Tight Spread Forex Brokers

Tight Spread Forex Brokers

When it comes to forex trading, many traders look for brokers who have the smallest spreads possible in order to maximize their prospective profits.

The development of forex trading in recent years has resulted in stronger than ever competition between brokers, forcing many of them to offer competitive trading conditions and tight spreads to attract customers.

In this article, we explore the best tight spread Forex brokers that offer an excellent trading environment, strong regulation and a wealth of trading features.

best forex brokers for south african traders

IFX Brokers

Overview

The dedication of IFX brokers to their traders and consumers is well-known.

Using this platform, customers can trade a wide variety of financial instruments. A one-stop centre for internet traders is provided by the broker, which is based in South Africa. Clients can trade commodities, indices, energy, and more on MetaTrader 4 from the comfort of their own home.

Pros and Cons

PROS

High leverage available

MetaTrader 4 is supported.

Resources for learning are available

CONS

Lax regulation

Features

FEATURE

INFORMATION

Regulation

FSA

Minimum deposit from

ZAR100

Average spread from

0.5 pips

Commissions from

NA

Deposit/Withdrawal Fees

NA

Maximum Leverage

1:500

Bonuses

NA

Customer Support

24/5

City Index

Overview

City Index’s spreads start at just 0.5 points on major currency pairings. Price transparency and comprehensive customer service are two key goals for this broker.

Over 12 000 worldwide markets across Forex, Indices, Shares, and Commodities are available to City Index clients.

Pros and Cons

PROS

Low trading fees

No fees for deposit and withdrawal

Comprehensive research tools

 

CONS

Limited product portfolio

 

 

Features

FEATURE

INFORMATION

Regulation

FCA, ASIC

Minimum deposit from

$100

Average spread from

0.5 pips

Commissions from

$3

Deposit/Withdrawal Fees

None

Maximum Leverage

1:200

Bonuses

Deposit Bonus

Customer Support

24/6

IC Markets

Overview

The spreads offered by IC Markets are among the most competitive in the industry across all major and minor currency pairs.

Furthermore, the EUR/USD spread, which averages 0.1 pips, is among the lowest available anywhere in the world.

Spreads can be as low as 0.0 pips on the MetaTrader and cTrader Raw Spread platforms, which are both used by professional traders.

Pros and Cons

PROS

Low trading costs

Easy process to open an account

No deposit or withdrawal fees

CONS

Limited range of CFDs

 

 

Features

FEATURE

INFORMATION

Regulation

ASIC

Minimum deposit from

$200

Average spread from

0.1 pips

Commissions from

None

Deposit/Withdrawal Fees

None

Maximum Leverage

1:500

Bonuses

None

Customer Support

24/7

Exness

Overview

CFD trading on a wide range of assets, such as currency pairings, commodities, cryptocurrencies, energy, indexes, and stocks, is possible with Exness, allowing traders to have a taste of the global markets. As such, clients profit from fast and accurate order execution and low spreads.

Opening an account with Exness allows users to gain access to leading positions in the foreign exchange market, free VPS hosting, and support for several trading platforms, including the industry standard MT4 and MT5 platforms.

Pros and Cons

PROS

Well-regulated

Tight spreads

Over 130 currency pairs

CONS

 

 

Features

FEATUREINFORMATION
Regulation

CySEC, FCA

Minimum deposit from$1
Average spread from1.3 pips
Commissions from

3 USD and 10 USD per 1 lot for CFDs

Deposit/Withdrawal FeesNone
Maximum Leverage1:2000
Bonuses

Standard +10% Bonus Programme

Customer Support

24/5 – multilingual

HotForex

Overview

If you have a HotForex ZERO Spread account, you’ll get super-tight spreads from top liquidity providers with no mark-ups.

With the account, commissions start at a modest USD 0.03 per 1K lot, making it one of the most transparent commission-based structures available.

Pros and Cons

PROS

No deposit or withdrawal fees

Competitive spreads

CONS

High commission charges on the Zero account

Features

FEATURE

INFORMATION

Regulation

CySEC, DFSA, FCA, FSA, FSCA

Minimum deposit from

$5

Average spread from

0.0 pips

Commissions from

USD 0.03 per 1K lot.

Deposit/Withdrawal Fees

None

Maximum Leverage

1:1000

Bonuses

100% Supercharged Bonus

Customer Support

24/5

Dukascopy

Overview

Spreads as low as 0.2 pips are available on popular currency pairings through Dukascopy’s pricing mechanism.

