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Low Spread Forex – What Does It Mean?
Traders need to be familiar with forex spreads as they are the main cost of trading currencies. Every market has a spread, and the forex market is inclusive. A spread is the price difference between the purchase price (bid) and the selling price (ask) of an underlying asset.
Traders should know that a forex spread can vary in a day, ranging between a low spread and a high spread. This is because the spreads are affected by various factors, such as liquidity and volatility. Some currency pairs, such as emerging market currency pairs like the USD/ZAR, have a higher spread than the major currency pairs such as the EUR/USD. This is because the major currency pairs have higher trading volumes and tend to be less volatile than the emerging market currencies. Furthermore, liquidity sometimes dries up, and spreads can widen up before major news events as well as during trading sessions.
Low Spread
A low spread means that the difference between the bid and the ask price of an asset is small. Most experts believe it is best to trade when spreads are low, especially during major forex trading sessions. A low spread shows that volatility is low while the liquidity in the market is high.
High Spread
A high spread shows that the difference between the bid and ask price of an asset is large. Emerging market currency pairs tend to have a higher spread compared to the leading, major currency pairs that include the US dollar. When the spread is higher than usual, it is an indication that the volatility in the market is high or that the currency pair has low liquidity due to the post-trading hours. Prior to big news events like Brexit, US elections, and more, spreads also tend to increase and widen.
Here are the top low spread brokers currently available in the market offering traders an all-inclusive and secure trading environment.
Xtrade
Xtrade is a global trading platform that allows customers all over the world to trade a wide range of assets, including forex, CFDs, cryptocurrencies, indices, ETFs, and more. With over a decade of experience, Xtrade is a global brand that is known for providing a safe and secure trading environment. At the moment, Xtrade does not support traders from certain countries like the UK, the US, and Canada.
Platforms
Xtrade supports both the WebTrader and MetaTrader 4 platform. However, WebTrader is the most widely used on Xtrade. The trading platforms on Xtrade are intuitive and extremely easy to use, making them perfect for both newbie and experienced traders.
Deposit Limit
The minimum first deposit on Xtrade is $100, while you need a minimum of $1,000 to start operating their Premium account. Afterwards, you can deposit a minimum of $1. There is no set maximum deposit on Xtrade. Xtrade has a bonus offering for new users.
Instruments
On Xtrade, you can trade a wide range of financial instruments, including forex, cryptocurrencies, CFDs, indices, options, commodities, and ETFs.
Mason Ford
Mason Ford is one of the leading British forex brokers that offer services to clients all over the world. It is one of the lowest spread forex brokers in the online trading space. They offer a wide range of effective and powerful trading tools, services, and features to both new and advanced traders. Mason Ford has become popular amongst traders because of the wide range of assets available to trade on their platform. Traders also do not have to worry about big sums of trading capital as Mason Ford is highly liquid and they charge incredibly low transaction fees. As a low spread forex broker, Mason Ford offers high-end security and safety measures to ensure that customer funds and data remain confidential at all times.
Platforms
On Mason Ford, WebTrader is the only trading platform available to users. The WebTrader of this broker is refined, and has a user-friendly platform, making it easy for traders to have unlimited access to the financial markets.
Deposit Limits
Mason Ford has a high minimum deposit amount of $500. You can deposit and trade with up to $250,000 with this low spread broker.
Instruments
On Mason Ford, you can trade forex, cryptocurrencies, and CFDs.
TrustFX
TrustFX has become popular for providing a secure and comprehensive trading environment for traders all over the world. It is one of the best low spread brokers in the industry, providing various reliable trading services that are designed to cater to the needs of each trader. Although TrustFX is based and popular in Europe, it has a large client base in various parts of the world. As a low spread forex broker, TrustFX offers extensive individual trader support, including trading resources, trading signals, analytics, and more. In terms of security, TrustFX is a highly secure broker with excellent safety protocols to ensure that customer funds and data remain confidential and safe at all times.
Platforms
TrustFX supports three major trading platforms, including the Status Platform, which is a web-based platform. The second platform is the well-known MetaTrader 4 platform, while they also have their own WebTrader platform.
Deposit Limits
The minimum deposit amount required by this forex broker is $250. Deposits above $10,000 allow a person to qualify for a raffle to win bonus offerings. The maximum withdrawal limit is the amount you have available in your TrustFX account.
Instruments
TrustFX allows users to trade over 500 instruments in forex, stocks, indices, commodities, and the cryptocurrency markets.
Olympia Markets
Olympia Markets is an Estonian-based forex broker that offers trading services to people in all parts of the world. Within a few years, Olympia Markets has become popular amongst the leading traders and investors globally. Their popularity of the forex broker comes from the exceptional trading services and the intuitive trading platforms they have in place. With Olympia Markets, the trader is at the center, which is why they also offer comprehensive trading resources and professional customer support. They also have in place excellent security measures that ensure the safety of traders’ personal data and funds.
Platforms
Olympia Markets supports a web-based trading platform. They have a powerful cloud-based platform that ensures traders enjoy the best trading experience at all times, where they can access over 400 financial instruments.
Deposit Limits
The minimum deposit requirement at Olympia Markets is €/£250 while the maximum deposit on the platform is €/£30,000 per month. The broker also offers a wide choice of secure payment options which include credit and debit cards and wire transfer.
Instruments
Olympia Markets allows people to trade a wide range of assets, including forex, CFDs, indices, equities, and commodities.
