Compare Low Spread Brokers

Lady trading on laptopLow spreads are a critical factor to becoming a profitable trader. In fact, it can be argued that low spreads are the most important consideration when looking for a broker to trade with.

For those new to online trading, the lower the spread, the cheaper it is to trade. The wider or bigger the spread, the more expensive it is to trade, all else being equal.

During our research to find the best low spread brokers, we were actually appalled at how expensive some brokers were, compared to others. Some brokers charge 4-5 times more than others!

Below we have listed the cheapest, low spread brokers. All are regulated and most even hold more than one regulatory licence.

The Best Low Spread Brokers in 2021

The brokers listed below all offer some of the lowest spreads going around. All data is accurate as of 1st Sept 2021.

As you will see, TD365.com is the broker that consistently offers the lowest spreads on the listed markets. More on them below.

SPREAD
Aus200
0.9pt (Fixed)
1pt (Fixed) From 1pt From 1.2pts
US30
1pt (Fixed)
1.6pts (Fixed) From 2.4pts From 1.6pts
DAX30
0.9pt (Fixed)
1pt (Fixed) From 1.2pts From 1.6pts
UK100
0.4pt (Fixed)
1pt (Fixed) From 1pt From 1.2pts
JP225
4pts (Fixed)
8pts (Fixed) From 8pts From 8pts
AUD/USD 0.6 pips (Fixed) 0.9 pips (Avg.) 0.77 pips (Avg.)
From 0.4 pips
EUR/USD 0.6 pips (Fixed) 0.8 pips (Avg.) 0.69 pips (Avg.)
From 0.1pips
AUD/JPY
1.2 pips (Fixed)
2.8 pips (Avg.) 1.47 pips (Avg.) From 1.5 pips
GBP/USD
0.8 pips (Fixed)
1.8 pips (Avg.) 0.88 pips (Avg.) From 1 pip
Gold 3pts (Fixed) 3pts (Variable)
1.3pts (Avg.)
From 3pts
Silver 2pts (Fixed) 2pts (Fixed)
1.09pts (Avg.)
From 1.9pts
Crude Oil 3pts (Fixed)
5pts (Fixed)
2.3pts (Avg.)
From 3pts
Bitcoin
30pts (Fixed)
From 35pts 31.39 (Avg.) N/A
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And….. The Best Low Spread Broker is….

 

Our recommended low spread broker is TD365.com and if you viewed the table above, you will see it is an easy decision to make!

This broker is hard to beat when it comes to low-cost trading, with its spreads consistently the lowest in the industry. We challenge you to find a cheaper broker!

Check out this video for confirmation that they are the best low spread broker: https://www.youtube.com/watch?v=fnAO6hyVwaQ&t=3s.

TD365 are regulated in both Australia and The Bahamas, and offer fixed spreads 24/5. They offer leverage of up to 200:1, although Australian residents can only access leverage of 30:1.

What is a Low Spread?

Firstly, not everyone will know what the spread is so here we attempt to explain.

The spread is the difference between a broker’s buy price and its sell price. For example, a broker may quote their Bitcoin price as 50,000 – 50,020; where 50,000 is the selling price and 50,020 is the buy price. What is the difference in price? Well, we hope you got 20 – that is the spread!

The spread can also be considered the cost of trading. It is what you must pay to open a trade and the broker keeps this commission as a way to make money off it’s clients. It is 100% legitimate – all brokers charge spread.

A low spread is when a broker charges you less to trade, in comparison to another. For instance, TD365 charge a 1 point spread on the Wall St 30 index and Pepperstone charge 2.4 points. Which one is cheaper to trade with? Easy, it is TD365 by some margin!

Are There Different Types of Spread?

Yes, there are. The two different types are:

  1. Fixed spreads or
  2. Variable, floating or dynamic spreads.

You can learn about each by clicking here.

What is Considered a Low Spread?

This will very much depend on which asset class you are trading and who with.

Here are some of the most popular markets and what we would suggest is a low spread for each:

  • Wall St 30 Index: 1.2 points or less.
  • German 30 Index (Dax): 1 point or less.
  • EUR/USD: anything in and around 0.6 pips or lower.
  • GBP/USD: 0.8 pips or lower is pretty good.
  • Brent Crude Oil: 3 points or less is acceptable.
  • Gold: 3 points or less.
  • Bitcoin: anything under 35 points is decent value.

Never forget that the lower the spread, the cheaper it is to trade.