8 Best Lowest Spread Forex Brokers

The lowest advertised spread is not always the cheapest deal.

A broker might advertise spreads from 0.0 pips, then charge a commission when you open and close the trade. Another broker may charge no separate commission but use a wider spread instead.

For South African traders, the only fair way to compare costs is to look at the full picture: the spread, round-turn commission, overnight financing, and actual execution conditions.

The brokers covered in this guide, including Exness, HFM, IC Markets, Pepperstone, Tickmill, and FP Markets, all offer raw-spread or low-spread account options. The better choice depends on which legal entity serves your account, which account types are available in South Africa, how often you trade, and whether you prefer commission-based pricing or a spread-only account.

 

Important: Spreads usually move with market conditions unless the broker clearly states otherwise. They can widen at the market open, around major economic announcements, during quiet trading periods, and when volatility jumps. Account terms may also differ by country and legal entity.  

What is Lower Spreads Forex?

Low spread accounts from forex brokers minimize the difference between the ask (sell) and bid (buy) prices, which lowers trading expenses for South African traders. Because they reduce entry and exit costs, lower spreads are particularly advantageous for scalpers and high-frequency traders. Since many of these brokers use STP (Straight Through Processing) or ECN (Electronic Communication Network) technology, spreads on key currency pairings can start as low as 0.0 pips during hours when the market is liquid.

🏆10 Best Forex Brokers in South Africa

What should I consider before choosing the lowest spread forex broker?

Before choosing the lowest spread forex broker, you should consider the broker’s reputation, regulatory compliance, trading platforms, trading fees, and other essential features of your trading strategy. It’s also a good idea to open a demo account and test the broker’s trading platform and services before depositing real funds.

10 Lowest Spread Forex Brokers - A Comparison

 

The figures above are advertised starting points, not guaranteed average trading costs. Exness explicitly advises traders to compare total costs rather than the spread alone because its Raw Spread and Zero accounts charge commission.

Pepperstone, Tickmill and HFM make similar distinctions between raw pricing and commission-free account structures.

10 Lowest Spread Forex Brokers in South Africa (2026)

1. Exness - Offers both raw-spread and commission-free accounts.
2. HFM - Provides a Zero account with forex spreads.
3. IC Markets - Offers raw-spread accounts designed for scalping.
4. AvaTrade - Uses simple spread-based pricing.
5. OANDA - Offers core pricing with reduced spreads.
6. Tickmill - Provides transparent raw pricing.
7. Pepperstone - Combines low-spread accounts.
8. FP Markets - Offers Raw and Standard forex accounts on MT4 and MT5.

1. Exness

 

Exness does not use the same pricing structure across all its accounts.

Standard and Pro accounts do not charge commission. Raw Spread and Zero accounts do. That means the lowest advertised spread is not always the cheapest option once commission is added.

Exness recommends comparing the full trading cost, including both the spread and commission, before choosing an account. 

What stands out

• Raw Spread and Zero accounts are designed for tighter pricing.
• Standard and Pro accounts use a simpler commission-free structure.
• MT4 and MT5 are supported.
• A trading calculator is available for estimating spreads, commission, margin, and other position costs.

Main limitation

The minimum deposit and exact commission can differ by account, jurisdiction, and payment method. A low broker-level entry deposit should not be presented as the deposit required for every professional account.

Who may consider Exness?

Exness may suit traders who want a choice between a straightforward spread-only account and tighter commission-based pricing.

Confirm the account, legal entity, commission, and deposit shown in the client area before funding.

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Pros and Cons

 

Why is Exness considered the a low spread broker?

Exness offers spreads from 0.0 pips on major pairs, especially on its Raw Spread and Zero accounts, with lightning-fast execution and deep liquidity.  

Does Exness charge commissions on low spread accounts?

Yes, Exness applies a small commission on Raw Spread accounts. However, the ultra-low spreads significantly reduce total trading costs for frequent and high-volume traders.  

2. HFM

HFM’s Zero account offers raw forex spreads from 0.0 pips, with commission starting at $3 per lot. Traders can use MT4, MT5, HFM WebTrader, the mobile app, or HFM’s own platform.

It is also worth comparing the Zero account with HFM’s Cent, Pro, and Premium accounts. A raw-spread account is not always the cheapest once commission is added, so the better option depends on how often you trade, your position size, and whether you prefer paying through the spread or through a separate commission.

What stands out

• Raw forex spreads from 0.0 pips on eligible symbols.
• Commission-based pricing.

Multiple platforms.

A South African entity, HF Markets SA (Pty) Ltd, states that it is authorised by the FSCA as an FSP under authorisation number 46632.

