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Best Lowest Spread Forex Brokers
Trading in the financial markets requires paying careful attention to the spread. The spread is the difference between a security’s bid and ask price.
Spreads in conventional trading accounts are often large, reducing a trader’s potential earnings.
A zero gap or pip account is one in which the spread is either zero or very small.
In other words, zero-spread brokers have bid and ask prices for financial items that are identical or extremely near to each other.
This implies that the cost of trading is reduced since traders may join and leave at the same price.
In this guide, we’ll investigate low-spread forex broker accounts, how they work, and their pros and cons.
Table of Contents:
- Pros and Cons of Low Spread Forex Brokers
- Reviews: 10 Top Lowest Spread Forex Brokers in Australia
- 1. IC Markets
- 2. eToro
- 3. AvaTrade
- 4. FXCM
- 5. MultiBank
- 6. TMGM
- 7. Go Markets
- 8. FP Markets
- 9. Fusion Markets
- 10. Pepperstone
- Buying Guide
- Conclusion
- FAQs
Pros and Cons of Low Spread Forex Brokers ⚖️
Traders in search of an extra edge in the forex might consider a low-spread forex app. But what are the pros and cons of using them?
Pros
- ✔️ Reduced trading costs. The cost of trading decreases when the gap is closed or narrowed.
- ✔️ You can also get better trading odds as a result of quicker trade execution, which occurs when there is little to no gap or pip between when a transaction is entered and closed.
- ✔️ Transparency may improve as a result of ECN and STP trading models used, more information may be made available to traders.
- ✔️ Slippage, which happens when an order is executed at a price other than the one requested by the trader, is mitigated. Market volatility, a shortage of available funds, or both may all play a role. The possibility of slippage is considerably diminished with a minimal-pip account since the gap is so small, if not nonexistent.
- ✔️ Scalping is a trading method that takes advantage of slight price fluctuations by completing a large number of deals in a short amount of time. The transaction costs of each trade on a no-gap account are much lower, making scalping tactics more profitable.
Cons
- ❌ However, a no-gap transaction may only be accessible for a certain group of financial products.
- ❌ Because the spread is eliminated or much reduced with a no-gap account, traders have less influence over it.
- ❌ Dependence on the quality of execution from the selected broker: STP Trades are dependent on the quality of execution from the selected broker. A broker’s execution speed and dependability might have an adverse effect on a trader’s results.
- ❌ These deals might be impacted by the market’s dynamics and level of liquidity. Issues with transaction execution might arise when liquidity is low or volatility is high. It might be difficult to execute transactions at the intended price if there is a shortage of liquidity, which leads to slippage, or if there is considerable volatility, which widens the spread between the bid and ask prices.
How to Avoid Account and Credit Card Fraud ☠️
Reviews: 10 Top Lowest Spread Forex Brokers in Australia 📕
Now you understand the pros and cons of low-spread AU forex brokers. If your money is tight, remember that awareness is the most important thing.
Taking all of these factors into account, we settled on five small business loans as the most promising options available right now.
The 10 top Australian forex brokers are listed below. These suggestions are not based on personal experience but rather on research and reputation.
Let’s get started with our top-ten review:
- IC Markets — Our Favourite Aussie Lowest Spread Forex Brokers
- eToro — Runner-Up Top Lowest Spread Forex Broker in Australia
- AvaTrade — Major AU Lowest Spread Forex Provider
- FXCM — Low Rate AU Lowest Spread Forex Broker
- MultiBank — Popular Professional Low-Spread Forex Broker
- TMGM — Alternative International Low-Spread Forex Broker for CFDs
- Go Markets — Top-Rated Lowest Spread Forex Broker
- FP Markets — Leading Lowest Spread Forex Brokers Provider
- Fusion Markets — Well-Regulated Lowest Spread Forex Broker
- Pepperstone — One of the Lowest Spread Forex Brokers
1. IC Markets — Our Favourite Aussie Lowest Spread Forex Brokers
You can trust IC Markets because they are dependable, have reasonable prices, and provide you with all the resources you need to succeed. Since its inception in 2007, the firm has been committed to the strictest safety standards in the business world.
