Thadeus Geodfrey and finance are inseparable. He is a versatile expert with a strong cryptocurrency and market analysis background. Thadeus provides a unique blend of technical and strategic insights as a seasoned financial writer. His overarching probe and attention to detail inspire the InvestingGuide community. He guides you through the continuously evolving market landscape to build solid investments or make successful trades.
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Forex trading is one of the most common investment practices in the UK, with hundreds of thousands of traders venturing into the market. While some have earned good profits, others never get to realise their potential. This is primarily due to the fact that they’re trading with brokers that offer substandard services and, worst of all, high spreads that eat into profits.
One of the smartest moves I’ve ever made as a trader is choosing a low spread forex broker. Lower spreads translate to lower costs, which automatically limits the potential for massive losses. To help other traders, I’ve individually sifted through hundreds of UK forex brokers and shortlisted the top 4 with the lowest spreads. But I didn’t stop there. I also looked at other considerations, which we will discuss in this guide.
List of Forex Brokers with Low Spread
Here is my personally recommended list of low spread forex brokers after conducting some tests and comparisons.
- Pepperstone – Best for Leverage Trading
- FP Markets – Overall Best
- Interactive Brokers – Top Option for Professionals
- eToro – Best for Investors
In This Guide
Compare Brokers Table
Did you know that literally hundreds of forex brokers exist? With increasing numbers of people trading worldwide, new platforms pop up all the time. But here’s the thing—not all brokers are the same. Some of them offer high spreads, which translates into higher trading costs and lower margins. And let me tell you, I’ve learned the hard way that even a small difference in spreads makes a huge difference in the long term.
For this reason, finding a low spread forex broker is so important. But spreads aren’t the only thing that matters. You also need to look at regulation, fees, available trading instruments, and overall reliability. To make things easier, I’ve put together a comparison table of the best low spread forex brokers, breaking down everything that really matters.
| Best Low Spread Forex Broker | Licence & Regulation | Support Service | Software | Payment Method | Demo Account |
|---|---|---|---|---|---|
| Pepperstone | FCA, MAS, ASIC, FSCA, DFSA, CySEC, CMA, SCB, BaFin | 24/7 | TradingView, MT4, MT5, cTrader, Pepperstone Trading Platform, Social trading | Visa, Mastercard, Bank transfer, Neteller, Skrill, PayPal | Yes |
| 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 |
| 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 |
Fees & Commissions
As an experienced trader, I always review a broker’s fee structure very carefully before I join. Some websites try to sneak in hidden fees or complicated charges that are not clearly obvious. So, I ensure that I drill down, read the fine print, and even reach out to support if something does not seem right.
Another serious consideration is what assets are available for trading. The forex broker should have my preferred currency pairs and decent diversity of instruments to diversify the portfolio. The last thing I want is to sign up, deposit, and discover they don’t offer the assets I need.
In a bid to save your time, I have summarised an overview of the best low spread UK brokers’ fees. You can compare to discover an option that aligns with your requirements.
Fees
| Low Spread Forex Broker | Minimum Deposit Requirement | Commission/ Spreads | Deposits/ Withdrawals | Inactivity Fee |
|---|---|---|---|---|
| Pepperstone | £0 | From 0.0 pips | Free | £0 |
| FP Markets | £100 | From 0.0 pips | Free | £0 |
| Interactive Brokers | £0 | From 0.1 pips | Free | £0 |
| eToro | £100 | From 1.0 pips | £5 withdrawal fee | £10 monthly |
Brokers Reviews
Having personally compared and tested the top low spread forex brokers in the UK, I’ve put together detailed information on all of them. But first, understand that each one of these brokers is FCA-regulated. That is, they have gone through rigorous security and transparency requirements. Most of them are also regulated by other global institutions like ASIC and CySEC, which is another way to gauge their legitimacy.
Below are my mini reviews of the best forex brokers with low spreads. Feel free to compare for informed choices.
1. Pepperstone – Best for Leverage Trading
If you’re looking for a forex broker with excellent leverage limits, Pepperstone is the one to watch. Leverage lets you open larger positions for less capital, and Pepperstone provides some of the lowest rates available.
