Forex trading can be a lot of fun and a great way to make some extra cash, but let’s face it, high fees can really cut into your profits. Wouldn’t it be awesome if you could find brokers that help you keep more of your hard-earned gains by offering super low fees? Well, that’s exactly what we’re here for! In this guide, we’re breaking down the 5 cheapest forex brokers in 2024 to help you make the most out of every trade without burning a hole in your pocket.
Whether you’re just getting started and want to stretch your money further, or you’re a seasoned trader looking for the best bang for your buck, these brokers have you covered with some of the most affordable platforms out there. Ready to see where you can start saving? Let’s get into it!
Why Choosing a Low-Cost Forex Broker Matters
Trading fees—like spreads, commissions, and other charges—can have a big impact on your overall profitability. Even though a few extra pips on each trade might not seem like much, they add up quickly, especially if you’re an active trader making multiple trades each week. Imagine paying higher fees every time you enter or exit a position—that’s money that could have been in your pocket! Whether you’re trading short-term or holding positions for the long haul, keeping those costs low is key to making sure your profits stay healthy.
When it comes to forex trading, there are several types of fees to keep in mind. Spreads are the difference between the buy and sell prices, and they can vary depending on the broker. You also have commissions, which are extra charges some brokers add on top of spreads. Then there are overnight fees (or swap fees) that are charged for holding a position overnight—these can sneak up on you if you’re not careful.
It’s also good to understand how different brokers set up their fees. Some use a spread-only pricing model, meaning all their profits come from the spread, while others might offer lower spreads but charge a commission on each trade. In some cases, spread-only pricing might look better on paper, but when you add it all up, commissions could actually save you money depending on how you trade. That’s why it’s so important to compare brokers and find the one that suits your trading style best.
What to Look for in a Cheap Forex Broker
Finding a cheap forex broker can save you a lot of money, but you need to know what to look for. Here are some key things to consider:
- Low Spreads: The spread is the difference between the buy and sell price of a currency pair. Look for brokers that offer tight spreads on major pairs like EUR/USD so you aren’t losing money every time you make a trade.
- No or Low Commissions: Some brokers don’t charge any commissions and instead make their money on spreads. Others may charge a small commission but offer lower spreads. Make sure to compare the overall cost to find what works best for you.
- No Hidden Fees: Always read the fine print. Check if there are any withdrawal fees, deposit fees, or other charges like inactivity fees. You don’t want any surprises eating into your profits.
- Good Trading Platforms: A cheap broker should still provide a reliable and easy-to-use platform. Whether it’s MetaTrader or a custom app, make sure the platform is stable and has the tools you need.
- Account Types: Look for brokers that offer different account types, like standard, ECN, or micro accounts, with clear pricing. This way, you can choose the one that suits your budget and trading style.
- Regulation: Cheap shouldn’t mean risky. Make sure the broker is regulated by a known authority. This helps protect your money and ensures fair trading practices.
- Customer Support: If something goes wrong, you want to be able to reach out for help easily. Look for brokers that offer good support, whether it’s through chat, phone, or email.
- Low Minimum Deposit: If you’re just starting out, a broker with a low minimum deposit can help you get started without putting in too much upfront.
The 5 Cheapest Forex Brokers in 2024
#1. Tickmill
What is Tickmill?
Tickmill is a globally recognized forex and CFD broker established in 2014, known for offering a low-cost trading environment with some of the tightest spreads in the market, starting from 0.0 pips on major currency pairs. It is well-regulated by leading authorities such as the FCA (UK), CySEC (Cyprus), and FSCA (South Africa), which ensures a safe and secure trading experience for clients. Tickmill’s reputation for fast execution speeds and minimal fees makes it a popular choice among both beginner and experienced traders looking to reduce trading costs while still benefiting from a reliable trading platform. Their variety of accounts, including Pro and VIP options, provides traders with flexibility based on their trading volume and budget, further contributing to their status as one of the cheapest forex brokers in the industry.
