When choosing an overseas forex broker, narrow spreads are a crucial factor that directly impacts not only trading costs but also whether you can enter and exit trades at favorable prices
[Conclusion] The broker with the narrowest spreads in overseas forex trading
- Of the 14 companies we tested , Exness's Zero Account had the narrowest spread (effectively 0.45 pips for USD/JPY including trading fees, with a minimum of 0 pips).
- Among accounts with no trading fees,ThreeTrader's Pure Spread account(average 1.0 pips for the 5 major instruments) offers the narrowest spreads.
- By using the cashback site "Moneycha" in conjunction with Exness's Zero Account,effectivelyreduce trading costs to as
The spread can vary significantly depending on the broker and account type, and trading conditions can differ greatly even for the same currency pair
This article thoroughly compares multiple overseas forex brokers by measuring the spreads of major currency pairs. Furthermore, it explains recommended brokers with low spreads and how to reduce trading costs by utilizing cashback programs
By reading this article, you will learn about overseas forex brokers that offer low actual costs and efficient trading
Based on the results of surveys of over 20,000 users, the MoneyCharger editorial team has analyzed the safety and trading environment of overseas forex brokers and can recommend truly recommended overseas forex brokers with narrow spreads, so please look forward to it
When comparing accounts that offer cashback for each transaction with accounts that do not, it goes without saying that the difference in benefits becomes more significant as the number of transactions increases
If you want to trade profitably with overseas forex brokers,highly recommended to take full advantage of cashback offers.
If you prioritize bonuses over spreads when choosing an overseas forex broker, please refer to our " Overseas Forex Account Opening Bonus & Deposit Bonus Comparison Ranking ."
Japan Securities Dealers Association Class 1 Securities Sales Representative
Takashi Ishizaka
After graduating from university, I developed an interest in stock trading, government bonds, and foreign exchange margin trading, expanding my financial knowledge through actual trading. Starting with the Level 3 Financial Planning Technician certification, I obtained the Level 2 Financial Planning Technician certification and the AFP (Affiliated Financial Planner – certified by the Japan Financial Planners Association). In 2024,the Japan Securities Dealers Association(JSDA) Class 1 Securities Sales Representative qualification andby the Securities Analysts Association of Japan. Currently, in addition to my FP work, I oversee all aspects of the launch, design, operation, and web writing for the comprehensive economic portal "Money Ships."
*This article is created and updated by the MoneyCharger editorial team in accordance with their content creation policy . Numerical data such as spreads are based on actual measurements by the editorial team, and are published after confirming publicly available information from public institutions such as the Financial Services Agency and the Consumer Affairs Agency , as well as relevant laws and regulations
What is a spread in overseas forex trading?
In overseas forex trading, the "spread"is the difference between the asking price and the selling price, and it represents the actual transaction cost that traders incur with each trade.
In fact, a proper understanding of spreads is essential for trading at favorable prices
Here, we will explain in detail what a spread is, the important points in actual trading, and the trends among brokers
What is a spread?
The spread refers to the difference between the asking price and the selling price
- Buy price: The price at which you enter a buy order (long position)
- Selling price: The price at which to enter a sell order (short position)
This spread fluctuates almost constantly, and how wide it becomes depends on the trading conditions of the FX broker you are using and the market conditions
FX brokerseither secure their own profits by adding a markup to the spreads of their partner financial institutions, or by securing their own revenue from trading fees.
The narrower the spread, the easier it is to trade at a favorable price
When choosing an overseas forex broker, traders prioritize narrow spreads
Because the narrower the spread, the more favorable the price you can trade at
The market always moves with the buying price higher than the selling price
| Direction of trade | Price when entering | Price when making a payment | Impact of spread |
|---|---|---|---|
| New buy order (long position) | Buy price (Ask) | Selling price (Bid) | The narrower the spread, the lower the buying price and the higher the selling price tends to be |
| New short position | Selling price (Bid) | Buy price (Ask) | The narrower the spread, the higher the selling price and the lower the buying price tends to be |
for example,At the moment you take a position (for example, when you take a dollar if you buy USD/JPY), the spread is an unrealized lossThis is the result
However, the unrealized loss due to the spread will be smaller the narrower the spread is
Naturally, a narrower spread means you can realize profits faster, soa narrower spread means you can trade at a more favorable rate.
The difference between brokers with wide spreads and those with narrow spreads
Among overseas forex brokers, there is a significant difference between those with wide spreads and those with narrow spreads
The spread is a key factor in choosing a broker
However, brokers with wide spreads have their own unique appeal
| item | Brokers with wide spreads | Brokers with narrow spreads |
|---|---|---|
| Maximum leverage | expensive | low |
| Bonus Campaign | many | few |
Brokers with wide spreadstend to be more proactive in offering bonus campaigns andhave higher maximum leverage, as they can secure significant profits from these spreads.
On the other hand, brokers with narrow spreads tend to be less inclined to offer bonuses because their profits from spreads are lower
Differences in spreads between overseas and domestic forex trading
There are differences between overseas and domestic forex brokers, including the mechanisms for displaying spreads, as detailed below
You often hear comments like, "Overseas forex FX has wider spreads than domestic forex FX," but you can't actually compare the spreads of the two without understanding the difference between overseas and domestic forex FX
How spreads work
The first major difference between overseas and domestic forex trading is the "variable spread" versus the "fixed spread" system
| item | Variable spread | Fixed spread (in principle) |
|---|---|---|
| Features | The spread is constantly fluctuating | The default spread is displayed by default |
| Highly volatile market | The spread will widen | The spread will widen |
| Market with little fluctuation | The spread will narrow | Fixed to the default low spread |
| FX brokers that use | Common among overseas forex brokers | Common among domestic FX brokers |
Domestic FX brokersgenerally offer fixed spreads, allowing for trading with very narrow spreads.
In a market where prices are constantly fluctuating, one reason why domestic FX brokers can offer fixed spreads is that over-the-counter (OTC) trading is the dominant method of trading in Japan
In over-the-counter transactions,Because they settle customer orders themselves, FX brokers can easily set spreadsIt has distinctive features
The adoption of over-the-counter trading is one of the factors that enables domestic FX brokers to offer low, fixed spreads
Account type and execution method
of overseas forex tradingtrading conditions can differ depending on the account type, even within the same account.
