The EUR/USD pair is by the far the most traded currency in the forex market with conservative estimates attributing it to more than a third of all forex market transactions. You too will possibly be interacting with this currency often, and it is therefore only natural that your search for the best forex broker that offers most competitive spreads for the Euro-Dollar currency pair. When checking the spreads here, you are looking at how low a broker can get and if they are fixed or floating spreads.
We are nonetheless committed to helping you find the best broker with the lowest spreads for the EUR/USD trade. To this end, we have tried and tested different forex brokerage systems and have come up with a detailed list of 7 best forex brokers offering the lowest spreads for the popular EURUSD currency pair.
Best 7 low spread EUR/USD brokers
What are spreads in the forex market??
Spreads refer to the difference between selling price by the market and buying price offered to you by the broker. If you are familiar with stock markets, it is similar to the difference in Ask and Bid prices. And it represents the profits a broker takes for facilitating the trade.
What is the impact of spreads on a trade?
In most cases, your preferred forex broker wants to benefit from every trade you make and will, therefore, inflate the market’s selling price of any given currency pair to cover for this. In effect, settling for a broker with high spreads means buying currency for amounts higher than its current market value.
Why are the spreads for the same currency pair not similar for all brokers?
Spreads, unlike leverages, aren’t regulated and the forex broker is at liberty to come up with their own spread figures. However, the cutthroat competition witnessed in the industry ensures that they all remain within reasonable levels.
What is slippage?
Slippage is the difference between the anticipated price of a currency pair and the price at which a trade is executed. It normally occurs during highly volatile markets where the currency prices change abruptly during the time between placing an order and your forex broker executing it. It may also occur in the case of a system delay with your broker.
Can I trade EURUSD currency pair without a broker?
Yes, if you had enough forex capital to register as an institutional investor, playing in the leagues of banks and brokers. To the rest of the global citizens, forex brokers act as the link between you and the actual forex market.
How much should invest in the EURUSD currency pair?
The fact that the EUR/USD currency pair is the most traded implies that it is also the most volatile. Therefore, apart from only investing what you can afford to lose in the forex industry, it is equally important that you consider diversifying your FX investments and avoid staking your capital in a single pair. If possible, keep hedging against every Euro Dollar trade you enter this limits your risk exposure should it go south.