Zero Spreads FX Trading Account: Pros, Cons & How to Choose the Best One

26 February 2025

A zero spreads FX trading account is a dedicated trading account that offers near zero spreads on major FX pairs and the lowest possible spreads on other popular instruments like Bitcoin and Gold. The spreads are paid twice, when trade is opened and when it is closed, making it very important in trading. Depending on your trading strategy, a low spread might be crucial for making profits. Low spreads come with their own list of pros and cons which we will explain and analyze in this guide. So, let’s dive in.

What are spreads and why are they so important

The best zero spread forex brokers allow traders to execute their strategies at low cost, which can determine winners and losers when using scalping strategies.

The spread = Bid - Ask. It shows the difference between buy and sell prices and traders have to pay it every time they execute trading positions. Traders pay spread when they open a trade and pay it again when closing it. If you are trying to deploy an intraday strategy on lower timeframes where the goal is to catch several pips, then spread becomes one of the most important trading costs.

What is zero spread?

Zero spread is when the difference between the bid and ask prices is 0, meaning you buy at the same price as you sell, which can give you certain benefits when scalping or using intraday strategies.

To explain it in simpler terms, when you buy an instrument like EUR/USD, you pay slightly more and when you sell it you sell it at a lower price. This difference between buy and sell prices is what generates the main income source for brokers. In fact, spread is the number one income source for brokers. Spreads are crucial for traders because they define how much you pay when opening a trade.

Let’s consider an example of EUR/USD. The standard spread on this major pair is typically 1 pip which might not seem a lot initially. However, if you are trading in 1 1-minute or 5-minute timeframe where most movements are 2-4 pips, your profits will be eaten super fast when you have to pay 2 pips per trade net spread. So, you have two: select an account with the lowest possible spreads or switch to higher timeframes.

Overall, forex zero spread trading is crucial for traders who want to develop scalping strategies aimed at profiting from a few pip movements.

Pros and cons of Forex zero spread trading

As we have mentioned, scalping with zero spreads is crucial to minimize trading costs and generate profits when targeting small profits. However, together with the benefits of zero spreads, there are also certain disadvantages that every trader has to understand.

Pros of forex trading with zero spreads

Lower trading costs - No markups on spreads reduce trading costs and ensure spreads do not eat most of the profits.
Faster execution - ECN zero spread brokers ensure faster execution because they allow direct market access.
Ideal for scalping - Scalping with zero spreads minimizes cost per transaction and ensures traders generate profits even with tiny earnings.

fForex brokers with no spread offer distinctive benefits to traders who are trading major Forex pairs like EUR/USD and scalpers who speculate on this and other majors get the most benefits.

Cons of zero spread forex accounts explained

Forex trading fees - Brokers charge trading commissions per lot for offering zero spreads to generate revenue.
Market volatility - Spreads widen during major economic news even on ECN zero spread accounts, which increases trading costs further.
Not always available - Not all assets are offered at lower spreads.

Markets like commodities and cryptos still have high spreads and zero spread Forex accounts typically only offer zero spreads on FX major pairs like EUR/USD and GBP/USD.

How zero spread Forex accounts work

A zero spread Forex account eliminates bid-ask difference, also known as the spread, which is typically the broker’s profit margin. Instead, brokers generate revenue through trading commissions. When your spread is 0 pips on EUR/USD, the broker will charge a commission per lot traded. The standard commission is 7 USD round turn or 3.5 USD per turn. Anything below this amount is considered cheap and is very attractive for scalpers. Traders can buy and sell the instrument at the same price which makes everything much more predictable and easier to profit from tiny market movements. The 7 USD commission is around 0.7 pips (1 pip equals around 10 USD while trading EUR/USD with 1 lot). This is important as traders have to pay spreads twice, meaning, even if your spread is just 1 pip, your total cost per trade equals 2 pips, which makes it very difficult to trade 1-minute and even 5-minute charts on major FX pairs. This is because the average price swing is around 2-4 pips in Forex major pairs on 1-minute and 5-minute charts. So, if you were to catch 2 pips per trade, you would have to pay back all of the profits to your broker, rendering scalping strategies useless.

How ECN technology works

ECN or Electronic Communication Network is a technology employed by zero spread brokers that connects traders directly to liquidity providers like major banks, hedge funds, and market participants. Since ECN brokers do not act as intermediaries and aggregate buy and sell orders from sources, the orders are matched almost instantaneously, allowing for low spreads. This setup ensures zero spreads and faster trade execution. Both of these factors are crucial in scalping, allowing traders not only to trade at low cost but to open and close trades faster as well.

Who should use zero spread FX trading accounts?

We have talked a lot about scalpers, but other trading styles can also benefit from near zero spreads. Basically, anyone who wants low spreads and fast execution of their traders should use zero spread accounts.