- ✔️ Under ASIC Law, Permit No. 335692.
- ✔️ Sydney, Australia headquarters.
- ✔️ Australian instruments include 8 currency pairings, 1 index, and 21 CFD stocks.
- ✔️ Cash in and out in Australian Dollars.
Some sites considered IC Markets’ trading costs to be quite competitive based on live testing of spreads, which showed EUR/USD spreads of 0.6 pips with commission-free offered on the Standard account to be very attractive. It offers its customers a selection of trading platforms, including the popular MetaTrader 4 and 5, as well as the more modern cTrader.
IC Markets provides instantaneous price feeds because to its extensive liquidity pool. Scalping, algorithmic trading, and day trading are just some of the trading methods that may make use of the excellent order execution offered to its customers.
With its main office located in Sydney, IC Markets is a favourite among Australian forex traders. It has over 65 different currency pairings accessible for trading and is well-known for its speedy execution. Raw spreads at IC Markets start at 0.0 pips, making it a very competitive broker. Furthermore, it provides a leverage of up to 1:500.
It does not use its own platform but rather offers MetaTrader 4, MetaTrader 5, and cTrader (all of which have free trial versions for desktop, web, and mobile use). ZuluTrade and Myfxbook are two further options for social trading and copy trading, respectively.IC Markets requires a minimum deposit of $200.
2. eToro — Runner-Up Top Lowest Spread Forex Broker in Australia
When it comes to copy trading, eToro provides a low-cost environment. If you’re interested in copy trading and other social trading capabilities, you should check out eToro. It features one of the biggest databases of successful retail traders from which to learn. Which means that, once you choose a trader, your account will mimic that trader’s every move.
Retail investors may purchase equities in markets as diverse as Australia, Japan, and the United States on eToro with no commissions to worry about. They, too, have low spreads (spreads = ask/bid price), but in addition to other expenses, such as a withdrawal charge, set themselves apart from even the finest fx brokers.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Capital is at risk. See PDS.
This may make them more costly than competing brokers, particularly during periods of extreme market volatility.
- ✔️ Large communities of copy traders.
- ✔️ Strong social trading network.
- ✔️ Popular forex assets will be updated regularly.
Based on this copy trading functionality, the broker was also included as an ATS. In addition to copy trading, automated trading may be used by traders via the use of bots and other software.
In sum, eToro is a user-friendly site designed specifically for copy trading. Although it has higher costs and a less user-friendly interface than some of the other low-cost brokers on our website. Make sure you’re the right kind of trader before signing up for eToro if you’re searching for a social trading broker with a sizable network.
3. AvaTrade — Major AU Lowest Spread Forex Provider
Since its founding in 2006, AvaTrade has established itself as a reliable business partner dedicated to satisfying its customers and saving money. The broker’s eight licences, including one from ASIC, demonstrate its credibility and legitimacy in the financial services industry throughout the world.
- ✔️ ASIC rules, Permit #406684.
- ✔️ Sydney, Australia headquarters.
- ✔️ 7 foreign exchange (FX) pairs, 7 FX currency options, an index, an exchange-traded fund, and a number of CFD shares are all examples of Australian instruments available.
- ✔️ Cash in and out in Australian dollars.
The various AvaTrade applications were determined to be quite useful and cutting-edge throughout testing. They make it simple to get entry to the several marketplaces offered by the broker. Runners can quickly and easily make orders and alter their running positions.
AvaTrade provides its customers with access to hundreds of CFDs and numerous vanilla options (European-style call and put options). We find this variety to be essential since it provides traders with a great deal of flexibility in how they approach trading opportunities.
We determined that the broker’s trading expenses for CFDs were generally lower than average. Foreign exchange (FX) and commodity spreads are included. Stock indexes and CFD shares are treated differently.
CFD-Regulated AvaTrade offers traders access to over a thousand different financial products across a variety of platforms. It first opened its doors in 2006. A free 21-day test account with $100k is available, and new customers may get a 20% welcome intro offer of as much as $10k.