Advantages and Disadvantages of Tickmill
Advantages
DisadvantageTickmill Commissions and Fees
Tickmill provides transparent and highly competitive pricing. For the Pro account, Tickmill charges a commission of $2 per side, per lot, which is among the lowest in the industry, while the VIP account offers an even better rate of $1 per side, per lot—making it a particularly attractive choice for high-volume traders. Additionally, Tickmill’s Classic account has no commissions, with trading costs incorporated into spreads starting from 1.6 pips. There are no hidden fees, and the straightforward pricing makes it easy for traders to know exactly what they’re paying, ensuring that Tickmill remains a cost-effective broker for traders looking to keep their expenses down while benefiting from quality market execution and reliable service.
OPEN AN ACCOUNT NOW WITH TICKMILL AND GET YOUR WELCOME BONUS
#2. CMC Markets
What is CMC Markets?
CMC Markets is a highly regarded online broker based in London, established in 1989. It is known for its competitive pricing, including tight spreads and low trading fees, making it one of the cheapest forex brokers available. Regulated by the FCA (Financial Conduct Authority), CMC Markets provides a secure and reliable trading environment, offering a wide variety of financial instruments like forex pairs, indices, commodities, and cryptocurrencies. Their proprietary Next Generation trading platform includes advanced risk management tools, making it suitable for both new and experienced traders.
Advantages and Disadvantages of CMC Markets
CMC Markets Commissions and Fees
CMC Markets offers spreads starting from as low as 0.3 pips, which vary depending on the asset class and market conditions. The Next Generation platform tends to provide tighter spreads compared to MetaTrader 4, enhancing cost-efficiency. While CMC Markets does charge some additional fees, including inactivity fees if no trades are made for 12 months, its overall fee structure remains very competitive, ensuring that traders benefit from low-cost trading conditions. This makes CMC Markets an attractive choice for those seeking to minimize trading costs while having access to diverse trading instruments.
OPEN AN ACCOUNT NOW WITH CMC MARKETS AND GET YOUR WELCOME BONUS
#3. Interactive Brokers
What is Interactive Brokers?
Interactive Brokers is a highly reputable online brokerage firm established in 1978, known for providing access to a wide range of investment options, including forex, CFDs, stocks, options, and futures. It operates in over 135 markets across 33 countries, making it an attractive choice for both domestic and international traders. The broker stands out for its advanced trading platform, Trader Workstation (TWS), which provides professional-grade tools for analysis and fast execution. Its regulation by top-tier authorities such as the SEC and CFTC ensures a high level of security and transparency, making Interactive Brokers a trusted and low-cost option for active traders seeking comprehensive market access and reliability.
Advantages and Disadvantages of Interactive Brokers
Interactive Brokers Commissions and Fees
Interactive Brokers operates on a tiered pricing model that adjusts based on trading volume, making it one of the most cost-effective choices for active traders. The fees for trading stocks and ETFs range from $0.0035 to $0.0005 per share, while options and futures involve different pricing structures that become more affordable as trading volume increases. Forex trading involves a spread-based cost and transaction fees that vary depending on the volume. Additionally, Interactive Brokers allows one free withdrawal per month, with a fee applied to subsequent withdrawals depending on the method. However, it is worth noting that they also charge an inactivity fee if the account balance is under $2,000 and doesn’t generate at least $20 in commissions monthly, making it ideal for traders who plan to remain consistently active in the market. This combination of competitive commissions and a sophisticated platform makes Interactive Brokers a solid choice for cost-conscious forex traders.
OPEN AN ACCOUNT NOW WITH INTERACTIVE BROKERS AND GET YOUR BONUS
#4. FP Markets
What is FP Markets?
FP Markets is an Australian-based broker established in 2005, known for offering a wide range of financial instruments such as forex, indices, commodities, and cryptocurrencies. It stands out as one of the cheapest forex brokers thanks to its tight spreads, which start as low as 0.0 to 0.2 pips for major pairs. FP Markets provides access to the advanced MetaTrader 4 and 5 platforms, ensuring traders benefit from fast executions and a user-friendly interface. Its regulation by trusted authorities like the Australian Securities and Investments Commission (ASIC) and Cyprus Securities and Exchange Commission (CySEC) provides a secure environment for trading, making FP Markets a solid choice for traders seeking affordable and reliable trading conditions.
