Tight Spread Forex Brokers
What is a Tight Spread in Trading?
Tight Spreads, also referred to as narrow spreads, are when the difference between the ask price and the bid price is small. While the spread usually represents brokerage service costs for the provided transactions and the trading environment itself.
- The spread or the difference between the bid and ask price on the trading instruments represented in platforms is often a point of debate when choosing the Forex Broker.
- Yet, when choosing one, make sure you did your research well and checked all the conditions and offerings since some brokers may require some commissions and fees apart from spreads, so tight spread isnt the only point to check. Read about Spread on Wikipedia.
What is good tight spreads?
|e.g. Tight Spread – Sell EUR USD 0.9pips – Buy EUR USD 1.1pips
|Sell and Buy
What is Tight Spread Forex Platform?
Based on our study, the platforms do not reflect on the tight spread or low spread, it is the broker that may include spreads in their offerings through the trading platform they provide.
Platform offerings often vary from one broker to another, and it is up to trader to choose either easier-to-use platforms or more sophisticated ones like NinjaTrader. However, it is important to consider what is the best suitable option for your trading, also see some of notes about tight spread trading:
- The intensity of completion on both orders to buy or sell increases the liquidity which leads to a tighter spread
- The advantages of Tight Spreads minimize traders’ losses on price differences for some strategies like scalping or hedging, also the possibility to open many positions simultaneously, as well as run Robots or Algos with better conditions
- Tight market offering is usually based on a variable spread and can see spreads as narrow as only a few cents or even might be less like tens of cents
- Currently, as technology drives markets rapidly and becomes even more sophisticated on a daily basis, many from Reputable Forex Brokers offer access to Tight Spreads.
- Typically, Tight Spread Brokers are NDD brokers that lowering trade costs through the tight spread technology and enhance many opportunities to trade.
|Tight Spread Advantages
|Tight Spread Disadvantages
|Low Cost of Trading
|Cost closer to interbank rates
|Tight Spread Brokers can charge additional trading and non-trading fees
|Suitable to run Auto Trading or Robots
|Floating spreads do not guarantee always low spreads, sometimes can be higher
|High Execution Speed
|Tight Spreads doesn't always indicate that the broker is reliable
|Minizes Trading losses
|Suitable for various trading strategies including Hedging and Scalping
|Enablies opening several positions
Top 5 Best Tight Spread Forex Brokers
Below we made a listing of Top Forex Brokers that offer Tight Spreads also selected due to excellent conditions and overall good execution while being fully regulated and provide tight spreads:
- HFM – Best MT4 Tight Spread Broker 2024
- BlackBull Markets – Best STP Tight Spread Broker 2024
- FP Markets – Best Australia Tight Spread Broker 2024
- Eightcap – Best MT5 Tight Spread Broker 2024
- BDSwiss – Best Tight Spread Forex Broker for Beginners 2024
Why is a tight spread more desirable in trading?
Tighter spreads are a sign of greater liquidity, while wider bid-ask spreads occur in less liquid or highly-volatile stocks. Also, tight spreads cut off costs, so it is more desirable to trade securities with tighter spreads, besides is important for some strategies like scalping.
Which forex broker has tightest spread?
In fact, in the conditions of competition, many forex brokers have come to the point that most of them try to offer the tightest spreads in the forex market. Among some of the most popular regulated brokers offering tight spreads are Pepperstone, Tickmill, HFM, XM, etc.
List of Forex Brokers with Tight Spread
Here is our list of the Forex Brokers with Tight spreads and good regulation based on our research and testing:
No regulated broker available.