Updated: 05/16/2024

Best Raw Spreads Forex Brokers

Best Raw Spreads Forex Brokers The forex market has grown exponentially over the years, and traders…

Best Raw Spreads Forex Brokers
15 Nov 2023
WRITTEN BY Chad Smith
EDITED BY Henry Hicks
REVIEWED BY Chris Padgett

Table of Contents

Best Raw Spreads Forex Brokers 2024

HFM

  • Multiple Account Types
  • High Leverage
  • Low Trading Costs
Learn More

Pepperstone

  • Competitive spreads
  • Fast trade execution
  • Many trading platforms
  • Limited education
  • No fixed spread
Learn More

BlackBull

  • Robust trading technology
  • Multiple account types
  • Best Client Security
  • Limited education
  • High minimum deposit
Learn More

Vantage

  • Competitive spreads
  • Many Instruments
  • Many trading platforms
  • Limited education
  • High Minimum deposit
Learn More

AvaTrade

  • Many instruments
  • Friendly platforms
  • Multi-Regulated broker
  • Inactivity fees may apply
  • Limited educational resources
  • Customer support response varies
Learn More

The forex market has grown exponentially over the years, and traders are now keen to identify the best forex brokers to maximize their profits. One aspect that savvy traders are keen to explore is raw spreads. This article delves into five of the best raw spread forex brokers known for their competitive offerings, namely Pepperstone, BlackBull Markets, Vantage, AvaTrade, and XM.

Understanding how raw spreads work and the benefits they offer is crucial to successful forex trading. These brokers provide tight spreads and direct connectivity to the interbank market, making them an attractive choice for traders looking for a competitive edge. With advanced trading platforms, transparent pricing, and excellent customer support, these brokers stand out as top choices for those seeking raw spread forex accounts.

Key Takeaways

  • Raw spread forex brokers, including Pepperstone, BlackBull Markets, Vantage, AvaTrade, and XM, offer tight spreads and direct connectivity to the interbank market.
  • Traders seeking a competitive edge benefit from understanding how raw spreads work and the advantages of using these brokers.
  • Transparent pricing, advanced trading platforms, and excellent customer support are key features that make these brokers stand out in the market.

Understanding Forex Trading

Forex trading refers to the process of buying and selling different currencies to make a profit from the fluctuations in their exchange rates. As a trader, you can take advantage of these market movements to capitalise on profitable opportunities. This financial market is quite liquid and operates 24 hours a day, offering you the flexibility to trade at your convenience.

To begin forex trading, you’ll need to choose a suitable trading platform that provides you with access to a wide range of currency pairs, competitive spreads, and advanced charting tools. Some well-known platforms include MetaTrader 4, MetaTrader 5, and cTrader. Ensure that the platform you select is user-friendly and possesses the necessary features to support your trading strategies.

When you start forex trading, it’s essential to familiarise yourself with important terminologies such as:

  • Base currency: This is the first currency in a currency pair, and you’ll be buying or selling this currency against the second currency, known as the quote currency.
  • Quote currency: It is the second currency in a currency pair, and its value is used to calculate the profit or loss of a trade.
  • Currency pair: A combination of two currencies, such as GBP/USD or EUR/JPY, representing the value of one currency against the other.
  • Pips: The smallest price movement in the forex market, generally equivalent to 0.0001 for most currency pairs.
  • Spread: The difference between the bid (selling) and ask (buying) prices of a currency pair, expressed in pips.

Choosing a reliable forex broker is crucial for your success in the market. Some of the top raw spread forex brokers include Pepperstone, BlackBull Markets, Vantage, AvaTrade, and XM. Each broker offers different features, such as account types, leverage, and educational resources. It’s essential to review and compare these aspects to find the most suitable broker for your trading needs.

In conclusion, forex trading can be a lucrative endeavour if approached with the right mindset and strategy. By equipping yourself with solid knowledge and a reliable platform, you can improve your chances of success in this dynamic market.

Overview of Raw Spread Forex Brokers

When you’re trading in the forex market, one aspect to consider is the raw spread offered by different forex brokers. Raw spread forex brokers offer competitive pricing and deep liquidity, allowing you to benefit from tighter spreads when trading. In this section, we will discuss five of the top raw spread forex brokers: Pepperstone, BlackBull Markets, Vantage, AvaTrade, and XM.

Pepperstone is widely recognised as the best raw spread forex broker for beginners. They provide cutting-edge technology, low spreads, low latency and high-speed execution. Furthermore, they offer award-winning customer care, ensuring a smooth trading experience.