The Irish government oversees it via the Central Bank. (No.C53877) The British Virgin Islands Financial Services Commission oversees Ava Trade Markets Ltd. South Africa, Australia, Japan, Cyprus, the Middle East, and Israel all have strict regulations on the subject as well.
You are unable to use AvaTrade if you are located in the United States, North Korea, New Zealand, Iran, or Belgium. No minimum withdrawal amount is required, and no fees for deposits above $100.
4. FXCM — Low Rate AU Lowest Spread Forex Broker
Not without reason, FXCM is among the top well-known brands in the online trading sector. Over the course of more than two decades, the broker has become one of the industry’s forerunners in terms of offering leveraged products.
- ✔️ Legal under ASIC rules; permit number is 309763.
- ✔️ Based in Australia’s Melbourne.
- ✔️ Cash in and out in Australian Dollars.
The instructional resources provided by FXCM are extensive and well-researched. From the fundamentals of technical analysis to more advanced topics like how to create a trading strategy, the articles and videos cover a wide range of topics relevant to novices.
Even inexperienced traders may save money with FXCM’s low spreads. We compared the spreads and other trading costs associated with FXCM’s Standard account type to the market average and found them to be competitive.
TradingView, MetaTrader, Trading Station, and NinjaTrader are just a few of the top platforms that this broker makes available to its clients.In a nutshell, FXCM equips you to rise from trading zero to trading hero.
FXCM is a British zero-commission broker that facilitates trading in shares, CFDs, and forex for customers all around the world. Their adequately regulated by the CySEC, ASIC, FCA, and FSCA, although it does not provide its services to traders in New Zealand, Hong Kong, and other countries.
Despite some legal issues in the past, FXCM is generally regarded as a trustworthy broker and has been around since 1999.
There are a total of 45 different currency pairs available for trading with FXCM, along with 7 cryptocurrencies, 15 stock index CFDs, over 200 individual stock CFDs, 12 commodities, and 1 bond CFD. There are two types of accounts available: the Standard account, which has a $50 deposit minimum, and the Active Trader account, which requires at least $25k. The only tangible difference between the two account types is that Active Trader account holders enjoy a lower spread.
The cost of trading is included in the spread and there is no fee charged by FXCM. There are no costs associated with opening accounts or making deposits using a debit card, bank account, or credit card, and the inactivity charge doesn’t apply until the account has been dormant for more than a year.
Withdrawing from a credit or debit card doesn’t cost anything, but transferring money to a bank account will. FXCM supports a number of major trading platforms, including MetaTrader 4, ZuluTrade, and NinjaTrader, but it also offers a respectable proprietary platform that can be accessed through the company’s website, desktop trader, and mobile app.
5. MultiBank — Popular Professional Low-Spread Forex Broker
MultiBank, established in 2005, has a number of licences that make it a formidable competitor for Australians seeking a well-regulated broker. Eleven internationally renowned organisations have given their stamp of approval, including ASIC, BaFIN, CIMA, FMA, and others.
But what exactly does “well-regulated” mean? Brokerage firm affiliates’ clients are not automatically covered by the regulatory framework of their parent firm. Nonetheless, the many approvals of MultiBank demonstrate its dependability.
- ✔️ Legal under ASIC rules; licence number is 416279.
- ✔️ Australia’s financial instruments include 8 currency pairs and 1 index.
- ✔️ Cash in and out in Australian Dollars.
In business since 2005, MultiBank Group is a full-service broker for foreign exchange (FX) and contracts for difference (CFDs) on equities, indices, metals, and cryptocurrencies. The popular MetaTrader platform is available via MultiBank Group, which also employs the no-dealing-desk ECN approach of order execution. MultiBank Group is a multinational conglomerate offering 20+ regions and approval regulatorily across 5 continents.
With so many licences under his belt, it’s evident that this broker is committed to building a strong reputation, which calls for strict oversight. As an ASIC-approved institution, MultiBank Australia follows all mandatory rules and regulations in the nation. Private indemnity insurance policies are also available through MultiBank.
MultiBank’s low spreads on CFD shares are just one example of how it maintains its position as a market leader while charging competitive trading costs. Those are available on the powerful and feature-packed trading platform MetaTrader 5 (MT5).
