Which is the cheapest forex broker in the UK?
Verdict
- Pepperstone is the cheapest UK forex broker we can show on published averages. A round trip of one EUR/USD lot costs $7 on Razor via cTrader, $8 on MT5 or TradingView, and $11 on the commission-free Standard account.
- Rivals such as CMC Markets, IG, Spreadex and Tickmill UK publish 'from' spreads, which are minimums, so their typical cost can't be worked out from their own pages.
- Outside the UK, IC Markets publishes a lower Raw average of 0.01 pips, but none of its regulators in our data is the FCA.
- Monthly costs grow with volume: at 20 lots of EUR/USD a month, Pepperstone Razor costs $140 on cTrader and Standard costs $220.
The cheapest broker is the one with the lowest total cost per trade on the pairs you use: spread plus commission, plus overnight financing if you hold positions. Pepperstone is the only FCA-authorised firm in our data that publishes an average EUR/USD spread, so it's the only one whose real cost we can calculate. Here is the calculation, and how far the 'from' prices elsewhere get you.
Pepperstone is cheapest on published averages
Pepperstone's Razor account averages 0.1 pips on EUR/USD, and commission depends on platform. In a USD account it's $3.00 per side on cTrader and $3.50 on MT5, TradingView and Pepperstone's own platform. MT4 charges $7 per lot up front. In a GBP account it's £2.25 per side. One lot opened and closed therefore costs $7 on cTrader and $8 on MT5. The Standard account has no commission and averages 1.1 pips, so the same lot costs $11.
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Which forex broker has the lowest spreads?
Among FCA-authorised firms, Pepperstone has the lowest published average spread we found: 0.1 pips on EUR/USD on Razor. Several rivals advertise lower-looking numbers that measure something else. CMC Markets' FX Active and Tickmill UK's Raw account both start 'from 0.0', but that is the best case, not the typical spread. Beyond the UK, IC Markets publishes a 0.01-pip average on its Raw Spread account plus $3.50 commission per side. Its licences in our data are from Seychelles, CySEC and ASIC, not the FCA, so a UK resident wouldn't get a UK-regulated account. For the lowest spread with no commission at all, Pepperstone's spread bets start at 0.5 on EUR/USD.
Can you compare trading costs across the major UK forex brokers?
Yes, as long as you keep the pricing models apart. The last column shows a round-trip cost only where the firm publishes an average spread.
| Provider | Model | Published spread | Commission | Round trip, 1 lot |
|---|---|---|---|---|
| Pepperstone Razor (cTrader) | Raw + commission | 0.1 pips average | $3.00 per side | $7 |
| Pepperstone Standard | Spread only | 1.1 pips average | None | $11 |
| CMC Markets FX Active | Raw + commission | From 0.0 | 0.0025% per side (about €2.50 on €100,000) | Can't be calculated |
| Tickmill UK Raw | Raw + commission | From 0.0 (account level) | $3 per side | Can't be calculated |
| IG | Spread only | From 0.6 points | None | Can't be calculated |
| Spreadex | Spread only | From 0.6 points | None stated | Can't be calculated |
| Saxo UK | Spread | Minimum 0.7 pips | Not in our data | Can't be calculated |
| eToro UK | Spread only | From 1 pip | None stated | Can't be calculated |
| Capital.com | Spread only | Live only | None stated | Can't be calculated |
What a month of trading costs at Pepperstone
Volume decides how much the choice of account matters. These figures assume 20 round-trip lots of EUR/USD a month at the published averages:
- Razor on cTrader: 20 × $7 = $140.
- Razor on MT5 or TradingView: 20 × $8 = $160.
- Standard: 20 × $11 = $220.
- If you hold positions overnight, financing may cost more than any of these differences, so check the swap rates on the pairs you hold.
Sources
Is a commission-free forex account cheaper?
Not on Pepperstone's averages. Its commission-free Standard account costs $11 per EUR/USD lot round trip, against $7 to $8 on Razor including commission.
Why can't I compare 'from' spreads directly?
A 'from' spread is the lowest the spread is expected to go, while an average is what you typically pay. Comparing one firm's minimum with another's average makes the firm quoting a minimum look cheaper than it is.
Does Pepperstone charge to deposit or withdraw in the UK?
Card, Apple Pay, Google Pay and bank deposits are free. Its withdrawals table also lists every method as free, but a costs FAQ mentions £15 for international wires.
Low trading costs don't reduce the risk of leverage. CFDs and spread bets can lose you money rapidly, and 73.6% of retail investor accounts lose money with Pepperstone Limited. Spreads are variable and the averages shown are as published by each broker. Not investment advice.