Lowest Spread Forex Brokers in the UK (2025)
Pepperstone
Forex Spread Score: 4.9/5
73.7 % 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 is our top pick for the lowest spread forex broker in the UK. It consistently delivers ultra-tight spreads, fast execution, and low commission accounts. Regulated by the FCA, it’s ideal for scalpers and day traders who need minimal trading costs.
How do the Low Spread Forex Brokers Rank?
| Rank | Broker | Typical EUR/USD Spread | Commission | FCA Regulated | Best For |
|---|---|---|---|---|---|
| 1 | Pepperstone | 0.0 – 0.3 pips | £0 (Standard) / £2.25 per lot (Razor) | Yes | Scalping & fast execution |
| 2 | SpreadEX | 0.9 – 1.5 pips (fixed) | None | Yes | Fixed spread reliability |
| 3 | IG | 0.6 – 1.0 pips | None | Yes | Trusted global reputation |
| 4 | CMC Markets | 0.5 – 0.9 pips | None | Yes | Advanced charting tools |
| 5 | XTB | 0.1 – 0.8 pips | None | Yes | Commission-free trading |
| 6 | eToro | 1.0 – 1.5 pips | Built into spread | Yes | Social & copy trading |
Which Forex Brokers in the UK Offer the Lowest Spreads?
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
- No proprietary trading platform
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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.
eToro – Best for Social Trading with Competitive Spreads
Pros & Cons
- Copy trading with top-performing traders
- Competitive spreads on major forex pairs
- FCA-regulated with strong brand trust
- Intuitive platform for beginners
- Spreads slightly higher than ECN brokers
- No support for MT4 or MT5
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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?
eToro does not charge commissions on forex trades; trading costs are included in the spread. There is a $5 withdrawal fee, and inactivity fees apply after 12 months. Swap (overnight) fees are standard for leveraged positions.
eToro’s spreads on EUR/USD typically range from 1.0 to 1.5 pips. While not as tight as ECN brokers, they are competitive for a commission-free model. Spreads remain stable during most trading hours, appealing to casual and social traders.
eToro uses its proprietary web and mobile platforms, designed for social and copy trading. The interface is beginner-friendly and includes sentiment data, watchlists, and integrated news. However, it lacks third-party platform support like MT4 or cTrader.
Yes, eToro is regulated by the FCA and is one of the most recognized names in online trading. It offers client fund segregation, negative balance protection, and adheres to all UK compliance standards.
eToro is ideal for beginners and social traders who want to follow or copy top-performing investors. It’s also a strong choice for casual forex traders who prefer simplicity, transparency, and community engagement over advanced trading 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.
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.
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 2025?
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
73.7% 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.
