Top 5 Inexpensive Forex Brokers

Fees and costs can stealthy chip away at your trading profits if not properly controlled, especially for high volume traders. An important first step in managing your transaction costs is selecting a low cost broker.

In ranking these top low cost forex brokers, we’ve select brokers based on their spreads, commissions, withdrawal fees, inactivity fees, other miscellaneous fees.

HotForex

• Some of the lowest spreads: EURUSD 0.3 pips (currenex) 1.2 pips (floating), 1.8 pips (fixed)
• Commissions only apply to currenex and Zero Spread accounts who have the benefit of even narrower spreads
• No withdrawal fees
• No miscellaneous fees
• Note: HotForex no longer offers currenex accounts to new customers

FXTM

• 0.6 pips (ECN), EURUSD 1.5 pips (fixed)
• $2 Commissions only apply to ECN accounts who have the benefit of even narrower spreads
• $3 credit card withdrawal fee, e-wallet withdrawal fees of 0.5-3.9%, bankwire withdrawal fees depending on bank
• No miscellaneous fees

Trade360

• EURUSD 1.8 pips (fixed)
• No Commissions
• No withdrawal fees
• If account balance is less than $50, a $50 inactivity fee after 3 months

Plus500

• EURUSD spread – unspecified
• No Commissions
• No withdrawal fees
• $10 inactivity fee 3 months, overnight premiums
• CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% 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.

XM.com

• Spreads as low as 0 pips
• No Commissions
• No withdrawal fees
• No miscellaneous fees

As a general rule, fixed spreads quoted by brokers will generally be slightly wider than floating spreads shown.  For entry level accounts, minimum spreads for fixed spread forex brokers are around 1.5 pips compared to 0.5 pips floating spread brokers.  Note however, floating spreads may increase and exceed fixed spreads in times of market illiquidity.

Fees and charges may also vary by account type so its important to read the fine print.  The information listed here generally pertains to a broker’s entry level account unless otherwise specified.

Some brokers will offer no spread ECN or Currenex accounts.  However, commissions are charged on these type of accounts and are best suited for large high volume traders.

Cheap Forex Brokers Ranking Summary

Here is a table summarizing the top 5 low cost forex brokers.