This guide compares the lowest spread forex brokers in the UK for 2026, focusing on platforms that keep trading costs tight for active and cost-conscious traders.
We analyse FCA-regulated brokers, real spreads on major pairs, commissions, and trading platforms to help you choose a broker that fits your strategy and risk profile.
Key takeaway – which is the lowest spread forex broker in the UK?
Pepperstone is the lowest spread forex broker in the UK for most traders, offering raw spreads from 0.0 pips on its Razor account, combined with fast execution and FCA regulation.
For traders who prefer spread-only pricing, CMC Markets is a close alternative with consistently tight spreads from around 0.7 pips, but Pepperstone remains the cheapest overall for active and high-frequency forex trading in the UK.
Top 5 low spread forex brokers UK
- Pepperstone – Best for: Ultra-low spreads, scalping, and algorithmic trading with MT4, MT5, cTrader, and TradingView.
- CMC Markets – Best for: Tight spread-only pricing, advanced charting, and professional-grade execution on a proprietary platform.
- IG – Best for: All-round trading with low spreads, strong research, and the widest market range in the UK.
- XTB – Best for: Competitive spreads with a beginner-friendly platform and strong risk management tools.
- Capital.com – Best for: Beginners and cost-conscious traders wanting commission-free trading with simple, transparent pricing.
Low spread forex brokers UK – comparison table
| Broker | Typical FX Spreads (Majors) | Spread Betting Available (UK) | Execution & Trading Style | Best For |
|---|---|---|---|---|
| Pepperstone | From 0.0 pips (Razor + commission) | Yes | Ultra-fast execution, deep liquidity, ideal for scalping and algos | Lowest overall forex costs |
| CMC Markets | From 0.7 pips (spread-only) | Yes | Very fast execution, stable pricing, GSLOs available | Spread-only forex & precision trading |
| IG | From 0.8 pips (spread-only) | Yes | Reliable execution, strong liquidity, excellent research | All-round forex & spread betting |
| XTB | From 0.8–1.0 pips (spread-only) | No | Solid execution, simple pricing, beginner-friendly | Low-cost forex for newer traders |
| Capital.com | From 0.6–1.3 pips (variable, commission-free) | Yes | Smooth execution, simple platform, mobile-first | Simple, commission-free forex |
1. IG – Best for all-round trading and market coverage
IG is a top-tier, FCA-regulated UK broker with strong platforms and deep market access, but its headline forex spreads are not always the lowest versus ultra-low-spread ECN-style rivals, and total cost depends heavily on overnight funding, FX conversion, and paid add-ons.
IG key info
| Area | What to know | Why it matters for low-spread traders |
|---|---|---|
| Spreads (forex) | IG publishes minimum and average spreads on its charges page (example shown: EUR/USD minimum 0.6, with a historic “12-week” average sample). | Average spreads usually reflect real conditions better than minimums. |
| Execution and liquidity | IG publishes an Order Execution Policy and offers DMA/Level 2 access via L2 Dealer for certain products. | Policy and tooling matter when markets move fast. |
| Tools | Proprietary web/mobile platform, MT4, ProRealTime, plus L2 Dealer. ProRealTime is £30/month and refunded if you meet trading activity requirements. | Advanced tools can help, but subscriptions raise all-in cost. |
| Other costs | Key extras include overnight funding (tom-next + admin for forex) and FX conversion charges in some cases. | These can outweigh small spread differences. |
How competitive are this broker’s spreads and commissions?
IG’s spreads are competitive for a large, multi-asset broker, and it’s a plus that it publishes spread information openly. The key is to focus on average spreads and your trading hours, because the “from” spread is the best-case scenario and the averages shown on the charges page are based on a historic sample.
- Prioritise average spreads over minimums when comparing “low spread” brokers.
- If you trade non-forex markets, note some products have commissions (for example, share CFDs).
Is this forex broker FCA-regulated and safe for UK traders?
Yes. IG’s UK businesses are authorised and regulated by the FCA.
How good is order execution and liquidity on this platform?
IG sets out its approach to best execution in its Order Execution Policy and also offers workflows such as DMA/Level 2 via L2 Dealer for certain products and traders. In practice, this is aimed at stable fills and transparent handling, but your results still depend on volatility, liquidity and order type.
