5 BEST Zero Spreads Brokers For 2024: Reviewed By Dumb Little Man

Zero spread brokers offer a unique opportunity for traders in the Forex market. These brokers provide trading platforms where the difference between the bid and ask price, known as the spread, is set at zero. This setup is particularly appealing to traders looking for cost-effective trading options.

However, choosing the best zero spread broker is a challenging task. It involves considering various factors such as reliability, regulatory compliance, and the range of trading instruments available. Traders must carefully evaluate these brokers to ensure they align with their trading strategies and financial goals.

The selection of best zero spread brokers has been meticulously carried out by a team at Dumb Little Man. Their careful evaluation ensures that each broker meets stringent criteria, including reliability, regulatory compliance, and a broad range of trading instruments. This rigorous selection process is designed to offer traders top-notch options in the Forex market.

The team’s expertise and thorough approach provide traders with a reliable list of zero spread brokers. This is essential for traders seeking cost-effective trading solutions without compromising on quality or security. The recommendations by Dumb Little Man are aimed at enhancing the trading experience by prioritizing factors crucial to successful Forex trading.

What is a Spread in Forex and How Does it Work?

Spread in Forex trading refers to the difference between the buying (ask) and selling (bid) prices of a currency pair. It is a critical concept in Forex trading, representing the cost a trader incurs when opening a position. Brokers typically earn their revenue through this spread, making it a fundamental element of currency trading.

The spread’s size can be influenced by several factors, including market liquidity and volatility. In highly liquid markets, spreads tend to be narrower, offering more favorable trading conditions. Conversely, in volatile or less liquid markets, spreads can widen, increasing trading costs.

Understanding how spreads work is essential for Forex traders. A narrower spread implies lower trading costs, beneficial for frequent traders or those trading large volumes. Traders must be aware of the spread’s impact on their trades to make informed decisions and manage their trading strategies effectively.

>>Also Read: What Is Spread in Forex: In Depth Analysis

What are Zero Spreads Account in Forex Trading?

A Zero Spreads Account in Forex trading is a type of account where the broker offers currency trades without a spread. This means the difference between the ask and bid prices of currency pairs is set at zero. Such accounts are particularly attractive to traders who execute frequent trades, as they can significantly reduce trading costs.

However, it’s important to note that while the spread is zero, brokers might charge a commission on trades or higher account fees to compensate. This pricing model can be beneficial for traders who prefer transparency in their trading costs. Zero spread accounts are often chosen by scalpers and day traders who benefit from small price movements.

Choosing the right broker offering a zero spreads account requires careful consideration. Traders should assess factors like broker reliability, commission rates, and the overall cost structure. This ensures that the benefits of zero spreads align with their trading strategies and financial goals.

How Do We Rank the Best Zero Spreads Brokers?

Ranking the Best Zero Spreads Brokers involves a comprehensive evaluation process by the Dumb Little Man team. This process includes a detailed analysis of various crucial factors. Each broker is assessed by a team of experienced traders, ensuring an in-depth and knowledgeable review.

Key factors in this evaluation include trading volume, account types, trading costs, leverage offer, fee structure, and regulation. These elements play a significant role in determining a broker’s suitability for traders. Additionally, aspects like minimum deposits and average spread are considered, alongside the broker’s overall experience in the market.

The assessment also incorporates feedback from retail traders on the Dumb Little Man panel and reviews posted by traders on the brokers’ websites. This real-world user experience provides valuable insights into each broker’s performance and reliability. Lastly, a unique algorithm designed by Dumb Little Man sorts these brokers based on predefined criteria, culminating in an overall rating for each company. This methodical approach ensures that traders get accurate and reliable recommendations for zero spreads brokers.

Best Zero Spreads Brokers: Overview

5 Best Zero Spreads Brokers: Detailed Insights

#1. Best Overall Zero Spreads Broker: AvaTrade

AvaTrade emerges as the best overall zero spreads broker, distinguished by its unwavering reliability and an extensive range of trading platforms. This globally recognized brand successfully serves both forex and CFD traders, offering them a diverse array of trading options. A key aspect of AvaTrade’s acclaim is its status as a low-risk broker, underscored by regulation from multiple top-tier financial authorities. Moreover, its comprehensive educational content is especially valuable for beginners in the trading arena, facilitating a smooth entry into the market.