Depending on the account type, there may be no additional spreads added by the broker, allowing you to trade with very narrow spreads
On the other hand, domestic FX brokers do not offer different account types; only one account can be used per user account
Spread units
The spread units for "cross-yen currency pairs" that include the Japanese yen differ between overseas and domestic forex trading
In domestic FX trading,common practice to list the spread for cross-currency pairs in cents.
| price difference | Overseas FX pips | Domestic FX (Cash) |
|---|---|---|
| approx. $0.01 | 100 pips | 100 sen |
| approx. $0.00 | 10 pips | 10 sen |
| approx. $0.00 | 1 pip | 1 sen |
Pips are a unit used to indicate price differences. In domestic FX trading, currency pairs other than cross-yen pairs are also expressed in pips
Key points to consider when comparing spreads at overseas forex brokers
When comparing spreads in overseas forex trading, the following two points are important:
Unlike domestic FX, overseas FX spreads vary depending on the account type
Differences between STP accounts and ECN accounts
In overseas forex trading, there are two main types of accounts: STP accounts and ECN accounts
These companies each employ different execution methods
| Comparison items | STP account | ECN account |
|---|---|---|
| Execution method | NDD STP method | NDD ECN method |
| Transaction fees | Many are free | Many are paid services |
| spread | Often spacious | Often narrow |
There can be a difference in spreads between STP accounts and ECN accounts due to the different execution methods they employ
Therefore,When comparing spreads for overseas forex brokers, it's necessary to consider STP accounts and ECN accounts separately
STP account: NDD STP method
The execution method used in STP accounts, "NDD STP method," is a mechanism that executes customer orders through Straight Through Processing (directly routing them to the market)
In the NDD STP method, when an order is received from a customer,the company adds its own profit margin (spread) to the rate offered by its partner LP (liquidity provider) and executes the order.
After that, the FX broker conducts a cover transaction with the LP at the original rate after deducting the markup; this is how the NDD STP system works
ECN account: NDD ECN method
The execution method used in ECN accounts, known as the "NDD ECN method," is a system that executes customer orders using an Electronic Communication Network (a private electronic trading system)
In the NDD ECN system, the FX broker acts as a complete intermediary
Through the FX broker's electronic trading system, customer orders are matched and executed directly at the rates offered by the LP (Liquidity Provider)
Therefore,With the NDD ECN method, there is no spread markup by the FX broker
However, unlike the NDD STP method, FX brokers set a trading fee as their profit, but unlike spreads, the trading fee remains at a fixed amount
If you'd like to learn more about the NDD method, which is widely used in overseas forex trading, please see " What are the NDD and DD methods in overseas forex trading? Explanation of differences, advantages, and disadvantages ."
Transaction fees
Some overseas forex brokers may charge trading fees for account types that offer favorable spreads
For example, account types that use the NDD ECN method, or account types that offer preferentially more favorable spreads even if the execution method is the same, will incur trading fees
Transaction fees can also be converted into an effective spread of "0.1 pips per dollar"
For account types that charge transaction fees, thisIt is important to consider trading costs in terms of the effective spread, which includes transaction feesis
The cost is low even including transaction fees
Trading fees are incurred when entering and closing a position. However, since the spread is more favorable than with a standard account type at both the entry and closing stages, the overall trading cost is lower with an account type that charges trading fees
Overseas Forex Spread Comparison Chart | By Account Type
In conclusion, among accounts with no trading fees,ThreeTrader's Pure Spread account (average 1.0 pips for the 5 major instruments), while among accounts with trading fees,Exness's Zero account (average 0.5 pips)has the narrowest spread.
Here, we will compare the spreads of overseas forex brokers by account type
Check the spreads offered by each company, comparing their STP and Standard accounts (which are easy for beginners to use and have no trading fees) with their ECN accounts (which have trading fees) (suitable for advanced traders who prioritize narrow spreads)
*The spreads in this article are the average daily values measured by the MoneyCharger editorial team from each company's real-time rates. Due to the fluctuating spreads, the actual values will vary depending on market conditions and time of day
Spread Comparison | STP Account vs. Standard Account
The following is a spread comparison table for STP accounts and Standard accounts, which offer commission-free trading
| Company Name Account Type | USD/JPY | EURUSD | GBPUSD | AUDUSD | XAUUSD | Average value of major currency pairs |
|---|---|---|---|---|---|---|
 Exless Standard Account | 1.2 pips | 1.1 pips | 1.3 pips | 1.1 pips | 1.6 pips | 1.2 pips |
 Axi Standard Account | 1.3 pips | 1.1 pips | 2.1 pips | 1.1 pips | 1.8 pips | 1.4 pips |
 ThreeTrader Pure Spread Account | 0.9 pips | 0.8 pips | 1.3 pips | 0.8 pips | 1.5 pips | 1.0 pips |
 easyMarkets MT5 account | 2.2 pips | 1.0 pips | 2.0 pips | 2.2 pips | 4.3 pips | 1.9 pips |
 MYFX Markets Standard Account | 1.5 pips | 1.3 pips | 1.7 pips | 1.3 pips | 4.2 pips | 1.5 pips |
 BigBoss Standard Account | 1.6 pips | 1.6 pips | 1.9 pips | 1.7 pips | 3.6 pips | 1.7 pips |
 Milton Markets Smart Account | 1.6 pips | 1.3 pips | 1.9 pips | 1.4 pips | 4.3 pips | 1.6 pips |
 TitanFX Standard Account | 1.8 pips | 1.6 pips | 2.0 pips | 1.4 pips | 2.7 pips | 1.7 pips |
 XS.com Standard Account | 2.0 pips | 1.3 pips | 1.5 pips | 1.3 pips | 1.8 pips | 1.5 pips |
 XMTrading Standard Account | 2.7 pips | 2.2 pips | 2.9 pips | 2.6 pips | 4.1 pips | 2.6 pips |
 HFM Premium Account | 2.8 pips | 2.2 pips | 2.7 pips | 2.2 pips | 3.2 pips | 2.5 pips |
 Vantage Trading Standard Account | 3.0 pips | 2.6 pips | 3.1 pips | 2.9 pips | 3.4 pips | 2.9 pips |
 FXGT Standard+ Account | 2.4 pips | 2.0 pips | 2.4 pips | 2.9 pips | 4.0 pips | 2.4 pips |
 Axiory Standard Account | 1.5 pips | 1.3 pips | 1.8 pips | 1.7 pips | 3.3 pips | 1.9 pips |
STP accounts and standard accounts generally have the disadvantage of wider spreads
On the other hand,many STP and standard accounts offer high maximum leverage and abundant bonus campaigns.