- Use limit orders when precision matters.
- Expect slippage and wider effective spreads around major news and rollover.
Which trading platforms and tools does this broker offer?
IG offers a strong mix: its proprietary web platform and app, MT4, ProRealTime for advanced charting, and L2 Dealer for DMA/Level 2 style trading where available. ProRealTime is listed as £30 per month with a refund/waiver mechanism tied to activity.
- Best for most users: IG web + mobile (smooth, feature-rich).
- Best for advanced charting: ProRealTime (check the activity rules).
What are the total trading costs beyond spreads?
The costs that usually decide “cheap vs expensive” are overnight funding, FX conversion, and any paid tools or market data. IG explains forex funding as tom-next plus an admin fee, and also outlines conversion charges for some accounts/products.
- Holding positions overnight can make spreads less important than financing.
- If you trade non-GBP markets, conversion fees can be a meaningful drag.
Who is this platform best for?
IG is best for UK traders who want a high-trust, FCA-regulated broker with excellent tools and broad market access, and who prefer reliability over chasing the absolute tightest spreads. It’s a strong fit for multi-asset traders, research-led traders, and anyone who wants one platform for forex plus other markets.
Read the complete IG review here.
Pros and cons
| Pros | Cons |
|---|---|
| FCA-regulated UK entities you can verify by FRN. | Published average spreads on the charges page are based on a historic sample, so validate with live pricing for your hours. |
| Transparent fee pages covering spreads, commissions and funding mechanics. | Extras like overnight funding, FX conversion, and paid tools can raise all-in costs. |
| Strong platform stack: proprietary web/mobile, MT4, ProRealTime, and L2 Dealer. | Not always the best pick for traders who only care about the lowest possible spreads. |
2. XTB – Best for low spreads with a beginner-friendly platform
XTB is a low-cost, FCA-regulated broker for UK traders that keeps fees simple with 0% commission on CFDs and a published minimum spread from 0.3 pips, but your real “low spread” experience depends on live spreads, market hours, and any overnight funding if you hold leveraged positions.
XTB key info
| Area | What to know | Why it matters for low-spread traders |
|---|---|---|
| Spreads (forex) | XTB lists a minimum spread of 0.3 (pips) for CFDs. | Minimum spreads are best-case. Compare against typical live pricing during your trading hours. |
| Execution and liquidity | XTB positions its offering around “competitive spreads” and a streamlined trading setup via xStation, with standard retail CFD conditions like min order 0.01 lot. | Liquidity and fill quality matter as much as spreads for fast entries and exits. |
| Tools | xStation is the core platform (web, mobile, desktop, tablet). XTB does not offer MT4/MT5. | A strong native platform helps, but no MetaTrader can be a deal-breaker for EA users. |
| Other costs | For investing, XTB shows 0.5% currency conversion, and stock/ETF investing is free up to €100,000 monthly turnover (then 0.2% min £10). | FX conversion can outweigh small spread differences if you trade non-GBP assets frequently. |
How competitive are this broker’s spreads and commissions?
XTB is competitive on paper for cost-focused traders because it lists a minimum spread from 0.3 and shows 0% commission for trading CFDs on its fees page. If you also invest in shares and ETFs, pricing is straightforward: 0% commission up to €100,000 monthly turnover, then 0.2% (min £10).
Is this forex broker FCA-regulated and safe for UK traders?
Yes. UK residents are onboarded under XTB Limited, which is authorised and regulated by the FCA
How good is order execution and liquidity on this platform?
XTB markets “competitive spreads” and a fast trading experience through its xStation platform, and its CFD conditions support active trading with a minimum order size of 0.01 lot. In practice, execution quality will still vary with volatility, news events, and the instrument you trade.
Which trading platforms and tools does this broker offer?
XTB runs on its proprietary xStation platform across mobile, desktop, and tablet, and it’s designed to be beginner-friendly while still offering plenty of analysis tools. It does not support MetaTrader (MT4/MT5), so automation-focused traders may prefer a broker with third-party platform support.
- Best for most traders: xStation web + mobile (all-in-one).
- Not ideal for: traders who require MetaTrader or specific third-party plug-ins.
What are the total trading costs beyond spreads?