Advantages and Disadvantages of FP Markets
FP Markets Commissions and Fees
FP Markets offers two primary account types: the Standard Account and the Raw Account. The Standard Account features no commissions and slightly wider spreads starting from 0.1 pips, ideal for beginner traders. The Raw Account, popular among more experienced traders, provides tighter spreads starting from 0.0 pips, but includes a commission of $3 per lot per side. FP Markets also offers the advantage of no deposit or withdrawal fees, making it easier for traders to manage their funds without incurring extra costs. However, there may be fees associated with some e-wallet withdrawals, depending on the specific method used. These competitive trading fees and flexible account options make FP Markets one of the best low-cost brokers for both new and experienced traders.
OPEN AN ACCOUNT NOW WITH FP MARKETS AND GET YOUR WELCOME BONUS
#5. IC Markets
What is IC Markets?
IC Markets is a well-established Australian forex broker founded in 2007, recognized for providing some of the lowest trading costs in the industry. Known for its ultra-low spreads, which can start as low as 0.1 pips on major currency pairs like EUR/USD, IC Markets caters especially well to both retail and professional traders. The broker is regulated by top authorities, including ASIC, CySEC, and FSA, which ensures a safe trading environment. With access to popular trading platforms like MetaTrader 4, MetaTrader 5, and cTrader, along with fast execution speeds, IC Markets is highly attractive for traders who want low costs and efficient execution, making it one of the cheapest and most competitive brokers out there.
Advantages and Disadvantages of IC Markets
IC Markets Commissions and Fees
IC Markets offers a variety of options to accommodate different trading needs. The broker provides three main account types: the Standard Account, which is commission-free and relies on spreads, and the Raw Spread and cTrader accounts, which feature spreads from 0.0 pips but charge a small commission per lot traded—typically $3.50 per side. Importantly, IC Markets does not charge deposit, inactivity, or account fees, although international bank withdrawals do incur a fee of AUD 20. These low trading expenses, combined with an accessible trading environment, make IC Markets one of the best choices for traders looking to keep their costs as low as possible.
OPEN AN ACCOUNT NOW WITH IC MARKETS AND GET YOUR WELCOME BONUS
Tips for Reducing Your Trading Costs Further
Using Rebates and Cashback Programs
Many zero spread forex brokers and spread forex brokers offer cashback or rebate programs for active traders. This means that every time you make a trade, you could get a small percentage back. These rebates can add up over time and lower your total costs, especially if you’re a frequent trader. Look for brokers with zero spread trading accounts or a zero spread account that offer such cashback opportunities.
Leverage and Risk Management
Using leverage properly can help you trade forex without needing a huge upfront investment. With a zero spread account or a raw spread account, you often get tighter spreads, starting from as low as 0.0 pips, which minimizes trading costs. However, leverage can increase both your profits and your risks, so using a sound trading strategy is crucial. Always use risk management tools on trading platforms to keep potential losses under control.
Choosing the Right Account Type
Picking the right trading account can significantly affect your costs. For instance, a spread only pricing model means there are no extra commissions, but the broker profits from slightly higher spreads. On the other hand, zero spread accounts or raw spread accounts come with lower or 0.0 pips spreads but may include a small commission. If you’re considering automated trading or algorithmic trading, tighter spreads from zero spread forex brokers could help optimize your trading strategy. Additionally, market maker brokers might have different pricing models, so understanding how your chosen broker handles spreads and commissions is key to reducing costs.
Also Read: The 5 Best Low Spread Forex Brokers in 2024 for Smart Trading
Conclusion
Choosing a low-cost broker can make a significant difference in your trading success. The five cheapest forex brokers we’ve highlighted for 2024—those offering tight spreads, low or zero commissions, and transparent fee structures—are all excellent choices if you want to maximize your returns. Whether you’re a beginner just starting or an experienced trader looking for cost-effective options, these brokers provide the tools, platforms, and trading conditions you need without the hefty costs often associated with other brokers.
By focusing on low trading fees, using zero spread accounts, and selecting the right account types that suit your trading strategy, you can save significantly on your trading expenses. Remember, the goal is to keep more of your profits in your pocket. Make sure to choose a broker that aligns with your trading style and needs, whether it’s algorithmic trading, automated trading, or just looking for the best forex broker with tight spreads. Start trading today with confidence, knowing that you’re minimizing costs and setting yourself up for greater profitability.
