Why Spreads Matter
The spread is the difference between the bid and ask price of a currency pair, and it is the most direct cost you pay on every trade. A tighter spread means less money lost to the broker before your trade can become profitable.
For a scalper placing 20 trades per day on EUR/USD, the difference between a 0.1 pip spread and a 1.0 pip spread is $180 per day in additional costs on standard lots. Over a month, that is roughly $3,600. Spreads are not a minor detail—they are one of the biggest factors in long-term trading profitability.
This comparison looks at which brokers advertise and deliver the tightest raw spreads—reading past the headline marketing numbers to the full pricing schedule.
How We Compared
This comparison draws on the raw/ECN spread schedules each of the 15 brokers publishes, plus named third-party spread data, focused on the majors: EUR/USD, GBP/USD, and USD/JPY. Spreads are tightest during the London–New York overlap (13:00–17:00 UTC), the highest-liquidity window for major forex pairs, and widen around high-impact news.
We compare typical raw spreads alongside commissions, because the all-in cost—not the headline spread—is what actually matters. Reading spreads on a like-for-like account type (raw vs standard) keeps the comparison fair.
Top 5 Low-Spread Brokers
1. Pepperstone Razor
- EUR/USD raw spread: from 0.0 pips
- GBP/USD raw spread: from 0.0 pips
- Commission: $3.50/lot per side
- All-in cost (EUR/USD): the $3.50 per-side commission plus a raw spread from 0.0 pips
Pepperstone’s Razor account offers some of the tightest raw spreads in this group. On the majors the spread frequently sits at or near 0.0 pips during peak liquidity, widening around high-impact releases such as NFP.
2. Eightcap Raw
- EUR/USD raw spread: from 0.0 pips
- GBP/USD raw spread: from 0.0 pips
- Commission: $3.50/lot per side
- All-in cost (EUR/USD): the $3.50 per-side commission plus a raw spread from 0.0 pips
Eightcap is a close second, with Raw pricing that matches Pepperstone's $3.50 commission almost exactly. Where Eightcap pulls ahead is its crypto CFD spreads, which are among the tightest of any regulated broker in this comparison.
3, 4 & 5. Additional Contenders
Our fourth and fifth picks offer competitive raw spreads that sit just behind the top three; the gap becomes meaningful only at high volumes.
Raw Account vs Standard
Understanding the difference between raw (ECN) and standard accounts is crucial for evaluating spreads:
Raw/ECN accounts pass through the interbank spread with a fixed commission on top. You see the true market spread, which can be 0.0 pips during peak liquidity. The commission is predictable: $3.00–$3.50 per lot per side at most brokers.
Standard accounts bundle the broker’s markup into the spread itself. There is no separate commission, but the spread is wider—typically 0.8–1.5 pips on EUR/USD. The total cost per trade is usually higher than on a raw account.
Which is better? For traders executing more than a handful of trades per week, the raw account is almost always cheaper. The math is straightforward: a 0.1 pip spread plus $3.50 commission equals $4.50 per lot, while a 1.0 pip standard spread equals $10 per lot.
ECN vs Market Maker
The spread a broker offers is partly determined by its execution model.
ECN (Electronic Communication Network) brokers aggregate prices from multiple liquidity providers and pass the best bid/ask to you. They earn money from commissions, not from the spread itself, which means their interests are aligned with yours. Pepperstone and Eightcap both operate ECN models on their raw accounts.
Market makers set their own bid and ask prices. They may offer fixed spreads, which can be advantageous during high-volatility events, but the spreads are typically wider on average. Some market makers also take the other side of your trade, creating a potential conflict of interest.
We generally recommend ECN brokers for active traders. The transparency of the ECN model, combined with tighter average spreads, makes it the superior choice for anyone focused on minimizing trading costs.
FAQ
What is a good EUR/USD spread in 2026?
On a raw or ECN account, a good EUR/USD spread averages 0.0–0.2 pips plus commission. On a standard (commission-free) account, anything under 1.0 pip is considered competitive. Avoid brokers consistently charging above 1.5 pips.
Are low-spread brokers safe?
Spread levels and safety are independent factors. Always verify the broker is regulated by a tier-1 authority (FCA, ASIC, CySEC) regardless of how tight their spreads are. All brokers on our list hold at least one tier-1 license.
Raw account or standard—which is cheaper?
For most active traders, the raw account with commission is cheaper. The total cost (spread + commission) on a raw account typically works out to $3.50–$4.00 per lot on EUR/USD, while standard accounts cost $8–$12 per lot in spread alone.
Risk Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51–89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results.
Frequently Asked Questions
What is a good EUR/USD spread in 2026?
On a raw or ECN account, a good EUR/USD spread averages 0.0–0.2 pips plus commission. On a standard (commission-free) account, anything under 1.0 pip is considered competitive. Avoid brokers consistently charging above 1.5 pips.
Are low-spread brokers safe?
Spread levels and safety are independent factors. Always verify the broker is regulated by a tier-1 authority (FCA, ASIC, CySEC) regardless of how tight their spreads are. All brokers on our list are regulated.
Raw account or standard account — which is cheaper?
For most active traders, the raw account with commission is cheaper. The total cost (spread + commission) on a raw account typically works out to $3.50–$4.00 per lot on EUR/USD, while standard accounts cost $8–$12 per lot in spread alone.