5 best Forex brokers & platforms with raw spreads in comparison
Table of Contents
See the list of 5 best Forex Brokers with raw spreads in comparison:
Broker: | Review: | Spreads frOM: | Regulation: | Assets: | Advantages: | Open account: |
|---|---|---|---|---|---|---|
1. Vantage Markets   (5 / 5) | 0.0 pips | CIMA, ASIC | 300+ (40+ currency pairs) | + Fast execution + MT4 & MT5 + Low trading fees + No hidden costs + Free bonus + Multi-regulated | Live account from $200 (Risk warning: Your capital can be at risk) | |
2. RoboForex  (5 / 5) | 0.0 pips | IFSC | 9000+ (36+ currency pairs) | + Many awards + Huge diversity + Many account types + 1:2000 Leverage + Bonus program + Low spreads + Low commissions + 9,000+ assets | Live account from $10 (Risk warning: Your capital can be at risk) | |
3. IC Markets  (5 / 5) | 0.0 pips | ASIC, FSA, CySEC | 232+ (65+ currency pairs) | + Supports MT4 & MT5 + No hidden fees + Spreads from 0.0 pips + Multi-regulated + Fast support team + Secure forex broker | Live account from $200 (Risk warning: Your capital can be at risk) | |
4. Pepperstone  (5 / 5) | 0.0 pips | FCA, ASIC, CySEC, BaFin, DFSA, SCB, CMA | 180+ (60+ currency pairs) | + Authorized broker + Multi-regulated + 24/5 support + Low spreads + Leverage up to 1:500 | Live account from $200 (Risk warning: Your capital can be at risk) | |
5. FP Markets   (4.8 / 5) | 0.0 pips | ASIC | 10.000+ (60+ currency pairs) | + ASIC-regulated + Secure and reliable + 24/5 support + Free educational material + Hedging is allowed | Live account from $100 (Risk warning: Your capital can be at risk) |
One of the significant trading expenses a forex trader incurs is the spread on currency pairs. This represents the difference between the BUY (ASK) and BID (SELL) prices. A tight spread means there is only very small difference between both prices. With this, the potential profit increases as the trader spend less on spreads.
Spreads vary among brokers. It is common practice for most brokers to add a certain percentage to the original spreads that they received from the liquidity provider. This mark-up widens the spread for the trader and raises the broker’s profit. The mark-up prices are then displayed on the quotes on the broker’s platform.
Forex brokers with raw spreads do not engage in such practice. They give traders the original spreads that they get from the liquidity provider. This is why such brokers offer the lowest spreads. Although, they tend to charge a fixed fee as commission for each lot you trade. Combining both fees can turn out more reasonable than the high spread brokers’ fees.
We bring to you 5 of the best raw spreads Forex brokers below:
1. Vantage Markets
2. RoboForex
3. IC Markets
4. Pepperstone
5. FP Markets
We outline their unique offerings below to help you choose the most suitable broker.
List of the 5 best Forex brokers with raw spreads:
1. Vantage Markets
Vantage Markets is a globally recognized broker with offices in the United Kingdom, Australia, and the Cayman Islands. The firm is licensed by ASIC, FCA, and CIMA and provides a safe environment to trade forex and CFDs worldwide. With $200, traders can set up a raw ECN account with this broker and access leverage up to 1:500.
The broker’s average spread is not displayed on its website. But for its ECN account, the lowest spread would be 0.0pip for major pairs.
The broker is a true ECN broker, providing a transparent trading environment with speedy execution and no dealing desk. You will have access to trade over 300 market instruments on the MetaTrader 4 and 5. Its mobile platform, the vantage app, and the Mt4 come with all the standard tools to give you a full trading experience. Both are fully integrated with technical indicators, research, and education content, including newsletters and videos.
Vantage Markets overview:
- Minimum deposit – $200
- Regulations – CIMA, FCA, ASIC.
- Raw ECN Spreads – from 0.0pips
- Platform – Mt4, Mt5, Zulutrade.
- Headquarters – Australia
(Risk warning: Your capital can be at risk)
Pros of Vantage Markets:
I. Transparent trading environment with ECN and STP business model.
II. Social trading is available.
III. The broker is a well-regulated and trusted broker.
Cons of Vantage Markets:
I. Clients in the FCA-regulated jurisdictions can not get more than 1:30 leverage.
(Risk warning: Your capital can be at risk)
2. RoboForex
RoboForex is among the reputable low-fees and beginner-friendly brokerages in the forex market.
The Belize-based forex broker is regulated by the CySEC and IFSC, providing a safe environment for forex traders.
Roboforex offers the opportunity to trade more than 9000 market instruments, including currency pairs. A raw spread ECN account is available and traders can enjoy zero spreads on forex pairs.