Beyond spreads, the main costs to watch are FX conversion (shown as 0.5% for investing) and any product-specific charges like financing for leveraged positions. On the investing side, XTB also discloses custody fees only above €250,000 (then 0.02% per annum, min £10).
Who is this platform best for?
XTB is best for UK traders who want a low-fee, FCA-regulated platform with clear pricing, and who are happy trading on xStation rather than MetaTrader. It’s a strong fit for beginners and cost-conscious traders who value simple fees, broad market access, and a modern in-house platform.
Pros and cons
| Pros | Cons |
|---|---|
| FCA-regulated UK entity (FRN 522157) and easy to verify. | No MT4/MT5, so not ideal for traders who rely on MetaTrader tools or EAs. |
| Clear fee page with 0% CFD commission and minimum spread from 0.3. | For investing, 0.5% currency conversion can add up on frequent international trades. |
| Straightforward investing pricing: 0% commission up to €100,000 monthly turnover. | FCA warnings about clone scams mean register checks matter. |
3. Capital.com – Best for beginners and simple low-cost trading
Capital.com is a low-cost, FCA-regulated UK CFD and spread betting platform with 0% commission, no deposit or withdrawal fees, and clear pricing. Your real “low spread” outcome depends on dynamic spreads, whether you use leverage overnight funding, and whether you add extras like guaranteed stops.
Capital.com key info
| Area | What to know | Why it matters for low-spread traders |
|---|---|---|
| Spreads (forex) | Spreads are dynamic and change with market conditions. Capital.com charges via the spread (bid-ask difference), not commission. | Low “typical” spreads can widen around news, rollovers, and thin liquidity. |
| Execution and liquidity | Cost is shown in the deal ticket via spread, and the platform is built for fast, simple execution for retail traders. | Tight spreads only help if fills are consistent during volatile moves. |
| Tools | Proprietary web and mobile platform plus TradingView and MT4 support. | Great if you want TradingView charting or MT4 familiarity without a complex pro setup. |
| Other costs | No commission, no deposit fees, no withdrawal fees, minimum deposit £20. Overnight funding applies to many leveraged positions, but 1X accounts are not subject to overnight funding. Guaranteed stop fee applies only if triggered. | For short-term trading, spreads dominate. For holding positions, overnight funding can matter more than spread size. |
How competitive are this broker’s spreads and commissions?
Capital.com is competitive for UK CFD traders because it charges 0% commission and makes its main trading cost the spread, which is shown clearly on the trade ticket. Spreads are dynamic, so the best way to judge competitiveness is to check live spreads on the specific pairs you trade and during your usual trading hours.
- Best for cost simplicity: spread-only pricing with no commission.
- Compare like-for-like: check the same instrument, same session, same order type.
Is this forex broker FCA-regulated and safe for UK traders?
Yes. Capital.com’s UK entity is Capital Com (UK) Limited, which is authorised and regulated by the FCA
How good is order execution and liquidity on this platform?
Capital.com is built around quick retail execution with a clean order flow and transparent spread cost on the ticket. Liquidity will still vary by market, so execution quality is usually strongest on major forex pairs and major indices, and can be less predictable on smaller markets during fast moves.
Which trading platforms and tools does this broker offer?
Capital.com offers its proprietary web and mobile platform, plus support for TradingView and MetaTrader 4 (MT4). This covers most beginner and intermediate needs, with TradingView especially useful for technical traders who want more indicators and chart flexibility without switching brokers.
- Best for mobile-first traders: Capital.com app (simple, fast layout).
- Best for charting: TradingView integration.
- Best for MT4 users: MT4 access without needing a separate “raw spread” style account.
What are the total trading costs beyond spreads?
Beyond spreads, the main add-on costs are overnight funding adjustments if you hold certain leveraged positions overnight, and guaranteed stop fees if you choose that protection and it’s triggered.
Capital.com also states no conversion fee when trading markets in a different currency to your account (as described on its UK charges page), plus no deposit/withdrawal fees.
- If you hold positions overnight often, prioritise funding terms over small spread differences.
- If you frequently use guaranteed stops, factor that potential cost into your “all-in” trading cost.
Who is this platform best for?
Capital.com is best for UK traders who want a simple, low-fee CFD and spread betting platform with clear pricing, strong usability, and access to TradingView and MT4. It’s a strong match for beginners and intermediates focused on forex and indices, and less suitable for anyone who wants real shares/ETFs, an ISA/SIPP, or long-term investing products rather than CFDs.
