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 In recent times, I have received a lot of emails from some of my subscribers. All of them who wanted to know how to find out lowest best forex brokers. To be honest, I actually can make a list of five lowest forex brokers in an easy way. But, there is one perplexed thing is that I do not know whether they do know something about my list or not. As a result, I hope that this article can help them to have a good understanding about some certain aspects of lower forex brokers. Evidently, spread is the difference between the Bid and the Ask prices, which means the transaction fee traders have to pay for brokers or banks. The higher the spread is, the higher the transaction cost will become. This leads to a common situation that many traders desire to trade with lower spread brokers. Apart from this, we also see some traders who do not want to trade with these brokers. Now, I will give some specific information which is really helpful. Honestly, these information comes from my own experience so that you can make use of it. It is time for you to read this article if you want to know.

1. What are the differences between Spread and Commission?

To be specific, we have three types of forex brokers which are Market Maker, STP and ECN. In terms of the first two types, their main income is spread. As a result, their spreads are far higher than that of ECN. As well, when they get quotes from liquidity providers, they tend to add the transaction fee (spread) to those quotes (a process called Mash Up). It requires ECN brokers to provide the exact quotes which liquidity providers offered. Therefore, it is a must for them to charge commission regarded as their chief income.

Now, we should look at some differences here.

- In terms of Market Maker and STP brokers, their main income are spreads.

- In terms of ECN brokers, their main income are commission.

- In terms of ECN accounts, traders were charged commission and spread, yet those spreads are roughly zero. The commission, therefore, is the main fee that you must pay.

To be honest, it is a painstaking task for me to review all brokers, I just focus on these three sorts of brokers. Clearly, the question is about top lowest spread brokers, I thus make a list of top five lowest spread non-ECN brokers here. This means you desire to have a comprehensive view about Market Maker and STP brokers’ spreads. You can check it here.

Here are top 5 lowest spread brokers that you should know.

1. Exness.com

2. Hotforex.com

3. FBS.com

4. XM.com

5. FxPro.com

2. What sorts of lower spread brokers are suitable for traders?

There are 2 types of traders who are scalpers and long term investors. Now, we should first consider scalpers, this is a kind of trader who can open and close a lot of positions in a short time. They regularly keep their positions open less than one month. On the other hand, long-term investors keep their positions open more than one month.

Now we will look at the first one which is scalpers, the main transaction cost of scalpers is spread and commission because they open a lot of positions in a short period of time. More importantly, they prefer choose low spread and low commission brokers because they earn some pips per order.

The second one is long-term investors. In reality, they can earn the hundreds of pips per position which enable them to keep their position in a longer time. In turn, they tend to take no notice of spread and commission due to paying maximum 2% of their perk for spread. On the other hand, swap is regarded as their chief transaction cost. From time to time, it takes them around 90% of their profit for swap, which drives them aspire to opt for low swap brokers. As usual, choosing reliable and regulated forex brokers can be prerequisite for many benefits. Therefore, all traders desire to choose these brokers because of their credibility. The second aspect that we should focus on is transaction cost. Click here.

Read more : Please join me in discovering top 5 best ECN forex brokers reviewed 2018

As a result, you need to determine exactly what sort of traders are you.

Spread is the one that long-term investor do not focus on.

Spread and commission are two key factors that scalpers should opt for.

Check it here.

3. What we should now about the spreads of UK and US brokers

Unquestionably, US and UK are considered to be largest forex market. On the other hand, their broker do not have a tendency to compete with each other about transaction cost. In terms of my recent finding, US and UK brokers tend to offer high spreads and commission than others. CySEC brokers offer the lowest spreads.

Click here for more details.

This is the specific example for describing spreads and regulations of top forex brokers.

What we can see from this table is that Exness has the lowest spread, which is totally suitable for some certain forex traders. Exness, in my opinion, can be the best choice for you in terms of their spread.

Some reasons why US and UK brokers have higher spreads

In fact, US and UK forex brokers are being controlled by the regulations, which lead to higher spread. To be more specific, they are not allowed to offer high leverage or bonuses which require them to pay more for the regulation fee.

If you are ASIAN traders, Exness is the best brokers for Scalpers.

If you are Africa traders, XM and FxPro are the best.

If you are US traders, Forex.com is the best

If you are European traders, XM, FxPro and Exness are the best.

4. Good strategies for choosing low spread brokers

As aforementioned information above, low spread brokers are the best option for scalpers. However, swap is the most important thing that long-term investors should pay closer attention to.

5. How can we choose best lower spread brokers?

• Regulated brokers: It is advisable that traders should decide on regulated forex brokers in their regions. However, if you cannot find any regulated forex broker in your country, it is time for you to choose reliable ones.

• Brokers who have local payment systems: it is completely good for traders to choose some brokers who possess their offices in trader’s countries. Because traders sometimes have to deal with so many tough times, and they need pressing support from their forex brokers. On the other hand, when traders choose brokers who do not have any office in their countries, maybe traders have to deposit and withdraw their money by using Visa, Credit card, Neteller, and Skrill. As a matter of fact, you will have no profit when you trade with these forex brokers. You can check it here.

• Low spread and commission.

• Good local supporters.

In one word, I will give you an overall summary so that you can consider which forex broker is suited for you.

Exness is the best brokers for Scalpers if you are ASIAN traders.

Exness XM and FxPro are the best if you are Africa traders.

Forex.com is the best if you are US traders.

I hope that through this article can help you choose the best suited forex broker which enables you to have more profits.

Here are top five lowest spread brokers that traders can opt for:

1. Exness.com

2. Hotforex.com

3. FBS.com

4. XM.com

5. FxPro.com