The broker offers different types of accounts and multiple platforms, including its in-house RTraders. Customers can choose the account and platforms that align with their trading goals.
Most experienced traders go for the ECN accounts where they can trade over 35 forex pairs and thousands of CFDs and stocks. The spreads start from 0.0pip on this account, and active traders enjoy sizable rebates.
RoboForex summary:
- Minimum deposit – $10
- Regulations – CySEC, IFSC.
- Raw spreads – floating from 0.0pips
- Trading platform – Mt4, Mt5, cTrader, RTrader.
- Headquarters – Belize.
- Other features – social trading, scalping, hedging.
(Risk Warning: Your capital can be at risk)
Pros of trading with RoboForex:
I. The broker offers negative balance protection.
II. The different account types indicate flexibility and provide options for traders.
Cons of trading with RoboForex:
I. EU clients can access little leverage with this broker.
(Risk Warning: Your capital can be at risk)
3. IC Markets
IC Markets is a well-known broker with its headquarters in Australia, Hong Kong, and Vietnam.
The broker is registered with CySEC, SCB (the Bahamas), and the FCA. Scalpers and algorithm traders especially favor IC Markets for their low costs, fast execution, high leverage, and world-class trading service.
The broker offers a raw spreads account on the Mt4 and cTrader. The commission is charged at $3 on the cTrader and $3.5 on the Mt4. The average spreads on its Raw spreads account are as follows:
- EUR/USD – 0.02pips
- GBP/USD – 0.23pips
- USD/JPY – 0.14pips
Traders also enjoy tight spreads on major crypto pairs, such as:
- LTC/USD – 1.5pips
- ETH/USD – 11.6pips
- BTC/USD – 42.0pips
Sign up process with this broker is straightforward and fast. With a minimum deposit of $200, you can trade on its Raw spread account. Its trading platforms, the Mt4, Mt5, and cTrader, are all available on mobile. Traders can access all its tools and market instruments on their smartphones.
(Risk Warning: Your capital can be at risk)
IC Markets at a glance:
- Minimum deposit – $200
- Regulations – ASIC, CySEC, SCB (Bahamas).
- Raw spreads – from 0.0pip
- Trading platforms – Mt4, Mt5, cTrader.
- Headquarters – Australia
Advantages of trading with IC Markets:
I. Low trading fees on forex ECN accounts.
II. Account opening process is straightforward and fast.
III. There are no charges on withdrawal and deposits.
The disadvantage of trading with IC Markets:
I. The broker has not provided investor protection for non-EU traders.
(Risk Warning: Your capital can be at risk)
4. Pepperstone
Pepperstone operates on an ECN and STP business model. The brokerage is based in Australia and registered with the ASIC, FCA, CySEC, and BaFIN. It is also licensed by other tier-2 regulatory bodies, such as DFSA and CMA, making it a highly trusted and world-renowned brokerage firm.
Traders can trade a wide selection of assets here on different platforms, including the Meta traders and the cTrader. The broker has global clients that trade over AUD$8billion daily.
Traders get to choose from three different types of accounts. The Pepperstone Razor account is an ECN type with no mark-up on the spread. The average spread on this account is 0.3pips, and most times traders buy and sell on a 0.0pip spread.
Retail traders can get up to 1:200 leverage on this account. Commission fees are competitive, and the trading environment is world-class, with high-tech tools and support services.
(Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs)
Pepperstone summary:
- Minimum deposit – $100
- Regulations – ASIC, FCA, DFSA, CMA, CySEC.
- Raw spread – 0.0pips. Average – 0.3pips.
- Trading platform – Mt4, Mt5, cTrader.
- Headquarter – Australia
- Other features – managed account, swap-free account, social trading, hedging, scalping.
Advantages of Pepperstone brokerage account:
I. This broker is one of the few world-renowned ones offering competitive trading fees.
II. Its customer service is among the best. The broker won several awards for this.
III. Negative balance protection is provided.
Disadvantages of Pepperstone brokerage account:
I. Traders from the United States can not trade with this broker.
(Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs)
5. FP Markets
First Prudential Markets was founded in 2005 and has its headquarters in Australia and St. Vincent and the Grenadines. The brokerage firm caters to retail and institutional clients, providing global forex and CFD trading services. FP market has won multiple awards for its outstanding support service and the best trade execution in the market. This is because of its conducive trading environment, with two different account types that cater to traders’ objectives. Its RAW account follows the ECN business model. Traders have access to competitive fees and can buy and sell at zero spread in most cases.
Traders can trade micro-lots and get leverage up to 1:500 to increase their potential profit. Though, clients from the EU can not access this amount of leverage.
