Forex pairs with low spreads

USD/JPY, the second lowest spread pair.
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Note: Although some forex brokers offer super-tight spreads on their major pairs, you still need to assess what the commission amounts to. This ensures that the forex broker in question always makes a profit — regardless of which way the markets go.

Why Traders Don’t Consider Pair Selection Carefully

The spread is an important talking point in the world of forex, not least because it will dictate how much you are paying to trade. In other words, the higher the spread, the more you are indirectly paying in fees.


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As soon as the order is placed, you would be in the red by 0. Well, because if you wanted to sell your position, you would need to do so at 1. As this is less than what you paid, the spread puts you at an immediate disadvantage as soon as you place an order. The reason for this is that in order to ascertain the width of the spread, we need to be able to quantify pricing movements in pips.

First and foremost, when we trade forex online, we normally do so to profit off of ultra-small pricing movements. As such, most forex pairs will contain four digits after the decimal point. So now that you know what the spread is, as well as how pips are calculated, we can now show you a real-world example of the spread. As you can see from the above example, even though the buy price is 1.

Before it reaches this price, you would need to exit your trade at a lower price than what you paid. In a similar nature to pips, pipettes relate to the ultra-small pricing movements of a forex pair. As such, the movement of 1 pipette would amount to 0. As such, the spread would, therefore, amount to 0. Nevertheless, we are now going to explore what sort of spreads you should be aiming for when using a forex broker. Firstly, the width of the spread will be determined by the underlying trading pair. The reason for this is liquidity.

EUR/USD pair, spreads from 0.1 pips!

And what happens when markets suffer from low liquidity levels? Volatility is high. As such, the forex spreads of exotic pairs will always be significantly higher than that of the majors. In some cases, a number of brokers will offer a spread of zero on its major pairs. However, this is typically reserved for those with a professional trading account. Moreover, the zero forex spreads forex broker will likely offer this during standing trading hours only.

On the contrary, you need to look at a range of other variables. This includes regulation, the number of instruments that you can trade, and the type of payment methods it supports. Although the broker might truthfully offer some of the lowest spreads in the market, it might make up for this in other areas — such as commission, deposit fees, or overnight financing. Most forex brokers will charge a trading commission of some sort.

This is usually a small percentage of the amount that you trade. Deposit Options.

Spreads, swaps and commissions

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Winner of over 45 Industry Awards. Please try again or proceed as a guest. Account Email:. First Name:. Moreover, since the Eurozone comprises many countries, it is not uncommon for this low spread currency pair to experience spikes. However, even with all the volatility and spikes, this currency pair is consistently able to maintain its Spread and ability to deliver profits.

Low Spread Currency Pairs

The most significant factor that works in the favor of this currency pair is that Japan is an export-based economy and the U. Thus, the trading sessions for this pair are quite distinct. This factor allows traders to focus entirely on one economy when needed. This stability is primarily because the Swiss banking system is seen as one of the best banking systems in the world. Moreover, the fact that the Franc experiences to zero inflation further helps in this regard.

The variable spreads range from 0. In the current scenario, this is a unique low-spread currency pair, primarily because of the significant movements that the British pound is currently experiencing. The variable spreads for this currency pair vary between 0. This figure does not take into account the commission charged. However, there are a few things that must be clarified. Since both the economies involved are small, it is normal for this currency pair to see significant movements.

Thus, this is a sensitive currency pair. Yet another interesting fact about this currency pair is that it rarely moves sideways.

Volatility of the currency with a low spread

This pair has an average daily range of 63 pips, and the variable spreads range from 0. Even when you are trading low-spread currency pairs, there are ways to minimize Spread further. To minimize Spread, trade during the hours when buyers and sellers are most active. During these hours, the Money Makers narrow down their Spreads in response to increased demand due to the high number of buyers and sellers for specific currency pairs. The second way to minimize spread is by not putting money in thinly traded currencies.