Therefore, it is well-suited for swing trading, where the impact of spread width is minimal, while also utilizing bonuses
Overseas forex bonuses can be used as trading capital, making them ideal for beginners who want to trade with minimal personal funds
Spread Comparison | ECN Accounts with Trading Fees
The following is a spread comparison table for ECN accounts that charge transaction fees
| Company Name Account Type | USD/JPY | EURUSD | GBPUSD | AUDUSD | XAUUSD | Average value of major currency pairs |
|---|---|---|---|---|---|---|
Exness Zero Go | 0.45 pips （0.1+0.35） | 0.45 pips （0.1+0.35） | 0.65 pips （0.2+0.45） | 0.6 pips (0.1 + 0.5) | 0.8 pips （0+0.8） | 0.5 pips |
Axi Elite Account | 0.675 pips （0.5+0.175） | 0.575 pips （0.4+0.175） | 0.875 pips （0.7+0.175） | 0.475 pips (0.3 + 0.175) | 1.35 pips （1.0+0.125） | 0.7 pips |
ThreeTrader Raw Zero Account | 0.7 pips （0.5+0.2） | 0.6 pips （0.4+0.2） | 1.0 pips （0.8+0.2） | 0.5 pips （0.3+0.2） | 1.0 pips （1.0+0） | 0.7 pips |
BigBoss Pro Spread Account | 0.95 pips （0.5+0.45） | 1.05 pips （0.6+0.45） | 1.55 pips （1.1+0.45） | 1.25 pips (0.8 + 0.45) | 3.6 pips （3.6+0） | 1.2 pips |
XMTrading Zero Account | 1.0 pips （0.5+0.45） | 0.9 pips （0.4+0.5） | 1.9 pips （1.4+0.5） | 1.5 pips （1.0+0.5） | 2.8 pips （2.3+0.5） | 1.3 pips |
FXGT ECN account | 1.0 pips （0.7+0.3） | 0.9 pips （0.6+0.3） | 1.2 pips （0.9+0.3） | 1.2 pips （0.9+0.3） | 2.85 pips （2.6+0.25） | 1.1 pips |
Milton Markets Elite Account | 1.0 pips （0.8+0.2） | 0.7 pips （0.5+0.2） | 1.3 pips （1.1+0.2） | 0.8 pips （0.6+0.2） | 3.7 pips （3.5+0.2） | 1.0 pips |
HFM Zero Spread Account | 1.1 pips （0.8+0.3） | 0.7 pips （0.4+0.3） | 0.9 pips （0.6+0.3） | 0.6 pips （0.3+0.3） | 2.4 pips （1.7+0.7） | 0.8 pips |
TitanFX Blade Account | 1.15 pips （0.8+0.35） | 0.95 pips （0.6+0.35） | 1.35 pips （1.0+0.35） | 0.75 pips （0.4+0.35） | 2.63 pips （2.6+0.03） | 1.1 pips |
XS.com Elite Account | 1.3 pips （1.0+0.3） | 0.6 pips （0.3+0.3） | 0.8 pips （0.5+0.3） | 0.6 pips （0.3+0.3） | 0.9 pips （0.6+0.3） | 0.8 pips |
Vantage Trading ECN Account | 1.3 pips （1.0+0.3） | 0.8 pips （0.5+0.3） | 1.1 pips （0.8+0.3） | 1.0 pips （0.7+0.3） | 1.0 pips （0.7+0.3） | 1.1 pips |
MYFX Markets Pro Account | 0.85 pips （0.5+0.35） | 0.75 pips （0.4+0.35） | 1.05 pips (0.7 + 0.35) | 0.65 pips （0.3+0.35） | 3.55 pips （3.2+0.35） | 0.8 pips |
Axiory Nano Spread Account | 0.7 pips （0.4+0.3） | 0.6 pips （0.3+0.3） | 0.6 pips （0.3+0.3） | 0.7 pips （0.4+0.3） | 1.9 pips （1.5+0.3） | 0.9 pips |
Account types intended for advanced traders, which incur trading fees, offer significantly narrower spreads compared to STP accounts
The average spread for major currency pairs with high trading volume is generally less than 1 pip.
Furthermore, in recent years, more and more account types for advanced traders are also offering the option of high leverage
If you don't plan to use bonuses, the advanced account type offers a favorable trading environment for everything from scalping to swing trading
If you've used up all your bonuses and want to make a lot of money through trading, we recommend an advanced account type that offers favorable low spreads
Recommended ranking of overseas forex brokers specializing in low spreads
The overall number one choice is "Exness (Zero Account)," which boasts the narrowest effective average spread of 0.5 pips across its five major trading instruments .