The process of creating an account with AvaTrade is streamlined and fully digital, aligning perfectly with the requirements of the modern trader. This broker sets itself apart by offering free deposit and withdrawal methods, including user-friendly options like PayPal, enhancing its appeal in terms of convenience. AvaTrade’s dedication to maintaining low fees and a transparent fee structure solidifies its position as a preferred choice for traders. Additionally, the extensive research tools and educational resources provided are not only user-friendly but also significantly enrich the overall trading experience.

☞ How Does It Work?

AvaTrade offers a Zero Spread Forex account, specifically designed for traders looking to engage in trading with spreads as low as 0.0 pips. This account type is accessible on both the MetaTrader 4 and MetaTrader 5 platforms, two of the most popular trading platforms in the Forex market. The availability of this account on these widely-used platforms makes it a convenient and attractive option for traders seeking minimal spreads.

The AvaTrade Zero Spread Forex account is characterized by a minimal deposit requirement of $100, making it accessible to a wide range of traders. Additionally, it allows for a minimum trade size of just 0.01 lots, offering flexibility for various trading strategies. Notably, this account does not incur any commission on trades, further enhancing its appeal to traders. The combination of tight spreads, low minimum deposit, and zero commission fees makes this account an excellent choice for traders aiming to trade with minimal costs.

☞ Who Is It Best For?

The AvaTrade Zero Spread Forex account is ideally suited for a diverse range of traders, particularly those who prioritize trading with minimal spreads. It’s an excellent choice for day traders and scalpers, who benefit from the tight spreads during frequent, short-term trades. Additionally, this account is appealing to beginners due to its low minimum deposit requirement, making it accessible for those starting with smaller capital. The absence of commission fees also makes it a cost-effective option for budget-conscious traders. 

#2. Best Zero Spreads Broker for Advanced Traders: CMC Markets

CMC Markets, established in 1989, stands out as a top choice for advanced traders in the realm of Forex and CFD trading. This broker has cemented its position in the global market with its comprehensive range of trading instruments and advanced trading technology. Known for its robust platform, CMC Markets caters to the sophisticated needs of experienced traders, offering a depth of resources and tools that enhance trading strategies.

Regulated by the Financial Conduct Authority (FCA) in the UK, among other reputable authorities, CMC Markets ensures a secure and trustworthy trading environment. The platform’s user-friendly interface, combined with an extensive array of educational resources, makes it a preferred choice for traders seeking a reliable and advanced trading experience. The broker’s commitment to providing high-quality services aligns well with the needs of advanced traders, who require a blend of technology, variety, and regulatory security in their trading endeavors.

☞ How Does It Work?

CMC Markets operates with a minimum deposit of $0, offering attractive 0.0 pip spreads on six major FX pairs including AUD/USD, EUR/USD, GBP/USD, NZD/USD, USD/CAD, and USD/JPY. This broker supports trading on both the CMC (330 FX pairs) and MetaTrader4 platforms (over 175 FX pairs), providing a wide range of options for traders. Notably, a 25% spread discount is available on over 300 other FX pairs. 

CMC Markets caters to diverse trading needs by offering a variety of account types. The Standard Account is the most basic option, providing access to a broad range of financial instruments, with a minimum deposit of $200. For those interested in spread betting, the Spread Betting Account allows trading on the spread difference between bid and ask prices, with a minimum deposit of $100. Lastly, the CFD Trading Account is tailored for trading on contracts for difference (CFDs), a form of derivative trading, requiring a minimum deposit of $500. These account options provide flexibility and cater to different trading strategies and preferences.

☞ Who Is It Best For?

CMC Markets is particularly well-suited for advanced and experienced traders who seek a comprehensive trading environment. The broker’s wide range of FX pairs, coupled with the ability to trade on both the CMC and MetaTrader4 platforms, offers a depth of choice that seasoned traders often seek. The availability of a 25% spread discount on numerous FX pairs further enhances its appeal for those who engage in high-volume or diverse currency trading.

