Lowest Spread Forex Brokers in the UK (2026)
To determine which UK forex brokers offer the tightest spreads, we analysed only FCA-regulated platforms and examined their advertised average spreads and commission pricing based on the most recent data available for 2026.
Pepperstone
Forex Spread Score: 4.9/5
72% of retail CFD accounts lose money.
Spreadex
Forex Spread Score: 4.7/5
65% of retail CFD accounts lose money.
Quick Answer: Who Is the Best Low Spread Forex Broker in the UK?
Pepperstone stands out as our leading choice for the lowest-spread forex broker in the UK. The platform is known for consistently tight pricing, rapid trade execution, and competitive commission-based accounts. With FCA regulation in place, it’s particularly well suited to scalpers and day traders who prioritise keeping trading costs to a minimum.
What’s New in 2026
In 2026, Pepperstone continues to refine its offering with a strong focus on execution quality, pricing transparency, and platform performance. Recent updates have centred on improving order execution speed and maintaining consistently tight spreads during volatile market conditions.
The broker has also enhanced its platform ecosystem, with ongoing refinements to MetaTrader and TradingView integrations, making it easier for traders to analyse markets and execute strategies efficiently. Risk management tools and account controls have seen incremental improvements, supporting both active traders and those scaling up from demo accounts.
Which Forex Brokers Offer the Lowers Spreads?
| UK Forex Broker | FCA Regulated | Avg. Spread (pips) | EUR/USD | GBP/USD | USD/JPY |
|---|---|---|---|---|---|
| Pepperstone | Yes | 0.4 | 0.1 | 0.2 | 0.2 |
| Spreadex | Yes | Fixed (varies) | 0.9 | 1.4 | 1 |
| IG | Yes | 0.59 | 0.16 | 0.24 | 0.59 |
| CMC Markets | Yes | 0.50* | 0.5 | 0.9 | 0.6 |
| XTB | Yes | 0.49 | 0.09 | 0.14 | 0.14 |
| Capital.com | Yes | 0.7 | 0.6 | 0.8 | 0.7 |
Top 6 Low Spread Forex Brokers in the UK Reviewed
Pepperstone – Best Overall Low Spread Broker
Pros & Cons
- Extremely low spreads on major pairs
- Razor account ideal for scalpers
- Fast order execution with minimal slippage
- Multiple platforms including MetaTrader & cTrader
- Razor account includes commission
- Wealth Requirements for signing up
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What Are the Fees and Costs?
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What Are the Typical Spreads?
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Which Platforms and Tools Are Available?
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Is This Broker Regulated and Safe?
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Who Is This Broker Best Suited For?
Pepperstone offers two account types: Standard (spread-only) and Razor (spread + commission). The Razor account charges £2.25 per lot per side. No deposit or withdrawal fees, and overnight swap charges apply for holding trades past market close.
On Razor accounts, EUR/USD spreads start from 0.0 pips during liquid hours. Standard accounts offer spreads from 1.0 pip with no commission. Average spreads remain low across major forex pairs, making Pepperstone ideal for cost-conscious traders.
Pepperstone supports MetaTrader 4, MetaTrader 5, and cTrader. Traders benefit from advanced charting, Expert Advisors (EAs), Smart Trader Tools, and Autochartist. Fast execution and API access make it a strong choice for automated and algorithmic trading.
Yes, Pepperstone is FCA-regulated in the UK, providing client fund segregation and negative balance protection. It has a strong global reputation and is known for transparency and compliance with strict financial standards.
Pepperstone suits scalpers, day traders, and algorithmic traders seeking ultra-low spreads and lightning-fast execution. It’s also ideal for experienced traders using MT4/MT5 or cTrader who prioritize cost-efficiency and platform flexibility.
CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 61% of retail CFD accounts lose money when trading CFD’s with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Spreadex – Best Fixed Spread Forex Broker
Pros & Cons
- Fixed spreads for transparent pricing
- FCA-regulated and UK-based
- No commissions on forex trades
- Simple platform for beginners
- Fewer advanced trading tools
- Limited platform features compared to peers
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What Are the Fees and Costs?
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What Are the Typical Spreads?
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Which Platforms and Tools Are Available?
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Is This Broker Regulated and Safe?
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Who Is This Broker Best Suited For?
Spreadex charges no commission on forex trades; all costs are built into the fixed spread. There are no deposit fees, and withdrawals are free. An inactivity fee may apply after prolonged non-use. Overnight financing charges apply for leveraged positions.
Spreadex offers fixed spreads starting from 0.9 pips on EUR/USD. These spreads remain constant regardless of market volatility, which appeals to traders who value cost certainty over ultra-tight variable pricing.
Spreadex provides its own proprietary trading platform via web and mobile. While it lacks MT4/MT5, it offers intuitive navigation, basic charting, and live news. It’s suitable for beginner to intermediate traders who don’t require advanced tools.
