platform
Cons
- Higher inactivity fees than other service providers
- Fewer assets for portfolio diversification
Before going any further, note that there’s an AvaTrade minimum deposit requirement for UK traders. Fundamentally, this service provider requires Britons to fund their account with at least £100 while using supported payment methods like wire transfer, credit card, and e-payment. You should keep that in mind while funding your trading account.
That aside, while evaluating AvaTrade, we discovered that this broker has numerous fees and costs. For starters, it requires dormant account holders to pay a £50 inactivity fee. It kicks in after 3 successive months of dormancy, and the broker charges it after every 3 months.
Additionally, dormant AvaTrade accounts incur a £100 annual administration fee that takes effect after 12 months of inactivity. Not to forget, while trading with AvaTrade, you’ll have to cover an overnight premium whenever you keep a position open after the stipulated overnight funding time, which is 22:00 GMT.
Regarding spreads and commissions, AvaTrade is one of the most affordable brokers in the UK. With this platform, you will enjoy reasonable spreads starting from 0.13% while trading popular instruments like Tesla and Amazon shares are involved. AvaTrade doesn’t require traders to cover any commissions. The broker uses the Bid-Ask spread to compensate itself.
4. Interactive Brokers – Best Low Spread Forex Broker for Professionals in the UK
We urge professional traders looking for forex brokers with low spreads to check out Interactive Brokers. This infamous company was founded in 1978 and boasts millions of clients. It caters to both individual traders and institutions and has unique offerings for both.
As an individual trader in the UK, Interactive Brokers gives you access to 100+ currency pairs, from GBP/USD and USD/CAD to EUR/USD and GBP/JPY. These come with sharp spreads starting from 0.10 pips. Moreover, if you are a professional, you can use FXTrader, a powerful forex trading platform offered by Interactive Brokers. It has countless exceptional features, including 20+ order types like limit if touched, brackets, and trailing stop limits.
Not to forget, besides currency pairs, Interactive Brokers has a bottomless selection of financial instruments. They range from 48,000+ mutual funds to over 1 million bonds. While trading with this terrific broker, finding ideal products for portfolio diversification won’t be an issue. To top it all, the platform has no minimum deposit requirement and zero inactivity fees.
Interactive Brokers
✔No minimum deposit requirement
✔Zero inactivity fees for individual trading accounts
Pros & Cons
Fees
Trading Assets
Pros
- Thousands of financial assets are available, including 100+ forex pairs
- No minimum deposit requirement
- Advanced trading platforms are available, like the IBKR Trader Workstation
- Sharp FX spreads starting from 0.10 pips
- Forex traders can also invest in stocks and other assets
Cons
- It can be too complicated and overwhelming for novices
- Some funding methods have withdrawal fees, including bank/wire transfer
Numerous factors, including the £0 Interactive Brokers minimum deposit UK requirement, made our exploration easier and more enjoyable. This trading platform allows users to trade and invest with whatever they can afford, making it ideal even for traders and investors working with a restricted budget.
We were also wowed by the friendly Interactive Brokers fees UK policies. For starters, this company offers free deposits to people who use supported payment methods, including bank transfers. Only people who use physical currency deposits are subjected to a 1% special handling fee. Moreover, this service provider has zero inactivity fees and commissions as low as £0.0005 for stocks and ETFs.
5. eToro – Best Low Spread Forex Broker for Investors in the UK
Forex trading can be lucrative, no doubt. But, to minimise your exposure to catastrophic losses, consider investing while trading FX products. That way, your capital will be safe even if adverse movements occur in the forex markets. With that in mind, if you’d like to invest and mitigate your risk exposure, we recommend eToro.
eToro is a publicly traded company worth billions of dollars. It has excellent trading and investment platforms that have much to offer. For starters, you can trade over 40 global currency pairs on eToro and enjoy competitive spreads starting from 1 pip. What’s more, this platform gives you access to 5,000+ additional financial instruments, including CFDs on stocks, commodities, etc.
Lastly, as a forex trader, you can diversify your portfolio with real stocks and ETFs while trading with eToro. You can also trade the same assets at 0% commission. Also, eToro has a crypto trading platform where you can purchase and sell digital assets like Bitcoin, Ethereum, and Dogecoin. You can also stake crypto with eToro money and earn juicy rewards.
eToro
✔5000+ financial instruments
✔Cost-free deposits
Pros & Cons
Fees
Trading Assets
Pros
- Offers 5,000 financial assets to traders and investors
- Forex traders enjoy reasonable spreads
- Wonderful customer support services
- Top-quality educational tools and materials
- Features copy trading and investing options
Cons
- £5 fee for each withdrawal request
- £10 monthly account inactivity fee
If there’s anything that can eat away at your profit margins, it’s unnecessary costs. Thankfully, eToro fees UK are reasonable and pocket-friendly. We acquired a new account without paying a single cent, which was quite a relief. We also noticed that you can enjoy free deposits by using USD. That said, eToro supports many other currencies, including GBP, EUR, and RMB.
You will incur conversion fees if you use any currency other than USD. And if you use any currency that eToro doesn’t support, you must pay conversion fees to your payment provider. The exact conversion fees you may incur at any moment will depend on various factors, including your preferred currency and payment method.