The broker is licensed by ASIC and CySEC, providing a secure environment to trade forex, stocks, CFDs, and other instruments.
FP Markets at a glance:
- Minimum deposit – $100
- Regulations – CySEC, ASIC, SVF
- Spreads – floating from 0.0pip
- Platforms – Mt4, Mt5.
- Headquarters – Australia, St. Vincent, and the Grenadines.
(Risk Warning: Your capital can be at risk)
Pros of FP Markets:
I. The broker offers a variety of market instruments for traders to diversify.
II. FP market also offers a standard account with tight spreads.
III. This broker has won multiple awards for excellent service and trading conditions.
Cons of FP Markets:
I. The broker charges an admin fee for its Islamic account.
(Risk Warning: Your capital can be at risk)
What is a raw spread in Forex trading?
The raw spread refers to the real market price of a forex pair as presented by the liquidity provider.
Forex brokers receive price quotes of currency pairs from the liquidity providers. Usually, for an ordinary or standard account, the broker adds a mark-up to the prices they receive. But not if the account is an ECN account.
Raw spreads or ECN account is a type of account in which the original market price received from the liquidity provider is displayed on the trader’s platform. There is no mark-up added, so the spreads are very often very low, sometimes zero.
The broker makes a profit by charging commission fees for this type of account. The commission may be charged for opening and closing positions. Or the broker may decide to fix the commission per trade.
For instance, in a raw ECN account, you can buy the EURUSD pair for 1.1180. While in a standard or ordinary account, it may be offered for 1.1220. Yes, the price is much lower in the ECN account. But standard commission fees are $3 on average. Once you calculate the dollar value of the pip difference, you might find that both fees are the same in some cases.
Though with some brokers, fees on the account of the raw spread are undoubtedly lower, than the spreads and commission charges combined.
One thing to remember is you must always ensure your profit exceeds the commission fees before exiting a trade.
Difference between a raw spread account and a standard account:
With standard accounts, the broker adds a percentage mark-up to the quotes they get from the liquidity provider. This widens the spreads, though most of these accounts are commission-free.
These accounts are known as commission-free accounts, but in reality, the broker already charged the fee for this trade by adding it to the spreads.
As we have mentioned, the broker displays the original market price that they received from the liquidity provider on a raw spreads account. They do not add any percentage mark-up.
So traders buy and sell on the real value of the forex pair. Spreads will be generally low, and in some cases, zero. But they have to pay commission fees for each trade or for opening and closing positions.
In a raw ECN account, the broker connects you to a network of market participants, which includes major players such as the liquidity providers. This means access to the lowest prices in the market.
Liquidity providers :
Liquidity providers are responsible for providing buy and sell price quotes for currency pairs in the forex market.
They act as market makers and can take both sides of the trade to provide liquidity for the market.
The largest liquidity providers consist of large financial institutions and big brokerage firms. Companies like J.P Morgan, and Goldman Sachs, … all fall under this category.
Therefore when you place an order in an ECN account, the broker transfers your trade to a network that includes these big players.
The trade is then executed at the best possible price on the ECN platform.
We should add that some brokers also act as liquidity providers. They are called dealing desk brokers. Such brokers may provide liquidity by taking the opposite side of the trade. This is a different business model than the ECN brokers’ setup. Some traders avoid dealing with desk brokers because of the conflict of interest they present.
These brokers are as essential to the market as the ECN and STP brokers. They all have their merits and demerits. We will briefly look at both sides of the ECN (raw spread) brokerage accounts below.
Advantages of raw spread accounts:
1. Trade at the best price in the market.
The ECN broker that offers raw spread accounts provides trading services by connecting orders to the electronic communications network. The trade is then matched with the best price in the market before executing it. This is why sometimes this type of account attracts zero spread.
2. Fast execution.
As we have mentioned, the raw spread broker links your orders to other liquidity providers in the network. The process is computerized and fast. It’s the system that executes the trade at the best offer, so the execution happens without delays.
3. No slippage or requote.
You will not experience slippage or requote on a true ECN raw spread account. This is because execution is computerized and fast.
Disadvantages of raw spread accounts:
1. High commission fees with some brokers.
A few ECN brokers place high commission charges on the account of the raw spread. The cost of trading on this account is increased.
2. Decreased profit.
If the commission on the raw spread account is too high, the trader must ensure the profit exceeds the charges before closing any trade. It might pose a problem if this does not fit their strategy.
Raw spread vs zero spread account:
People tend to mistake both account types as the same. Both accounts are similar with slight differences in the spreads and commission. It also depends on the broker’s fees.
Raw spreads accounts have very low spreads on all the assets available for the account. But with Zero spreads, the broker may advertise a 0.0 pip spread on its top 30 assets for a fixed period.