Yes, Spreadex is regulated by the Financial Conduct Authority (FCA) in the UK. The broker ensures client fund segregation and offers negative balance protection, maintaining compliance with UK financial standards.
Spreadex is best for beginner to intermediate traders who want predictable costs through fixed spreads. It’s ideal for those looking for a simple, FCA-regulated broker with straightforward pricing and no hidden fees.
CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 61% of retail CFD accounts lose money when trading CFD’s with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
IG – Most Trusted Brand with Tight Spreads
Pros & Cons
- Established, FCA-regulated UK broker
- Tight spreads on major currency pairs
- Powerful proprietary and third-party platforms
- Strong research tools and educational content
- Higher minimum deposit than some competitors
- Forex commissions on DMA account
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What Are the Fees and Costs?
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What Are the Typical Spreads?
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Which Platforms and Tools Are Available?
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Is This Broker Regulated and Safe?
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Who Is This Broker Best Suited For?
IG offers spread-only pricing on standard accounts with no added commissions. A commission is charged only on Direct Market Access (DMA) forex accounts. There may also be overnight funding fees and an inactivity fee after 24 months of no trading.
Spreads on EUR/USD typically average 0.6 to 1.0 pips for retail traders. IG maintains tight spreads across major forex pairs during liquid market hours. DMA account holders can access raw spreads plus a commission per trade.
IG offers its advanced proprietary trading platform with rich charting, analysis tools, and integrated Reuters news. It also supports MetaTrader 4, ProRealTime, and APIs for advanced trading setups. Both web and mobile apps are highly rated for usability.
Yes, IG is fully FCA-regulated in the UK and is one of the most trusted names in trading. It has decades of operational history, strong capital reserves, and client fund segregation, ensuring a secure and compliant trading environment.
IG is best suited for traders who value a trusted name, reliable platforms, and strong market research. It’s a great choice for both beginners and professionals looking for tight spreads and access to extensive trading tools and global markets.
CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 61% of retail CFD accounts lose money when trading CFD’s with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CMC Markets – Best for Advanced Charting and Low Spreads
Pros & Cons
- Tight spreads with no added commission
- Award-winning charting platform
- FCA-regulated and well-established
- Strong educational resources
- Inactivity fee after 12 months
- No MetaTrader 5 support
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What Are the Fees and Costs?
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What Are the Typical Spreads?
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Which Platforms and Tools Are Available?
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Is This Broker Regulated and Safe?
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Who Is This Broker Best Suited For?
CMC Markets offers spread-only pricing with no commissions on forex trades. There are no deposit or withdrawal fees. An inactivity fee of £10/month applies after one year of no trading. Swap fees apply to overnight positions.
EUR/USD spreads typically range from 0.5 to 0.9 pips. CMC maintains competitive spreads across major and minor forex pairs, particularly during peak trading hours. No commission is added, making it a low-cost choice for most retail traders.
CMC offers its proprietary Next Generation platform, known for advanced charting, over 115 technical indicators, and integrated Reuters news. It also supports MetaTrader 4 for those who prefer third-party platforms. Mobile and web versions offer seamless trading experiences.
Yes, CMC Markets is FCA-regulated and has operated in the UK for over 30 years. It offers negative balance protection, segregates client funds, and adheres to stringent compliance standards, making it a secure broker for UK traders.
CMC Markets is best for traders who want powerful charting tools and competitive spreads without commissions. It’s particularly appealing to technical analysts, swing traders, and anyone needing detailed market insights from a user-friendly yet professional-grade platform.
CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 61% of retail CFD accounts lose money when trading CFD’s with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XTB – Best for Zero Commission Low Spreads
Pros & Cons
- Zero commission trading on all accounts
- Tight spreads with no hidden fees
- xStation 5 platform is fast and intuitive
- Strong FCA-regulated presence in the UK
- No support for MetaTrader
- Limited product range for advanced traders
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What Are the Fees and Costs?
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What Are the Typical Spreads?
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Which Platforms and Tools Are Available?
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Is This Broker Regulated and Safe?
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Who Is This Broker Best Suited For?
XTB charges zero commissions on forex trades. Trading costs are fully built into the spread. There are no deposit fees, but inactivity fees apply after 12 months. Overnight swap fees apply for positions held beyond the trading day.
Typical spreads on EUR/USD start from 0.1 to 0.8 pips, depending on market conditions. As spreads are variable, they may widen during high volatility. XTB maintains competitive pricing even without charging commissions, making it cost-effective for all trader types.
XTB provides its proprietary xStation 5 platform, known for speed, simplicity, and powerful analysis tools. It includes integrated news, market sentiment, and economic calendars. The platform supports both desktop and mobile trading but does not offer MetaTrader.
