As the foreign exchange market continues to grow in popularity among retail traders, finding a reliable and affordable forex broker becomes increasingly important. One key factor that traders should consider when selecting a broker is the spread, which is the difference between the bid and ask price of a currency pair. In this article, we will explore the importance of low spreads and highlight some of the lowest spread forex brokers in Canada.

Compare Top Brokers with Lowest Spread in Canada

Broker
Rating
Regulated
Bonus
Min. Deposit
Max. Leverage
1.
FXCC Top Canadian broker
4.9 stars from 525 ratings

Broker Verified

CySEC, FCA

100% Deposit Bonus

USD 100

1:500

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CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
2.
Avatrade top broker in Canada
4.8 stars from 346 ratings

Broker Verified

FCA, ASIC, IIROC

Up to 20% Deposit Bonus

USD 100

1:500

Sign up Sign up
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
FPMarkets best broker in Canada
4.7 stars from 286 ratings

Broker Verified

FCA, ASIC, CySEC

Demo of up to $100, 000

USD 100

1:500

Sign up Sign up
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
4.
Fusion Markets Canada Broker
4.6 stars from 845 ratings

Broker Verified

VFSC, ASIC

Low Spreads from 0.0

USD 10

1:500

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CFD service. Your capital is at risk.
Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread trading works and whether you can afford to take the high risk of losing your money.

What is a Low Spread Forex Broker?

A low spread forex broker is a broker that offers tight spreads on currency pairs. These brokers are popular among forex traders because they help reduce transaction costs and allow traders to enter and exit trades more easily.

Low Spread Forex Broker

There are several factors that can affect the spread offered by a forex broker, such as liquidity, market volatility, and trading volume. In general, larger and more established brokers tend to offer tighter spreads than smaller and less established brokers.

Low spread forex brokers may also offer other features and benefits, such as low or no commissions, high leverage, and a wide range of trading instruments. Some of the best low spread forex brokers in Canada are listed below.

Why are Low Spreads Important for Forex Trading?

The spread is one of the main sources of revenue for forex brokers. It represents the difference between the price a broker is willing to pay to buy a currency and the price they are willing to sell it for. The spread can vary from one broker to another and can also differ depending on the currency pair being traded.

Low spreads are important for forex trading because they reduce the cost of trading and increase potential profitability. When the spread is low, traders can enter and exit positions with less impact on their overall profit or loss. This is especially important for day traders and scalpers who may make multiple trades in a single day.

Low spreads can also make it easier for traders to take advantage of small price movements. For example, if a trader believes that the EUR/USD currency pair is going to rise by a small amount, they may only need a small price movement to make a profit. With a low spread, the cost of entering and exiting the trade is minimized, making it easier for the trader to profit from the small price movement.

What to Look for in a Low Spread Forex Broker?

When looking for a low spread forex broker, there are several factors to consider beyond just the spread. Here are some of the key factors to keep in mind:

  • Regulation: It is important to select a broker that is properly regulated and licensed in the country where they operate. In Canada, forex brokers must be registered with the Investment Industry Regulatory Organization of Canada (IIROC).
  • Trading Platform: A broker’s trading platform is the software that traders use to execute trades and manage their accounts. It should be user-friendly, stable, and provide access to the tools and resources needed for successful trading.
  • Customer Support: Good customer support is crucial for traders, especially those who are new to forex trading. A good broker should offer multiple channels of support, including phone, email, and live chat.
  • Account Types: Brokers should offer a range of account types to meet the needs of different traders. These may include standard accounts, mini accounts, and demo accounts.

Best Canadian Lowest Spread Forex Brokers Reviewed

  1. Pepperstone

Pepperstone is an Australian-based forex broker that offers low spreads and fast execution speeds. The broker charges a commission-based fee structure, with spreads as low as 0.0 pips on some currency pairs. Pepperstone also provides excellent customer support and a range of trading platforms, including MetaTrader 4 and cTrader.

  1. IC Markets

IC Markets is an Australian-based forex broker that is popular among retail traders. The broker offers low spreads, with spreads as low as 0.0 pips on some currency pairs. IC Markets charges a commission-based fee structure and offers a range of trading platforms, including MetaTrader 4 and cTrader.

  1. OANDA

OANDA is a well-established forex broker that has been operating since 1996. The broker offers competitive spreads, with spreads as low as 0.1 pips on some currency pairs. OANDA charges a spread-based fee structure and provides access to a range of trading platforms, including MetaTrader 4 and OANDA’s proprietary platform.

  1. FXCM

FXCM is a well-established forex broker in Canada that offers low spreads starting from 0.2 pips for major currency pairs. They are regulated by the IIROC and offer a range of trading platforms, including MetaTrader 4 and Trading Station. FXCM also provides excellent customer support and educational resources, including webinars and video tutorials, making it a good choice for traders of all levels.

  1. CMC Markets

CMC Markets is a UK-based forex broker that offers low spreads starting from 0.7 pips for major currency pairs. They are regulated by the Financial Conduct Authority (FCA) and offer a range of trading platforms, including MetaTrader 4 and 5, as well as their own proprietary platform. CMC Markets also provides excellent customer support and educational resources, including webinars and trading guides, making it a good choice for traders who want to learn more about forex trading.

Final Word

When selecting a low spread forex broker, it is important to consider other factors beyond just the spread. Factors such as regulation, trading platform, customer support, and account types should also be taken into account.

Overall, finding a low spread forex broker in Canada can help traders save money on trading costs and potentially improve their profitability. However, it is important to conduct thorough research and due diligence before selecting a broker to ensure they meet your specific trading needs and preferences.