Forex Brokers with Zero Spread

UK residents seeking cost-efficient Forex trading are increasingly drawn to brokers offering spreads starting from 0.0 pips for major currency pairs like GBP/USD. While these ultra-low spreads reduce your overall expenses, they are typically accompanied by fixed commissions imposed when you open and close forex positions. This guide offers insight into the fee structure of low-cost brokers, along with an overview of their benefits and potential trade-offs.

1CMC Markets

Score: ★ 4/5

69% of retail investor accounts lose money

Top Rated

2Plus500

Score: ★ 4.1/5

82% of retail CFD accounts lose money

3FxPro

Score: ★ 4.3/5

74% of retail investor accounts lose money

4Eightcap

Score: ★ 4.2/5

59.57% of retail investor accounts lose money when trading CFDs with this provider.

5Pepperstone

Score: ★ 4.4/5

75.5% of retail investor accounts lose money

6Axi

Score: ★ 4.5/5

The vast majority of retail client accounts lose money

Below, you can find more information about the best zero-spread trading platforms in the UK:

1. CMC Markets enables commission-free trading with spreads from zero pips via dedicated Spread Betting, CFD, and Forex Active accounts, whose users gain access to over 12,000 tradable financial markets.
2. Plus500 offers competitive and transparent spreads, enabling commission-free trading across more than 2,800 markets. The broker provides real-time quotes and reliable execution.
3. FxPro provides spreads from zero pips for Raw+ MetaTrader 4 and MetaTrader 5 accounts, where traders incur industry-standard commissions of $3.50 per side, per standard lot on major currency pairs.
4. Raw accounts at Eightcap offer spreads from zero pips on major forex pairs, with a £4.50 round-turn commission per standard lot. By comparison, Standard and TradingView accounts enable commission-free trading but have higher spreads from 1 pip.
5. Onboarding Pepperstone customers can register Razor CFD Trading accounts where spreads start from zero pips, with a £4.50 round-turn commission per standard lot in forex. Other asset classes incur the same charges as Standard accounts.
6. Axi delivers zero-spread trading with Pro accounts, where forex traders incur a $3.50 commission each way per standard lot. There are no minimum deposit requirements, and users can trade over 140 financial markets with this account type.

This model appeals to active traders aiming to minimise their costs when using high-frequency strategies like scalping or day trading. Navigating this landscape requires careful evaluation of fees, regulations, platform reliability, and other vital aspects.

This publication covers:

• How Forex accounts with spreads from zero pips function, and what their cost structure is.
• Fees beyond commissions, from swap rates to currency conversion charges.
• Key factors for selecting a UK broker like regulatory compliance and supported platforms.
• Pros, cons, and FAQs tailored to the trading environment in the UK.

Broker	Minimum Deposit FCA Licence Paypal Credit/Debit card Demo Account ECN Account Islamic Account Scalping Hedging Copy Trading	Minimum Deposit FCA Licence Paypal Credit/Debit card Demo Account ECN Account Islamic Account Scalping Hedging Copy Trading
CMC Markets	£0173730	£0173730
Plus500	£100509909	£100509909
FxPro	£100509956	£100509956
Eightcap	£100921296	£100921296
Pepperstone	£0684312	£0684312
Axi	£0466201	£0466201

Cost Structure of Forex Accounts with Spreads from Zero Pips

This type of trading account, typically offered by true ECN or STP brokers, provides highly competitive pricing for certain currency pairs and is designed for UK traders looking to minimise their costs and maximise their profits. These accounts almost exclusively feature variable spreads, reflecting the raw market prices they offer.

Fixed vs. Variable Spreads

• Fixed spreads are highly atypical for zero-spread accounts. True ECN and STP brokers provide traders with access to interbank prices, which makes it impractical for them to offer fixed spreads due to inherent market volatility.
• Variable spreads are common at brokers using these two execution models and often start from 0.0 pips during periods of high liquidity, like the London or New York sessions, for example.

Forex brokers with spreads from 0.0 pips charge a commission per trade, which can range from a couple to several pounds per standard lot. This commission is usually a fixed amount per lot, rather than a percentage of the trade value.

For example, a broker may charge £2 to £6 per standard lot in either direction of the trade (for opening and closing a position). Respectively, entering and exiting a trade equal to one standard lot will cost you £4 and £12 in total, with commissions of £2 and £6 per side.

The commissions charged by forex brokers with spreads from zero pips can vary significantly, depending on the broker, the type of account, and the trading volume. Some brokers may offer tiered commission structures, charging lower commissions for higher trading volumes.

It is crucial for UK traders to thoroughly understand the commission structure of their broker and how it can impact their overall trading costs. Additionally, many brokers offer rebates or discounts on commissions for high-volume traders or those who maintain a substantial account balance.