Here, the MoneyCharger editorial team presents a ranking of recommended brokers specializing in low spreads, based on the average spreads of overseas forex brokers they have researched
- Spread Comparison: Ranked #1 | Exness (Zero Account)
- Spread Comparison: 2nd Place | Axi (Elite Account)
- Spread Comparison: 3rd Place | ThreeTrader (Raw Zero Account)
- Spread Comparison: 4th Place | HFM (Zero Account)
- Spread Comparison: 5th Place | XS.com (Elite Account)
- Spread Comparison: Ranked 6th | MYFXMarkets (Pro Account)
- Spread Comparison #7 | AXIORY (Nano Spread Account)
- Spread Comparison: Rank 8 | TitanFX (Blade Account)
- Spread Comparison: 9th Place | FXGT (ECN Account)
- Spread Comparison: 10th Place | Vantage Trading (ECN Account)
Please use this as a reference when looking for an overseas forex account that offers low spreads and favorable trading prices
Spread Comparison: Ranked #1 | Exness (Zero Account)
| item | Content |
|---|---|
| Maximum leverage | Unlimited |
| Execution method | Market execution |
| Transaction fees | Maximum $3.50 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 200 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4, MT5, Exness App |
| Minimum deposit amount | $1,000 equivalent |
| Brand | Zero Account's effective average spread (daily average + trading fees) |
|---|---|
| USD/JPY | 0.45 pips （0.1+0.35） |
| EURUSD | 0.45 pips （0.1+0.35） |
| GBPUSD | 0.65 pips （0.2+0.45） |
| AUDUSD | 0.6 pips （0.1+0.5） |
| XAUUSD | 0.8 pips （0+0.8） |
Here's what makes Exness's Zero Account so strong
- Offers low spreads starting from 0 pips
- Lower costs than other companies, including transaction fees
- Unlimited leverage allows you to make big profits with a small investment and high leverage
For those prioritizing spreads, the number one recommended overseas forex broker"Exness".
Exness offers a Zero Account with a fixed spread of 0 pips as a general rule
thisAlong with its exceptionally low spreads, Exness's strength lies in its unlimited leverageis
The excellent combination of high leverage and low spreads goes without saying, andif you can successfully set a narrow stop-loss with scalping, you can make significant profits even with a small amount of capital of less than approximately $625.00.
Details about Exness, which offers trading with low spreads and unlimited leverage, can be found in " Exness Reviews and Testimonials Summary "
Spread Comparison: 2nd Place | Axi (Elite Account)
| item | Content |
|---|---|
| Maximum leverage | 1,000 times |
| Execution method | NDD ECN method |
| Transaction fees | $1.75 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 200 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4 |
| Minimum deposit amount | Total of $25,000 |
| Brand | Effective average spread for Elite accounts (daily average + trading fees) |
|---|---|
| USD/JPY | 0.675 pips （0.5+0.175） |
| EURUSD | 0.575 pips （0.4+0.175） |
| GBPUSD | 0.875 pips （0.7+0.175） |
| AUDUSD | 0.475 pips （0.3+0.175） |
| XAUUSD | 1.35 pips （1.0+0.125） |
Here's what makes Axi's Elite account so strong
- Major currency pairs average 0.7 pips including fees
- Stable execution power through partnerships with over 20 LPs
- With minimal restrictions, leverage up to 1,000x
overseas forex broker we recommend for its low spreads"Axi".
Axi's Elite account, which offers the narrowest spreads, is ideal for those who want a highly flexible trading environment and comfortable scalping
Axi has very few restrictions on trading methods. The only restrictions are on trading that exploits delays and the abuse of swap-free tradingThere are no rules prohibiting scalping or high-frequency trading using automated systems
Furthermore, Axi employs leverage restrictions based on trading volume, allowing you to focus on trading without worrying about fluctuations in your account balance
Details about Axi, which offers an elite account with consistently low spreads, can be found in " Axi Reviews and Testimonials Summary "
Spread Comparison: 3rd Place | ThreeTrader (Raw Zero Account)
| item | Content |
|---|---|
| Maximum leverage | 1,000 times |
| Execution method | NDD ECN method |
| Transaction fees | $2 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 80 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4/MT5 |
| Minimum deposit amount | $1,000 equivalent |
| Brand | Raw Zero account's effective average spread (daily average + trading fees) |
|---|---|
| USD/JPY | 0.7 pips （0.5+0.2） |
| EURUSD | 0.6 pips （0.4+0.2） |
| GBPUSD | 1.0 pips （0.8+0.2） |
| AUDUSD | 0.5 pips （0.3+0.2） |
| XAUUSD | 1.0 pips （1.0+0） |
ThreeTrader's Raw Zero account has these strengths
- Trading fees are incredibly low at just $2 per lot, one way
- Gold has no trading fees and low spreads
- No leverage limit up to an account balance of $5,000
Our third-ranked overseas forex broker, chosen for its focus on spreads,"ThreeTrader".
ThreeTrader's Raw Zero account is popular among traders who prioritize low overall trading costs
We employ the NDD ECN method, which allows trading at the rates of our partner LPsTrading fees are also very low at $2 per lot, one way(Typically, it's $3 or more). With commissions included, you can trade USD/JPY from a minimum of 0.2 pips
If you're looking for an environment with extremely low trading costs, ThreeTrader's Raw Zero account is definitely the right choice
ThreeTrader is ideal for those who want to minimize trading costs. For more details, please see " ThreeTrader Reviews and User Feedback Summary "
Spread Comparison: 4th Place | HFM (Zero Account)
| item | Content |
|---|---|
| Maximum leverage | 2,000 times |
| Execution method | Market execution |
| Transaction fees | $3 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 60 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4, MT5, HFM App |
| Minimum deposit amount | - |
| Brand | Zero Account's effective average spread (daily average + trading fees) |
|---|---|
| USD/JPY | 1.1 pips （0.8+0.3） |
| EURUSD | 0.7 pips （0.4+0.3） |
| GBPUSD | 0.9 pips （0.6+0.3） |
| AUDUSD | 0.6 pips （0.3+0.3） |
| XAUUSD | 2.4 pips （1.7+0.7） |
Here's what makes HFM's Zero Account so strong
- AUD/USD (Australian Dollar/US Dollar) has a low spread of 0.3 pips on average
- Maximum leverage is 2,000 times
- The main trading instruments are perpetual swap-free
Our fourth-ranked overseas forex broker, chosen for its focus on spreads, is "HFM (HFM Markets)".