The broker’s diverse account types cater to various trading preferences and strategies. The Standard Account is ideal for traders seeking access to a broad spectrum of financial instruments, while the Spread Betting Account appeals to those looking for more speculative trades. The CFD Trading Account, with its focus on contracts for difference, is tailored for traders interested in derivative trading without owning the underlying asset. These features make CMC Markets a versatile choice for traders who demand flexibility, advanced tools, and a wide range of trading opportunities.

#3. Best Zero Spreads Broker for Beginners: FXTM

ForexTime (FXTM), established in 2011, is recognized as the best zero spreads broker for beginners, with a robust international presence, notably in India. FXTM has built its reputation on providing a user-friendly and accessible platform, ideal for those new to Forex trading. The broker’s regulatory compliance with authorities like the Cyprus Securities and Exchange Commission (CySEC) and the Financial Services Commission of Mauritius (FSC) ensures a secure and transparent trading environment, crucial for gaining the trust of novice traders.

FXTM’s approach to educating its users sets it apart as a top choice for beginners. The broker offers comprehensive educational resources, including webinars, tutorials, and articles, which are instrumental in helping new traders understand the complexities of Forex trading. Additionally, FXTM’s user-friendly interface and dedicated customer support provide an environment conducive to learning and growth, making it an ideal platform for those starting their trading journey.

☞ How Does It Work?

FXTM caters to diverse trading needs by offering a range of Zero Spread Forex accounts. These accounts are designed to accommodate different trader profiles, all offering spreads from 0.0 pips. A key benefit for traders using these accounts is the absence of commissions on trades, which significantly reduces trading costs, especially beneficial for frequent traders.

For beginners, the FXTM Standard Zero Spread account is an excellent starting point. This account requires a minimum deposit of just $100, making it accessible for new traders. It offers spreads starting from 0.0 pips on major currency pairs, providing a low-cost entry into forex trading. On the other hand, the FXTM ECN Zero Spread account is tailored for more experienced traders. With a higher minimum deposit of $500, this account gives access to the interbank market, offering the same tight spreads on major currency pairs. This structure allows FXTM to effectively cater to both novice and seasoned traders, offering tailored solutions to each.

☞ Who Is It Best For?

FXTM’s Zero Spread Forex accounts are particularly well-suited for beginner traders. The Standard Zero Spread account, with its low minimum deposit and zero spreads on major currency pairs, offers an ideal platform for those new to forex trading. The straightforward and cost-effective structure of this account helps beginners navigate the forex market with minimal financial barriers and simplified trading conditions.

Simultaneously, FXTM also caters to more experienced traders through its ECN Zero Spread account. This account, requiring a higher minimum deposit, provides direct access to the interbank market, a feature sought after by seasoned traders. The combination of zero spreads and access to deeper liquidity pools makes it an attractive option for experienced traders looking for competitive trading conditions and a more sophisticated trading environment.

#4. Best Zero Spreads Broker for Copy Trading: eToro

eToro, established in 2007, stands out as the best zero spread broker for copy trading. Renowned for its innovative approach to trading, eToro has carved a niche in social trading by enabling traders to follow and replicate the strategies of seasoned investors. This feature is particularly appealing to those new to the market or looking to diversify their trading strategies by learning from experienced traders.

Regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA) in the UK, eToro provides a secure and transparent trading environment. This regulatory oversight ensures that traders can engage in copy trading with confidence, knowing they are using a platform that adheres to strict financial standards and practices. eToro’s combination of innovative social trading features and regulatory compliance makes it a top choice for those interested in copy trading.

☞ How Does It Work?

eToro’s Zero Spread account is tailored for trading forex and CFDs with highly competitive conditions. This account requires a minimum deposit of $500, catering to traders who are ready to commit a moderate amount of capital. A standout feature of the Zero Spread account is its spreads starting from 0 pips, which is particularly attractive for traders looking to minimize their trading costs. Additionally, eToro enhances the appeal of this account by not charging any commissions on trades, further reducing the cost barrier for active traders.

Accessible through the eToro web-based trading platform, the Zero Spread account is available from any device with an internet connection, offering unparalleled convenience and flexibility. This platform is rich in features, including advanced technical analysis tools, comprehensive charting capabilities, and the platform’s hallmark social trading features. These aspects of the eToro platform cater to both the analytical and community-oriented aspects of trading, making it an ideal choice for traders who value both in-depth market analysis and the insights gained from a social trading environment.

