Table of Contents
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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

5 Best Low / Zero Commission Forex Brokers [year]

Commissions and spreads are the two primary trading costs Forex traders should evaluate. Forex traders who keep positions open overnight, especially leveraged ones, must also consider swap rates, one of the most overlooked fees.

While it appears as a low-cost offer, at first sight, most commission-free pricing environments have higher overall trading costs compared to the best Forex brokers with low commission rates.

Read on to view my shortlist of the best low commission Forex brokers below, followed by an explanation of their associated account types and other issues, and an explanation as to how to choose the best low commission Forex broker for you.

1
4.9/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Raw spreads from 0.0 pips for volume-based commissions between $0.80 and $4.00
Average price improvement of 0.30 pips per lot on 97.18% of orders
2
4.9/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Commission-free Forex fees with reasonable markups from 0.9 pips or $9.00 per lot
VPS hosting for demanding Forex traders using algorithmic trading 24/5
3
4.8/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
0.0 pips Forex spreads for a $6.00 per 1.0 standard round lot commission
Deep liquidity and low latency order execution & VPS hosting for 24/5 Forex trading
4
4.7/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
A $7.00 per 1.0 standard round lot commission for raw Forex spreads from 0.0 pips
Forex VPS hosting & fast order execution with premium liquidity providers
5
4.6/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Raw spreads of 0.0 and 0.1 pips for commissions of $4.00 and $6.00, respectively
Tier-1 banks with deep liquidity pool & VPS hosting for low-latency 24/5 Forex trading

Best Low Commission Brokers Comparison

Regulators
CMA, CySEC, FCA, FSC Mauritius, FSCAASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFIDASIC, CySEC, FSCAASIC, CySEC, FCA, SCBFMA, FSA
Year Established
20112006200520092014
Execution Type(s)
ECN/STP, Market MakerMarket MakerECN/STPECN/STP, Market MakerECN/STP, No Dealing Desk
Minimum Deposit
$500
$100
$100
$100
$0
Average Trading Cost EUR/USD
0.1 pips0.9 pips1.1 pips1.0 pips1.3 pips
Average Trading Cost GBP/USD
0.2 pips1.5 pips1.4 pips1.2 pips2.0 pips
Average Trading Cost Gold
$0.18 $0.29 $0.21 $0.12 $0.90
Trading Platform(s)
MetaTrader 4, MetaTrader 5, Proprietary platformOther, MetaTrader 4, MetaTrader 5, Web-based+MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-basedMetaTrader 4, MetaTrader 5, Trading ViewMetaTrader 4, MetaTrader 5, Trading View
Islamic Account
Negative Balance Protection

FXTM

In Summary Best all-around broker with high floating leverage and fast execution

FXTM remains one of the best-priced Forex brokers industry-wide. The commission between $0.80 and $4.00 per round lot, dependent on monthly trading volume, ranks among the cheapest industry-wide, especially for high frequency and high-volume traders. The contract specifications list a minimum spread of 0.1 pips, available on five currency pairs, confirming broad-based liquidity. FXTM fixes MT5 commissions at $4.00 per lot, but they remain flexible based on volume in MT4.

The minimum deposit is $500 to get access to the FXTM Advantage account, but traders with a $25,000 portfolio qualify for commission-free trading and raw spreads of 0 pips. The FXTM dynamic leverage consists of six tiers. The minimum is 1:25 for trades with a notional value of $8M+, and the maximum is 1:2000 for transactions up to $50,000.

Read more on FXTM »
4.9/5 in this category

Pros & Cons

  • Excellent commission-based Forex pricing environment and transparency
  • Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
  • Quality market research and educational content for beginner traders
  • A highly regulated broker with a tier-1 license
  • No cryptocurrencies and limited choice of commodities

AvaTrade

In Summary Highly regulated, choice of fixed or floating spreads

AvaTrade is one of the largest Forex / CFD brokers and well-known for offering their clients a choice of fixed or floating spreads. They have a very high and strong level of regulation. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava offers maximum leverage on Forex currency pairs as high as 400 to 1. AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. 2 bonds and 6 ETFs are also on the menu.