Main limitation

HFM’s public Zero-account information has displayed inconsistent minimum-deposit wording across sections of the same page. Traders should rely on the amount presented during registration for the applicable South African account rather than an undated third-party table.

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Pros and Cons

 

What are the typical spreads offered by HFM?

HFM offers spreads as low as 0.1 pips on major pairs via its Zero Spread Account, providing competitive conditions for short-term traders and scalpers.  

Is HFM reliable for low spread trading?

Yes, HFM is FSCA-regulated and known for consistent pricing, fast execution, and a variety of account types that cater to both beginners and professionals.  

3. IC

IC promotes Raw Spread accounts with spreads from 0.0 pips. Its account material positions this pricing structure for active traders, scalpers and automated strategies.

A separate commission is charged on Raw accounts. The precise amount must be checked against the platform, account currency, and IC entity that will hold the account.

What stands out

• Raw spreads advertised from 0.0 pips.
• MT4, MT5 and other platform options, depending on entity.
• Positioning for algorithmic and higher-frequency strategies.
• No minimum distance on certain order specifications, subject to the relevant product terms.

Main limitation

IC operates through more than one regulated legal entity. South African users should not assume that protections or account terms displayed for Australia, Europe, Seychelles or The Bahamas are interchangeable. 

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Pros and Cons

 

How low are IC spreads?

IC offers raw spreads from 0.0 pips on its ECN-style accounts, along with ultra-fast execution speeds ideal for algorithmic and scalping strategies.  

Why is IC popular for execution quality?

IC uses Equinix data centers and institutional-grade liquidity, ensuring minimal slippage and fast trade execution, which complements its low spread offering.  

4. AvaTrade

 

AvaTrade differs from most raw-spread brokers on this list because its forex costs are generally built into the spread rather than presented as a raw spread plus separate commission.

Its South African forex page advertises EUR/USD spreads from 0.9 pips.

What stands out

• Easier-to-understand spread-based pricing.
• MT4, MT5 and AvaTrade platforms.
• Local South African website and funding information.
• South African materials state that operations are supervised under the FSCA framework.

Main limitation

A 0.9-pip starting spread is wider than the advertised minimum on many raw accounts. However, the absence of a separate forex commission can make the cost easier to calculate.

The spread is not fixed merely because it is commission-free. Traders should verify the live instrument quote and current fee schedule.

Who may consider AvaTrade?

AvaTrade may suit newer or lower-frequency traders who prefer a simpler cost model and do not want to calculate a separate per-side commission.

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Pros and Cons

 

What spreads can I expect with AvaTrade?

AvaTrade offers fixed spreads starting from 0.9 pips on major forex pairs. While not raw, the predictability benefits traders who prefer stable pricing.  

Does AvaTrade support low-spread scalping?

Scalping is limited due to fixed spreads and execution style, but AvaTrade offers a smooth trading platform experience with tight spreads and excellent tools.  

5. OANDA

OANDA offers two broad pricing approaches: spread-only pricing and core spread plus commission.

The Core model is intended for spread-sensitive or higher-volume traders. It provides a reduced spread and adds a fixed commission.

What stands out

• Two distinct pricing models.
• Reduced-spread option for active traders.
• Transparent explanation that total cost equals the core spread plus commission.
• Proprietary trading tools and platform access, depending on region.

Main limitation

OANDA account availability, commission schedules and legal entities vary significantly by jurisdiction. A commission or spread displayed for the United States, Singapore, United Kingdom or British Virgin Islands should not be presented as a South African rate without confirming account eligibility.

Who may consider OANDA?

OANDA may appeal to traders who want to choose between spread-only simplicity and lower-spread commission pricing.

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Pros and Cons

 

Does OANDA offer raw spread accounts?

Yes, OANDA provides a Raw Spread Account with spreads from 0.0 pips, ideal for professional traders seeking low-cost trading and high transparency.  

Are OANDA's spreads competitive for South Africans?

OANDA’s pricing is transparent and highly competitive, especially during major market hours, and it accepts South African clients through its global entities.  

6. Tickmill

 

Tickmill’s Raw account advertises variable spreads from 0.0 pips, a $100 starting deposit, ZAR among its available base currencies, and a commission of $3 per lot per side.

That produces a stated round-turn commission of $6 per standard lot before the spread and any other applicable costs. Tickmill’s own cost example confirms that commission is charged on both the opening and closing side of a Raw-account forex trade.

What stands out

• Raw spreads from 0.0 pips.
• Clearly stated $3-per-side commission.
• ZAR listed as an available base currency.
• MT4, MT5 and TradingView options.
• Strategies are broadly permitted, subject to account terms.