Read the complete Capital.com review here.
Pros and cons
| Pros | Cons |
|---|---|
| FCA-regulated UK entity (registration number 793714). | CFDs and spread betting only, not designed for long-term investing in real assets. |
| 0% commission, with costs primarily in the spread. | Dynamic spreads can widen in volatile or illiquid conditions. |
| No deposit or withdrawal fees and low minimum deposit (£20). | Overnight funding can become the biggest cost if you hold leveraged trades. |
| TradingView + MT4 support alongside an easy proprietary app. | Some advanced/pro workflows may feel lighter than specialist “pro” platforms. |
4. Pepperstone – Best for ultra-low spreads and active trading
Pepperstone is a top-tier, FCA-regulated broker for UK traders who prioritise ultra-low spreads, fast execution, and advanced platforms. It consistently ranks among the cheapest options for forex and index trading, but it’s built for active trading, not long-term investing or guaranteed-risk tools.
Pepperstone key info
| Area | What to know | Why it matters for low-spread traders |
|---|---|---|
| Spreads (forex) | Spreads start from 0.60 pips on spread betting and 0.0 pips on Razor CFD accounts, with commission applied on Razor. | One of the tightest pricing models available to UK retail traders. |
| Execution and liquidity | Agency-style execution with very fast fills and deep liquidity, designed for scalping and high-frequency strategies. | Tight spreads only help if execution is fast and consistent. |
| Tools | Supports MT4, MT5, cTrader, TradingView, plus a proprietary Pepperstone app. | Excellent flexibility for manual, automated, and technical traders. |
| Other costs | No deposit, withdrawal, or inactivity fees. Overnight financing applies on leveraged positions. No guaranteed stop losses. | Low fixed fees keep all-in trading costs predictable. |
How competitive are this broker’s spreads and commissions?
Pepperstone is one of the most competitive brokers in the UK for raw pricing. On Razor accounts, spreads can fall to 0.0 pips, with a small per-lot commission, while spread betting accounts offer tight, commission-free pricing. For most active traders, Pepperstone’s all-in cost is lower than the UK industry average.
- Best for traders who care about real spreads, not marketing minimums.
- Especially strong during liquid market hours on major pairs.
Is this forex broker FCA-regulated and safe for UK traders?
Yes. Pepperstone’s UK entity is authorised and regulated by the FCA, with segregated client funds, negative balance protection, and FSCS cover up to £85,000 for eligible clients. This provides strong regulatory protection, though it does not remove trading risk.
How good is order execution and liquidity on this platform?
Execution quality is one of Pepperstone’s main strengths. Orders are routed using a low-latency infrastructure designed for speed, making it popular with scalpers, day traders, and algo traders. Liquidity is strongest on major forex pairs and indices.
- Ideal for fast-entry strategies.
- Slippage can still occur during major news events.
Which trading platforms and tools does this broker offer?
Pepperstone offers one of the widest platform selections in the UK market. Traders can choose between MT4, MT5, cTrader, TradingView, or Pepperstone’s own app, all supported across desktop, web, and mobile.
What are the total trading costs beyond spreads?
Beyond spreads and commission, costs are minimal. Pepperstone charges no inactivity fees, no deposit or withdrawal fees, and no currency conversion fees. The main additional cost is overnight financing if you hold leveraged positions.
Who is this platform best for?
Pepperstone is best for UK traders who want institutional-style pricing, fast execution, and freedom to choose advanced platforms. It’s ideal for scalpers, day traders, spread bettors, and algorithmic traders, but less suitable for investors who want real shares, ISAs, or guaranteed-risk tools.
Read the complete Pepperstone review here.
Pros and cons
| Pros | Cons |
|---|---|
| FCA-regulated with FSCS protection and segregated funds. | No guaranteed stop losses (GSLOs). |
| Among the lowest spreads available to UK retail traders. | Smaller share CFD range than IG or CMC. |
| No deposit, withdrawal, or inactivity fees. | No crypto trading for UK retail clients. |
| Excellent platform choice: MT4, MT5, cTrader, TradingView. | Demo account expires after 60 days. |
5. CMC Markets – Best for spread-only pricing and advanced tools
CMC Markets is a highly trusted, FCA-regulated UK broker known for tight spreads, exceptional execution, and one of the best proprietary trading platforms in the market. It is built for active and professional traders, rather than beginners seeking a simple, app-first experience.
