For many traders, especially those in forex and CFD markets, low spreads are a vital part of keeping trading costs down. The tighter the spread, the less a trader pays to open and close a position, which can make a significant difference, particularly for high-frequency or short-term traders.
But not all low-spread brokers are created equal. Some advertise ultra-tight spreads, only to widen them in volatile markets or charge hidden fees elsewhere. Others deliver consistently low spreads, but only to traders meeting specific volume or account requirements.
In this guide, we take a closer look at some of the best low-spread brokers available to UK traders in 2025, what makes them stand out, and what to watch out for.
What Does “Low Spread” Actually Mean?
In simple terms, the spread is the difference between the buy (ask) and sell (bid) price of an asset. The smaller the spread, the less you pay to open and close a position.
But there’s more to it than just looking at the lowest advertised number:
- Minimum vs average spreads – Brokers often promote “from 0.0 pips”, but real-time average spreads during normal market hours are more telling.
- Commission structure – Some brokers offer raw spreads but charge a per-lot commission.
- Execution type – ECN or STP brokers typically offer better spreads than market makers.
- Market conditions – Spreads may widen during news events or low liquidity periods.
The best low-spread brokers manage to keep costs down without sacrificing reliability or transparency.
Top Low Spread Brokers in the UK (2025)
Here’s a breakdown of standout brokers worth considering this year if tight spreads are high on your priority list.
1. Alchemy Markets
If you’re looking for a fresh, transparent approach, Alchemy Markets has entered the scene with a focus on tight spreads and institutional liquidity. While not yet as well-known as the bigger names, it offers competitive pricing across more than 1,000 instruments.
- Spreads – From 0.0 pips advertised
- Execution – STP/ECN style with no dealing desk
- Extra features – Emphasis on speed, transparency, and client-first pricing
Alchemy Markets is a low spread broker that appeals to traders who value smaller brokers offering responsive service without compromising on execution.
2. Interactive Brokers (IBKR UK)
Known for its professional-grade platforms and broad market access, Interactive Brokers consistently delivers tight spreads due to its agency model and deep liquidity. Whilst it is aimed at more advanced traders, it remains one of the lowest-cost options in terms of raw spreads.
- Spread – From 0.1 pips (varies by asset)
- Commission – Applies to forex and CFDs
- Platform – Trader Workstation (TWS), IBKR Mobile
Its deep liquidity pools and smart routing also help avoid slippage, which keeps overall trading costs down, even if commissions are added separately.
3. CMC Markets
A long-standing UK broker, CMC Markets is well-known for combining tight spreads with excellent user experience. Its “FX Active” account offers institutional-style pricing with spreads from 0.0 pips plus a commission, while standard accounts have tight spreads with no added commission.
- Spreads – From 0.0 pips (FX Active) or 0.7 pips average (standard)
- Commission – None on standard, commission on FX Active
- Regulation – FCA-authorised
CMC consistently performs well in spread comparison rankings and offers fast execution across forex, indices, and commodities.
4. IG
One of the biggest names in UK trading, IG offers competitive spreads and excellent platform tools, and although they’re not always the absolute lowest, their spread consistency and fast execution often make them more cost-effective than brokers with wider fluctuations.
- Spreads – 0.6 pips average on major pairs
- Commission – No commission on most products
- Account Types – Retail, Pro (with tighter conditions)
For those active traders or just traders looking for strong regulatory protection, IG remains a top-tier option.
5. OANDA
OANDA continues to be a solid choice for traders who want a reliable broker with no surprises, as it offers transparent pricing, simple account setup, and consistently low spreads with no commissions on standard accounts.
- Spreads – From 0.6 pips average on major pairs
- Commission – Zero (on standard accounts)
- Platform – OANDA Trade, MT4, TradingView integrations
Beginners and intermediate traders especially like OANDA’s intuitive platform and lack of hidden fees.
How to Choose the Right Broker for Low Spreads
When selecting a low-spread broker, keep in mind that advertised spreads don’t tell the full story. Ask these questions:
- Is the broker FCA-regulated and compliant with UK protections?
- Are low spreads consistent during volatile or high-volume periods?
- What’s the full cost, including commission, overnight swaps, and slippage?
- Does the broker offer real-time pricing and transparent execution?
Don’t be afraid to open a demo or micro account and test spreads during your typical trading hours. Spreads that look great on a homepage might behave very differently in real-time.
Our Final Verdict
Low spreads can have a big impact on your trading profitability, especially if you’re scalping or making multiple trades a day. The best brokers don’t just offer tight numbers; they provide consistency, speed, and reliability across market conditions.
Whether you go with a household name like IG or CMC, or even look atI promising challengers like Alchemy Markets, the key is finding a platform that matches your trading style, and one that won’t quietly eat into your profits with hidden costs.