Commission fees differ according to the assets. Usually, a raw spread account attracts a commission fee of $3 or $3.5 per lot side. Commission fees might not be fixed on the zero spread account, but usually start from $0.1 per lot side.
Some zero spread accounts are floating spreads that can go up in times of major news affecting exchange rates. Traders should be mindful of this. The same goes for raw spread, though you would still be trading at the best price on this account.
The commission is often fixed at a certain amount for raw spread accounts, usually $3 or thereabout. This might not be the case with a zero spread account, where the commission can start as low as $0.1, but climb above $4. Remember that this commission fee is deducted when you open a trade AND when you close it in most cases. So this fee times two is what you would incur on the accounts.
How to deposit and withdraw funds from a raw spread account:
Moving funds in a raw spreads account are the same as a standard account. As we have mentioned, the only major difference between the two types of accounts is the pricing and trading conditions.
For instance, order execution is faster on a raw spread account than on a standard one. But in most cases, brokers offer both account types on the same trading platform.
Therefore, funding the trading account will be no different.
Deposit:
To deposit money in your raw spread brokerage account, click on the Funds tab on the dashboard. Select deposit and fill the options accordingly. Choose your preferred payment method, either debit or credit card, bank transfer, etc. Then enter the details and click on SUBMIT or OK.
The deposit methods would depend on the payment options that your broker provides.
Once you complete the transfer, the funds should be deposited in your account within minutes.
Withdrawal:
Click on the same tab to withdraw your profit. Select withdrawal and fill out the forms.
Withdrawals take a little more time to process. But it is usually credited to the owner’s account within 48-hours of the request.
Conclusion – Raw spreads can save you money in the long run
There are many good brokers providing raw spread accounts. This account allows you to trade at the lowest prices that the liquidity providers offer.
The five brokers that we briefly reviewed are among the best providers of such account types.
When choosing a raw spread broker, pay close attention to their commission fees. If the commission fees are too high, you might end up with higher trading costs.
Another essential factor to consider before choosing a raw spreads account is your trading objectives and the type of spreads.
It is always ideal for forex beginners to start with a standard account. You can move on to more advanced accounts, such as a raw spread type once you fully understand how to calculate your profits in pip.
A fixed spread account is a better option for a low-budget novice trader. It will help you compute your profits and expenses without complication as you develop market insights.
Raw spreads accounts provide immense benefits for experienced traders who do high-volume. They can enjoy zero spreads most times. Their trading expenses will be minimal.
FAQ – The most asked questions about Forex broker raw spreads :
What are raw spread accounts in forex?
Raw spreads account in forex refer to account types in which there is no mark-up on the spread, and the traders buy and sell forex pairs at the lowest price offered by liquidity providers. Raw spread accounts have commission fees attached to them.
Is a raw spread account worth it?
Raw spreads account is a great option for traders of any level. However, this depends on your trading goals and the commission fees attached to the account. Most brokers offer a fixed spread on some forex pairs and reasonable commission fees on this type of account. Such conditions may be favorable for high-volume traders, but not for low-budget ones.
Is there a broker with a zero spread account?
Brokers often advertised “zero spreads” to attract clients. Such brokers always have a floating spread model. Though some major forex pairs can be traded on zero spreads during active hours, this may not always be the case.
Are zero spreads accounts good?
A zero spreads account is good if the commission fee is within the competitive range, and if the account is a fixed spread account. But this is hardly ever the case. Most zero spread accounts are floating. Even if the commission fees are competitive, a zero spread account with a floating spread has the potential for increased fees if the spread widens.
What do forex broker raw spread accounts mean?
Forex traders that use raw spreads account to purchase and sell currency pairs at the lowest possible price made available by liquidity providers. In these account types, there is no markup applied to the spread. Commission fees are associated with raw spread accounts.
How can I deposit funds in forex broker raw spreads?
Moving money in a raw spreads account is the same as moving money in a regular account. As previously indicated, the price and trading conditions are the only significant distinction between the two types of accounts.
On the dashboard, select the Funds option to add funds to your raw spread brokerage account. Complete your deposit by providing the necessary information, then submit.
The payment methods offered by your broker will determine the deposit methods. After you complete the transfer, the funds will appear in your account within minutes.
How can I withdraw funds from forex broker raw spreads?
Withdrawing funds from the raw spread account is similar to the depositing fund procedure.
Go to the dashboard, click the withdrawal option and fill in the necessary forms with your details. Click on submit. The amount is reflected in your account within 48 hours of the withdrawal request.
Is it worthwhile to open a forex broker raw spread account?
For traders of any experience level, raw spreads accounts are a fantastic choice. However, this depends on your trading objectives and the account’s commission costs.
Last Updated on January 27, 2023 by Arkady Müller