I’ve been trading with Pepperstone for a while now, and I love how it offers access to over 90 currency pairs. You can trade major pairs like GBP/USD, minors like GBP/NZD, crosses like EUR/GBP, exotics like GBP/DKK, and even NDFs like USD/BRL. And if you’re trading majors, spreads are as low as 0.0 pips, which is a cost-effective trader’s paradise.
Another aspect that caught my eye is the trading platforms supported. You will have access to TradingView, cTrader, MT4, and MT5, all of which are excellent for analysis and execution. And if copy trading is your passion, you can easily replicate the moves of the pros directly from your Pepperstone account.
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.
2. FP Markets – Overall Best
After extensive testing on multiple platforms, FP Markets is my best overall. Located in Sydney, this broker lists 70+ FX pairs, including popular favorites like GBP/USD, EUR/GBP, and GBP/AUD. And should you want to maximise potential returns with leverage, FP Markets boasts a flexible 500:1 for professional clients.
One of the biggest reasons I recommend FP Markets is that it has ultra-low spreads. When you open a Raw account, you have the privilege of experiencing spreads from 0.0 pips, which is a huge advantage for cost-sensitive traders. Even the Standard account has competitive spreads of 1.0 pips. Apart from that, there are no inactivity fees, and transactions are completely free.
Apart from forex, FP Markets offers investors more than 10,000 instruments to trade, including CFDs on precious metals, cryptocurrencies, and stocks. I also find its support service reliable through the supported channels.
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 leverage limit 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.
3. Interactive Brokers – Top Option for Professionals
For any professional trading, Interactive Brokers is the site to use. This long-standing firm, established in 1978, accommodates millions of traders worldwide. This includes individual investors as well as institutions, both of which have tailored services to use.
As a UK individual trader, you are given access to 100+ currency pairs like GBP/USD, USD/CAD, EUR/USD, and GBP/JPY, with low spreads starting at 0.10 pips. Moreover, if you are a professional, you can use FXTrader, a powerful forex trading platform offered by Interactive Brokers. It’s perfect for pro-level traders. It comes equipped with powerful tools and 20+ order types like limit if touched, brackets, and trailing stop limits that add versatility to your strategy.
But forex is not everything. Interactive Brokers boasts a gargantuan asset universe, from 48,000+ mutual funds to over 1 million bonds, which I believe is ideal for building a diversified portfolio. And, there is no minimum deposit requirement and no inactivity charges.
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.
4. eToro – Best for Investors
While forex trading can be extremely lucrative, the risk of catastrophic losses is always there. To protect your capital, it is only sensible to combine forex trading with other investments, especially if you want to minimise your exposure to sudden market movements. That is why eToro is the ideal platform for investors.
Being a listed company with a value of billions, eToro offers a safe and robust platform for trading and investing. It has excellent trading and investment platforms that have much to offer. You can trade over 40 major currency pairs on eToro, with the spreads starting from 1 pip, hence it is a good option for forex traders. But eToro does not stop here. It also offers you the facility to invest in over 7,000 other financial products, such as CFDs on stocks, commodities, etc., so that you can diversify your portfolio with ease.
What I like most about eToro is that one can trade actual stocks and ETFs when trading forex with 0% commission. Besides this, eToro is also a suitable broker for trading crypto. One can trade well-known digital assets like Bitcoin, Ethereum, and Dogecoin or even stake crypto using eToro Money and collect some pleasant 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.
Check out our other guide on the top high leverage forex brokers in the UK.
How to Choose Low Spread Broker
Finding a low spread broker can be overwhelming, especially when there are so many to pick from. But here’s the twist—low spreads do not always mean an excellent trading experience. Some brokers might lure you in with excellent spreads but then charge you an arm and a leg in commissions, have abysmal customer support, or limit your trading abilities. To help you steer clear of these pitfalls, here’s what I focus on when choosing a low spread broker in the UK.
Licensing and Regulation
Reputation and Reliability
Trading Platforms and Tools
Supported Financial Instruments
Customer Support Service
To begin with, I make sure the broker is regulated by a reputable body. For me, being a UK trader, this is ensuring they are regulated by the Financial Conduct Authority (FCA). The FCA shields brokers from being unfair and holding client funds safe. I also make sure there is extra regulation by bodies like ASIC (Australia) or CySEC (Cyprus). If a broker is not licensed or the details of their licensure are not readily available, I steer clear of it. It just isn’t worth the risk.