BlackBull Markets is another excellent raw spread forex broker known for its competitive pricing, straight-through processing (STP) execution model, and impressive range of tradable assets. Based in New Zealand, they offer an advanced trading platform and a solid reputation amongst traders for their transparent and customer-centric approach.

Vantage is a globally recognised raw spread forex broker with user-friendly trading platforms and a robust selection of assets. They are known for their quick and easy account setup and offer a range of competitive spreads across various currency pairs, ensuring a superior trading experience.

AvaTrade is an established raw spread forex broker that offers excellent trading conditions to both beginners and professionals. With over a decade of experience in the forex industry, they boast an extensive range of trading instruments, attentive customer support and innovative trading platforms.

XM is a well-regarded raw spread forex broker with a strong presence in the forex market. They offer an array of outstanding trading platforms, including the popular MetaTrader 4 and MetaTrader 5 platforms. Fast execution, favourable trading conditions, and a selection of profitable trading instruments make XM an appealing choice for forex traders.

In summary, raw spread forex brokers provide numerous benefits to forex traders, including competitive pricing and deep liquidity. Pepperstone, BlackBull Markets, Vantage, AvaTrade, and XM are all excellent choices to consider when selecting the most suitable broker to meet your trading needs. Remember to evaluate factors such as trading platforms, instruments, customer support, and regulations to ensure you choose the best forex broker for your unique requirements.

In-Depth Analysis of Pepperstone

Pepperstone, founded in 2010, has grown to become one of the world’s largest trading brokers. As a trader in the Forex market, you can be confident in their excellent customer service and the diverse range of third-party platforms they provide. Pepperstone is highly trusted by international regulators which has earned them a Trust Score of 95 out of 99.

Based in Australia, Pepperstone focuses on providing a positive trading experience with fast execution, competitive spreads, and top-tier technology. They strive to offer superior trading conditions in comparison to other Forex brokers, allowing you to concentrate on your trading strategy.

When it comes to research, Pepperstone excels in offering valuable market information and insights, surpassing the industry standard. Thanks to a wide range of trading tools, market analysis, and news updates, you can stay well-informed about trading opportunities and potential risks.

In the area of education, you have access to a comprehensive library of resources. Webinars, video tutorials, trading guides, and expert market commentary are available to help you refine your trading skills and broaden your understanding of the Forex market.

Execution is an important aspect for any trader: with Pepperstone, you can benefit from ultra-low latency and a no-dealing-desk model. This ensures your trades are executed without unnecessary delays, thus allowing you to take advantage of price movements more effectively.

Comparing Pepperstone to other top Forex brokers, such as IG, you may find that the number of tradeable products offered by Pepperstone is slightly lower. However, their focus on competitive spreads and lower minimum deposits makes them an appealing choice for retail traders.

In summary, Pepperstone meets the needs of Forex traders by offering competitive trading conditions, a strong research offering, excellent customer service, and a wealth of educational resources. While tradeable product offerings are relatively lower, their advantages in spreads, execution, and trustworthiness demonstrate that they are a leading choice for your Forex trading journey.

Exploration of BlackBull Markets

In your exploration of BlackBull Markets, you will find them to be an Average Risk forex broker, with an overall Trust Score of 77 out of 99. They offer attractive features for traders, including a range of account options, manageable fees, and decent spreads.

When it comes to fees, BlackBull Markets operates on a commission-based pricing model, charging a flat rate per trade. Your commission per standard lot will depend on your account type, with the Prime account having a lower commission compared to the Standard account. It’s essential to consider the costs related to your trading activities when deciding which account type suits you best.

In terms of spreads, BlackBull Markets is known for having wider spreads compared to some of its competitors, such as Fusion Markets. Nevertheless, the spreads remain competitive for popular currency pairs, making it a viable choice for traders focusing on major forex pairs.

Next, let’s discuss commodities trading. BlackBull Markets provides access to a variety of commodities, including metals, energy, and agricultural products. If you are interested in diversifying your portfolio by incorporating commodities trading, BlackBull Markets could be a good option.

Additionally, BlackBull Markets is known for offering access to deep liquidity and Virtual Private Server (VPS) hosting. This is particularly useful for scalpers and high-frequency traders looking to execute trades quickly and efficiently.

In conclusion, as you continue your exploration of BlackBull Markets, keep in mind the factors mentioned above. By weighing the pros and cons of the fees, commissions, currencies, and commodities offered, you can better determine if BlackBull Markets is the right forex broker for you.