☞ Who Is It Best For?

eToro’s Zero Spread account is an ideal choice for traders who prioritize social trading and wish to engage in the forex and CFD markets with minimal costs. This account is especially suitable for those who are keen on following and copying the strategies of successful traders, offering a unique blend of learning and trading. The feature of spreads starting from 0 pips and the absence of commission fees make it a compelling option for traders looking to maximize their profits while minimizing trading expenses.

Furthermore, this account is a great fit for tech-savvy traders who appreciate the convenience of a web-based platform. eToro’s platform, accessible from any internet-enabled device, provides an array of advanced trading tools and social features. These tools are beneficial for traders who value both the analytical aspects of trading and the insights available from a vibrant trading community. The combination of zero spread trading and a user-friendly, feature-rich platform makes eToro’s Zero Spread account particularly appealing to a wide range of traders, from beginners to those more experienced.

#5. Best Zero Spreads Broker for Trading Conditions: XM

XM, founded in 2009, has earned a reputation as the best zero spreads broker for trading conditions, distinguishing itself in the global Forex market. The broker offers a diverse portfolio of trading instruments, catering to a wide range of trading preferences and strategies. XM’s commitment to providing a user-friendly trading experience is a key factor in its appeal, making it accessible and convenient for traders of all levels.

Regulation by CySEC and the International Financial Services Commission (IFSC) in Belize underscores XM’s dedication to maintaining a secure and transparent trading environment. This regulatory oversight ensures that traders can engage with confidence, knowing they are using a platform that adheres to high standards of financial integrity and consumer protection. XM’s combination of a wide range of instruments, user-friendly interface, and strong regulatory compliance makes it an outstanding choice for traders seeking optimal trading conditions.

☞ How Does It Work?

XM’s Zero Spread account stands out by offering spreads as low as 0 pips on over 50 currency pairs, including gold and silver. This feature is particularly attractive for traders looking to minimize the cost of trading. However, it’s important to note that this account includes a commission of $3.5 per $100,000 traded. Therefore, the overall trading cost in a Zero Spread account is influenced by the trader’s volume of trades, making it a vital consideration for active traders.

The Zero Spread account is renowned for offering some of the industry’s lowest spreads, a significant advantage for frequent traders or those with large account balances. Despite the low spreads, traders should be mindful of the commission, which is $3.5 per $100,000 traded and applies to both opening and closing trades. Additionally, the minimum deposit required for this account is just $50, making it accessible to a broad range of traders. Another key feature of the Zero Spread account is the high leverage option, up to 1:1000, providing traders with the flexibility to amplify their trading positions.

☞ Who Is It Best For?

XM’s Zero Spread account is an excellent choice for active traders who engage in frequent trading activities. The account’s feature of spreads as low as 0 pips is particularly beneficial for those who trade large volumes or wish to capitalize on small price movements. This aspect, combined with the reasonable commission structure, makes it a cost-effective option for traders who prioritize minimizing trading expenses while maximizing opportunities.

The account is also well-suited for traders looking for high leverage, with the option of up to 1:1000. This high leverage capability appeals to traders who are comfortable with taking on higher levels of risk to potentially increase their returns. Moreover, the low minimum deposit requirement makes the Zero Spread account accessible to a wider range of traders, including those who are starting with smaller capital but still seek the benefits of competitive spreads and leverage. These features collectively make XM’s Zero Spread account a versatile and attractive choice for a diverse group of Forex traders.

How To Choose the Best Zero Spreads Broker?

Choosing the best zero spreads broker requires careful consideration of several key factors. Firstly, it’s crucial to evaluate the broker’s regulatory compliance to ensure a secure and transparent trading environment. This includes checking their licensing with reputable financial authorities. Additionally, assess the range of trading instruments offered, as a diverse portfolio allows for broader trading opportunities and risk management.

Another important aspect is examining the broker’s fee structure, beyond just the zero spread feature. This includes understanding any hidden fees, commission rates, and the costs associated with deposits and withdrawals. It’s also beneficial to consider the quality of the trading platform, including its user interface, tools, and resources available. A platform that aligns well with your trading style and experience level can significantly enhance your trading effectiveness. Lastly, take into account the broker’s customer support services, as reliable and accessible support is crucial, especially for resolving urgent trading issues.

