Zero spread Forex brokers give accounts where the difference between the bid and ask price is zero and that reduces one of the costs in Forex trading.

If you are a Forex trader who wants to minimize trading costs, zero spread accounts are a highly attractive option. 

While these brokers often make money through commissions or markups on trades, they can be a cost-effective solution for active traders, scalpers, and those looking to execute high frequency trades.

Zero Spread Forex Brokers

Zero spread forex brokers make provision for accounts where the bid-ask spread is greatly reduced or minimized to zero. 

Instead of the broker earning from the spread, they normally would charge a fixed commission on trades or a markup on the execution price. 

Zero spread accounts are beneficial to traders who engage in high-frequency trading or scalping, as they can reduce trading costs over a large number of transactions.

However, it’s important to note that zero spread accounts often come with other fees or conditions that may offset the benefit of having no spread, such as higher commissions or specific trading requirements.

1. IC Markets

• Spreads: Starts from 0.0 pips on the Raw Spread account.
• Commission: $3.5 per side per 100k lot size.
• Leverage: Up to 1:500.
• Regulation: ASIC, CySEC.

IC Markets is recognized for its low spreads and fast execution speeds and that makes it the best for scalpers and day traders.

It offers a many trading platforms, including MetaTrader 4/5 and cTrader, and make provision for both beginners and professional traders.

IC Markets also offers robust customer support and is regulated by respected authorities like ASIC and CySEC.

Pros

Low spreads starting from 0.0 pips.

Fast execution and low latency.

Highly regulated by ASIC and CySEC.

Cons

Commission fees apply on raw spread accounts.

2. Pepperstone

• Spreads: Starts from 0.0 pips on Razor accounts.
• Commission: $3.5 per side per 100k lot size.
• Leverage: Up to 1:500.
• Regulation: ASIC, FCA, CySEC.

Pepperstone is another known broker that also offers zero spread accounts with competitive commission structures. The broker is regulated and offers excellent customer support.

Their Razor accounts are perfect for trading that is of high frequency, with ultra-low spreads and access to platforms like MetaTrader 4/5 and cTrader.

Pros

Low spreads and reliable execution.

• Spreads: Starts from 0.0 pips on the Raw account.
• Commission: $3 per side per 100k lot size.
• Leverage: Up to 1:500.
• Regulation: ASIC, CySEC.

FP Markets is another leading choice for traders who want zero spread accounts.

Their Raw accounts present competitive conditions for scalping and day trading, with low commissions and fast execution speeds.

FP Markets also presents both MetaTrader and IRESS platforms, making it a versatile choice for different trading styles.
Pros

Low spreads and fast execution.

Good leverage options (up to 1:500).

Regulated by ASIC and CySEC.

Cons

Commission-based pricing might not be ideal for all traders.

Strong regulatory framework (ASIC, FCA, CySEC).

Multiple platform options for traders.

Cons

The Razor account requires a higher minimum deposit.

3. Exness

• Spreads: Starts from 0.0 pips on the Zero account.
• Commission: $3.5 per side per 100k lot size.
• Leverage: Up to 1:2000 (depending on the account type).
• Regulation: FCA, CySEC, and others.

Exness is also another broker offering flexible leverage options, with some accounts offering up to 1:2000 leverage. The broker offers zero spread accounts that are particularly attractive to scalpers.

Exness also provides fast execution and excellent customer service. While the spreads start at zero, traders should be mindful of commission costs.

Pros

High leverage options (up to 1:2000).

Low commission structure.

Multiple regulatory licenses ensuring security.

Cons

Withdrawal fees for certain payment methods.

• High minimum deposit for certain account types.

4. FP Markets5. XM

• Spreads: Starts from 0.6 pips on UltraLow accounts (though not truly zero spread, it’s very close).
• Commission: No commission on Ultra Low accounts.
• Leverage: Up to 1:1000 (outside the EU).
• Regulation: CySEC, ASIC, IFSC.

XM delivers low spread accounts with no commission fees on the Ultra Low accounts. Though the spreads aren’t exactly zero, they are still low and offer excellent value, especially for traders who don’t want to deal with commission fees. XM is also regulated and it provides a strong selection of educational materials.

Pros

No commission fees on Ultra Low accounts.

Strong educational resources.

Highly regulated broker.

Cons

The spreads are low but not truly zero.

High leverage is not available to EU clients.

Factors to Consider in Zero Spread Forex Broker

Before you opt for any broker that offers Zero spread, you should study the different ones in order to make knowledge driven decisions at the end of the day. The following are factors you should consider before you choose any zero spread broker in forex trading:

1. Commission Fees

Even though a broker offers zero spreads, they often charge commissions on each trade. It’s important to factor in both spreads and commission fees when comparing brokers.

2. Regulation

 Choose a broker that is regulated by reputable authorities like ASIC, FCA, or CySEC. This ensures that your funds are safe and that the broker adheres to strict financial standards.

3. Leverage

 Some brokers offer high leverage, which can be beneficial for traders looking to maximize their positions. However, leverage increases risk, so be sure to use it cautiously.

4. Trading Platforms

Ensure that the broker offers platforms you are comfortable with, such as MetaTrader 4/5, cTrader, or proprietary platforms. The platform should be reliable and offer the tools you need for your trading strategy.

5. Customer Support

 A broker’s customer support can be crucial, especially if you encounter issues during trading. Make sure the broker has a responsive and helpful customer service team available through multiple channels.

6. Account Types

Brokers often offer a variety of account types with different conditions. Choose an account type that suits your trading style, whether you’re a scalper, day trader, or swing trader.

Frequently Asked Questions 

1. What is a zero spread account, and how does it benefit traders?

A zero spread account is an account where the broker eliminates or minimizes the bid-ask spread, which is typically the main cost of trading. Instead, brokers charge a commission on each trade.

This type of account is ideal for scalpers and high-frequency traders who need to execute many trades in a short amount of time. By eliminating the spread, traders can have a more predictable cost per trade.

2. Are zero spread accounts the best option for all traders?

While zero spread accounts can be beneficial for scalpers and active traders, they may not be the best option for everyone.

Traders who don’t trade frequently or who prefer a more pricing structure might find accounts with low spreads and no commissions more suitable.

It’s important to consider your trading strategy and style before choosing a zero spread account.

3. Do zero spread brokers charge hidden fees?

Zero spread brokers often charge commissions, and while this is typically transparent, it’s important to review the broker’s full pricing structure before committing.

Additionally, there might be other fees, such as withdrawal fees or inactivity charges. Always check the broker’s fee schedule to ensure there are no hidden costs that could affect your trading profitability.

4. Can I use leverage with zero spread accounts?

Yes, many zero spread brokers offer leverage, often up to 1:500 or even higher. However, it’s crucial to use leverage with caution, as it increases both potential profits and risks.

Always make sure you understand the leverage offered by your broker and consider your risk tolerance before trading with high leverage.

Conclusion

Zero spread forex brokers can be a fantastic option for traders who wish to minimize trading costs, especially for those who engage in scalping or high-frequency trading.

While many of these brokers charge commissions, the zero spread feature allows traders to avoid the typical bid-ask spread, which can accumulate over many trades.

IC Markets, Pepperstone, Exness, FP Markets, and XM are some of the top brokers offering zero spread accounts in 2024. Each offers its unique set of advantages, from low spreads and commissions to high leverage and regulatory compliance.

When choosing the best zero spread broker, consider the entire package, including commissions, leverage, and platform offerings, to ensure it aligns with your trading strategy and goals.