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Best Forex Brokers For Low Commissions

Commissions are the fees you pay to brokers whenever you buy (and sometimes when you sell) shares or other assets such as forex currency pairs. Since commissions can eat into your trading profits — particularly if you trade often — it is clearly in the interests of traders to choose a broker that charges low commissions. In recent years, some brokers have shouted about their “zero commission” accounts, but these can sometimes come with hidden costs.

In this guide, we have uncovered the best forex brokers for low commissions so that you can make a more informed choice. 

Our List of the Best Forex Brokers for Low Commissions

Our list of best forex brokers for low commissions that follows considers those commissions (obviously) but also considers other factors such as spreads. We believe that the list will prove valuable for selecting the best low commission forex broker to suit your trading needs.

1
Min. Deposit
$10
Exclusive promotion
Our score
10
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
0% Commission Account
Low Spreads
Eco-Account Option
Payment Methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
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
Credit Card, Debit Card, Visa, Bitcoin
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.
3
Min. Deposit
$200
Exclusive promotion
Our score
8.7
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FSPR, FMA New Zealand
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
Mastercard, Visa, Bank Transfer, Neteller, Skrill, UnionPay, FasaPay
Full regulations list:
FSPR, FMA New Zealand
4
Min. Deposit
$200
Exclusive promotion
Our score
8.5
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
Wire Transfer, Bank 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.
5
Min. Deposit
$10
Exclusive promotion
Our score
7.9
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
Credit Card, Debit Card, Bitcoin, 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.

What Is a Forex Broker for Low Commissions?

Low commission or discount forex brokers charge low or no commissions on forex trades but they might make money by charging spreads (the difference between the selling and buying prices of quoted securities). Conversely, brokers that offer tight spreads usually charge higher commissions. The latter are generally straight-through-processing (STP) or electronic communications networks (ECN) brokers that pass orders directly to the liquidity providers without any dealing desk intervention, and they charge you for this service. 

The point is: low (or zero) commissions are good, which is why we cover them here, but they should be considered in the context of the other ways that brokers make money.

How Does a Forex Broker for Low Commissions Work?

Forex brokers for low commissions, like most forex brokers, provide traders with real-time quotes and let you place your orders on the over-the-counter (OTC) forex market. Forex brokers facilitate trading by matching buyers and sellers by relaying quotes from the interbank market.

Forex brokers charge commissions, fees, and/or spreads for executing trades between counterparties on the forex market. You will find many forex brokers on the market with different fees and commission structures, and it is essential that you completely understand what you will be charged for trading before you choose a particular broker.

Key Features To Look For in a Forex Broker for Low Commissions

With the vast number of forex brokers on the market, choosing the most suitable broker can be a challenging task. We can help you by encouraging you to consider the following characteristics, starting (in this case) with our topic of interest: the spreads and commissions.

Spreads & Commissions

Low commission forex brokers will charge lower commissions or no commissions at all. However, “no commission” brokers usually charge a certain percentage of the spread. Some forex brokers charge fixed spreads, whereas some brokers charge variable spreads. Spreads and commissions increase the costs of trading, making it more difficult for traders to generate profit. Spreads and commissions, therefore, become an important factor in selecting a forex broker.

Regulations

The broker you select must be registered or licensed by the local regulatory authorities. Dealing with a licensed and regulated forex broker is usually safe, and you can have a chance of recovering your funds should your broker commit fraud or misappropriate your money. Regulated forex brokers have to comply with the regulatory requirements and operate within the guidelines of the regulators, so opening forex trading accounts with the regulated forex brokers is a safe option.

Trading Platform

A robust, advanced trading platform can greatly improve your trading performance as it gives you great control over executing your trading strategies. Many brokers allow traders access to popular trading platforms, such as MetaTrader 4, FXTM, and ThinkTrader. Most trading platforms provide technical indicators, interactive charts, risk management tools, and algorithmic trading features that let traders analyze the price action and make informed trades.

Leverage

Many new traders are fascinated by the thought of amplifying gains with the help of leverage, which essentially is borrowed money from the broker. While it is true that you can magnify your gains using leverage, you can also wipe out your account if a trade goes against you. Leverage allows traders to open large trades while having little capital in their accounts. Depending on the type of your account and the level of your experience, forex brokers will determine how much leverage you can get on your account. Some forex brokers offer leverage as high as 200:1, which means that you can open a position 200 times the capital available in your account. 