Choose Asia Forex Mentor for Your Forex Trading Success

For individuals passionate about forging a successful career in forex trading and aiming for significant financial rewards, Asia Forex Mentor is the top recommendation for a comprehensive forex, stock, and crypto trading course. The brainchild of Ezekiel Chew, a highly respected figure in the world of trading institutions and banks, Asia Forex Mentor benefits from his expertise and experience. Ezekiel’s personal trading accomplishments, notably his consistent seven-figure trades, distinctly elevate him above other trainers in the industry. Here’s why we endorse Asia Forex Mentor:

All-Inclusive Syllabus: Asia Forex Mentor delivers a thorough educational package encompassing forex, stock, and crypto trading. This robust syllabus provides learners with essential skills and knowledge for success across these varied trading platforms.

Established Success: Asia Forex Mentor’s reputation is solidified by its history of nurturing traders who consistently profit in different market segments. This record attests to the efficacy of their educational and mentorship approach.

Mentorship from an Expert: Students at Asia Forex Mentor receive mentorship from an industry expert with a proven record in forex, stock, and crypto trading. Ezekiel’s hands-on support empowers students to confidently tackle the complexities of each trading sector.

Community of Traders: Enrollment in Asia Forex Mentor includes joining a community of fellow traders, promoting a collaborative learning environment. This network encourages sharing ideas and learning from peers, enriching the learning journey.

Focus on Mental Strength and Discipline: Trading success demands a disciplined mindset. Asia Forex Mentor emphasizes psychological training, helping traders control emotions, manage stress, and make sound decisions in trading scenarios.

Ongoing Updates and Materials: Recognizing the dynamic nature of financial markets, Asia Forex Mentor keeps students informed of the latest trends, strategies, and insights. Continual access to these resources keeps traders well-informed and competitive.

Transformative Success Stories: Asia Forex Mentor prides itself on numerous success stories, where students have dramatically improved their trading careers and achieved financial independence, thanks to their holistic education in forex, stock, and crypto trading.

Asia Forex Mentor stands out as the premier choice for those seeking the finest education in forex, stock, and crypto trading, aiming to carve out a lucrative career and attain financial success. With its extensive curriculum, expert mentorship, practical focus, and supportive community, Asia Forex Mentor equips aspiring traders with the tools and guidance needed to become proficient professionals in various financial markets.

Conclusion

Concluding the evaluation by the Dumb Little Man’s team of trading experts, the five best low spreads brokers each offer distinct advantages, catering to various trader needs. AvaTrade stands out for its reliability and diverse platform options, ideal for traders seeking versatility and cost-effectiveness. CMC Markets shines with its advanced tools and resources, tailored for experienced traders. For beginners, FXTM offers an easy-to-navigate platform and low entry barriers, while eToro excels in social trading, allowing users to copy successful trading strategies. XM is recognized for its exceptional trading conditions, suitable for active traders.

However, it’s crucial for traders to be aware of the downsides. AvaTrade and CMC Markets may not be the best fit for U.S. clients due to regulatory restrictions. FXTM and XM, while offering competitive spreads, have certain limitations in commodities and suitability for beginners, respectively. eToro faces challenges with its customer service and ambiguous fee structure. Understanding these pros and cons is key for traders to make informed decisions that align with their trading strategies and risk tolerance.

Best Zero Spreads Brokers FAQs

What is a Zero Spread Broker?

A Zero Spread Broker is a type of Forex broker that offers currency trading with no difference between the ask and bid prices, meaning the spread is set at zero. This is particularly beneficial for traders who prefer trading with minimal transaction costs.

Are Zero Spread Accounts suitable for beginners?

Zero Spread Accounts can be suitable for beginners, especially those who trade frequently and are looking to minimize costs. However, beginners should also be aware of potential commissions or other fees that might be charged by the broker, as well as the need to understand market volatility and risk management.

Can U.S. residents use Zero Spread Brokers?

The availability of Zero Spread Brokers for U.S. residents depends on the broker’s regulatory status and whether they are authorized to operate within the United States. Many zero spread brokers are not available to U.S. traders due to regulatory restrictions, so it’s important to check each broker’s policy.