Yes, XTB is regulated by the UK’s Financial Conduct Authority (FCA). It maintains high compliance standards, segregates client funds, and offers negative balance protection, ensuring strong trader security and operational transparency.
XTB is ideal for beginner to intermediate traders looking for a clean, low-cost trading environment. It’s perfect for those who prefer zero commissions, tight spreads, and a well-designed proprietary platform with built-in analysis tools.
CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 61% of retail CFD accounts lose money when trading CFD’s with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Capital.com – Best for AI-Powered Trading with Tight Spreads
Pros & Cons
- AI-driven insights to improve trading decisions
- Competitive spreads from 0.6 pips on EUR/USD
- FCA-regulated with negative balance protection
- Clean, intuitive platform ideal for beginners
- No MT5 support (MT4 only)
- Variable spreads may widen in volatile markets
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What Are the Fees and Costs?
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What Are the Typical Spreads?
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Which Platforms and Tools Are Available?
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Is This Broker Regulated and Safe?
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Who Is This Broker Best Suited For?
Capital.com does not charge commissions on forex trades; all costs are built into the spread. There are no withdrawal fees, no deposit fees, and no inactivity fees. Overnight financing charges apply to leveraged positions held past market close.
Capital.com offers competitive variable spreads across major forex pairs. EUR/USD starts from 0.6 pips, GBP/USD from 0.8 pips, and USD/JPY from 0.7 pips. Spreads are tighter during peak trading hours when liquidity is highest. While not as low as ECN brokers like Pepperstone, the spreads are competitive for a commission-free broker and consistently beat many retail-focused platforms.
Capital.com offers a proprietary web platform and mobile app, both featuring AI-powered analytics that track your trading behaviour and highlight potential biases. The platform includes 75+ technical indicators, advanced charting, customisable watchlists, and real-time price alerts. MetaTrader 4 is also available for traders who prefer industry-standard software with EA support. The mobile app is highly rated for its clean design and fast execution, making it easy to manage trades on the go.
Yes, Capital.com is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 793714. Client funds are held in segregated accounts with top-tier banks, kept separate from company operating funds. UK retail clients are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 if the firm were to fail. The platform also offers negative balance protection, ensuring you cannot lose more than your deposited funds.
Capital.com is ideal for beginner to intermediate forex traders who want a modern, user-friendly platform without the complexity of traditional trading software. The AI-powered insights are particularly valuable for newer traders looking to develop better habits and avoid common mistakes. Competitive spreads and a zero-fee structure make it cost-effective for active traders, while the clean mobile app suits those who prefer trading on the go. If you’re after raw ECN spreads or MT5 functionality, Pepperstone or IG may be better options – but for a balance of simplicity, smart tools, and tight pricing, Capital.com delivers.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
What Are Low Spread Forex Brokers and Why Do They Matter?
Low spread forex brokers offer tighter bid-ask differences, reducing trading costs on every position. For active traders, even minor savings per trade can significantly boost profitability. Choosing brokers with consistently low spreads ensures better value, especially during high-frequency or short-term trading strategies.
What Is a Spread in Forex Trading?
A spread is the difference between the bid (sell) and ask (buy) price of a currency pair. It represents a broker’s markup and a trader’s cost. Tighter spreads mean lower costs, especially in high-volume or short-term trading strategies like scalping.
Why Should You Choose a Broker with Low Spreads?
Low spread brokers minimize the cost of entering and exiting trades, especially on high-volume positions. Lower trading costs lead to more efficient risk-reward ratios and are essential for day traders, scalpers, and anyone focused on short-term market movements.
When Can Spreads Widen and What Should You Watch Out For?
Spreads can widen during volatile events, low liquidity hours, or unexpected economic releases. Traders should be cautious during off-peak hours and news events. Fixed-spread brokers offer predictability, while variable-spread brokers may offer lower average costs but higher risk during volatility.
Which Forex Brokers in the UK Have the Lowest All-In Trading Costs?
Trading costs depend on more than just the advertised spread. Brokers often add a commission per trade, which significantly impacts the total expense. Calculating the “all-in” cost for a standard one-lot EUR/USD trade provides a fairer comparison of which broker offers the cheapest trading conditions.
All-In Cost Per 1 Lot EUR/USD Trade
| Broker | Spread (pips) | Commission (per lot side) | Total Cost (USD approx.) | FCA Regulated |
|---|---|---|---|---|
| Pepperstone | 0.1 (Razor) | £2.25 | $7.50 | Yes |
| IG | 0.6 (Standard) | £0 | $6.00 | Yes |
| CMC Markets | 0.0 (FX Active) | $2.50/side ($5 round trip) | $5.00 | Yes |
| XTB | 0.8 | £0 | $8.00 | Yes |
| Capital.com | 0.6 | Built-in | $6.00 | Yes |
Why Does “All-In Cost” Matter More Than Just Spreads?
