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Compare Commission Free Forex Brokers
If you are looking for a commission free forex broker to trade with, you have landed in the right place!
There are many brokers out there who claim to offer “commission free” accounts, however be wary. Whilst some will indeed offer commission free trading, they may also charge you higher spreads to recoup their loss of commission.
On the flipside to this, are brokers that offer “spread free” trading accounts. This is where you will pay a commission fee each time you trade but you will not pay spread. Again, be wary. Spread free trading sounds amazing but it is likely the broker will charge you a higher commission, again, to compensate for the loss of (spread) revenue.
Below, we have listed some of the more genuine and reputable brokers that can offer commission free trading accounts. Let’s take a look!
Recommended Commission Free Forex Brokers:
high leverage
broker, tight spreads
What is Commission Free Trading?
This is where you sign up for a trading account with an FX or CFD broker and pay $0 in commission on your trades.
For reference, it is important to note that forex brokers will generally charge you in the following ways:
1. Spread
The spread cost is simply the difference between the bid and offer price. For instance, if the EUR/USD forex pair was quoted as 1.12000 – 1.12020, the spread would be 2 pips. Brokers will charge you the spread when you open AND close a trade.
2. Commissions
Commission charges are an additional charge to the spread. Some brokers charge both, some charge either spread or commission, making it your choice to decide. Commissions are typically a set cost per lot size or amount.
3. Overnight Financing
Overnight financing is the cost of keeping an FX trade open overnight. It will either be credited to your account (for a short position) or debited from your account (for a buy position).
Do All Traders Have Access To Commission Free Trading?
No, unfortunately not as not every broker offers commission free accounts.
There are some brokers that never charge commission, like TD365.com, and there are other brokers, like BlackBull Markets, that offer different account types, meaning you can choose a commission free account if you wish to do so.
It is important for a trader to consider what is important to them before deciding if a commission free forex account is for them or not.
If you are a more experienced trader who day trades larger amounts, then a commission free account is probably not the best option for you. That is because it is more likely that you prefer to pay a set commission fee per trade BUT get access to lower spreads.
On the flipside, beginner traders will probably prefer a commission free account, whilst being charged a slightly wider spread.
Our Recommended Commission Free Forex Broker
TD365 Best Low-Cost Provider
TD365 is one of the cheapest FX brokers in the world to trade with. Their business model is focused on low cost trading, with fixed spreads 24/5 and no commission charged. If you are looking for a low-cost trading option, TD365 could be for you.
- Launched: 2015
- Leverage: 200:1 through their Bahamas licence (30:1 through their ASIC licence)
- Regulation: SCB (Bahamas), ASIC (Australia)
- Opening deposit amount: $0
- Spreads: Fixed
- Trading platform: CloudTrade and MT4
What Else To Look For in a Commission Free Broker?
Always look for a broker that offers these benefits:
- Leverage. If you are looking for a commission free fx account, then it makes sense to trade using high leverage. In 2021, ASIC in Australia reduced the amount of leverage that Australian brokers could offer their customers. However, that does not stop you from using an overseas broker that can offer you higher leverage – check out our guide here.
- Tight Spreads. Always look for a broker that charges respectable spreads. There are plenty of brokers that promote “commission free accounts”, however their spreads are as wide as a barn door. Your job is to find a regulated broker that offers commission free accounts AND reasonable spreads – see the three brokers in the table above!
- Excellent Customer Support. Every trader needs helpful, knowledgeable and friendly customer support 24/5. Also look for a broker that can be reached across a range of mediums, such as email, phone, live chat and social media. If they offer their support across differing languages, excellent.