Pros & Cons of Using a Forex Broker for Low Commissions

Pros

Low commission forex brokers result in lower trading costs, providing an opportunity for traders to become profitable.
Low commission forex brokers are preferred by such traders who want to know the rate of commission per trade to determine their profitability.
Low commission forex brokers charge reasonable spreads, whereas no commission forex brokers charge higher spreads.
Variable spreads can reduce at the time of high market activity, resulting in further reduction of average cost for traders.

Cons

Low commission brokers can execute your trade at a bad price due to slow trade execution.
There are some hidden costs charged by low commission traders such as high percentage of spreads, inactivity fee, funding costs, and withdrawal fees.
Sometimes, low commission and fixed or variable spreads can result in higher cumulative trading costs.

How To Choose the Best Low Commission Forex Broker for Me?

Choosing the best low commission forex broker is a time-consuming but important process. To effectively evaluate a broker, you should review several important elements a forex broker offers, including fees, commissions, spreads, regulations, currencies, trading terminals, and customer support. 

Since you are looking for a low commission forex broker, you should carefully assess the fees, commissions, and spreads the broker is charging. Many brokers charge higher commissions but tight spreads and vice versa. To keep your trading costs low, you should thoroughly review the charges and try to unearth any hidden charges the broker might be charging.

The broker you select must be registered with and licensed by trusted regulatory authorities. Regulated forex brokers are stipulated by law to follow the directions and guidelines issued by the regulator in the interest of the public. Your funds are secured when you open your trading account with a regulated forex broker. 

You should select such brokers that offer a wide range of currency pairs to give you greater choice. Trading opportunities can arise in any currency pair, so you should be able to trade most of the currency pairs to take advantage of the opportunities. 

Your broker should provide you access to the latest state-of-the-art trading terminal so that you can trade forex using modern technical analysis and charting tools. Most brokers provide mobile versions of their trading platforms that allow traders to trade using their smartphones. You can select brokers that allow trading on popular trading platforms, such as MT4, FXCM, and ThinkTrader. 

Reviewing regulations, fees, commissions, spreads, trading platforms, customer support, and many other aspects of hundreds of brokers can be cumbersome for traders. We have meticulously reviewed hundreds of forex brokers and provide a detailed comparison of forex brokers so that you can select the best broker that suits your trading needs.

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

You can make money trading online by adopting time-tested techniques recommended by expert forex traders. Your broker empowers you to take control of your trading and employ risk management strategies to reduce your risk on each trade. Let’s discuss how you can safely use your broker to make money with online trading. Most brokers provide leverage or borrowed money to traders for trading significantly higher amounts of currencies. You can easily get leverage of between 50:1 and 200:1, which means that you can open positions 50 times to 200 times the amount of money you have in your trading account. However, you should use leverage responsibly as a small movement against you can wipe out your account. Being emotionless during trading is key to successful trading. To perform emotionless trading, you should always put stop-loss and take-profit points while entering any trade and let the trade run unless the market takes you out of the trade. If you want to stick around for a long haul, you should never risk more than 1% of your account on a single trade. You should only take high probability trades with a risk/reward ratio of at least 2 or 3. A higher risk/reward ratio will ensure that you remain profitable even if a few trades go against you.

Conclusion

Traders who want to keep their trading costs low should refer to our list of the best forex brokers for low commissions. Low commission brokers offer low commissions on trades but charge a moderate to high percentage of spreads. We recommend that you diligently check the commission and fee structure of the brokers before deciding which broker to trade with. Some brokers charge hidden fees and keep commissions low to entice unsuspecting, novice traders. 

After analyzing forex brokers for their fees and commission structure, you should ensure that the broker you select is regulated and licensed by the local regulatory authorities. Dealing with an unregistered and unregulated broker is risky, and you might not be able to recover your money if your broker commits fraud and runs away with your money. You should also find out the capabilities and features of the trading terminal being provided by your broker for trading. 

Frequently Asked Questions

  1. No-commission forex brokers make money by charging a certain percentage on spreads, or through hidden costs such as fees to withdraw your funds.

  2. Spread is the difference between buying and selling price of the quoted security.

  3. Not necessarily. But some brokers claiming to be low-cost brokers charge hidden fees, such as inactivity charges and account maintenance charges.

  4. Yes, almost all forex brokers allow traders to use leverage and open significantly larger positions, but this is inadvisable for novice traders because leverage amplifies your losses as well as your gains.

  5. Yes, some brokers charge rollover fees and margin fees on leveraged positions. You should consult your broker for details of fees related to leverage.

  6. Not all brokers are regulated. Some brokers are regulated by the regulatory bodies of other countries, while some are regulated by the local regulatory authorities.