Read More About Olympia Markets
IC Markets
IC Markets is a leading forex broker that has been around since 2007. They are a top-notch broker that offers CFD and forex brokerage services. They became popular for providing access to financial markets with the help of cutting-edge trading platforms. As a low-latency platform, trades are executed swiftly on IC Markets. IC Markets separates user funds from company accounts, they undergo external audits on a regular basis, and they are fully insured. With the security measures in place, clients on IC Markets can be sure that their funds and personal data are safe always. Although IC Markets is regulated by ASIC, it offers its services to customers in virtually all parts of the world asides the United States.
Platforms
IC Markets is known for supporting various trading platforms like the popular MetaTrader 4, MetaTrader 5, and cTrader. Their trading platforms are user-friendly and are compatible with multiple operating systems.
Deposit Limits
The minimum deposit amount required on the MT4 accounts on IC Markets is $200 or the currency equivalent. The cTrader account on IC Markets requires a minimum deposit of $1,000 or the currency equivalent.
Instruments
On IC Markets, you can trade various assets like Forex, Commodities, Indices, Bonds, Cryptocurrency, Stocks, and Futures.
2Mercados
2Mercados is a leading low spread broker that offers a wide range of financial assets to traders all over the world. The broker is a licensed company that currently operates under the jurisdiction laws of St. Vincent and the Grenadines. As a licensed broker, 2Mercados offers a wide range of effective trading features and services. This brokerage company has become popular for providing forex and CFD trading services, while also supporting other financial assets. It uses the MT4 trading platform that is user-friendly and intuitive, making it easy for beginners and seasoned traders to use. 2Mercados also has top-notch security protocols, such as the segregation of customer funds, insurance, and SSL protection.
Platforms
2Mercados uses the MetaTrader4 platform. This is the most popular trading platform in the trading space as it offers excellent trading services for beginners and experienced traders alike.
Deposit Limits
The Silver account has a minimum deposit requirement of $2,500, $10,000 for the Gold account, and $25,000 for the Platinum account.
Instruments
2Mercados supports a wide range of financial assets, including cryptocurrencies, CFDs, Forex, stocks, and indices.
CapitalXP
CapitalXP is an offshore forex broker that offers numerous trading assets like currency pairs, CFDs, equities, indices, and more. CapitalXP operates a non-dealing desk, which allows them to connect traders’ orders to those that provide liquidity within the deep market. Although CapitalXP is not regulated at the moment, it is owned by Quattro Holding Group LTD, a registered company based in James Street, Kingstown, Saint Vincent and the Grenadines. The broker has gained traction amongst a wide range of financial markets traders and investors due to the numerous assets and affective trading tools it offers. CapitalXP has tight security protocols and an intuitive trading platform.
Platforms
CapitalXP uses the popular MetaTrader4, which is available for both Web Trader and desktop client versions. The platform is user-friendly and easy to navigate for all traders.
Deposit Limits
The minimum deposit amount on CapitalXP is $250, and the minimum amount you can pay on the platform is $50. They also offer a wide choice of secure deposit options to ensure that traders can deposit and withdraw funds with ease.
Instruments
On CapitalXP, you can trade assets like CFDs, currency pairs, commodities, stocks, indices, and more. FX pairs are the most popular on the platform.
Read More About CapitalXP
GSI Markets
GSI Markets is a company based in the Marshall Islands that was established in 2003. The broker is popular for offering access to a wide range of forex and CFD assets to traders all over the world. GSI Markets became popular for offering a wide range of effective and powerful trading tools on their platforms. With SSL encryption and other security measures in place, GSI Markets is a safe and legit forex broker. As one of the oldest brokers in the online trading space, GSI Markets operates under the laws of the Marshall Islands. GSI Markets offers social trading, which helps a lot of traders, especially the new market entrants.
Platforms
On GSI Markets, you can use any of the following trading platforms; MetaTrader 4 (MT4), WebTrader, and Sirix. All three trading platforms are compatible with computer OS and some mobile phone systems. They also provide access to numerous technical tools, charting resources, and more.
Deposit Limits
On GSI Markets, the minimum deposit requirement for all payment methods is USD/EUR/GBP 250. The maximum deposit for credit and debit cards is USD 10,000, while there are no limits for bank transfers. The maximum withdrawal limit for all payment methods is USD 200, except the bank wire that has no limit.
Instruments
You can trade forex and CFD products on GSI Markets.
TeleTrade
TeleTrade is an online brokerage firm that has been around since 1994. As one of the first and most established forex brokers in the world, Teletrade grants users access to numerous financial assets, including forex, cryptocurrencies, and CFDs. The broker is regulated by CySEC and other financial regulators across Europe, hence, enabling them to operate in virtually all countries around the world. By offering people access to over 200 financial instruments, Teletrade supports multiple trading platforms, and grants access to effective trading tools and indicators. The security systems on TeleTrade are extremely advanced, the company is insured, and they segregate user funds from the company assets. The educational resources on TeleTrade will also make it easier to learn more about forex and CFD trading.
Platforms
Teletrade has one of the most expansive trading platforms in the world. They support MT4, MT5, WebTrader, and Mobile App trading platforms. All the trading platforms provide traders with excellent trading resources, tools, educational materials, and other functionalities.
Deposit Limits
The minimum deposit on TeleTrade is $/€100.
Instruments
On Teletrade, you can trade assets like cryptocurrencies, forex, stocks, indices, metals, energies and CFDs.
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