HFM's Zero Account, which offers the narrowest spreads, allows trading of a wide range of instruments at low costs, such as AUDUSD with an average spread of 0.3 pips
In addition to the spread,One of HFM's strengths is that it also offers perpetual swap-free options for its major trading instrumentsis
For traders who prioritize spreads but are also all-around traders who can adapt their strategies to market conditions, from scalping to swing trading, HFM's Zero Account is highly recommended
Details about HFM, which allows you to trade AUDUSD with a low spread of 0.3 pips, are available in " HFM Reviews and User Feedback Summary "
Spread Comparison: 5th Place | XS.com (Elite Account)
| item | Content |
|---|---|
| Maximum leverage | 2,000 times |
| Execution method | NDD method |
| Transaction fees | $3 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 100 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4/MT5 |
| Minimum deposit amount | $500 equivalent |
| Brand | Effective average spread for Elite accounts (daily average + trading fees) |
|---|---|
| USD/JPY | 1.3 pips （1.0+0.3） |
| EURUSD | 0.6 pips （0.3+0.3） |
| GBPUSD | 0.8 pips （0.5+0.3） |
| AUDUSD | 0.6 pips （0.3+0.3） |
| XAUUSD | 0.9 pips （0.6+0.3） |
Here's what makes XS.com's Elite account so strong
- Gold traded at less than 0.9 pips on average, including transaction fees
- Offers leverage up to 2,000x
- Overwhelming execution power as a major financial provider
Our fifth-ranked overseas forex broker, chosen for its focus on spreads,"XS.com".
If you want to scalp with large lot sizes but have had frustrating experiences with trades not being executed, XS.com's Elite account is suitable for you
XS.com is a retail broker operated by the XS Group, which has over 15 years of experience as a financial provider for securities firms and institutional investors
High levels of liquidity and infrastructure development,XS.com allows you to enter trades with lot sizes that other companies can't execute in one go, without any stresscan
XS.com is recommended for large-volume traders who want to trade securely in an environment with narrow spreads and favorable positions
Details about XS.com, which boasts both exceptional execution speed and low spreads, can be found in " XS.com Reviews and Testimonials Summary "
Spread Comparison: Ranked 6th | MYFXMarkets (Pro Account)
| item | Content |
|---|---|
| Maximum leverage | 500 times |
| Execution method | NDD method |
| Transaction fees | $3.325 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 100 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4/MT5 |
| Minimum deposit amount | $10 equivalent |
| Brand | Effective average spread for Pro accounts (daily average + trading fees) |
|---|---|
| USD/JPY | 0.85 pips （0.5+0.35） |
| EURUSD | 0.75 pips （0.4+0.35） |
| GBPUSD | 1.05 pips (0.7 + 0.35) |
| AUDUSD | 0.65 pips （0.3+0.35） |
| XAUUSD | 3.55 pips （3.2+0.35） |
Here's what makes MYFXMarkets' Pro account so strong
- The spreads on major currency pairs are generally less than 1 pip
- You can use advanced account types starting with a minimum deposit of $10
- With 1 lot = 1,000 currency units, you can achieve the same trading as domestic FX with minimal capital
Our sixth-ranked overseas forex broker, chosen for its focus on spreads, is "MYFXMarkets".
MYFXMarkets' Pro account, which offers the narrowest spreads,is suitable for those who are scalping with domestic FX and want to switch to overseas FX to trade with smaller amounts of capital.
MYFXMarkets' trading environment, which uses the same 1,000 currency units per lot as domestic FX, allows you to trade the same number of lots with less capital, with leverage up to 500 times
Furthermore, the Pro account is a low-spread-focused account type that can be used with a minimum deposit of $10
Therefore, MYFXMarkets' Pro account allows you to scalp with a small amount of capital and low spreads, in a low-cost environment
Details about MYFXMarkets, which allows trading with small amounts of capital and low spreads, can be found in " MYFXMarkets Reviews and Testimonials Summary "
Spread Comparison #7 | AXIORY (Nano Spread Account)
| item | Content |
|---|---|
| Maximum leverage | 1,000 times |
| Execution method | NDD ECN method |
| Transaction fees | $3 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 1,000 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4 / cTrader |
| Minimum deposit amount | - |
| Brand | Effective average spread for Nano Spread accounts (daily average + trading fees) |
|---|---|
| USD/JPY | 0.7 pips （0.4+0.3） |
| EURUSD | 0.6 pips （0.3+0.3） |
| GBPUSD | 0.6 pips （0.3+0.3） |
| AUDUSD | 0.7 pips （0.4+0.3） |
| XAUUSD | 1.9 pips （1.5+0.3） |
Here's what makes AXIORY's Nano Spread account so strong
- The spread on major currency pairs is less than 1 pip on average
- Execution power capable of handling orders of up to 1,000 lots
- cTrader, which is strong for scalping, can be used
Our 7th recommended overseas forex broker, based on its focus on spreads, is "AXIORY".
AXIORY's Nano Spread account is highly regarded by many traders for its execution capabilities, which can handle large-volume trades, and its low spreads
The trading commission of $3 per lot (one way) is slightly higher than that of other companies that rank highly in spread comparisons, but the spreads are narrow enough to compensate for that difference
Furthermore,it supports simultaneous orders of up to 1,000 lots, making it suitable for scalping with large lot sizes.
For more details about AXIORY, which offers low spreads of less than 1 pip on average for major currency pairs and allows large-volume trading of up to 1,000 lots, please see " AXIORY Reviews and Testimonials Summary "
Spread Comparison: Rank 8 | TitanFX (Blade Account)
| item | Content |
|---|---|
| Maximum leverage | 500 times |
| Execution method | NDD ECN method |
| Transaction fees | $3.50 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 100 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4/MT5 |
| Minimum deposit amount | - |
| Brand | Effective average spread for Blade accounts (daily average + trading fees) |
|---|---|
| USD/JPY | 1.15 pips （0.8+0.35） |
| EURUSD | 0.95 pips （0.6+0.35） |
| GBPUSD | 1.35 pips （1.0+0.35） |
| AUDUSD | 0.75 pips （0.4+0.35） |
| XAUUSD | 2.63 pips （2.6+0.03） |
TitanFX's Blade account has these strengths
- Supply of stable, low spreads
- Low-latency execution power through proprietary technology
- Unlimited leverage up to 500x
Our eighth-ranked overseas forex broker, chosen for its focus on spreads,"TitanFX".
TitanFX's top-tier account type, the Blade account, is designed for experienced traders, offering a perfect combination of low spreads, low latency, and high execution speed
Blade accounts, which utilize the NDD ECN method,allow you to trade not only currency pairs but also a wide range of CFD instruments directly at rates quoted by TitanFX's partner lenders.