Read more on AvaTrade »
4.9/5 in this category

Pros & Cons

  • High-quality educational offering via SharpTrader
  • Excellent choice of trading platforms catering to various trading needs
  • Broad asset selection and cross-asset diversification opportunities
  • Well-regulated and trusted broker with oversight from a central bank
  • Trading costs competitive but nothing special

FP Markets

In Summary ECN trading with leverage up to 1:500

FP Markets charges $6.00 per 1 round lot for raw spreads of 0 pips, and its minimum deposit is only $100. This places FP Markets among the best Forex brokers with the lowest capital requirements for access to low-cost commission pricing structures. FP Markets list minimum spreads of 0 pips on 35 currency pairs, but average one tick higher, with the EUR/USD and the USD/JPY at 0.1 pips, while the rest clocks in above that. Traders also get maximum leverage of 1:500 and order execution of 40 milliseconds, ideal for scalpers and high-frequency traders.

Adding to the advantages at FP Markets are upgraded MT4/MT5 trading platforms with twelve plugins and VPS hosting. Manual traders can rely on third-party services from Autochartist, while MAM/PAMM accounts support retail account management. FP Markets also developed its proprietary FP Markets Copy Trading, available alongside Myfxbook Autotrade and the embedded MT4/MT5 copy trading service.

Read more on FP Markets »
4.8/5 in this category

Pros & Cons

  • Choice of trading platforms and auxiliary trading tools
  • Very competitive cost structure and excellent asset selection
  • Low minimum deposit requirement and leverage of up to 1:500
  • Well-regulated and trustworthy
  • Availability of Iress geographically restricted

Eightcap

In Summary Competitive pricing + excellent daily videos

Commission-based cost structures usually offer lower trading fees versus commission-free alternatives contrary to widespread belief. Eightcap belongs to the cheaper Forex brokers with US Dollar commissions of $7.00 per 1.0 standard round lot. Euro commissions are €5.50, and British Pound commissions £4.50, ensuring Forex traders at Eightcap get ultra-low trading fees, particularly considering the low spreads, which commence from 0.0 pips in all major currency pairs.

Eightcap established itself as one of the most competitive low-commission Forex brokers, where Euro and British Pound base accounts benefit the most. It makes Eightcap ideal for demanding algorithmic traders, scalpers, high-volume traders, and hedgers.

Read more on Eightcap »
4.7/5 in this category

Pros & Cons

  • Low minimum deposit and high leverage of up to 1:500
  • Competitive cost structure
  • Excellent technology infrastructure and seasoned management team
  • Daily research and quality educational content
  • Limited leverage in some areas

BlackBull Markets

In Summary Best ECN trading environment, with scalping and hedging

BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.

Read more on BlackBull Markets »
4.6/5 in this category

Pros & Cons

  • ECN/NDD execution model with deep liquidity
  • Institution-grade pricing for retail traders via proprietary price aggregation
  • ZuluTrade and Myfxbook for social trading
  • Leverage of up to 1:500
  • Limited deposit options

What is Commission in Forex and How Does it Work?

Forex commissions are the fees involved in trading separate to the profit and loss associated to the position a trader opens and closes, this cost of trading will apply regardless of the outcome. Forex commissions typically are based on the trading volume, many competitive brokers also offer volume-based rebate programs, this is great for high volume strategies and can make a difference to profit &loss. The trading platform will automatically calculate Forex commissions and often lists them in a separate column for complete transparency, usually next to overnight swap rates, depending on the instruments traded and the time a position is held for, this can be another significant trading cost traders must consider.

What is Commission Per Lot in Forex?

A ‘lot’ is an MT4/5 measure of Forex trading volume (other platforms have adopted this measure too), where 1.0 ‘standard lot’ equals 100,000 of the base currency unit, e.g., 100k Euro when trading EURUSD. Forex brokers list commissions on a lot basis. For example, a commission of $6.00 per 1.0 round lot means that if a trader places a 1.0 lot order, a $6.00 commission applies: $3.00 when entering the trade and $3.00 when exiting. Trading 0.01 lots, or a micro-lot, often the minimum trading volume, will cost $0.06. Depending on the broker and the trading platform, the commission applies on each transaction, entry, and exit or only at the trade entry (this is standard practice in MT4/5).

How is Commission in Forex Calculated?

The trading platforms of low-commission Forex brokers automatically calculate commissions based on the transaction size. Forex commissions are a fixed cost, displayed per 1.0 standard lot. Traders should pay attention to how the Forex broker displays its commissions. A commission of $3.00 per side (or half turn) means the total commission costs are $6.00, $3.00 when entering a 1.0 lot trade, and $3.00 when exiting. A commission of $6.00 per round lot (full turn - to open and close a position) means the cost is the same, therefore traders should not confuse a $3.00 per side commission as cheaper than a $6.00 per round lot commission.

