Top 5 Low Spread Broker UK 2022- Beginners Guide

The majority of brokers in the United Kingdom enable you to trade without paying any commissions. However, instead of commissions, they force you to pay spreads, which may be pretty large at times. The answer is to trade with a broker that charges low, they are low spread broker, trading with them allow you to save as much money as possible.

In this guide, we look at some of the best low spread brokers in the United Kingdom for 2022. Also, how to get started with a low-spread broker in the UK.

Top 5 Best Low Spread Brokers UK 2022

There are a number of brokers who will let you trade with low spreads. Only a few of them, however, possess all of the qualities necessary to be considered one of the top low spread brokers in the UK. The following is a list of some of the best low spread brokers:  

  1. eToro
  2. Capital.com
  3. Libertex
  4. AvaTrade
  5. Plus500 

Best Low Spread Brokers UK Reviewed

1. eToro 

eToro is without a doubt the best low-spread broker in the UK. It provides 45 FX CFDs as well as a selection of other assets to trade. It features all of the main and minor currency pairings, as well as some of the more unusual currencies that may be traded. Their spreads start at just 1 pip, making them a highly cost-effective platform.

eToro offers its own trading platform, which is available as a website and a mobile app. The platform offers a user-friendly design and is simple to use. At the same time, eToro provides all of its customers with a demo account where they may trade with virtual money before risking real money. You may utilize over 100 built-in technical indicators and charting tools on their site for your analysis.

Low Spread Broker - eToro

eToro being a social trading platform provides a number of benefits. This is a really valuable tool since it allows you to analyze market sentiment for any product, which may help you make better trading decisions. At the same time, the platform includes a news feed that keeps you up to date on what’s going on in the world’s biggest economies and markets.

One of the main elements of eToro is the ability to replicate trades from other more experienced investors. This allows you to profit from someone else’s experiences by making the identical deals they did. As you replicate someone with more experience than you, you will be able to set your portfolio on autopilot.

eToro is a highly regulated platform since it is overseen by a number of regulatory bodies throughout the world, including the Financial Conduct Authority of the United Kingdom. They have a very low GBP 200 minimum deposit requirement. This can be done through a bank transfer, credit or debit card, or PayPal. 

Pros

  • The trading interface is extremely user-friendly
  • With tight spreads, you may trade thousands of assets
  • No commissions
  • You may trade stocks, indexes, ETFs, cryptocurrencies, and other assets
  • You can use a debit/credit card, an e-wallet, or a bank account to make a deposit
  • Accept Paypal for deposits and withdrawal
  • Social and copy trading 
  • FCA, ASIC, and CySEC are all involved in the regulatory process

Cons

  • Not for skilled traders

2. Capital.com 

A Capital.com CFD account comes with narrow spreads, no commissions, and access to 6,100 investment items. For traders who want to trade exotic currency pairings, Capital.com is one of the most popular brokers. You may trade CFDs on over 140 currency pairs on the site, many of which are impossible to locate on any other competitive trading platform. For retail trading accounts, they enable you to utilize a leverage of up to 30x.

Capital.com’s own trading platform is exceptionally well-equipped and simple to use. It comes with a number of tools that you may utilize to do technical analysis and implement your strategy. Price alerts and other types of notifications are also supported by the platform. The AI technology that they employ to assist you to automate your trading methods and offer you suggestions and guidance on how to maximize your earnings while reducing risk and ensuring that you are best positioned to constantly be on the right side of trades is the greatest element of the platform.

Low Spread Broker - capital.com

The platform has an extremely low minimum deposit requirement, requiring only 20 GBP to start an account. You can easily transfer money into and out of your account because they allow a wide range of payment methods. At the same time, they do not impose withdrawal, deposit, or inactivity fees, which not only distinguishes them from other brokers but also makes them one of the most affordable.

Capital.com is a platform that is heavily regulated by both the FCA and the CySEC. They provide customer assistance through phone, email, and live chat 24 hours a day, 7 days a week, and their customer service is regarded as one of the finest in the industry. 

Pros

  • Over 140 currency pairings can be traded
  • Up to 30x leverage
  • Uses artificial intelligence to help you improve your trading and increase your profits
  • A deposit of at least 20 GBP is required
  • Excellent customer service
  • The FCA and the CySEC are in charge of regulation

Cons

  • Only the mobile app and not the online site may get price notifications

3. Libertex

Libertex, unlike the majority of other CFD brokers on the market, has adopted a totally different strategy. Rather than costing variable spreads, they impose fixed commissions. Most sophisticated and experienced traders like this since they can always know how much a specific deal will cost them when they trade with a set fee, and thus they are in a much stronger place to account for this in their strategies when they trade with a fixed commission. Libertex’s fees are also quite minimal, starting at just 0.008% of the deal value, making it one of the most cost-effective platforms for low-spread trading.