A broker’s word is his honor. I never fail to read reviews on places like Trustpilot, the App Store, and Google Play to know what other traders experience. Positive reviews about transparency, reliability, and customer support are a good sign, while a lot of complaints about hidden fees or late withdrawal are red flags. No broker is perfect, but a satisfactory overall rating (4 stars and above) normally means that you can trust him.
The platform is where the magic occurs, so it has to be stable and feature-packed. I prefer brokers that offer platforms like MT4, MT5, or cTrader since they’re renowned for their rich charting features and live market feeds. I also check whether the platform is user-friendly and if it supports a mobile app for trading on the go. Demo accounts are available with most brokers, and I use these to try out the platform before investing.
As a forex trader, you’ll want your preferred currency pairs to be supported by your broker. Also, consider brokers that support other assets like stocks, commodities, and cryptocurrencies. It’s through diversifying your portfolio that you manage risk, so it pays to select a broker that offers you many options.
Good customer service is a must. I always test a broker’s customer support by calling them up with a couple of questions before I sign up. I find out if they are available 24/7 or five days a week, how quickly they respond, and if their answer is helpful. If they are slow to respond or don’t respond at all, I am put off.
Read about the Opportunities in Trading Emerging Market Currencies in our other article.
How to Start with Low Spread Broker
It is simpler than you would have imagined to begin with a low spread broker, especially if you choose one that’s regulated and trustworthy. All the above brokers are FCA authorised and regulated, which implies they have rigid regulations to ensure your trading is secure and clear. Here follows a simple step-by-step procedure on how to begin.
Step 1: Visit the broker’s official website
Step 2: Register your account
Step 3: Verify your identity
Step 4: Fund your account
Step 5: Start trading
Once you’ve chosen a broker that fits your needs, head over to its official website. Take your time to explore everything it offers. Check out the currency pairs it supports, the spreads it charges, and any fees or commissions that might apply. Don’t forget to read through its terms and conditions. It’s always good to know what you’re signing up for.
Registration is usually quick and easy. You will need to provide some fundamental details, including your name, occupation, and address. Double-check that all the details you enter are accurate. FCA-regulated brokers take this seriously, and errors can mean that your application is rejected. Spend a minute or two making sure you have a good password too to protect your account.
To comply with FCA regulations, you’ll need to verify your identity. This typically involves uploading documents like a passport or driver’s license for proof of identity and a utility bill or bank statement for proof of address. Make sure the documents are clear and legible to speed up the verification process. Once approved, you’ll have full access to the broker’s services.
Now, it’s time to fund your account. The low spread brokers described above usually have various payment methods such as bank transfers, credit/debit cards, or e-wallets. Look at the minimum deposit and choose a method that best suits you. Keep in mind that some may take longer than others to receive, so be ready well ahead of time.
With your account setup and funded, you can now start trading. Choose a currency pair you like and go for it. But remember, trading is about risk management. Do not put all your money into one trade. Instead, allocate it in various trades and spread it out in other financial products like stocks, commodities, and others. By doing this, you are minimising risk and maximising your chances of success.
How we test
I work with a team of experts at InvestingGuide to research and compare brokers in depth. We test all aspects of trading platforms and regulation, as well as spreads, fees, and customer support. To get a balanced perspective, we also take a sample of user reviews from Google Play, the App Store, and Trustpilot. By combining our test results with real user opinions, we ensure our reviews are correct and reliable. Wondering how? Find out more on our How We Test page.
Final Thoughts
Low spreads may save you money, but it’s not all that matters. A decent broker must also enjoy good regulation, transparent fees, reliable platforms, and excellent customer service. Always take the time to research and compare brokers thoroughly. Don’t rush into decisions. Instead, test their services with a demo account if possible, and read reviews from other traders. Remember, the right broker should align with your trading goals and provide a secure, user-friendly experience. By balancing low spreads with these key factors, you’ll be better equipped to make informed decisions and enhance your trading success.
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