In summary, MultiBank Group is an excellent broker in many of the ways that matter most to seasoned traders. Costs for active traders may be kept to a minimum thanks to the low trading fees offered. Traders may utilise a wide variety of available payment options, all of which are rapid and cost nothing. Help for customers is available immediately. MAM/PAM, VPS Hosting, and the Fix API are just some of the tools offered to professional traders and money managers.
These updated teaching resources are especially helpful for newcomers. The leverage available to traders is enormous. The $1,000,000 Lloyd’s of London insurance coverage might finally put minds at ease about the security of financial assets.
6. TMGM — Alternative International Low-Spread Forex Broker for CFDs
Since its inception in 2013, TMGM might be considered a novice to the world of internet trading. Nevertheless, the broker has shown itself to be innovative, providing services on par with those of industry giants.
- ✔️ ASIC rules, Permit No. 436416.
- ✔️ Based in Canberra, Sydney and Melbourne.
- ✔️ Ten currency pairs and one index are represented by Australian instruments.
- ✔️ All transactions are processed in AUD.
TMGM has competitive spreads, commissions, and a wide variety of account options for its customers. We looked into their Classic account and found that it provides competitive pricing with commission-free trading and adjustable spreads for the EUR/USD at 0.9 pips. Traders of all stripes may find what they need in the broker’s wide variety of over 12,000 products across seven distinct asset classes.
While most retail traders utilise the popular MetaTrader 4 (MT4) platform, professionals may use the streamlined IRESS platform designed for stock trading.
Our research shows that TMGM is the ideal choice for Australian professionals because of a number of interrelated aspects. Fast order execution is guaranteed, first of all, since the broker uses seven different liquidity sources. Second, its many account options are suitable for high-frequency as well as high-volume traders. Third, it provides a comprehensive picture of ever-evolving trading prospects via its research materials.
Traders might find what they’re looking for in a broker at TMGM, since they provide a broad variety of services and resources. Since its founding in 2013, the Sydney-based firm has established itself as one of Australia’s foremost destinations for over-the-counter derivatives trading.
The multiple regulatory agency broker has created a variety of trading accounts to accommodate investors with various resources and objectives. TMGM also provides a decent, if not exceptional, selection of tradable instruments at rock-bottom prices. We found TMGM’s order execution to be quick and accurate, thanks in part to the depth of its liquidity provider network.
TMGM currently supports the industry-standard MetaTrader 4, and its replacement will be available shortly. The IRESS platform is better and more adaptable for professional traders. The main issue with TMGM is that it doesn’t cover a wide enough range of topics to be really informative.
7. Go Markets — Top-Rated Lowest Spread Forex Broker
Go Markets has been around since 2006, and in that time it has established itself as one of the lowest forex brokers in Australia that provides the best terms.
- ✔️ Authorization No. 254963 issued by the ASIC.
- ✔️ Melbourne, Australia headquarters.
- ✔️ Seven forex currency pairings, five CFD shares of Australian firms, and one index all count as Australian instruments.
- ✔️ All transactions are processed in AUD.
According to our research, the raw spreads and fixed commissions offered by Go Markets are competitively cheap. A virtual private server (VPS) is included in the service to facilitate rapid order processing. GO Markets’ traders have access to the powerful MetaTrader 4 and MetaTrader 5 platforms. One-click trading and similar features are shared across the two, simplifying the process of placing an order.
GO Markets is a safe CFD broker since it is backed by many regulatory bodies and has won multiple industry awards. Since its inception in 2006, the firm has worked to offer retail traders first-rate support by producing insightful original material and forming strategic alliances with some of the most well-known names in the sector.
The European branch of the broker has been approved and licenced by one of the most reputable authorities, CySEC, guaranteeing that it adheres to the highest standards of security. Traders of all stripes will appreciate GO Markets’ two major account categories, which provide competitively low to medium trading expenses across the board. The broker also provides access to in-depth research articles and prestigious learning resources.
The EU organisation has less than 70 marketable instruments, which is one of its major weaknesses. The range of available tools is enough for the development of a continuously successful approach. We also had issues with the broker’s customer service.