Main limitation

Spreads are variable and may widen materially around announcements, market openings and market closures. Tickmill expressly warns about this behaviour.

Who may consider Tickmill?

Tickmill may suit traders who want a transparent commission structure and the option of a ZAR-denominated account.

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Pros and Cons

 

What makes Tickmill’s spreads attractive?

Tickmill offers raw spreads from 0.0 pips on Pro and VIP accounts, with low commissions and direct market access through MT4 and MT5 platforms.  

Is Tickmill good for MT5 low spread trading?

Yes, Tickmill’s MT5 setup provides institutional-grade liquidity and low latency, making it ideal for low spread strategies and algorithmic trading systems.  

7. Pepperstone

 

Pepperstone’s Razor account offers raw forex spreads from 0.0 pips and a commission advertised from $3.50 per lot per side. Pepperstone publishes both minimum and average spreads for major pairs on its pricing page; at the time reviewed, it displayed a 0.0-pip minimum and 0.1-pip average for EUR/USD on Razor pricing.

What stands out

• Razor spreads from 0.0 pips.
• Published minimum and average spread information.
• MT4, MT5, cTrader and TradingView access.
• A Standard account for users who prefer costs incorporated into the spread.
• No account-keeping or inactivity fee according to Pepperstone’s current help material.

Main limitation

The quoted commission depends on the platform, account currency, and trading size. The “from” commission should not be treated as universal across every setup.

Who may consider Pepperstone?

Pepperstone may suit active traders who value platform choice and want to compare published average spreads rather than minimum spreads alone.

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Pros and Cons

 

Why is Pepperstone ideal for low-spread beginners?

Pepperstone offers razor-thin spreads starting at 0.0 pips with clear fee structures, excellent educational tools, and support, making it beginner-friendly and low-cost.  

Which Pepperstone account has the lowest spreads?

The Razor Account offers the lowest spreads, combined with low commissions and access to MT4, MT5, and cTrader platforms for maximum flexibility.  

8. FP Markets

 

FP Markets provides Standard and Raw forex account options.

The Raw account uses tighter spreads, sometimes advertised from 0.0 pips, with a separate commission. The Standard account incorporates the broker’s trading fee into the spread.

FP Markets’ South African account page states that MT4 or MT5 accounts can be opened from $100 and advertises access to more than 60 currency pairs.

What stands out

• Choice between Raw and Standard account pricing.
• MT4 and MT5 support.
• Raw spreads advertised from 0.0 pips.
• Straightforward distinction between commission and spread-only accounts.

Main limitation

The exact commission and trading conditions must be checked for the South African account and selected platform. Global figures should not automatically be applied to the local entity.

Who may consider FP Markets?

FP Markets may suit MT4 or MT5 users who want to compare raw commission pricing with a simpler Standard account.

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Pros and Cons

 

What makes FP Markets a low-spread forex broker?

FP Markets offers raw ECN pricing with spreads starting from 0.0 pips on major currency pairs. Combined with competitive commissions and deep liquidity, it provides traders with institutional-grade pricing, making it suitable for scalpers and high-frequency trading strategies globally.  

Is FP Markets suitable for beginners and professionals?

FP Markets caters to both beginners and experienced traders by offering user-friendly platforms, educational resources, and advanced tools. While beginners benefit from support and tutorials, professionals appreciate tight spreads, fast execution, and access to MetaTrader and cTrader platforms.

Minimum Spread vs Typical Spread

A minimum spread is the lowest quoted spread a broker says may be available.

It does not tell you:

• how often that spread appears;
• how long it remains available;
• what the average spread is;
• whether commission applies;
• how much slippage occurs;
• what happens during volatile markets.

Where possible, compare a broker’s average EUR/USD spread during normal liquid hours. Then add the complete round-turn commission.

A broker publishing both minimum and average spreads provides more useful information than a broker publishing only “from 0.0 pips.”

Why Spreads Widen

Variable spreads can increase when:

• major economic figures are released;
• central banks announce interest-rate decisions;
• markets open after a weekend;
• liquidity falls near the end of the trading day;
• unexpected political or economic events occur;
• a currency pair has fewer active buyers and sellers.

Exness notes that spreads can change because of volatility, liquidity, news, economic events, market openings and the instrument being traded. Tickmill gives a similar warning for announcements and market opening or closing periods.

A strategy tested using a broker’s minimum spread can therefore produce unrealistic results.

Which Account Type Is Better?