Orders are executed instantly, and a wide range of trading orders, including stop-loss orders, are available. Customer service is available around the clock, seven days a week.

FINMA, the Swiss Financial Market Supervisory Authority, has stronger rules for banks and securities dealers like Dukascopy than other legal jurisdictions.

Pros and Cons

PROS

Good choice for high volume traders

Comprehensive analytical tools

Flexible trading on advanced platforms

Good selection of currency accounts

CONS

High commission

Charges withdrawal fees

High minimum deposit

Charges inactivity fee

Features

FEATURE

INFORMATION

Regulation

FINMA

Minimum deposit from

$100

Average spread from

0.3 pips

Commissions from

‎$49.5 per $1 million traded

Deposit/Withdrawal Fees

Varies depending on the method

Maximum Leverage

1:200

Bonuses

10% Equity Bonus

Customer Support

24/5

XM

Overview

XM’s tight spreads are available to all customers, regardless of account type or trade size. It’s important to XM that its customers can trade with its narrow spreads. Because of this, the broker places a high value on the quality of its execution.

XM aims to secure the best possible pricing from all of its liquidity sources in order to keep spreads as low as feasible. The best bid and ask prices are gathered from liquidity sources in real time.

Pros and Cons

PROS

Low minimum deposit

Comprehensive educational offering

Streamlined account opening process

CONS

Inactivity fee charged after 90 days on live accounts

Limited product portfolio

Features

FEATURE

INFORMATION

Regulation

IFSC, ASIC, CySEC, FCA and DFSA

Minimum deposit from

$5

Average spread from

0.1 pips

Commissions from

$3.5 commission per $100 000 traded

Deposit/Withdrawal Fees

None

Maximum Leverage

1:30

Bonuses

$30 Trading Bonus

Customer Support

24/5

FXTM

Overview

FXTM has a wide range of account types to suit the needs of each trader, including Standard and ECN accounts.

A reputable forex broker, FXTM has earned the trust of traders all over the world. As a result, clients may rest easy knowing that their money is being held in high-quality European banks.

To trade, you’ll have access to low fixed and variable spreads that start at just 0.1 on ECN accounts and 0.5 on Standard accounts.

Pros and Cons

PROS

Superb customer service

High maximum leverage

Great educational tools

 

CONS

Inactivity and withdrawal fees

Limited product portfolio

 

Features

FEATURE

INFORMATION

Regulation

CySEC, FCA, FSCA

Minimum deposit from

$100

Average spread from

0.1 pips

Commissions from

No commission

Deposit/Withdrawal Fees

$3

Maximum Leverage

1:500 on average

Bonuses

$300 Trading Bonus

Customer Support

24/5

Alpari International

Overview

Alpari was founded in 1998 and now has more than 2 million customers around the world. All types of traders can benefit from the broker’s high-quality STP/ECN trading expertise.

Over 60 assets, including currency pairings, commodities, and CFDs, are available for trading. Alpari has a stellar track record, having received numerous industry accolades in addition to offering a wide selection of markets and robust security measures.

If you’re looking for some of the most competitive spreads on key currency pairings, Alpari International is your best bet.

Pros and Cons

PROS

Advanced copy trading software available

Wide selection of tradable assets

Low minimum deposit

Excellent multilingual customer support

CONS

Limited educational resources and research tools

 

 

Features

FEATURE

INFORMATION

Regulation

Financial Services Commission (FSC)

Minimum deposit from

$100

Average spread from

1.2 pips on majors

Commissions from

charged at 4 units of the Base currency

Deposit/Withdrawal Fees

None

Maximum Leverage

1:1000

Bonuses

Cashback Promotion

Customer Support

24/5

FP Markets

Overview

FP Markets, an Australian CFD and forex broker, was established in 2005. Since it has a long history and is regulated by ASIC, FP Markets has been deemed safe.

For fast transaction execution and low requote risk, FP Markets offers variable spreads with fast execution. For RAW and Standard accounts, the broker is able to offer forex spreads of as little as 0.0 pips.