Differences Between Commission and Spread

Commissions based on volume and bid/offer spreads are the main trading fees. The former depends on the Forex broker and remains a fixed cost that is easy to compare. Low-commission Forex brokers usually grant traders access to ‘raw’ or no markup to interbank spreads, starting from 0.0 pips, typical EUR/USD spreads on raw accounts are between 0.1 pips to 0.2 pips. Competitive commissions range between $4.00 and $7.00 per 1.0 standard round lot. Volume-based rebate programs can further reduce commissions to below $1.00 per lot.

Zero commission brokers add their own markup on raw market spreads, compensating for the lack of commission. For example, if the spread for the EUR/USD is 0.1 pips on the interbank market, a zero-commission broker might add 0.8 pips, which translates to $8.00 per 1.0 standard lot and offer traders a spread of 0.9 pips.

Competitive zero-commission brokers match the fees levied by low-commission Forex brokers. For example, the industry-standard commission is $6.00 per lot, or 0.6 pips, the minimum spread at well-priced zero-commission brokers. Generally, low-commission Forex brokers maintain a pricing advantage over zero-commission brokers as they offer spreads which are not marked up, therefore the actual trading cost is more transparent.

Forex Commission vs. Spread Pricing Models H2

Commission-based pricing models are usually cheaper than commission-free or spread-based alternatives. Traders have choices and do not have to pay commissions, as many brokers offer zero-commission pricing. Traders should focus on the total cost of trading rather than get fixated on commissions versus zero commissions.

Forex commissions example:

  • EUR/USD raw spreads of 0.0 pips
  • Forex commissions of $6.00
  • Internal markup of 0.0 pips
  • Total trading fees of $6.00

Spread-based example:

  • EUR/USD raw spreads of 0.0 pips
  • Forex commissions of $0.00
  • Internal markup of 0.6 pips
  • Total trading fees of $6.00

The trading fees in both examples are identical, but most low-commission Forex brokers have volume-based rebate programs, while zero-commission brokers add higher internal markups that can fluctuate, making them potentially more expensive when taken into overall consideration.

Pros & Cons of Zero/ Low Commission Forex Brokers

Below are the pros and cons of low-commission forex brokers and zero-commission alternatives.

The pros of low-commission Forex brokers are:

  • Access to ‘raw’ interbank market spreads
  • Volume-based rebate programs
  • More cost control & transparency
  • Lower trading fees, including cheaper swap rate mark-ups on leveraged overnight positions.

The cons of low-commission Forex brokers are:

  • Some require higher minimum deposits.

The pros of zero-commission brokers are:

  • Lower account minimums
  • Ideal for low-volume and casual traders

The cons of zero-commission brokers are:

  • Market interference by brokers to the spread
  • Higher trading costs, including higher swap rates on leveraged overnight positions.
  • Most lack volume-based rebate programs.
  • Misleading marketing campaigns and hidden fees

Bottom Line

Traders should focus on the total cost of trading and ignore the commission versus no commission debate. Most commission-based brokers offer lower trading fees than commission-free providers. Many brokers advertise low minimum spreads, while average ones are notably higher. Therefore, traders must read and understand the fine print concerning trading fees.

You might also be interested in reviewing the below top brokers:

FAQs

Which is the cheapest Forex broker?

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Final trading costs always depend on the individual Forex traders. The cheapest cost structures usually come from Forex brokers with a commission-based pricing environment, raw spreads from 0 pips, and a volume-based rebate program.

Which Forex broker takes no commission?

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While most Forex brokers offer a commission-free trading account, trading costs are generally higher amid more massive markups on spreads. They also increase swap rates on leveraged overnight positions to cover the absence of trading commissions.

Which broker has the lowest spread and commission?

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ECN/STP/NDD brokers usually present Forex traders with the lowest spreads and commissions. Some Forex brokers acting as market makers can compete with core costs.

What is a zero-commission broker?

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A zero-commission broker does not levy commissions but adds its own markups on spreads, which can result in higher overall trading costs.

How much commission do Forex brokers charge?

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It depends on the broker, competitive commissions range between $4.00 and $7.00 per 1.0 standard round lot with volume-based rebate programs that can lower commissions to below $1.00 per lot.

Huzefa Hamid
About Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.