Comprehensive Review of Vantage

Vantage is a highly trusted forex broker, with an overall Trust Score of 90 out of 99. The firm is licensed by ASIC, FCA, and CIMA and offers a safe environment for trading forex and CFDs worldwide. In this section, we will provide a concise outline of Vantage’s key features.

Vantage gives you access to popular trading platforms such as MetaTrader 4 and MetaTrader 5. Both MT4 and MT5 are renowned for their advanced charting tools, customisable interface, and extensive range of technical indicators. With these platforms, you can analyse the market efficiently and execute trades with precision.

If you’re looking to trade CFDs, Vantage provides a vast range of options. You can trade CFDs on various asset classes, including forex, commodities, indices, and shares. This diversity allows you to create a balanced and versatile trading portfolio.

Regarding account types, Vantage offers a choice of commission-based (RAW, Pro) and no-commission (Standard) trading accounts. Spreads start from 0.0 pips with the commission-based accounts and 1.0 pips with the Standard account. This pricing model ensures competitive and transparent trading costs.

In conclusion, Vantage is a solid choice for forex and CFD traders who require access to the powerful MetaTrader platforms, low trading costs, and a comprehensive product offering. Its trustworthiness and regulatory oversight from leading authorities further enhance its appeal. While trading involves inherent risk, Vantage strives to provide a reliable and secure environment for you to pursue your trading endeavours.

AvaTrade: An Unrivalled Forex Platform

AvaTrade stands out as a top choice for forex traders due to its extensive selection of trading platforms and commission-free trading. With typical spreads of 0.9 pips for EURUSD, you can expect a competitive trading environment. The platform offers 55 forex pairs, 26 commodities, and 23 indices to cater to your diverse needs.

One of AvaTrade’s key features is its AvaOptions mobile platform. Available on iOS, Android, and Windows devices, this impressive app gives you the power to trade forex and metals with full risk management capabilities at your fingertips. Designed with you in mind, the user-friendly interface ensures that you can navigate the platform with ease.

In terms of education and resources, AvaTrade’s commitment to supporting your trading journey is evident. Their award-winning customer support and excellent educational content make it a strong option, especially for beginners. These materials not only provide you with valuable insights but also help develop your confidence as you sharpen your trading skills.

So, if you’re looking for a reliable, well-regulated forex platform that offers a range of advanced features and educational resources, AvaTrade is definitely worth considering. Adjust your trading strategies on the go, and experience a seamless trading atmosphere with AvaTrade’s versatile mobile app and user-focused platform.

In-Depth Review of XM

When looking at XM, it’s essential to recognise its strengths and features. XM offers various account types to cater to your trading requirements, including Micro, Standard, and ECN accounts. Additionally, XM provides a demo account for practising and testing your trading strategies without the risks involved in live trading.

Micro Account: The XM Micro account is suitable for beginners and traders who prefer to trade on smaller transaction volumes. With a minimum deposit of $5, you can open this account and start trading currencies, cryptocurrencies, and CFDs. Spreads can be as low as 1 pip, and the maximum leverage for this account is 1:888. A notable feature of the Micro account is its support for micro-lot trading, which allows you to control your risks better.

Standard Account: The Standard account is designed for experienced traders who desire to trade larger transaction volumes. It offers the same benefits as the Micro account but with standard lot trading. The minimum deposit required for a Standard account is $5, with spreads also starting from 1 pip and leverage up to 1:888.

ECN Account: XM provides you with an ECN account option for those who wish to benefit from direct market access and enjoy tighter spreads. This account type comes with the advantage of no requotes and commissions starting from $3.50 per 100,000 traded units. The minimum deposit for an ECN account is $500, and the maximum leverage available is 1:30.

Demo Account: XM’s demo account offers you the opportunity to practice trading with virtual funds in a risk-free environment. This can be invaluable for building your confidence and refining your trading strategies before transitioning to a live account. The demo account replicates real-market conditions and includes live price quotes, ensuring you have a realistic trading experience.

In conclusion, XM provides a diverse range of account options for traders of all experience levels. The low minimum deposits, flexible leverage, and different account types make XM a versatile platform to tailor your trading experience according to your preferences. Remember to practice using the demo account before diving into live trading, and always consider your trading goals and risk tolerance when choosing the right account type.

Trading Tools and Indicators

As you dive into the world of forex trading, selecting a broker that offers a wide range of trading tools and indicators is crucial to enhancing your experience and performance. Pepperstone, BlackBull Markets, Vantage, AvaTrade, and XM are top picks for brokers with competitive raw spreads and a noteworthy variety of tools.

