Which forex brokers have the lowest spreads?
Verdict
- For a trader in the UAE, Pepperstone's Razor account has one of the lowest published spreads: a 0.1-pip average on EUR/USD, plus a commission of $3.50 per side ($3.00 on cTrader).
- XS publishes the same 0.1-pip EUR/USD average on its Elite account, with a $6 round-turn commission and a $500 minimum; FP Markets publishes 0.11 pips on its Raw account.
- IC Markets publishes a 0.01-pip average on Raw Spread, but our broker data does not list the UAE among the countries it accepts.
- Spread alone is not the price: on one lot of EUR/USD, Razor on cTrader costs about $7 in total, while Pepperstone's commission-free Standard account costs about $11.
The tightest spreads sit on raw-spread accounts, where the broker passes on the market spread and charges a separate commission. Among firms that accept UAE residents, Pepperstone's Razor account is our first choice: its 0.1-pip EUR/USD average is published, and so is the commission on every platform it supports.
Pepperstone Razor: a 0.1-pip average, published per pair
Pepperstone publishes average spreads, not only best-case minimums, which makes its numbers easier to compare. On Razor the published averages are 0.1 pips on EUR/USD, 0.2 on GBP/USD, 0.3 on USD/JPY and 0.12 on gold. The Standard account folds its cost into the spread instead, at 1.1, 1.2 and 1.3 pips on the same three currency pairs. For UAE residents, CFDs are issued by Pepperstone Markets Limited, licensed by the Securities Commission of The Bahamas (SIA-F217); the group also runs a DFSA-regulated company in the DIFC (F004356). You can fund in dirhams through Mashreq Bank or Barclays and start from $10.
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Averages vs 'from' figures: the published EUR/USD numbers
Brokers quote spreads in two ways. An average tells you what you typically paid over a period; a 'from' figure is the narrowest the spread got and says little about a normal day. Only averages belong in a head-to-head ranking, so the table separates the two.
| Broker and account | EUR/USD spread | Type | Commission per side |
|---|---|---|---|
| IC Markets Raw Spread | 0.01 pips | Average | $3.50 |
| Pepperstone Razor | 0.1 pips | Average | $3.50 ($3.00 on cTrader) |
| XS Elite | 0.1 pips | Average | $3.00 |
| FP Markets Raw | 0.11 pips | Average | $3.00 |
| Pepperstone Standard | 1.1 pips | Average | None |
| ActivTrades Individual | 0.5 pips | From (target) | None |
| eToro | 1 pip | From | None |
| CMC Markets FX Active | 0.0 pips | From | 0.0025% per transaction |
Which is the cheapest forex broker?
Add the commission back and the field tightens. For one standard lot of EUR/USD, opened and closed in a USD account at $10 a pip, the published averages work out as follows:
- Pepperstone Razor on cTrader: $1 spread + $6 commission = $7.
- XS Elite: $1 spread + $6 commission = $7.
- FP Markets Raw: $1.10 spread + $6 commission = $7.10.
- Pepperstone Razor on MT4, MT5 or TradingView: $1 + $7 = $8.
- Pepperstone Standard: 1.1 pips = $11, no commission.
Why the spread ranking is not the whole decision
Three brokers are within a few cents of each other per lot, so other costs decide it for a UAE trader. Pepperstone offers an AED base currency, which spares you a conversion on every deposit; XS lists only USD, EUR and JPY accounts. XS Elite needs $500 to open, against $10 at Pepperstone. Overnight swaps, charged on positions held past the daily rollover, can outweigh a 0.1-pip difference for anyone who holds trades for days. And averages move: check the live spread on your own platform at the hours you trade.
Sources
Spreads and commissions as published by each broker.
Is a 0.0-pip spread real?
It can be, for moments. A '0.0 from' figure is the narrowest quote seen, not what you will usually pay. Compare published averages instead: 0.1 pips on EUR/USD for Pepperstone Razor.
Does a lower spread always mean a cheaper broker?
No. Raw-spread accounts add a commission, so Pepperstone Razor at 0.1 pips plus $7 a lot on MT5 costs about $8 per round turn, while its Standard account at 1.1 pips costs about $11.
Why isn't IC Markets ranked first for UAE traders?
Its 0.01-pip Raw Spread average is the lowest in our data, but our broker data does not list the UAE among the countries it accepts.
CFDs are complex, leveraged products, and you can lose money rapidly. Spreads quoted here are broker-published averages or minimums and will differ from what you pay in live markets. Nothing on this page is investment advice.