Pros and Cons

PROS

Competitive trading fees

Easy account opening

Fast processing for deposits and withdrawals

 

CONS

High stock CFD Fees

Limited range of asset classes

 

Features

FEATURE

INFORMATION

Regulation

Australian ASIC, Cypriot CySEC, SCB

Minimum deposit from

$100

Average spread from

0.5 pips

Commissions from

$55 monthly commission for IRESS Trader users only

Deposit/Withdrawal Fees

None

Maximum Leverage

1:500

Bonuses

$30 Welcome Bonus

Customer Support

24/5

GO Markets

Overview

You can trade on MetaTrader 4, MetalDesk, MT4 Genesis, Trading Central, Autochartist, and VPS platforms provided by GO Markets.

GO Markets offers a wide variety of markets, including Forex, Indices, Metals, Commodities, and more, with changeable spreads. The spreads are as low as 0.0 pips because they are derived from over 22 different Tier 1 and Tier 2 liquidity sources.

It is possible to trade currencies, indices and commodities with GO Markets, as well as physical gold. GO Markets has iPhone and Android apps that allow you to trade on the go.

Pros and Cons

PROS

Low trading fees

Ultra-fast execution

Advanced analytical tools

Low minimum deposit

CONS

Limited account options

 

Features

FEATURE

INFORMATION

Regulation

ASIC

Minimum deposit from

$1

Average spread from

0.0 pips

Commissions from

None

Deposit/Withdrawal Fees

None

Maximum Leverage

1:500

Bonuses

30% Deposit Bonus

Customer Support

24/5

MetaTrader 4 vs MetaTrader 5

MetaTrader 4 vs MetaTrader 5 – A Guide for South Africans

For all Forex traders, the decision of which broker to sign up with often rests heavily on their Forex trading platform offering.

A trading platform is software specifically designed to facilitate currency speculation on the global Forex market, and such platforms are typically equipped with additional analytical features, and have varying degrees of execution speed and operational complexity.

By far the most popular trading platform to date is the MetaTrader suite from MetaQuotes, which consists of MetaTrader 4 (MT4) and its most recent updated version, MetaTrader 5 (MT5).

In this article, we explore the main differences between the MetaTrader 4 and MetaTrader 5 platforms, allowing South Africans to select the option which best suits their trading needs, strategies and experience levels.
competitive trading conditions that consist of tight and variable spreads

MetaTrader 4: the most popular Forex trading platform

MetaTrader 4 (MT4) is a trading platform that was created by MetaQuotes in 2005 and is still in use today.

Despite the fact that it is most frequently linked with forex trading, MetaTrader 4 may be used to trade a variety of markets, including forex, indices, cryptocurrencies, and commodities, through the use of contract for difference (CFD) trading.

Comprehensive analytical capabilities

MT4 is immensely popular due to the fact that it can be completely customized to meet the specific trading needs of any individual trader.

Furthermore, it can be utilized to automate your trading through the use of algorithms that open and terminate deals on your behalf based on a list of predefined parameters.

When it comes to price analysis, MT4 has a wide range of built-in indicators and charting options. In this platform, there are more than 30 built-in technical indicators, including major trend and volume tools such as the MACD, RSI, On-Balance Volume (OBV), Fibonacci retracements, and more.

For each currency pair, a chart can be displayed in one of nine different timeframes, ranging from one minute to monthly. Additional charts and indicators can be found in the MQL4 community, and many traders also create their own.

Traders can use advanced chart analysis, mathematical tools, and drawing objects to analyse price movements of all kinds. In addition, these charts can be highly customized to meet the specific needs of each trader. Different trader profiles can be used to store them.

Flexible trading orders

Traders can choose from a variety of trading orders and ways of execution to build and apply their own trading strategy. Two market orders and four types of pending orders are supported by MT4’s platform. Additionally, traders have a wide range of options to choose from when it comes to transaction execution modes.

Forex trading requires risk management measures to be successful. To minimize downside risks, two types of stop orders are available in MT4: take profit orders and trailing stops.

As soon as the market swings against the forecast, a stop-loss order will close the trade. When the price reaches a pre-determined level, traders can take profit and close the position. Placing these orders is a breeze.

The “Toolbar” window or the chart can be used to initiate orders. Their deletion and modification are both simple and painless tasks.

Real-time market access

MT4 is a currency trading platform that provides real-time access to forex quotes and trade execution.

The “Market Watch” pane displays all of the currencies and securities that a trader has chosen to trade through a broker. The real-time bid/ask quote is also shown with the security symbol.

The spread, contract size, margin currency, and margin percentage can all be viewed from this window.

“Depth of Market” provides traders about market activity in real time. In the market depth section, for example, the number of purchase or sell orders for a currency pair at different prices can be viewed.