Pepperstone provides you with an impressive suite of tools aimed at risk management, trading strategy improvement, and staying informed about market changes. Moreover, they support the popular TradingView charting platform, allowing for seamless trade execution and advanced charting capabilities.

BlackBull Markets not only offers a technologically advanced trading platform but also integrates various trading tools and indicators for your convenience. With their custom proprietary software, you can access auto chartists, expert advisors, and market analyses to aid your trading.

When it comes to Vantage, you will find a platform that integrates various CFDs, enabling you to diversify your trading experience. Vantage offers support for MetaTrader and TradingView, giving you access to an extensive range of trading tools and indicators to make informed decisions.

AvaTrade takes pride in providing you with user-friendly platforms and tools to make trading effortless. With their AvaProtect feature, your capital is secured during volatile market conditions. Additionally, they offer a wide range of pre-built and customisable trading indicators to support your decision-making process.

Lastly, XM is well-known for its range of tools, including built-in indicators within its trading platform, MetaTrader. By offering both the MT4 and MT5 platforms, XM provides you with a wealth of tools and resources to analyse the market, identify trends, and execute trades effectively.

In conclusion, selecting a trustworthy broker that provides advanced trading tools, a wide range of indicators, and seamless trade execution is key to achieving success in the forex market. Pepperstone, BlackBull Markets, Vantage, AvaTrade, and XM are excellent choices when you’re searching for a broker that offers all you need to stay ahead of the game.

Regulators and Licensing

When selecting a Forex broker with the best raw spreads, it’s crucial to consider their regulators and licensing. This ensures that the broker adheres to strict rules and guidelines, protecting your investments and providing a secure trading environment.

Pepperstone is a highly trusted broker, regulated by 5 top-tier and one second-tier regulator. Among these regulators are ASIC (Australia), FCA (UK), Bafin (Germany), and CIMA (Cayman Islands). This provides a high level of trust with an overall score of 95 out of 99.

BlackBull Markets holds an average risk rating, with an overall trust score of 77 out of 99. They are regulated by the FMA (New Zealand) and the FSC (Mauritius).

Vantage is regulated by multiple entities, including ASIC (Australia), the FCA (UK), and the CIMA (Cayman Islands). This demonstrates a commitment to adhering to the strict regulations enforced by these authorities.

AvaTrade is authorised and regulated by several top-tier regulators, such as the Central Bank of Ireland, ASIC (Australia), the FSC (BVI), and FSCA (South Africa). Moreover, they are subject to regulation by Bafin (Germany), DFSA (Dubai), and FSA (Japan).

XM operates under the oversight of multiple regulators, including CySEC (Cyprus), ASIC (Australia), IFSC (Belize), and the DFSA (Dubai). This offers traders the confidence to trade with a broker that is held accountable by reputable authorities.

By choosing a broker with proper licensing and regulation, you can ensure a safe and transparent trading experience. Remember to always verify a broker’s regulatory status before committing to them, and take note of the entities that govern their operations. This will provide you with added confidence in your trading journey.

Deposits, Withdrawals and Other Charges

When choosing a Forex broker, you should consider the various fees associated with deposits, withdrawals, and other charges. In this section, we will briefly discuss the associated costs for Pepperstone, Blackbull, Vantage, AvaTrade, and XM.

Pepperstone:

  • Minimum deposit: $200
  • Deposits: No fees for most payment methods
  • Withdrawals: Bank Wire Transfer (USD 20), E-wallets like Neteller and Skrill (USD 1)
  • Inactivity fee: $10 per month after 3 months of inactivity
  • Payment methods: Bank Transfer, Credit/Debit Card, PayPal, Neteller, Skrill, UnionPay

Blackbull:

  • Minimum deposit: $200
  • Deposits: No fees
  • Withdrawals: Fees vary depending on the method, free withdrawals for amounts above $500
  • Inactivity fee: $20 per month after 6 months of inactivity
  • Payment methods: Bank Transfer, Credit/Debit Card, Neteller, Skrill, FasaPay

Vantage:

  • Minimum deposit: $200
  • Deposits: No fees
  • Withdrawals: No fees for most methods, fees apply for international bank transfers
  • Inactivity fee: $10 per month after 3 months of inactivity
  • Payment methods: Credit/Debit Card, Neteller, Skrill, POLi, BPAY, China UnionPay, Bank Transfer