Furthermore, thanks to our unique zero-point technology, we have established a robust communication infrastructure, which means we rarely experience the delay-related problems that occur with other companies
For those who trade not only currency pairs but also CFDs such as stock indices and precious metals, TitanFX's Blade account, where all tradable instruments are executed using the ECN method, is recommended. For details, please see " TitanFX Reviews and Testimonials Summary "
Spread Comparison: 9th Place | FXGT (ECN Account)
| item | Content |
|---|---|
| Maximum leverage | 1,000 times |
| Execution method | NDD method |
| Transaction fees | $3 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 200 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4/MT5 |
| Minimum deposit amount | $100 equivalent |
| Brand | Effective average spread for ECN accounts (daily average + trading fees) |
|---|---|
| USD/JPY | 1.0 pips （0.7+0.3） |
| EURUSD | 0.9 pips （0.6+0.3） |
| GBPUSD | 1.2 pips （0.9+0.3） |
| AUDUSD | 1.2 pips （0.9+0.3） |
| XAUUSD | 2.85 pips （2.6+0.25） |
Here's what makes FXGT's ECN account so strong
- Currency pairs with low spreads averaging around 1 pip
- The spreads on cryptocurrency CFDs are also narrow
- Major cryptocurrency CFDs offer leverage up to 1,000x
recommended overseas forex broker that prioritizes spreads"FXGT".
FXGT, well-known for its cryptocurrency CFD trading, offers an ECN account specializing in low spreads
Although the spreads are wider compared to top-ranked overseas forex brokers,The narrow spreads and high leverage offered by our cryptocurrency CFDs are unique strengths not found in other companiesis
For example, major cryptocurrency CFDs such as Bitcoin and Ethereum can be traded with leverage up to 1,000 times
Only FXGT's ECN account allows you to trade cryptocurrencies with low spreads and high leverage while taking advantage of Bitcoin's volatility
For information on FXGT, where you can trade cryptocurrency CFDs with low spreads and high leverage, please see " FXGT Reviews and User Feedback Summary "
Spread Comparison: 10th Place | Vantage Trading (ECN Account)
| item | Content |
|---|---|
| Maximum leverage | 1,000 times |
| Execution method | NDD ECN method |
| Transaction fees | $3 per lot, one way |
| Scalping | Possible |
| Automated trading | Possible |
| Maximum lot | 200 lots |
| Minimum lot size | 0.01 lot |
| Trading platform | MT4/MT5 |
| Minimum deposit amount | $50 equivalent |
| Brand | Effective average spread for ECN accounts (daily average + trading fees) |
|---|---|
| USD/JPY | 1.3 pips （1.0+0.3） |
| EURUSD | 0.8 pips （0.5+0.3） |
| GBPUSD | 1.1 pips （0.8+0.3） |
| AUDUSD | 1.0 pips （0.7+0.3） |
| XAUUSD | 1.0 pips （0.7+0.3） |
Vantage Trading's ECN account has these strengths
- Gold spreads average less than 1 pip (including trading fees)
- You can trade major currency pairs plus gold with leverage up to 1,000x
- You can use it to your advantage with various bonuses
Our 10th recommended overseas forex broker, prioritizing spreads, is "Vantage Trading".
Vantage Trading's ECN account is suitable for trading gold due to its low spreads and bonuses
ECN accounts have an average spread of 1 pip, including trading fees. Furthermore,Vantage Trading's bonus campaigns generally apply to ECN accounts as wellIt has the following characteristics
Even with account types that specialize in low spreads and are generally not eligible for bonuses, it's possible to trade with advantageous capital while utilizing bonuses
Vantage Trading offers ECN accounts that combine low spreads and bonuses. For more details, please see " Vantage Trading Reviews and Testimonials Summary "
Ranking of the narrowest spreads in overseas forex trading | By currency pair and tradable instrument
In conclusion, for advanced accounts,Exness's Zero accounthad the narrowest trading width for 4 out of 5 actual trading pairs (USD/JPY, EUR/USD, GBP/USD, andAxi's Elite accounthad the narrowest width only for AUD/USD.
We have compiled a ranking of the narrowest spreads for each currency pair on overseas forex brokers, in the following order
Even for the same currency pair or tradable instrument, the overseas forex broker offering the narrowest spread can vary. Use this information to help you find a broker that offers the most favorable rates for the instruments you're trading
The top 3 stocks are listed for each stock. For spreads of all 14 companies, including those ranked 4th and below, please see the comparison tables in " Spread Comparison | STP Account/Standard Account " and " Spread Comparison | ECN Account/With Trading Fees "
USD/JPY (US Dollar/Japanese Yen) Narrowest Spread Ranking
The ranking of the narrowest spreads for USD/JPY (US dollar/Japanese yen) is as follows:
| Rank | Beginner-friendly (no transaction fees) | Advanced level (transaction fees apply) |
|---|---|---|
| 1st place | ThreeTrader Pure Spread Account 0.9 pips | Exness Zero Account: 0.45 pips |
| 2nd place | Exness Standard Account : 1.2 pips | Axi Elite account: 0.675 pips |
| 3rd place | Axi Standard Account : 1.3 pips | ThreeTrader Raw Zero Account 0.7 pips |
Only ThreeTrader recorded an average of less than 1 pip for beginners. For advanced traders,Exness's Zero accountstood out with an average of 0.45 pips.