The broker is reliable and offers good terms for trading. GO Markets is a trusted partner for both novice and seasoned traders because to its extensive set of resources and stringent licencing standards.
8. FP Markets — Leading Lowest Spread Forex Brokers Provider
Trading is complex, and more features aren’t necessarily better, but FP Markets is a good example of a broker that gets it right by offering a wide range of customizable features. Since its inception in 2005, FP Markets has grown to become a worldwide financial services provider.
- ✔️ In line with ASIC, Permit No. 286354.
- ✔️ Specifically in Australia’s Sydney.
- ✔️ Australia-based forex products include eight currency pairings, over a hundred CFD shares, and a single index.
We found that more than 60 currency pairs, 10 commodities, 50 stocks, 4 cryptocurrencies, 15 indices, bonds, and ETFs are available for trading with this broker through CFDs. Raw spreads as low as 0 pips and instant order execution thanks to FP Markets’ unmatched liquidity pool underpin this variety. Trading with this broker is commission free with the Standard account, and at a fixed $6 round turn, the Raw account’s fee is competitive.
FP Markets’ clients may choose from a wide variety of trading platforms, including the popular MetaTrader 4 and 5, as well as the streamlined IRESS, which is well-suited to seasoned stock market investors. You can capture the essence of price movement behaviour with the three, which include several trading indicators and sketching tools.
FP Markets is able to produce ‘the more – the better’ because of the aforesaid combination of quantity and quality of services.
For many years now, FP Markets has been a trusted name in the world of internet trading. The broker was established in 2005 and is based in Australia with regional branches located all around the globe. Over 800 products from many markets are available to customers, along with favourable terms for placing orders, cheap costs, and other bonuses.
Traders of all experience levels may find what they need at FP Markets, as the company provides a comprehensive set of tools. It is a reliable broker since it provides its customers with all they need to achieve market success.
9. Fusion Markets — Well-Regulated Lowest Spread Forex Broker
Fusion Markets offers both the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms to its customers. In terms of market share, MT4 dominates the FX market, whereas MT5 dominates the CFD market.
The latter is particularly effective when trading indices, precious metals, energy, and cryptocurrencies, among other asset classes.
One of the most popular online trading communities can be found on the Myfxbook social trading platform, which is one of the trading platform extensions offered by Fusion Markets.
Myfxbook allows users to monitor and mimic the trades of other users, with the app itself selecting the most successful trading methods to mimic. Duplitrade, which is also exclusive to MetaTrader 4, allows users to mimic the trades of more successful traders.
Fusion Markets recommends opening a ZERO account, which requires a minimum deposit of $500. Since this is based on the Australian dollar, the conversion to US dollars will result in a much lower total. Trading options based on currency include:
- ✔️ Australian Dollars
- ✔️ Euro
- ✔️ USD
- ✔️ Japanese Yen
- ✔️ GBP
- ✔️ Singapura Rupiah
Most deposit and withdrawal options are free of charge. A $20 AUD charge is possible, however it will only apply to international wire transactions. Fusion Markets provides the following major deposit and withdrawal options:
- ✔️ Bank Wire Transfer
- ✔️ Payment Card
- ✔️ Credit Card
- ✔️ Neteller
- ✔️ Skrill
Opening an account in 2023 was simple thanks to the help of the Australian-based customer care staff, who were readily accessible through live chat and phone assistance. During non-business hours in Australia, customers may reach a contact centre in another country for assistance.
When considering spreads and costs, the Fusion Markets ZERO account has the lowest rates of any forex broker in June 2023, at $2.25 per side. The broker provides two of the most widely used trading platforms, no transaction fees for deposits or withdrawals, and good assistance to traders. Fusion Markets is the finest forex broker if you’re seeking for the lowest brokerage and can afford the minimum deposit of $500.
10. Pepperstone — One of the Lowest Spread Forex Brokers
Pepperstone is an STP broker with cheap fee rates, low spreads, and high-quality trading platforms, but no dealing desk. Pepperstone offers two different trading accounts, both of which have no minimum deposit requirements.
Pepperstone’s Standard Account has a bid-ask price (spread) as low as 0.6 pips and no commission costs since the spread covers the cost of brokerage services.