AvaTrade:

  • Minimum deposit: $100
  • Deposits: No fees
  • Withdrawals: No fees, except for withdrawals below $100
  • Inactivity fee: $50 per quarter after 3 consecutive months of inactivity
  • Payment methods: Bank Transfer, Credit/Debit Card, eWallets (depending on your region)

XM:

  • Minimum deposit: $5
  • Deposits: No fees
  • Withdrawals: No fees for most methods, fees apply for bank wire transfers
  • Inactivity fee: $5 per month after 90 days of inactivity
  • Payment methods: Credit/Debit Card, Neteller, Skrill, WebMoney, Bank Wire Transfer

Keep these fees in mind as you compare the best raw spreads Forex brokers to find the one that suits your trading needs. Additionally, always double-check the fees on the broker’s website, as they may change periodically.

Understanding Risk and Leverage in Forex Trading

In the world of Forex trading, risk and leverage are two crucial factors you need to understand. Both can affect your trading outcomes and recognising their potential implications can help you become a more informed trader.

Leverage enables you to control a larger position in the market with a smaller amount of capital. This means that you can potentially amplify your gains but, at the same time, also magnify your losses. It’s essential to employ effective risk management techniques as higher leverage can result in significant losses, especially if you’re not aware of how it works.

To protect your account, it’s essential to consider using Negative Balance Protection. This feature prevents your account from going into negative when you face significant losses due to market fluctuations. Many Forex brokers offer this protection, ensuring that your losses never exceed the amount you have deposited into your trading account.

When it comes to risk management, having a solid strategy in place is vital. Some ways to manage your risk in Forex trading include:

Remember that applying proper risk management in combination with leverage can help you effectively mitigate potential losses whilst maximising potential profits. To conclude, always stay informed about the risk and leverage aspects of Forex trading, and consider choosing a broker, such as Pepperstone or BlackBull, that offers negative balance protection to safeguard your account.

Frequently Asked Questions

What are the best raw spread forex brokers?

The best raw spread forex brokers offer tight spreads and competitive trading conditions. Some notable raw spread brokers include 1. Vantage Markets, 2. RoboForex, 3. IC Markets, 4. Pepperstone, and 5. FP Markets. It is crucial to research and compare various brokers to find the best fit for your trading needs.

How do Pepperstone’s spreads compare to other brokers?

Pepperstone is known for its highly competitive spreads. With an overall Trust Score of 95 out of 99, Pepperstone is considered Highly Trusted. Comparing its raw spreads to BlackBull Markets, it has an average EUR/USD raw spread of 0.1, while BlackBull’s is 0.23. Pepperstone’s GBP/USD raw spread is 0.6, whereas BlackBull’s rate is 0.72. These numbers suggest that Pepperstone’s spreads are generally better than some other brokers.

Are raw spread accounts better than standard accounts?

Raw spread accounts may seem attractive due to their absence of spreads. However, they usually come with higher commissions and potentially larger trading costs. The choice between raw spread accounts and standard accounts depends on your trading strategy, volume, and frequency. It is essential to understand the overall cost structure before deciding which account type best suits you.

What factors should be considered when comparing forex broker spreads?

When comparing forex broker spreads, consider factors such as the trading platform they offer, the type of spreads (fixed or variable), additional fees, and the currency pairs available for trading. Also, take into account the broker’s reputation and regulations, as well as the leverage and margin requirements.

How do BlackBull and Vantage compare in terms of spreads?

BlackBull Markets has an overall Trust Score of 77 out of 99, which denotes Average Risk. Its averages for raw spreads are 0.23 for EUR/USD and 0.72 for GBP/USD. Vantage Markets, on the other hand, ranks first among the five best Forex brokers with raw spreads. However, specific spread details for Vantage are not provided here. One should research and compare their spreads to make an informed decision.

What makes a forex spread good or competitive?

A good or competitive forex spread typically refers to a tight spread with low transaction costs. This minimises the difference between the bid and ask prices, allowing traders to enter and exit the market more efficiently. Factors contributing to competitive forex spreads include improved liquidity, reduced market volatility, and broker regulations.

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Chad Smith

Chad Smith is the Director of Research & Analysis here at ForexBrokerListing.com. Chad previously served as an Editor for a number of websites related to finance and trading, where he authored a significant number of published articles about trading and the impact of technology in transforming investing as we know it. Overall, Chad is an active fintech and crypto industry researcher with more than 15 years of trading experience, and you can find him teaching his dog how to trade in his free time.

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