A broker’s headline spread can look appealing, but it rarely tells the full story. Some firms add commissions on top of spreads, while others build charges directly into pricing. Calculating the all-in cost ensures traders compare total expenses accurately across different account structures and brokers.
Here is an example for Pepperstone how the spread and commission cost can vary depending on the account type and positions traded:
Illustrative round-trip costs
Assumes 1 pip ≈ £10 per £100k notional.
Which Low Spread Brokers Charge the Lowest Non-Trading Fees?
Beyond spreads and commissions, traders must consider non-trading fees. These include overnight swap charges for holding leveraged positions, inactivity fees after prolonged account dormancy, and withdrawal costs. Such charges often impact long-term or low-frequency traders more than active day traders, making transparency essential.
Non-Trading Fees Comparison
| Broker | Inactivity Fee | Withdrawal Fee |
|---|---|---|
| Pepperstone | None | None |
| IG | £12/month after 24 months idle | None |
| CMC Markets | £10/month after 12 months idle | None |
| XTB | €10/month after 12 months idle | None |
| Capital.com | None | None |
| Spreadex | None | None |
How Do You Choose the Right Low Spread Broker in the UK?
Choosing the right broker involves evaluating spread consistency, platform reliability, FCA regulation, and trading costs. Beyond just tight spreads, you’ll want a trusted, safe environment, low fees, and account features that align with your trading style and volume.
What Account Types Should You Consider?
Most brokers offer standard (spread-only) and ECN/Razor (spread + commission) accounts. ECN accounts usually have lower spreads but involve per-trade fees. Choose based on your trading frequency: high-volume traders often benefit more from commission-based ECN pricing models.
Do Lower Spreads Always Mean Better Value?
Not always. While low spreads reduce costs, commissions, slippage, and execution speed also matter. Some brokers offer zero-spread accounts with high commissions, which may not be ideal. Total cost per trade and platform performance define real value—not just tight spreads.
What Role Do FCA Regulation and Safety Play?
FCA regulation ensures your broker meets strict financial standards, protects your funds, and operates transparently. Regulated brokers offer negative balance protection, client fund segregation, and dispute resolution processes—making them a safer choice for UK-based forex traders.
How Do Spreads Impact Your Profitability as a Trader?
Spreads directly affect your bottom line by determining how much you pay to enter and exit trades. Tighter spreads reduce overall trading costs, especially in high-frequency strategies. Over time, choosing a low spread broker can make a significant difference in net returns.
What’s the Difference Between Raw and Standard Spreads?
Raw spreads reflect the actual market bid-ask difference, often starting from 0.0 pips, but require a commission per trade. Standard spreads include broker markup but are commission-free. Raw accounts suit high-volume traders; standard accounts appeal to casual or beginner traders.
Are Low Spreads Better for Scalping and Day Trading?
Yes, low spreads are critical for scalping and day trading, where traders execute many trades for small profits. Even minor spread differences can add up quickly, so tight pricing ensures lower costs per trade and maximizes potential profit margins.
What Other Trading Costs Should You Factor In?
Besides spreads, consider commission fees, overnight swap charges, withdrawal fees, and inactivity penalties. Some brokers also charge for data feeds or premium tools. Always compare total cost per trade, not just the spread, when evaluating a broker’s pricing model.
Final Thoughts: Which Low Spread Broker Should You Choose in 2026?
The best low spread forex broker depends on your trading style and platform needs. Pepperstone stands out for execution and pricing, while XTB suits zero-commission traders. IG and CMC offer robust tools. Prioritize regulation, trading costs, and platform quality when deciding.
Seamless Trading Across Platforms
- Low Spreads and Fast Execution
- Multiple Account Types
- Advanced Trading Platforms
72% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
FAQs
What’s a good spread for EUR/USD?
A good spread for EUR/USD is typically between 0.0 to 1.0 pips. ECN accounts may offer raw spreads from 0.0 pips plus commission, while standard accounts average around 1.0 pip with no added fees. Lower spreads mean reduced trading costs.
Can I get zero spread accounts in the UK?
Yes, several UK-regulated brokers offer zero spread accounts, usually under ECN or Razor pricing models. These accounts feature raw market spreads from 0.0 pips but charge a fixed commission per trade. They’re ideal for scalping and high-frequency strategies.
Reputable FCA-regulated brokers disclose all trading fees. While low spread brokers reduce visible costs, hidden fees may include overnight swaps, inactivity charges, or withdrawal fees. Always check the full fee schedule and account terms before opening a trading account.
Which broker is best for low spread scalping?
Pepperstone is one of the best brokers for low spread scalping. It offers 0.0 pip raw spreads, fast execution, and supports MetaTrader and cTrader. Its Razor account structure makes it ideal for traders executing multiple short-term trades per session.