Please note that eToro subjects each withdrawal request to a £5 fee. The platform uses this money to pay expenses arising from international money transfers. Most importantly, you can’t withdraw less than £30 from the eToro trading platform.
While depositing money into our account, we noticed that eToro has strict minimum deposit requirements. Britons using this platform have to deposit at least £100 the first time. Afterwards, you can fund your account with as little as £10, depending on your preferred payment method.
Commission-wise, eToro is very friendly to people who trade ETFs or invest in real stocks since the broker charges 0% for these assets. On the other hand, if you buy or sell crypto on this platform, expect to pay a 1% fee. CFD trading also attracts variable spreads depending on the involved instruments. For instance, the spreads for currencies and commodities start from 1 pip and 2 pips, respectively.
Not to forget, eToro charges a £10 monthly inactivity fee that kicks in after 12 months of dormancy.
Low Spread in Trading
Spread is difference between the bid (buy) and the offer (sell) prices for a specific asset. Low spreads are often favourable for forex traders since they minimise costs and boost potential profit margins. Note that forex brokers have different spreads. You must research and compare several promising service providers to get the best deals.
What is a Low Spread Forex Broker?
As the name suggests, a low spread forex broker offers low spreads. In other words, this service provider allows forex traders to enjoy relatively sharp bid-ask spreads. Some of the best low spread brokers offer spreads starting from 0.0 pips.
Check out our other guide on the top high leverage forex brokers in the UK.
How to Choose Low Spread Forex Broker UK
If you want a well-rounded experience, don’t choose brokers based on low spreads alone. Some service providers offer tight spreads, but their fees may be shockingly high. You may also find a low-spread trading platform with non-existent support or limited assets. To avoid such issues, you should also factor in the following when searching for the best low spread broker:
Licensing and Regulation
Reputation and Reliability
Trading Tools and Platforms
Supported Financial instruments
Customer Support Service
As a Briton, you should always trade with an FCA-regulated broker. That is the only way to ensure your funds are secure and that you enjoy fair trading practices. Before registering an account with any service provider, check it’s licensed and regulated by the Financial Conduct Authority as well as other authorities like ASIC.
Trading with a reputable low spread broker is more likely to result in outstanding experiences. Before signing up, visit the App Store, Google Play, and Trustpilot and check the reputation of your preferred service provider. You should prioritise trading with a broker with positive ratings and reviews, especially where customer service, transparency, and reliability are involved.
You should always check if a broker has outstanding proprietary trading platforms or hosts excellent options like MT4, MT5, and cTrader. Additionally, check if the available platforms come with remarkable features like real-time market data and robust charting tools. We encourage you to test each broker’s trading platforms with demo accounts whenever possible.
Forex traders need brokers who support forex trading. Before committing to a specific service provider, check if your preferred currency pairs are on the list of supported instruments. Furthermore, ensure the platform you plan to trade with has all the assets you need to diversify your portfolio effectively.
Don’t sign up before testing and evaluating your preferred low spread broker’s customer support service. The first thing you should check is the availability of support technicians. Then, use the supported channel to check if the company offers prompt, quality responses.
Read about the Opportunities in Trading Emerging Market Currencies in our other article.
How to Sign up for an Account with Low Spread Forex Broker UK
The low spread brokers reviewed here are authorised and regulated by the FCA. Consequently, they require new signees to verify their identity while signing up. But that doesn’t complicate anything; in fact, these service providers have a straightforward registration process. We’ve summarised it below:
Step 1: Visit the broker’s official site
Step 2: Register
Step 3: Verify your identity
Step 4: Fund your account
Step 5: Start trading
After selecting a fitting low spread broker, visit its official website. When you get there, spend as much time as possible evaluating every crucial element, from supported currency pairs and their spreads to mandated fees and charges. In addition, review the stipulated terms and conditions.
To register an account with an FCA-regulated, you must share certain personal information, including your name, occupation details, and physical address. You can’t skip that and must provide accurate information; otherwise, your application will be rejected. Also, your trading account can be hacked. To prevent this issue, set a strong password.
You must submit identification documents to gain full access to the services offered by an FCA-regulated broker. Most service providers ask signees to provide proof of identity and proof of address documents. Upload clear photos or copies of the required documents for quick verification and account approval.
Brokers support different funding methods. Check your preferred service provider’s list and pick one method. Then, while keeping minimum deposit requirements in mind, fund your new trading account. You should also check processing times for different funding methods to avoid nasty surprises.
Choose a currency pair and start trading. And remember, putting all of your eggs in one basket is a terrible idea. You should also minimise risk exposure by dedicating a small percentage of your capital in every trade and diversifying your portfolio with other financial instruments besides currency pairs.
Conclusion
Trading with a low spread forex broker isn’t the be-all and end-all to achieving success. If you focus on spreads alone, you may fall for a fraudulent service provider and lose your hard-earned money. Or, you may fail to notice issues like high account maintenance fees, which will still exacerbate your expenses. You must vet every low spread broker you encounter based on additional factors like credibility, fees, and reliability.
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