EURUSD (Euro-Dollar) Narrowest Spread Ranking
The ranking of the narrowest spreads for EURUSD (Euro-Dollar) is as follows:
| Rank | Beginner-friendly (no transaction fees) | Advanced level (transaction fees apply) |
|---|---|---|
| 1st place | ThreeTrader Pure Spread Account 0.8 pips | Exness Zero Account: 0.45 pips |
| 2nd place | easyMarkets MT5 account 1.0 pips | Axi Elite account: 0.575 pips |
| 3rd place | Exness Standard Account : 1.1 pips | ThreeTrader Raw Zero Account 0.6 pips |
The lineup is the same as for USD/JPY. Exness's Zero account maintains the same level of 0.45 pips for EUR/USD as for USD/JPY
GBPUSD (British Pound/Dollar) Narrowest Spread Ranking
The ranking of the narrowest spreads for GBPUSD (pound-dollar) is as follows:
| Rank | Beginner-friendly (no transaction fees) | Advanced level (transaction fees apply) |
|---|---|---|
| 1st place | Exness Standard Account : 1.3 pips | Exness Zero Account: 0.65 pips |
| 2nd place | ThreeTrader Pure Spread Account 1.3 pips | XS.com Elite account 0.8 pips |
| 3rd place | XS.com Standard Account : 1.5 pips | Axi Elite account: 0.875 pips |
the GBPpair, Exness offered the narrowest trades for both beginners and advanced traders. ThreeTrader also had a similar average of 1.3 pips for beginners, but Exness had the edge due to its unlimited leverage.
AUDUSD (Australian Dollar/US Dollar) Narrowest Spread Ranking
The narrowest spread rankings for AUDUSD (Australian Dollar/US Dollar) are as follows:
| Rank | Beginner-friendly (no transaction fees) | Advanced level (transaction fees apply) |
|---|---|---|
| 1st place | ThreeTrader Pure Spread Account 0.8 pips | Axi Elite account: 0.475 pips |
| 2nd place | Exness Standard Account : 1.1 pips | ThreeTrader Raw Zero Account 0.5 pips |
| 3rd place | Axi Standard Account : 1.1 pips | Exness Zero Account 0.6 pips |
For beginners, ThreeTrader was the only platform with an average profit of less than 1 pip. For advanced traders,Axi's Elite account came in first place, albeit by a narrow margin over ThreeTrader.
XAUUSD (Gold) Narrowest Spread Ranking
The ranking of the narrowest spreads for XAUUSD (Gold) is as follows:
| Rank | Beginner-friendly (no transaction fees) | Advanced level (transaction fees apply) |
|---|---|---|
| 1st place | ThreeTrader Pure Spread Account 1.5 pips | Exness Zero Account 0.8 pips |
| 2nd place | Exness Standard Account: 1.6 pips | XS.com Elite account 0.9 pips |
| 3rd place | Axi Standard Account : 1.8 pips | ThreeTrader Raw Zero Account 1.0 pips |
For gold,Exness's Zero account is overwhelmingly superior with an average spread of 0 pips (0.8 pips including trading fees). For beginners, ThreeTrader came in first place, just 0.1 pips behind the second-place Exness Standard account.
If you want to trade gold favorably with overseas forex brokers, check out " Which overseas forex brokers are recommended for trading gold? " for a list of brokers that offer low spreads and high leverage
Points to note when choosing an overseas forex broker based on spreads
Here, we will explain seven points to keep in mind when choosing an overseas forex broker based on spreads
- Even "zero spread" or "no spread" options incur trading costs
- Domestic FX also sometimes has wide effective spreads
- NDD method = not directly connected to the market
- It's meaningless if the execution power isn't high
- Check the leverage limit rules
- Bonus campaigns are not applicable
- When the spread widens
When choosing an overseas forex broker based on spreads, be sure to check factors that help minimize actual trading costs, as well as any unique features specific to overseas forex brokers
Even "zero spread" or "no spread" options incur trading costs
Some overseas forex brokers offer account types with a fixed spread of 0 pips, meaning no spread at all
However, FX brokers cannot operate in a healthy manner unless they secure other sources of revenue without relying on spreads
Therefore, account types without spreads have a corresponding trading fee
Unlike spreads, transaction fees do not fluctuate, so a spread-free account type is recommended for those who want to fix their transaction costs
Domestic FX also sometimes has wide effective spreads
Domestic FX generally has narrower spreads compared to overseas FX
However, even with domestic FX, the effective spread can sometimes be wider
This is because the spreads published by each domestic FX broker are, in principle, fixed spreads
The fixed spread is,The spread may expand in accordance with market fluctuations, and the difference between the order price and the execution price (slippage) will occur, similar to a variable spread
Therefore, it is important to note that the actual spread may be wider due to frequent expansion and slippage
NDD method = not directly connected to the market
Many media outlets and social media accounts spread the false information that all overseas forex brokers using the NDD (No Dealing Desk) system are directly connected to the interbank market
The NDD (Non-Dealing Desk) system is a mechanism that processes customer orders through a dealing system
Therefore, even with the NDD (Non-Dealing Desk) method, some companies may still use over-the-counter (OTC) transactions where they themselves are the trading partner
For example, XMTrading employs OTC trading, where customer orders are settled in-house via a dealing system, and cover trades are conducted as needed
For overseas forex brokers that use the NDD (No Dealing Desk) method, please see the " List of Overseas Forex Brokers Using the NDD Method "
It's meaningless if the execution power isn't high
I do not recommend choosing an overseas forex broker solely based on narrow spreads in search of a trading environment that is advantageous for scalping
because,If you choose a broker with poor execution capabilities, even if the spread is narrow, you won't actually be able to take a position at a favorable priceThat's because
For example, even if the displayed real-time spread is 0.2 pips, a delay may occur when placing an order, resulting in the actual position being executed at a price 1 pip less favorable
Therefore, if you're choosing an overseas forex broker based on spreads, you should check their execution speed through reviews and their official website
If you're looking for an overseas forex broker that offers not only low spreads but also excellent execution speed, please see our " Comparison Summary of Overseas Forex Brokers with High Execution Speed ."
Check the leverage limit rules
If you're choosing an overseas forex broker based on spreads, it's a good idea to also check their leverage restriction rules
Scalping, which pairs well with low-spread accounts,combined with the high leverage offered by overseas forex brokers, makes it easier to aim for large profits while keeping risks low.
However, using high leverage ratios requires controlling your capital and lot size to stay within the limits of leverage restrictions
For example, in an account with a maximum leverage limit starting from approximately $6,250, you can benefit from high leverage by adjusting your account balance to less than approximately $6,250
Bonus campaigns are not applicable
If you prioritize spreads when trading overseas forex, you'll have to give up on taking advantage of bonus campaigns
This is becauseaccount types designed for advanced traders that specialize in low spreads are generally not eligible for bonus campaigns.