CMC Markets key info
| Area | What to know | Why it matters for low-spread traders |
|---|---|---|
| Spreads (forex) | FX spreads from 0.7 pips on major pairs, with FX Active pricing available for high-volume traders. | Competitive pricing with strong consistency on majors. |
| Execution and liquidity | Ultra-fast execution with median latency around 0.004 seconds and deep liquidity. | Helps reduce slippage during volatile markets. |
| Tools | Award-winning Next Generation platform, plus MT4, MT5, and TradingView support. | Excellent for technical and strategy-driven trading. |
| Other costs | No deposit or withdrawal fees, £10 inactivity fee after 12 months, overnight financing applies. | Transparent costs but less ideal for inactive traders. |
How competitive are this broker’s spreads and commissions?
CMC Markets is very competitive for UK forex trading, especially on major pairs where spreads start from 0.7 pips. While it is not always the absolute cheapest versus raw-spread ECN brokers, its pricing stability and execution quality make total trading costs very predictable.
- Strong for FX and index traders who value consistency.
- FX Active pricing benefits higher-volume traders.
Is this forex broker FCA-regulated and safe for UK traders?
Yes. CMC Markets is authorised and regulated by the FCA and is also publicly listed on the London Stock Exchange, adding an extra layer of transparency. UK retail clients benefit from segregated client funds, negative balance protection, and FSCS protection up to £85,000.
- One of the safest brokers in the UK market.
- Crypto is available only via CFDs and is not FSCS protected.
How good is order execution and liquidity on this platform?
Execution quality is a standout strength. CMC Markets offers very fast fills, low rejection rates, and reliable pricing, even during volatile conditions. While it operates a market-maker model, it publishes execution reports, which adds accountability and trust.
- Particularly strong for FX and index traders.
- Reliable during high-impact news events.
Which trading platforms and tools does this broker offer?
CMC Markets’ Next Generation platform is one of the most advanced proprietary platforms in the UK. It includes 80+ indicators, advanced order types, client sentiment tools, and GSLOs. Traders can also use MT4, MT5, or TradingView if preferred.
- Best for advanced charting and strategy execution.
- Less suitable for fully automated trading on the proprietary platform.
What are the total trading costs beyond spreads?
Beyond spreads, costs are limited. There are no deposit or withdrawal fees, but overnight financing applies to leveraged positions and a £10 inactivity fee applies after 12 months of no trading. Guaranteed stop-loss orders incur a small premium, refunded if not triggered.
- Good for active traders.
- Less ideal for long-term inactivity.
Who is this platform best for?
CMC Markets is best for intermediate and advanced UK traders who want tight spreads, fast execution, and professional-grade tools. It suits FX, index, and CFD traders who trade regularly and value reliability over simplicity.
Read the complete CMC Markets review here.
Pros and cons
| Pros | Cons |
|---|---|
| FCA-regulated and LSE-listed with strong transparency. | Platform has a learning curve for beginners. |
| Competitive spreads from 0.7 pips on FX majors. | £10 inactivity fee after 12 months. |
| Excellent proprietary platform with GSLOs. | CFDs and spread betting are high-risk products. |
| No deposit or withdrawal fees. | No direct crypto ownership for UK retail clients. |
How do we test and compare low-spread forex brokers in the UK?
We test low-spread forex brokers by analysing real trading costs, FCA regulation, execution quality, platforms, and hidden fees to reflect how UK traders actually trade. Each broker is reviewed using live data, published disclosures, and hands-on platform checks to ensure comparisons are fair, accurate, and UK-relevant.
How do we assess spreads and commissions?
We compare typical spreads, not just advertised minimums, on major pairs like EUR/USD and GBP/USD. We also factor in per-trade commissions on ECN and RAW accounts to calculate the true all-in trading cost.
How do we verify regulation and safety?
Every broker is checked against the FCA Financial Services Register. We confirm client fund segregation, capital requirements, and whether FSCS protection up to £85,000 applies. We clearly state that forex trading losses are not FSCS-protected.
How do we evaluate execution quality?
