In Forex trading, the cost of a trade is determined by the pips, the spreads, the floating variable costs, the fixed trading costs, and in some cases no cost. Zero Pip Spread Forex brokers, are FX brokers that offer zero spread accounts with minimized cost of trading. This can turn into a big advantage for traders that trade big volumes.

Zero Pip Spread Accounts

Having a Zero Spread account simply means that the trading account offered by a broker has no difference between the two prices for a currency pair; the bid price and the ask price are the same. These accounts allow Forex traders to know entry and exit prices are in advance when they first open positions.

Accounts with a Zero pip spread are helpful when calculating losses that are not associated with trading, like slippage. They’re ideal for a variety of Forex trading strategies such as day trading and high-frequency scalping.

When brokers first started offering service, they advertised their low commission rates and low spreads as their main marketing tool. But, since the appearance of other types of brokers such as STP (Straight through Processing) brokers and ECN (Electronic Communication Brokers) who compete for the best prices, the newest trend became Zero Spread accounts in order to tempt potential traders.

Zero Pip Spreads Forex Brokers List

Broker
Description
Trade Now
Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


FP Markets
FP Markets

Regulation: ASIC, CySEC
Min. Deposit: $/€/£ 100
Leverage: 1:500
Spreads: Ultra Tight from 0.0 pips

Review


NSBroker
NSBroker
Regulation: MSFA, BaFin, FCA,
Min. Deposit: $250
Leverage: 1:100
Spreads: Low as 1.2 pips

Review
XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review

 

What are the Advantages of Using a Zero Spread Broker?

For small traders, Zero Spread Accounts provide an opportunity to calculate their trades exactly, without worrying about the widening or tightening of spreads. For example, during a big data release, such as the rate decision of a bank, if a trader is on the ‘wrong’ side of a currency, having a Zero Pips Spread Forex broker would allow the trader to change their bias without damaging their account due to a spiking spread.

With Zero Pips Spread Forex brokers, a trader who signs up with this particular broker may be able to directly access the market directly, without any delay. A trader can also follow up with the entry and exit points as soon as the positions are available and open. Most traders who are invested in scalping with a high frequency will find this broker particularly helpful with its tool of calculating losses that occur with non-trading.

Zero Pips Spread Forex brokers also aid in operating a trader’s daily strategy with accuracy, and its speed of execution is due to the direct access a trader has to the financial markets. The final advantage is the efficient and effective method of trading with these types of brokers. Since traders have direct access and speedy executions, there are no interference from the broker and the trading decision established by the traders. The trading systems that are utilized are mostly automated, further making it more efficient.

What are the Disadvantages?

However, when trading with such a broker, there are disadvantages too. The FX brokers still need to make their money so they do it in other ways. They might offer accounts with fixed commissions, bigger size of account when opening, Margin Calls that are tighter, not applying a negative balance protection and execution speeds that are slower than other types of account.

Direct access to the financial markets has its advantages and its drawbacks; one of the drawbacks is the lack of use of the Negative Balance Protection. This means that meeting the necessary threshold of liquidity must be on the trader and only the trader. Also, zero spread Forex brokers need to be examined more thoroughly, since zero charges on trading sound too good to be true. Brokers with zero pip spreads tend to compensate the funds through different methods that are unclear to the trader’s experience.

Comparing Zero Pip Spread Forex Brokers

The first thing when comparing brokers is to look at the commission charged. Some brokers have a nominal fee or commission, in addition to adding a mark-up, despite their claims to be a Zero pip broker. Some brokers offer commission-free Zero Spreads. These tend to be liquidity providers who don’t send the positions of their clients to the market.

Conclusion

Overall, with Zero Spread trading, new traders can try out Forex trading without the exposure to higher transaction costs. But, remember, nothing is ever free. Traders need to examine fees, commission and the tactics of brokers very carefully if they wish to make money.

The advantages of zero pip spread Forex brokers is that there is the ability to find entry and exit points in advance, along with direct access to the financial markets. These brokers also help in operating in daily strategies of the trader with accuracy, and zero spread FX brokers operate faster and speedier without any intervention. These advantages are very helpful and yet these benefits come with a price.

The disadvantages of the zero pip spread Forex brokers is the inability to use negative balance protection, since the whole brunt of opening account is on the trader and the trader alone. We suggest that traders look very closely at the zero pip spread Forex brokers, since they could be compensating the funds they are not charging for traders in other elements.

It is best to compare and contrast between brokers before choosing the one that a trader will stick with, since the broker will be responsible for safeguarding their assets and personal information, along with facilitating the traders in different financial markets, with different trading instruments.