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Best Forex Brokers for 0 Pip Spreads In 20201

The forex market is quite competitive and choosing between the many online brokers can be a time-consuming task.

One thing to consider is the broker’s bid-ask spread that causes you to lose a little bit of money on a trade as soon as you have placed it. Some brokers don’t impose a price spread at all, and in this article, we have identified the ones that don’t.

Our List of the Forex Brokers for 0 Pip Spreads

1
Min. Deposit
$50
Exclusive promotion
User Score
10
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
No Fee
Start Trading
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$10
Exclusive promotion
User Score
9.3
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Payment Methods
Bitcoin, Credit Card, Debit Card, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.
3
Min. Deposit
$10
Exclusive promotion
User Score
8.7
Leverage
500:1
New accounts
Spreads
0.8
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Payment Methods
Bitcoin, Credit Card, Debit Card, Visa
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
4
Min. Deposit
$200
Exclusive promotion
User Score
8.5
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FMA New Zealand, FSPR
Forex Pairs
27+
No Fee
Start Trading
Pros:
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Payment Methods
Bank Transfer, FasaPay, Mastercard, UnionPay, Visa, neteller, skrill
Full regulations list:
FMA New Zealand, FSPR

What is a Forex Broker for 0 Pip Spreads?

You can use a forex broker to bet on the relative strengths of currency pairs such as GBP/USD (known as “cable”) or EUR/JPY.

When the price of a currency pair goes up (so your trade makes money) or down (so you lose money, unless you have “gone short”), it does so in units called pips. A pip is the smallest measurable change in the price of a currency pair, and forex traders measure their profit or loss in pips.

For forex or any other financial instruments you can trade via a broker, you will typically see two prices: the “bid” price and the “ask” price, which are the selling and the buying prices. The buying price is usually higher than the selling price, so you’ll pay more when you buy a financial instrument than you’ll get back when you sell it back to the broker, which is one of the ways in which the broker makes money.

A 0 pip spreads broker — or “zero spread broker” — doesn’t make money from the bid-ask spread on forex trades, so it will typically make money some other way such as by charging a fixed nominal commission for each trading position. 

How Does a Forex Broker for 0 Pip Spreads Work?

We already know that a forex broker is an intermediary that connects buyers and sellers of currencies through a trading platform. Most forex transactions occur between pairs of major currencies (G10 countries). These currencies include the US dollar, British pound, Euro, Canadian dollar, Swiss franc, Australian dollar, and New Zealand dollar. Brokers also allow you to trade currencies of emerging economies like the South African rand and the Mexican peso.

With the help of a forex broker, a trader opens a position by buying a currency pair and closes the position by selling it. For instance, a trader anticipates a rise in the value of the Euro relative to the US dollar, so they buy the EUR/USD pair. 

If the exchange rate goes higher, the trader will close the position at a profit, while if the exchange rate goes lower, the trader will incur a loss. Remember that the buying and selling prices (“ask” and “bid”) of a currency pair are typically not the same, so the price must have moved by at least the bid-ask spread amount for you to make a profit. In this context, a 0 pips spread broker makes it easier for you to move into profit.

Key Features to Look For in a Forex Broker for 0 Pip

You should consider certain features when choosing a forex broker. Let’s look at some of those features.

Spreads

Look for forex brokers that offer a 0 pip spread account. You can reduce your cost of trading and increase the potential profit if your broker does not charge you any spread. If you are a news trader or a scalper, you cannot perform well with a broker that offers floating spreads. 

Transaction Costs

It is very important to know the transaction costs that a forex broker charges because it plays an important role in profitability. Brokers with the lowest spreads and commissions should be preferred.

Security

Since traders invest their hard-earned money in forex accounts, they must ensure that the broker is regulated and therefore trustworthy.

Trading Platform

Always look for a broker that offers an online trading platform for both PC (web) and mobile, and there should be a free news feed available to the traders.

Execution

When you place a trade, it should be executed instantly by the broker. If there is a delay in execution, this may lead to a loss as there are chances that you buy at higher prices than your intended prices and sell at prices lower than your intended prices.

Customer Service

Brokerage platforms are not perfect, so issues can arise. Therefore, only consider brokers that can be contacted easily.

Pros and Cons of Using a Forex Broker for 0 Pip Spreads

Pros

Low transaction costs
Wide range of offered markets
Greater profit potential
No slippage
Fast execution

Cons

High minimum deposit
Low leverage
No bonus

How to Choose the Best Forex Broker for 0 Pip Spreads for me?

Once you decide to enter the forex market as a trader, the next step is to choose the right broker for you. If you’re looking to minimise your costs and maximize your profits with a broker that offers 0 pip spreads, you might also be looking for a broker with low (or zero) commissions. However, you may find that the two aims are mutually exclusive because brokers have to make money somehow.

Regardless of the commissions or spreads, you should choose a regulated broker, ideally by one of the major regulatory authorities: the United States’ National Futures Authority (NFA), the United Kingdom’s Financial Conduct Authority (FCA), or the Australian Securities and Investments Commission (ASIC).

Other things to look out for include easy ways to deposit and withdraw your money.

How to Safely Use a Broker to Make Money Online Trading?

There are three things that a trader must do to make money: devise a trading plan that includes a tested trading strategy, practise money management by never allocating more than 1% of your funds to a single trade, and keep control of your emotions so that your trading decisions are not driven by fear or greed.
- Mircea Vasiu

Conclusion

We have described forex brokers, how they work, and what factors are important when choosing one. Our emphasis has been on brokers that offer 0 pip spreads, but — regardless of the kind of broker — you should take heed of our trading tips such as the need to practice sound money management.

Frequently Asked Questions

  1. Opening any online brokerage account is usually easy, although you may have to provide identity documents. Opening an account with a broker that offers 0 pip spreads should be no more onerous.

  2. The minimum deposit varies from broker to broker. It can range from $200 to $1000.

  3. The most famous platforms are MetaTrader 4 and MetaTrader 5 but most brokers also provide their own proprietary mobile and web trading platforms.

  4. The range of markets that can be traded varies between brokers. Some might allow trading of major currency pairs such as GBP/USD but not exotic pairs such as NZD/CNH. Some brokers let you trade other assets such as stocks (equities) and commodities.

  5. Mostly yes, but there are some non-regulated brokers. Therefore, you should double-check the register on the website of the regulatory body.

  6. Although a 0 pip spread makes it slightly easier for you to make money from small price moves, your ability to make a profit depends more on your skill as a trader. A 0 pip spread won’t save you if you make poor trading decisions.

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