If you plan to use a bonus, be sure to use the eligible beginner-friendly account type
Additionally, as an exception, some ECN accounts specializing in low spreads, such as those offered by VantageTrading, may also offer bonuses, so it's important to check each company's bonus terms and conditions
The latest overseas forex bonus information is updated regularly on the Overseas Forex Latest Bonus Campaign Ranking
When the spread widens
For both domestic and international FX brokers, there are times when the spread widens, as described below
- Before and after the release of economic indicators
- Early morning shift change time for business days
- The timing of each market's opening
During these time periods, market price movements tend to be large and instantaneous, and the spreads offered by FX brokers tend to widen
For example, large trades tend to occur and spreads tend to widen at the opening times of the London market (around 4 PM to 5 PM) and the New York market (9 PM to 10 PM), when trading volume is high
For more information on profitable trading times and the characteristics of overseas forex trading hours, please see " A Thorough Explanation of Overseas Forex Trading Hours ."
Overseas forex trading is best used in conjunction with cashback offers
with overseas forex brokers,recommended to use cashback sites in conjunction with them.
The cashback site MONEY CHARGER (commonly known as MoneyCharger)allows you to earn cashback with every trade, minimizing the costs associated with spreads from overseas forex brokers.
For example, if you trade USD/JPY with Exness's Zero account, which has the narrowest spread in this article, you will receive a cashback of $2 for every lot you trade
When trading USD/JPY on Exness
[Standard] Zero Account Trading Costs: 1 lot (one way): Average 0.1 pips + $3.50 trading commission (0.35 pips)
= Effective spread 0.45 pips
[When using MoneyChat] Zero account trading costs: 1 lot one way: average 0.1 pips + trading fee $3.50 (0.35 pips) - cashback $2 (0.2 pips)
=Effective spread 0.25 pips
By using MoneyChat,you can trade with a spread of effectively 0.25 pips, down from the usual 0.45 pips.
Unlike spreads, cashback is a welcome feature because you receive it reliably as profit every time you trade
If you're using overseas forex brokers, take advantage of cashback offers to reduce your trading costs
If you want to trade with the narrowest spreads and cashback,open an Exness account through MoneyChatand effectively lower your spreads starting today.
Frequently Asked Questions about Spreads in Overseas Forex Trading
Which overseas forex broker has the narrowest spreads?
Our spread survey revealed that Exness's Zero Account offers the narrowest spreads. Exness's Zero Account has a minimum spread of 0 pips, and even including trading fees, its effective spreads are narrower than those of other companies
Which overseas forex broker offers the narrowest spread for gold?
The account with the narrowest spread for gold in overseas forex trading is "Exness's Zero Account." In our spread survey, Exness's Zero Account recorded an average spread of 0 pips, and 0.8 pips including trading fees
Are the spreads wide for overseas forex brokers?
Overseas forex brokers generally tend to have wider spreads compared to domestic forex brokers. The difference in spreads between overseas and domestic forex brokers is mainly due to differences in the order processing methods and services offered. However, some overseas forex brokers offer accounts with low spreads, and spreads can also widen at domestic forex brokers
Why are spreads in overseas forex brokers often variable?
In overseas forex trading, variable spreads are often used because they offer advantages such as maintaining execution speed depending on market liquidity. Spreads, like market rates, also fluctuate. In fact, a completely fixed spread is not the ideal arrangement
Which has narrower spreads, domestic or overseas forex trading?
Generally speaking, domestic FX brokers tend to have narrower spreads. However, some overseas FX brokers offer completely fixed spreads of 0 pips, so it's not possible to say definitively which has narrower spreads overall
Are there any overseas forex brokers that offer zero spread trading?
Yes, it is sometimes possible to trade with zero spread with overseas forex brokers. For example, this applies to the NDD ECN method, where orders are directly matched with the liquidity provider (LP) that the forex broker partners with. With the NDD ECN method, there is no spread added by the forex broker, so the minimum spread is 0 pips
How can I check the spreads of overseas forex brokers in real time?
You can check the spreads for overseas forex trading in real time from the trading platform
Follow the steps below to check the real-time spread from the quote list
- Open "View" → "List of Ask Prices" from the menu at the top
- Right-click on the list of asking prices
- Select "Spread" from "Display Columns"
This procedure will display the real-time spread in the quote list
Do overseas forex spreads change depending on the time of day?
Yes, it does change. Spreads fluctuate according to market liquidity, so they may temporarily widen, especially in the early morning or when economic indicators are released. During the time when the London and New York markets, which have high liquidity, overlap, spreads tend to be relatively narrow and stable
Does a narrower spread mean higher execution speed?
A narrow spread doesn't necessarily mean high execution speed. While a narrow spread indicates a cost advantage, execution speed depends on server performance, trading methods, and the quality of the landing page. It's important to check execution speed and slippage in addition to the spread
Which is better for beginners: an account with a narrow spread or one with a wide spread?
For beginners, a "Standard Account," which has slightly wider spreads but no trading fees, is easier to use. ECN accounts have narrower spreads but charge fees, which can be misleading if you're not familiar with cost calculations
If you're new to overseas forex trading, you can check the process from account opening to starting trading in our " Beginner's Guide to Overseas Forex Trading ."
Summary of spreads in overseas forex trading
In overseas forex trading, spreads vary significantly depending on the broker and account type, which also affects the actual trading costs
Especially in scalping and day trading, a narrow spread directly impacts profits, so choosing the right broker is crucial
This article compares the spreads of various companies and also introduces recommended accounts that allow you to trade at a low cost
Choose an account that suits your trading style and capital, and aim for efficient trading while keeping costs down
Overseas forex brokers tend to have wider spreads, although they often offer numerous initial bonuses and limited-time cashback campaigns. Since the spread is like a commission when trading forex, you should look for a broker with the smallest possible difference between the buy and sell prices, while also considering the campaigns. Especially for those unfamiliar with forex, it's easiest to start by comparing brokers based on their spreads. While the ability to trade forex 24 hours a day is an advantage, spreads can narrow or widen depending on the time of day, so it's important to understand this unique characteristic of forex