We assess execution models such as ECN, STP, or DMA, focusing on slippage, requotes, and order speed. Brokers offering deep liquidity and consistent fills score higher, as execution quality directly affects real-world trading performance.
How do we test platforms and trading tools?
We review platforms like MT4, MT5, cTrader, and proprietary apps for charting, order types, mobile usability, and risk tools. Automation support, indicators, and stability during volatile markets are also considered.
How do we calculate total trading costs?
Beyond spreads, we compare swap rates, inactivity fees, withdrawal charges, and GBP funding options such as Faster Payments and debit cards. Customer support quality and educational tools are included to reflect overall trader value.
This structured testing approach ensures our low-spread forex broker rankings are practical, transparent, and tailored to UK traders.
Why do spreads matter so much for UK forex traders?
Spreads matter because they are the main trading cost for most UK forex traders and directly reduce profit on every position. The spread is the gap between the buy and sell price, meaning traders must overcome this cost before a trade can become profitable.
For UK traders using CFDs or spread betting, spreads are often the only explicit trading cost. With FCA leverage limits in place, position sizes are capped, so keeping spreads tight is essential for cost efficiency, better break-even levels, and more consistent results across trading strategies.
How do spreads affect short-term and high-frequency trading?
Spreads have the greatest impact on short-term and high-frequency trading, where positions are opened and closed frequently for small price moves. When profit targets are measured in just a few pips, even a small increase in spread can remove most of a strategy’s edge.
For example, targeting 5 pips with a 1.5-pip spread means 30% of the potential profit is lost to costs. With a 0.5-pip spread, that cost drops to 10%. Over many trades, this difference compounds quickly, which is why short-term traders prioritise ultra-tight spreads and consistent execution.
Why are low spreads critical for scalping and day trading?
Low spreads are critical for scalping and day trading because these strategies depend on speed, precision, and small margins. Scalpers often hold trades for seconds or minutes, so spreads and execution quality matter more than long-term price direction.
In the UK, leverage caps already limit upside, and wider spreads further reduce achievable returns. Low spreads help scalpers:
- Reach break-even faster
- Reduce slippage impact
- Trade frequently without costs compounding
- Maintain realistic risk-to-reward ratios
This is why scalpers usually choose brokers offering raw pricing, deep liquidity, and tight spreads on major pairs.
Do low spreads matter for swing and long-term traders?
Low spreads matter less for swing and long-term traders, but they are still relevant. When trades aim for larger price moves over days or weeks, spreads form a smaller proportion of overall returns.
However, swing traders must also consider overnight financing costs, which can outweigh spread costs over time. For these traders, a balanced cost structure matters more than headline-low spreads. Consistently wide spreads can still drag on performance, especially when entering and exiting multiple positions.
Conclusion
Choosing a low spread forex broker in the UK is about keeping trading costs down while staying within FCA regulation and using reliable platforms.
For the lowest overall forex costs, Pepperstone stands out with raw spreads from 0.0 pips and fast execution, making it ideal for scalping and active trading.
CMC Markets is a strong alternative for traders who prefer spread-only pricing and advanced tools, while IG remains a dependable all-round choice with broad market access.
For beginners, XTB and Capital.com offer simple platforms with competitive spreads and clear pricing.
Ultimately, the best broker depends on your trading style, but tighter spreads give UK traders a clear cost advantage over time.
FAQs
What is a low spread forex broker?
A low spread forex broker offers tight buy and sell price differences, helping reduce trading costs. In the UK, spreads are often the main cost when trading forex via CFDs or spread betting.
Which broker has 0.0 spread?
Pepperstone offers 0.0 spread pricing in the UK on its Razor account, where traders access raw interbank spreads on major forex pairs like EUR/USD.
Which forex broker has the lowest spread gold?
Pepperstone has the lowest spreads on gold (XAU/USD) for most UK traders, with raw spreads from 0.0 points on its Razor account during liquid market hours, plus a small commission.
Are low spread forex brokers safe in the UK?
Yes, if they are FCA-regulated. FCA rules require client fund segregation and negative balance protection, but forex trading is not FSCS protected against market losses.
Do low spread forex brokers matter for beginners?
They matter less than for scalpers, but low spreads still reduce costs. Beginners should also prioritise simple platforms, education, and FCA regulation.