MetaTrader 5: advanced functionality

Multi-asset trading platform MetaTrader 5 (MT5) was launched by MetaQuotes in 2010. The MQL5 programming language was used to construct the MT5 platform, which has a wide range of features.

The platform’s redesigned iteration, which was introduced later, has improved functionality and allows you to trade a wider choice of products. That is to say, in addition to trading currencies, you may use the MT5 platform to trade equities and commodities.

Additional trading features

One of the most advanced and feature-rich trading platforms on the market, MetaTrader 5 offers a wide range of options for trading and order types, as well as a variety of execution styles and Market Depth. Hedging in forex trading is accomplished through the order accounting approach.

Users can open many locations in one instrument, either in the same or opposite direction, using this method.

In addition, there are four ways to execute orders on the MT5 platform. Request, Market, Instant, and Exchange are the four options. Trades involving the use of stock tools fall under the purview of type IV Exchange.

Advanced algorithmic trading

The MT5 platform’s robot or algorithmic trading capability is the best and most intriguing. Trading on your behalf is handled by automated systems. You’re only required to pick a plan and write down the specifics. Your trades would be carried out by the robot, which would follow your directions.

Algorithmic trading is possible because of the MQL5 environment It gives you the ability to create, test, and fine-tune trading robots to meet your own trading requirements.

It is also possible to execute orders more quickly in the MQL5 environment than on the MetaTrader 4 (MT4) platform. Apart from allowing you to hire sophisticated expert advisors, the MT5 environment also makes it easier to process enormous amounts of data.

Who should use MetaTrader 4?

Beginners and those looking for a more user-friendly Forex trading environment will benefit most from MT4.

MT4 was designed with ease of use in mind. MT4 is the more straightforward option because it provides only the resources you require and none of the more complicated features you don’t. This makes it the better choice for casual and beginner traders.

Nine different time frames are available for chart analysis in MT4. MT5 on the other hand offers a whopping 21 alternative time frames, which is a significant improvement over MT4’s limited selection.

Many traders do not find these customizable options useful. For forex traders, MT4 has a wide range of features and functions that are tailored to their needs. As a result of this, MT4 is the most popular software platform for forex traders.

Buy stop, sell stop, and sell limit are the four most common order types in MT4. It’s common for most traders to use these order types because they minimize risk and give them more control over how they enter and exit positions.

If you’re trading on MT4, you’re probably looking for an easy-to-setup platform that doesn’t require much in the way of custom programming or complicated set-up procedures.

Because of this, MT4 is a great choice for traders who are new to the market or don’t want to spend time learning how to program their own trading strategies.

Who should use MetaTrader 5?

Contract-for-difference (CFD), stock, and futures trading can all benefit from MT5. A wide range of characteristics may not be useful to every trader, but if you trade a wide range of assets, it may deliver higher value.

Although MT5 can still be used to trade forex, the features and tools used to examine forex charts are not as comprehensive, thus you’ll likely lose performance when using MT5 for this type of trading.

MT5, on the other hand, provides a significant increase in the number of time frames available compared to MT4.

These adjustable features are optional for many traders. Although these time frames are less frequently used, some traders and particular types of trades, such as CFDs, benefit substantially from access to them.

If you’re a more experienced or diverse trader, this knowledge could be vital to making informed decisions.

Also included in MT5 are tools like an economic calendar that allow you to keep tabs on the latest developments in the financial markets around the world. However, these new features also necessitate a more complicated platform and a steeper learning curve.

For many beginning traders, MT4’s simplicity and stripped-down capabilities are more appealing than MT5, which tends to attract more experienced traders who are looking for greater resources and platform variety.

Conclusion

Both MetaTrader 4 and MetaTrader 5 are excellent trading platforms that offer a wealth of features, fast execution and access to the Forex markets.

However, which of the two platforms you choose to use will ultimately depend on your trading goals and your experience level.

Pure Forex traders, beginner traders or those simply seeking a more straightforward interface will prefer MetaTrader 4, which offers everything required to trade the Forex markets successfully.

More advanced traders seeking a customizable interface along with access to a greater variety of tradable assets will prefer MetaTrader 5 for its additional features, and charting capabilities.

Either way, beginner traders should certainly begin their trading journey using MetaTrader 4, and consider upgrading to MetaTrader 5’s more advanced environment as their needs and capabilities evolve.