Commission Structures

• Per-Lot Fees: Traders pay a flat commission per standard lot (100,000 units), making it easier to calculate their expenses. This is the most common form of commission for zero-spread accounts operating on the true ECN and STP execution models.
• Volume Discounts: High-frequency traders are sometimes eligible for reduced, tiered commissions, where the more lots they trade, the lower the cost per lot.

Brokers Compared by Forex Spread

Other Costs Associated with Forex Brokers with Zero-Pip Spreads

In addition to spreads and commissions, there are other trading and non-trading fees associated with forex brokers offering spreads from 0.0 pips, as described below.

• Swap rates: These are charged for holding open positions overnight, and can be either positive or negative, depending on the pair and the interest rate differentials between the two currencies comprising it.
• Currency conversion fees: Brokers charge them when traders transact in currencies other than their base account currency. Typically, a 0.1% to 1% fee is imposed on the converted amount.
• Funding fees: These fees are charged for moving funds to and from your account and are either fixed or percentage-based.
• Inactivity fees: Brokers may deduct an amount ranging from £5 to £30 from the available balances of accounts with no trading activity for prolonged periods, usually 3 to 12 months.

Other Factors to Look for When Choosing UK Brokers with Spreads from Zero Pips

1. Regulation: Prioritise brokers authorised by the Financial Conduct Authority (FCA) for robust client funds protection and compliance with local regulatory requirements.
2. Account Types: Select brokers offering account types tailored to your trading style. This could include micro accounts for traders with limited capital or professional accounts for high-volume and experienced traders.
3. Trading Platforms: Ensure the broker provides access to reliable platforms like MetaTrader or cTrader, which offer advanced charting tools and analytical capabilities.
4. Currency Pairs: Choose a broker with a diverse selection of currency pairs. This should include major pairs like GBP/USD, minor pairs like GBP/CHF, and exotic pairs like GBP/TRY to maximise trading opportunities. Brokers offering 50 or more forex pairs should be on your radar.
5. Payment Methods: Verify that the broker supports flexible and cost-effective deposit and withdrawal methods. Favour trading sites that facilitate fast GBP transactions via PayPal and other UK-friendly payment solutions.
6. Educational Resources: If you are a novice trader, brokers that provide comprehensive educational resources will be ideal. Content geared toward beginners may include free webinars, detailed market analysis, economic calendars, and accessible guides. Ensure the resources are tailored to the UK market and available in English.
7. Customer Support: Having access to 24/7 assistance via live chat, phone, or email is crucial, especially when facing urgent issues when trading or managing your account.

Leverage Caps at FCA-Licensed Brokers

In the UK, FCA-licensed brokers offering accounts with zero-pip spreads must adhere to the leverage limits set by the local regulator. These caps are designed to protect retail traders from excessive risk while still providing appropriate trading flexibility. Here is a detailed breakdown of the leverage limitations and their implications for UK traders.

Leverage Limits for Retail Traders

Under FCA regulations, the following caps apply to the maximum leverage available to retail clients.

• 1:30 for major currency pairs*
• 1:20 for other forex pairs, gold, and major indices
• 1:10 for commodities other than gold and minor indices
• 1:5 for individual shares

*If you trade GBP/USD with a 1:30 leverage, a £1,000 deposit allows you to control a position equal to £30,000.

Leverage for Professional Traders

Professional traders, as classified by the FCA, can access higher leverage of up to 1:500* but must meet specific criteria, such as:

• 10+ large-volume trades per quarter for the past year.
• A financial portfolio exceeding €500,000 or the equivalent in pounds sterling (roughly £434,000 at the time of writing).
• At least one year of professional experience in the financial sector.

*A professional trader with a £10,000 balance can control a £5,000,000 position using 1:500 leverage.

In summary, FCA-regulated brokers offering zero-spread accounts must comply with the financial supervisor’s leverage limits. While retail traders are restricted to 1:30 leverage for major pairs, professional traders can access higher limits by meeting specific criteria.

It is crucial for UK traders to understand these limitations to effectively manage risk and maximise the benefits of zero-spread accounts. It is also important to note that retail customers are prohibited from trading cryptocurrencies on margin under FCA regulations.

FAQs

Conclusion

Forex accounts with spreads from 0.0 pips offer UK traders a more cost-effective approach to trading, particularly for capturing short-term market movements, provided they carefully consider commission charges and other applicable fees. Prioritising FCA-regulated brokers with reliable platforms and transparent pricing ensures a secure and efficient trading environment.

While these accounts can be advantageous for high-frequency trading strategies, novice traders should carefully evaluate the associated complexities against the potential cost reduction. By combining the benefits of tight spreads with diligent risk management, UK traders can aim to enhance their performance with this account type.