Libertex has its own trading platforms, which are available on the web and as a mobile app, and are equipped with a number of features and functionalities to help traders make the best decisions possible. At the same time, the platform is accessible with both the MT4 and MT5 trading platforms, making it the preferred broker for most traders who like to trade on these platforms. These platforms may be used by traders to create trading signals, tailoring technical indicators, and even backtest approaches to see how they performed in the history.

Low Spread Broker - Libertex

Libertex does not impose any fees for deposits or withdrawals, and the minimum deposit to open an account is relatively minimal. Libertex allows you to open an account in just a few minutes by making a small initial investment of 10 GBP. They have a variety of more than 60 currencies, spanning from major to minor and even unusual pairs, so you will not be disappointed. They also offer retail traders leverage of up to 30x. The platform is CySEC-regulated and largely regarded as one of the most reliable low-spread brokers. 

 Pros

  • CFD trading with a tight spread
  • Commissions are very competitive
  • Excellent instructional resources
  • Long-standing broker with MT4 compatibility
  • A wide range of markets are available

Cons

  • Only CFDs are available
  • Inactivity Fees

4. AvaTrade 

With over 200,000 users, AvaTrade is the largest fixed spread broker in the industry. They are licensed in eight jurisdictions, notably Europe’s CySEC, Australia’s ASIC, and South Africa’s FSCA.

Advanced risk management tools, for example assured stop-loss, are available from several fixedprice brokers. AvaTrade offers complete risk management tools such as minimum balance safety and assured stop-loss on transactions.

AvaProtect is a feature that is exclusive to AvaTrade. This allows a trader to choose a length ranging from six hours to two days. If a trader’s position causes them to lose money, they can terminate the deal without incurring a loss. The only cost will be the AvaProtect fee, which is shown when the function is turned on and is charged whether or not the protection is required.

When funding an AvaTrade online account through direct debit (wire transfer) or debit/credit card, the minimum deposit is $100. It should also be mentioned that AvaTrade does not charge any commissions.

Pros 

  • Over 800 financial items to choose from
  • With tight spreads and no commissions
  • It’s ideal for beginners
  • Strictly controlled
  • Allows you to use leverage to trade FX options
  • There are a variety of trading methods to choose from

Cons

  • Fee for inactivity
  • Fee for overnight interest

5. Plus500 

Plus500 is a popular CFD trading platform that has recently reached new heights. Its parent firm is currently listed on the London Stock Exchange, in addition to having a large client base.

Plus500 is regulated as well, having licenses from the FCA, ASIC, CySEC, MAS, and others. You will have access to a wide range of asset classes as a CFD trading platform. This covers stock CFDs, commodities, bonds, and exchange-traded funds (ETFs).

However, the foreign exchange section at Plus500 stands out to us, particularly in terms of spreads. For instance, you may trade EUR/USD with a dynamic spread of only 0.01 percent, which is quite competitive.

Plus500 does not impose any commissions, irrespective of the financial asset you choose to trade. Plus500 will allow you to trade with leverage if you are a UK resident. On main forex pairings, this is limited at 1:30, while on minors and exotics, it is capped at 1:20.

Low Spread Broker - Plus500 trading screen

Other CFD instruments have lower restrictions, so make sure to double-check. Plus500’s trading platform offers you to handle your account either online or through a dedicated iOS/Android mobile app. However, it does not support third-party systems like MT4/5 or cTrader.

As a result, low-spread brokers like Plus500 will not be ideal for automated trading. Nonetheless, this broker’s minimum deposit is only £100. It accepts a wide variety of payment options, including debit/credit cards, PayPal, and bank transfers. Plus500 doesn’t charge any fees for deposits or withdrawals, which is an extra plus.

Pros

  • No-commission trading policy
  • Low fees and tight spreads
  • A leverage ratio of up to 1:30 is possible
  • Web browsers and mobile phones are both supported by this user-friendly and simple-to-use trading platform
  • Risk management, price alerts, and a trader’s sentiment tool are just a few of the features
  • Heavily regulated, including a license FCA

Cons

  • CFDs only
  • Not a social trading platform

Low Spread Brokers Fees Comparison

For the above mentioned low spread brokers, a table of spreads for key currency pairs, deposit/withdrawal fees, and any extra fees they may charge has been provided below: 

Broker USD/GBP Spread EUR/USD Spread Deposit/Withdrawal FeesInactivity Fees
eToro1.4 pips 1 pip $5 per withdrawal $10 per month after 12 months of inactivity
Capital.com 1.4 pips 0.8 pips No feesNone 
Libertex1.3 pips 0.8 pips No fees$5 per month after 6 months of inactivity 
AvaTrade 0.9 pips 0.6 pips No fees$50 Inactivity fees after 3 months 
Plus5001.4 pips 0.7 pipsNo fees$10 per month after 12 months of inactivity 

Factors to consider choosing a low spread broker

Whether you’re searching for a low-cost stock broker, CFD broker, low spread broker, or forex broker, keep in mind that finding a low-cost broker is about much more than simply the spread.