Raw accounts may suit:

• scalpers;
• day traders;
• algorithmic traders;
• high-volume traders;
• traders who can calculate commission accurately.

Spread-only accounts may suit:

• beginners;
• lower-frequency traders;
• traders who prefer a simpler fee structure;
• traders who do not need the tightest entry spread.
• Neither model is automatically cheaper.

The better option is the account with the lower total cost for your instruments, trade size, holding period, and trading frequency.

Regulation of Forex Brokers: A Technical Analysis

• Forex brokers play a crucial role in facilitating currency trading, but their activities can be risky for traders.
• To mitigate these risks and ensure a fair and transparent trading environment, regulatory bodies like the Financial Sector Conduct Authority (FSCA) in South Africa play a vital role.
• Fundamental analysis helps you understand the "why" behind currency movements, offering valuable insights for long-term trading strategies.

 

 

How We Compare Low-Spread Forex Brokers

A broker should not rank first simply because one account displays “0.0 pips” on its sales page.

The following factors should be considered together:

Final Verdict

The low-spread forex accounts for South African traders are usually raw or commission-based accounts from brokers such as Exness, HFM, IC Markets, Pepperstone, Tickmill, and FP Markets.

Pepperstone and Tickmill make their commission structures relatively easy to understand. HFM offers a Zero account with raw pricing through an FSCA-authorised local entity. Exness gives traders a choice between commission-free and commission-based accounts. AvaTrade may suit traders who would rather have most costs built into the spread instead of paying a separate commission.

There is no single cheapest broker for everyone.

Before opening an account, check:

1. Which legal entity will hold your account.
2. Whether that entity is currently regulated.
3. The account’s typical spread, not only the advertised minimum.
4. The full round-turn commission.
5. Deposit and withdrawal rules.
6. Overnight financing and currency-conversion costs.

 

Use the FSCA’s official search tool to check any regulatory claims. Then confirm the latest account details on the broker’s South African website before depositing.

Risk Warning

Forex and CFD trading carries a high level of risk, and you can lose your full deposit. Leverage increases both profits and losses.

The information on this page is general. It does not take your financial situation, goals, or tolerance for risk into account, and it should not be treated as personal financial advice.

Editorial and Commercial Disclosure

Broker details should be checked against official pricing, account, legal, and regulatory sources before publication. Spreads, commissions, leverage, minimum deposits, and account availability can change.

SA Shares may earn compensation when readers use certain broker links. That relationship should not affect the review method, score, or ranking. Sponsored links should be clearly disclosed and marked as sponsored.

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Frequently Asked Questions

 

What are the advantages of using a low spread forex broker?

The main advantage of using a low spread forex broker is that you can save money on trading costs, increasing your overall profitability. Additionally, the lowest spreads can result in faster trade executions, which can be important for scalping or day trading strategies.  

Are there any disadvantages to using a lowest-spread forex broker?

One potential disadvantage of using a lowest-spread forex broker is that they may charge higher commission or account maintenance fees to offset their lowest-spread offering. Some lowest-spread brokers may also have fewer trading features or research tools than others.  

How can I find a reliable, lowest-spread forex broker?

To find a reliable, lowest-spread forex broker, you can research various brokers, compare their spreads and other features, and read reviews from other traders. It’s also important to check if a reputable authority regulates the broker and offers secure trading platforms.  

Can I still trade with high leverage using a low spread forex broker?

You can still trade with high leverage using a low spread forex broker. However, it’s essential to use caution when trading with high leverage, as it can increase your potential losses and profits.

What is a forex spread?

A forex spread is the difference between the bid (buy) price and the ask (sell) price of a currency pair. Lower spreads reduce trading costs and can improve profitability, especially for active traders and scalpers. 

Which forex brokers offer the lowest spreads?

Some of the brokers commonly known for low spreads include IC Markets, Pepperstone, FP Markets, XM, and Tickmill. Actual spreads may vary depending on market conditions and account type.

Are zero-spread accounts really free?

No. Brokers offering zero-spread accounts usually charge a commission per trade instead of earning revenue from the spread. Traders should compare the total trading cost, including both spreads and commissions.

Why are low spreads important for forex traders?

Low spreads reduce transaction costs, making them especially beneficial for scalpers, day traders, and high-frequency traders who execute multiple trades throughout the day.

Can spreads change during market volatility?

Yes. Forex spreads are often variable and can widen significantly during major economic announcements, low-liquidity periods, or unexpected market events.

Should I choose a broker based only on spreads?

No. While low spreads are important, traders should also consider regulation, execution speed, trading platforms, customer support, deposit methods, and overall broker reliability before opening an account.

 

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