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FX Brokers Ranking of the Lowest Trading Cost - Spread and Commission
This is the “Real” Trading Cost ranking with details!
What’s the Cost of Forex trading?
Do you know the fees for FX?
Some say “Forex is free of transaction fees” and another says “Spreads are fees.”
As many people may be wondering, is there a fee for FX transactions in the end?
Therefore, this time, we introduce the cost of FX trading in an easy-to-understand manner in order to solve such questions.
If you fully understand the cost of forex trading, you can do more efficient forex trading without wasting costs.
First, you may want the answer for “Is the FX transaction fee free?”
In conclusion, most Forex companies do not charge transaction fees, therefore, there is almost no need to pay transaction fees to FX brokers.
“Then, can you do Forex trading without incurring any cost?” is not really the case, because Forex brokers can’t make a profit then.
Forex trading requires traders to bear a substantial cost depending on the “spread”, even if there is no nominal trading fee.
FX Brokers Lowest Trading Cost Ranking
Find out the Best Forex Brokers with Lowest Trading Cost.
We, Hercules Finance have checked the “Real Time Spread” of each broker, and have summarized the Conditions, then created the below table “Lowest Trading Cost” Ranking!
Here, you will see the following information.
- Real Market Spread
- but not the one promoted by each broker.
- Required Deposit Amount
- to have that Lowest Trading Cost, because some brokers are not so reasonable for this.
- Total Trading Cost
- including the real Market Spread and also the Extra Trading Commissions.
Check out the table below.
| Ranking | FX Broker | Total Trading Cost (per 1 lot) | Average Spread | Extra Commission | Required Deposit |
|---|---|---|---|---|---|
| 1 | FXOpen | $4 | 0.1 – 0.6 pip | from $3 per 1 lot | $250,001 |
| 2 | HotForex | $7 | 0.1 – 0.3 pip | $6 per 1 lot | $20,000 |
| 3 | FXPro | $7 | 0.7 – 1.1 pip | None | $500 |
| 4 | LQDFX | $7 | 0.2 – 0.5 pip | $5 per 1 lot | $25,000 |
| 5 | FBS | $8 | 0.8 – 1.0 pip | None | $500 |
| 6 | LMFX | $8 | 0.0 – 0.1 pip | $8 per 1 lot | $100 |
| 7 | XM | $10 | 0.0 – 0.1 pip | $10 per 1 lot | $200 |
There is no broker with “zero Trading Cost” as it doesn’t really exist.
The trading costs are very competitive for the top brokers, and you may decide which broker is better by comparing other service conditions.
Go to Hercules.Finance Main Page
Which FX broker offers the reasonable condition?
If you cannot afford much money, then “FXOpen”, “HotForex” and “LQDFX” may not be suited for you.
FXPro is the Broker with the “Lowest Trading Cost” and the “Low Deposit Requirement”.
Other brokers “FBS“, “TitanFX“, “LMFX” and “XM” have very competitive conditions.
There are many other Conditions that you may want to compare, check out other “Rankings” and “Promotions” in the main page!
What is Spread?
You might not understand if it is said that “spread” will be a substantial cost, so we will also explain what spread is.
The definition of spread in FX is the difference between the “buy price (ASK)” and “sell price (BID)” of the currency.
The buy price (ASK) is the “price when buying” a currency, and the sell price (BID) is the “price when selling” a currency.
Since there is no exact match between the buyer’s desired price to buy and the seller’s desired price to sell, there is a price difference between these two prices.
This price difference is the “spread”.
Now let’s deepen our understanding by using concrete examples.
Here, we will explain using the EUR/USD rate. First, let’s look at the transaction screen below.
- Bit Prize (the price you can sell)
- Ask Prize (the price you can buy)
- Spread (difference of bid and ask price)
The difference is displayed between the prices of “BID” and “ASK” in the transaction screen.
This difference is the spread.
In other words, one currency costs 0.019 cents in this case.
For example, if you purchase 100,000 currency, “100,000 currency x 1.9 cents = 19 USD” will cost you.
If you trade 1000 currencies, you can get the cost of spread by multiplying the amount of currency by 19 USD.
Traders will lose if they do not make more profits than this substantial cost of spreads.
In that case, you want to minimize the cost of spreads, because the narrower the spread, the less costly profits you can trade.
Therefore, when opening FX, be sure to check the spread before opening your account.
Especially, those who do frequent transactions such as scalping and day trading should be careful.