While trading costs, spreads, and commissions are all key factors to consider while looking for a reputable UK trading site, there are a few more things to keep in mind.

As a result, while looking for the best low spread brokers in the UK, be sure to look at the following factors.

  • Regulation: It’s critical that the low spread broker you choose is regulated by a tier-one financial institution. eToro is licensed in Australia and Cyprus, in addition to being regulated by the FCA and insured by the FSCS.
  • Tradable Markets: It’s all well and good to choose a broker that has low spreads. However, if it does not support your preferred marketplace, it will not meet your requirements. From equities and ETFs to FX, cryptocurrencies, and commodities, eToro has it all.
  • Payments: Remember that you will need to deposit funds in order to trade online. The finest UK low spread brokers will accept a variety of payment ways. Debit/credit cards, e-wallets, and bank transfers are all accepted by eToro.
  • Tools and Features: The finest low spread brokers in the industry provide a wide range of trading tools and services. We especially appreciate eToro’s Copy Trading feature, which allows you to copy a professional investor’s buy and sell orders.
  • Customer Support: If you are searching for the best low spread brokers in the UK, don’t forget the presence of excellent customer service. In a perfect world, your selected broker would provide live chat or telephone assistance that is available 24 hours a day, seven days a week.

How to start trading with a Low Spread Broker?

So, now that you know what factors to look for when searching for a low spread broker that meets your needs, we’ll guide you through the steps to get started with a low spread broker.

eToro is the best low spread UK broker, and it’s a really quick and clear approach to start trading with eToro. The procedure is divided into a few steps, each of which is described in detail below.  

Step 1: Open an Account 

Your first step will be to go to the official eToro website and start the account registration procedure. 

eToro will ask you for the following information, just like any other licenced brokerage platform:

  • Name
  • username
  • E-mail address
  • Password
  • Phone number

 Step 2: Confirm Identity

Because eToro is a regulated site, you must first go through the KYC (Know Your Customer) procedure before you can trade. There are two components to this checking procedure. The first step is to confirm your identity by uploading a copy of any government-issued identification, such as a passport, driver’s license. The next step is to provide evidence of address, which you may do by uploading a bank statement or a utility bill.

After you’ve uploaded the papers, eToro responds quickly and frequently verifies your account within a few hours.

Step 3: Deposit Funds

On eToro, the minimum deposit is $200 which can be accomplished in a number of payment methods. To begin, you may fund your eToro account with a bank transfer or credit/debit card. You may also add funds in a variety of currencies, including USD, GBP, and EUR.

Step 4: Choose the asset you want to Trade

A large collection of tradable assets may be found on eToro. Enter the asset you want to purchase into the search box and click ‘Trade’.

Alternatively, you may browse the different financial instruments available by clicking the ‘Trade Markets’ option on the left-hand side of the screen.

Step 5: Place an Order

You’ll need to create an order once you’ve determined the financial asset you wish to trade at eToro.

This is straightforward with this low-spread broker because all you have to do is enter your investment (in US dollars). If you have some trading expertise, you may want to use limit, stop-loss, and take-profit orders as well.

However, after you’re satisfied with the information you’ve supplied, click the ‘Open Trade’ option.

Conclusion

To conclude, trading with a low spread broker allows you access to some of the world’s largest capital markets. Low spreads allow you to trade with little expenses, so make sure you’re only trading with the broker who charges you the lowest spreads.

While there are other low-spread brokers in the UK, and some brokers are better suited to certain purposes, eToro is the finest low-spread broker in the UK.  

Frequently Asked Questions

What is a spread?

The spread is the difference between your selected broker’s bid (buy) and ask (sell) price on an item. The distinction between the 2 prices which may be expressed in ‘pips’ or percentages is how the broker secures a profit at all times.

What is the UK’s best low-spread broker?

eToro is the top low-spread broker in the UK, according to our research. This FCA broker provides a plethora of markets and spreads in addition to cheap spreads and zero costs.

What’s the relation between fixed spreads and variable spreads?

If your broker charges a variable spread that indicates the spread will fluctuate during the day. When there is more trading activity on the markets, the most competitive spreads will be accessible. While fixed spreads are always the same. If a broker provides a fixed spread of 0.9 pips on GBP/USD, for example, the spread will remain the same regardless of wider market circumstances.

Which brokers provide zero-spread accounts?

Libertex is one of the only zero spread brokers. Trading commissions are, however, charged by the platform.

What is a good spread broker?

A broker with a spread of less than 1 pip on key currency pairings is particularly good, according to the common agreement.