Brokers with the Lowest Spreads from Zero Spreads – 2022 Comparison

Brokers with the Lowest Spreads from Zero Spreads – 2022 Comparison

In this table we compare the average spreads of the most competitive regulated brokers, taking as reference three of the most traded pairs, namely: EUR/UD, GBP/USD and USD/JPY, with the aim of identifying which are the brokers with the lowest spreads. The spreads indicated refer to an average of the last 2 weeks, weekends excluded, and are to be considered net of any commissions applied by the broker.

Although spreads are an important element in the choice of a broker, they are not an indicative factor of execution quality, they do not take into account slippage and any other commission applied by the broker. For a more accurate choice, read the full reviews and comprehensively evaluate all aspects of platforms, security, support and conditions.

Why do spreads go up and why are they higher than initially advertised?

It often happens that during trading, the actual spreads do not match the initial spreads advertised by the broker, which is a standard situation that occurs in almost all cases. As market volatility increases, variable spreads widen for all brokers, which means that traders in turn, will find themselves with higher spreads that differ from the initial advertised values.

However, those who choose to trade on an ECN broker with variable spreads will actually benefit from lower spreads when market activity increases and trading volume increases, with spreads that can go way down or even be quoted at zero (zero spread). With market maker brokers (dealing desk) on the other hand, variable spreads never fall below the advertised value, they can only increase.

Fixed spreads on the other hand, although called “fixed”, can also be subject to change, but there are brokers who offer guaranteed fixed spreads that do not change, no matter what. They are higher on average, but on the other hand they guarantee greater stability.

All other brokers, on the other hand, offer fixed spreads with exceptions, meaning that they can change if the market becomes extremely volatile, such as during important news, major changes in unemployment or interest rates, consumer price indexes, retail sales, etc., while remaining fixed during other trading hours.

Also, it is good to know that it is common practice to increase spreads on weekends and at night.