Scalpers and day traders

Traders executing multiple trades daily will benefit the most from minimal costs, which will make many scalping strategies more profitable and therefore more viable.

High-frequency traders (HFT)

HFT strategies can only function when spreads are zero and trade execution is fastest. HFT algorithms employ strategies that execute trades in milliseconds, making it very expensive to develop and deploy. HFT is not for everyone as it requires substantial startup costs and expertise. However, some brokers that offer zero spreads are suitable for HFT strategies and algorithms.

Professional FX traders

Experienced traders who are employing intraday strategies and seek precise entries and exits will also benefit from Forex zero spread accounts for their cost-efficiency and pricing accuracy. For pro traders who are using other types of strategies, low spreads are not as important as low commissions.

You should not use zero spread Forex account if

You do not need to worry about zero spreads when using swing trading trend trading strategies and other longer-term methods.

Swing trading

Swing traders try to catch large price swings and their trading positions continue from hours to days. Within this timeframe, the price usually covers tens and even hundreds of pips so they do not have to worry about 1 pip or even 2 pips spreads.

Trend trading

Trend traders specialize in catching large price trends and they might hold open positions for days or even weeks. Trend traders do not require low spreads and they seek lower commissions and swaps to ensure the highest profit potential.

Investing

Investors typically aim at longer-term returns and they do not care about spreads. However, for investors, low commissions are essential to stay profitable as commissions can demolish even the most successful investing strategies. Overnight fees are a major concern for investors and they should check the policies and commissions before deploying investment methods.

Comparing zero spread and low spread Forex trading

Let’s compare zero spreads to low-spread FX trading to see a clearer picture.

	Zero spread FX account	Low-spread FX trading
Spread cost	No spreads, usually 0 pips	Small spreads (0.1-1pip)
FX commissions	Fixed commissions per trade	Lower or no commissions, but higher spreads
Suitable for	Scalping, HFT algos, short-term strategies	Swing trading, long-term trading strategies
Risk during volatility	Higher because spreads also get high + commissions	Lower costs during high volatility, no commissions
Zero spread account review	Preferred for short-term with frequent orders	Suitable for long-term trades

One challenge of zero spreads is to be careful when market volatility is high. During higher volatility spreads get wider even when the base spreads are zero and traders can pay both spreads and commissions, which makes trading riskier. When markets are stable, zero spreads offer the best conditions for scalpers. Fixed commissions per trade enable scalpers to only pay tiny commissions and keep the majority of profits while low spread accounts will charge spreads, which are usually more expensive than commissions. While low spread forex trading enables traders to speculate on markets with commissions, zero spreads accounts have commissions, and traders need to calculate their risks and commissions to ensure the account suits their strategy.

Common myths about Forex brokers with no spreads

Let's also consider some myths associated with zero spread accounts.

Myth 1: Zero spread accounts are always cheaper

It all depends on the trader’s strategy and frequency of trading. Scalpers who often open and close trades, will benefit the most from 0 pip spreads. If there is higher volatility in the markets, then both spreads and commissions will make it costlier to enter the trade.

Myth 2: Only scalpers benefit from 0 pip spreads

While the best forex spreads are 0 spreads for scalpers, other traders might also benefit from it. Zero spreads are suitable for any trader who sees precise entries and exits.

Myth 3: Zero spreads mean no costs

This is probably the most widespread myth and can cause some traders to have unrealistic expectations that their 0 pip spreads will come with zero forex commissions, which is not true. Zero spreads accounts almost always come with trading Forex commissions which are based on trading volume and traders should carefully calculate their trading strategy and its needs. In many zero spread account reviews, sometimes reviewers will miss that these accounts come with commissions, which is natural. These commissions become the sole income source for brokers.

Tips for successful FX trading with zero spreads

Experience is crucial in Forex trading and pro traders often provide valuable experience and information about important FX trading facts. Here are some useful pro tips to use zero spread accounts at its fullest capacity.

Monitor FX trading fees

You should always keep track of your commission charges, as they can heavily impact your trading profits. Zero spread Forex trading commissions are charged based on trading volume and typically are around 7 USD per lot round turn (3.5 USD per side). Anything below 7 USD is very competitive.

Check spreads to ensure you are not trading during major volatility when spreads become wider due to heightened volatility.

Use the best Forex spreads for your strategy

Zero spreads suit short-term trading strategies. Low spreads are better for longer-term trading methods, such as swing trading and trend trading. Scalpers should use zero spread ECN accounts.

Choose ECN accounts for low spreads

Zero spreads are often offered by ECN accounts. Now, ECN accounts have one more advantage: having faster execution speeds, which is crucial in scalping strategies.