With a Razor Account, you may trade with zero-pip spreads and cheap commission rates, just as with an ECN account.
The three most widely used trading platforms in the world are all available via this broker: MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. Customers with a Razor Account are subject to varied commission structures across channels. If you sign up to trade with Pepperstone, you’ll get access to their top-notch trading platform, which has cheap costs, lightning-fast execution rates, and razor-thin spreads.
Trading institutional grade spreads from a retail investor account is possible because Pepperstone is a no-dealing desk (NDD) broker that utilises numerous liquidity sources to calculate prices and fulfil orders. Pepperstone’s MT4 broker offers you a smooth trading experience thanks to the following features:
- ✔️ Thanks to the broker’s Equinix servers in the New York data centre, trades are executed quickly, on average within 30 milliseconds, with little to no slippage.
- ✔️ Low commission rates and tight spreads starting at 0 pips.
- ✔️ CFDs on a wide variety of markets, including forex, indices, commodities, and digital currencies.
- ✔️ An abundance of learning resources, including a comprehensive 11-part course on MetaTrader 4.
Best Lowest Spread Forex Brokers in Australia 📕: 2023 Buying Guide
To begin, let’s begin with an explanation of a zero-spread account.
There are trading accounts available from certain brokers where the gap between the bid and ask price is nil or very close to it. On the other hand, depending on your broker and account type, spreads and other trading expenses (such as fees) may increase.
As long as no other commissions or fees are incurred, trading with a zero-spread account removes the financial burden of making trades. Keep in mind that knowing there was no spread when calculating trading expenses might make accounting simpler since commissions are often listed on a distinct column in most brokerage account reports.
Do Any Brokers Provide No-Spread Trading?
It’s likely that the spread is worse (greater) most of the time, despite the fact that many brokers boast zero spreads. This is why it’s important to look at more than just the minimal spread or the lowest spread of the day.
Therefore, when evaluating the genuine cost of a broker that claims to provide zero-pip spreads, it is crucial to simply rely on the average spreads. The bid and ask prices are identical when the spread is zero, meaning there is no price difference between them.
Only a small number of brokers in our sample provide EUR/USD spreads that average less than 0 pips, but you still have to pay a fee for each transaction, so the effective spreads end up being bigger on average. If a broker claims to give 0 pips and no commissions, you should exercise caution since they may be engaging in dubious execution practises or just being dishonest. That’s why you should only deal with reputable brokers that operate under strict regulations.
Commission-based accounts at Tickmill, FP Markets, and IC Markets, for example, offer spreads very close to 0; in fact, these brokers’ effective spreads on the EUR/USD pair range from 0.42 to 0.62 (based on monthly spread data from our testing).
Which Account Type Should I Pick? 💵 💳
If your trading technique is sensitive to spreads or if you merely want to minimise your trading expenses as much as possible, a trading account with no spreads may be the way to go.
Particularly in times of market volatility, when spreads might expand, it is important to take into account any additional fees and determine whether zero spreads are variable or fixed.
If your trading strategy depends on certain execution aspects, including preventing slippage (where your order might be filled at a lower price), you may want to avoid a zero spread account.
✔️ One advantage of zero spread pricing is that it makes it easier for high-frequency trading strategies that rely on price delays (also known as “latency”) to generate profits.
✔️ When there are execution delays or price requotes in rapid markets, zero spread pricing might be advantageous for high-frequency algorithmic trading based on technical indications. However, if your order is completed at a worse price due to slippage, the effective spread will be larger than zero.
Forex and CFD Fraud: How to Protect Yourself 💂
Scam brokers depend on the trusting nature of their clientele. Scammers often use the promise of rapid financial gain with no effort on the part of their victims.
The difficulty then becomes how to identify and avoid those who would abuse your confidence in order to take your money. You should, first and foremost, check into necessary permissions and guidelines. The safest course of action is to only deal with an honest and open broker.
You should also be wary of the places you provide personal information online. If you enter your information into a pop-up window or a seemingly harmless landing page that promises you huge riches, you may end yourself on a scammer’s calling list. Keep in mind that no legitimate broker will ever contact you out of the blue.
You should be wary of anybody who contacts you out of the blue and offers to help you become the next Warren Buffet. If a deal seems too good to be true, it often is. This adage rings especially true in the financial markets. That’s why it’s important to check all your options before committing to a broker.
Conclusion
Sydney is a major centre for the international foreign exchange market, which operates nonstop. Australian traders tend to be most active during the Asian trading period, which is often quiet but very volatile.
Among the qualifications Australian traders should demand from their brokers is registration with the Australian Securities and Investments Commission (ASIC). As the financial regulator of Australia, ASIC ensures the smooth functioning of all markets. Any broker wishing to provide derivatives trading solutions to Australian customers must first get an ASIC licence.
Finding a reliable partner who can meet all of your needs is an important first step while searching for the ideal broker. Our top-tier approach and comprehensive database of trader feedback allow us to identify the finest brokers for you.
Our suggestions are segmented so that traders of all stripes and with varying preferences and needs may quickly and easily choose a broker that meets their needs.
A zero-spread trading account is one that has no or a very small spread between buying and selling prices. The broker or market maker offering such an account use a non-STP or ECN pricing methodology to get the desired results.
Although there are certain benefits to using a zero-gap account, such as cheaper trading expenses, quicker execution, and more transparency, there are also some drawbacks. Traders should think carefully about the benefits and drawbacks of a zero-spread account before signing up for one.
FAQs
What does a raw-spread account have that a zero-spread account doesn’t?
In a raw-spread account, the broker or market maker sets the spread, or the difference in price, between buying and selling. Depending on the traded financial instrument and current market circumstances, the chasm or price differential may be fairly large. A zero-gap account, on the other hand, is a special kind of trading account in which the spread does not exist or is very small.
When trading foreign currency, who offers the lowest spread?
After taking into account trading expenses (i.e., any fees), Tickmill offers the lowest spreads (averaging 0.13 pips on the EUR/USD in August). The second position goes to CMC Markets, thanks to their low-priced FX Active service. FX Active offers minimal per-trade charges and zero-pip spreads on several of the most popular currency pairings.
A good rule of thumb for determining which forex broker has the narrowest spread is to average spreads over a certain time period, say one month. Consider the broker’s reliability, too, so that you get the finest execution, pay the spread you’re owed, and steer clear of traps like asymmetrical slippage.
How about no-brokerage FX trading?
You’ll need to open a brokerage account to trade foreign exchange, where you’ll have access to a trading platform and several currency pairings as well as a set amount of leverage (margin). To protect yourself from being a victim of a forex trading scam, you should only work with reputable brokers that have the required regulatory licences.
Users of cryptocurrencies who are interested in FX trading using stablecoins should know that a decentralised exchange is not a viable alternative. Wider spreads are possible, and even if zero spreads are promised, there is no way to guarantee optimal execution, which might lead to severe slippage.
What is a good forex broker for scalping?
If you’re interested in scalping, go no further than IC Markets, whose Raw Spread Account offers 0% spreads (plus fee). Because of its support for cTrader and MetaTrader, IC Markets is popular among algorithmic traders. You may use these platforms to execute high-frequency trading tactics, such scalping, automatically, and even place orders between the spread.
Your broker’s business strategy, especially its order execution policy during quick markets when spreads might widen, is more essential than whether or not they claim to provide Straight Through Processing (STP) or an Electronic Communications Network (ECN).
Is it legal to trade forex in Australia?
Foreign exchange (currency) trading in Australia is common among both locals and foreigners who choose to work with a broker headquartered in the country. The Australian Securities & Investments Commission (ASIC) is the country’s financial markets regulator, and any Australian forex broker that wants to accept forex and CFDs traders must first get licenced by ASIC. You can access ASIC online at asic.gov.au. The ASIC Twitter account is @ASIC_Connect, and users should follow it as well.
National regulatory authority ASIC was established in 1998 following the dissolution of the Australian Securities Commission (founded in 1991) to administer the Insurance Act of 1984, the Corporations Act of 2001, and the National Consumer Credit Protection Act of 2009. ASIC reports to the treasurer.
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