A Comparison of Broker Spreads: OctaFX, Pepperstone & IG.com

When comparing online brokers, you will want to examine fees, charges and commissions very carefully. As an investor, one thing you’ll be interested in is the spreads offered for the instruments you trade. Some brokers offer a commission free model, but this generally means the broker’s profit comes from the spreads, which will vary between instruments, and may also depend on the account type you hold.

Some brokers charge a commission fee on top of the spreads, and it’s also important to note that spreads are often dynamic, meaning they are constantly changing. Today we’re comparing spreads at three popular online brokers: OctaFX, Pepperstone and IG.

OctaFX Spreads

At OctaFX spreads are dynamic and depend on the currency pairs being traded. This broker also quotes different spreads depending on the platform you use and the type of account you hold. Spreads on popular pairs are quite tight, across all platforms. OctaFX quotes the following spreads:

MetaTrader 4 Micro

  • EUR/USD         Minimum spread: 0.4 pips          Typical Spread 1.1 Pips
  • GBP/USD         Minimum spread: 0.5 pips          Typical Spread 1.6 Pips
  • USD/JPY          Minimum spread: 0.4 pips          Typical Spread 0.9 Pips

MetaTrader 5 Pro

  • EUR/USD         Minimum spread: 0.4 pips          Typical Spread 0.5 Pips
  • GBP/USD         Minimum spread: 0.5 pips          Typical Spread 0.6 Pips
  • USD/JPY          Minimum spread: 0.4 pips          Typical Spread 0.5 Pips

CTrader ECN

  • EUR/USD         Minimum spread: 0.4 pips          Typical Spread 0.8 Pips
  • GBP/USD         Minimum spread: 0.4 pips          Typical Spread 0.7 Pips
  • USD/JPY          Minimum spread: 0.4 pips          Typical Spread 0.7 Pips

Current spreads are clearly displayed on the website and change in real time.

Pepperstone Spreads

At Pepperstone, spreads depend on whether you have their Standard or Razor account, and, of course, vary between the wide range of tradable instruments they offer. Spreads are dynamic, influenced by factors such as liquidity. During times of high liquidity, spreads can go as low a 0 pips if you have a Razor account. However, this is because the Razor account adds a small commission to trades, on top of the spreads, whereas the Standard account is commission free. Look carefully at terms and conditions for both accounts before choosing one. Pepperstone offers spreads of:

Razor account:

  • EUR/USD         Minimum spread: 0 pips             Average Spread 0.13 Pips
  • GBP/USD         Minimum spread: 0 pips             Average Spread 0.44 Pips
  • USD/JPY          Minimum spread: 0 pips             Average Spread 0.25 Pips

Standard account:

  • EUR/USD         Minimum spread: 1 pips             Average Spread 1.13 Pips
  • GBP/USD         Minimum spread: 1 pips             Average Spread 1.44 Pips
  • USD/JPY          Minimum spread: 1 pips             Average Spread 1.25 Pips

IG Spreads

IG offers competitive spreads, from around 1.1 pips on most instruments, and from 0.6 pips on Forex. IG also offers a range of opportunities for online traders, including spread betting, so check out trading conditions for the type of trading you plan to do, before making a commitment. IG offer the following spreads on spot Forex betting:

  • EUR/USD         Minimum spread: 0.6 pips          Average Spread 0.70 Pips
  • GBP/USD         Minimum spread: 0.9 pips          Average Spread 1.52 Pips
  • USD/JPY          Minimum spread: 0.7 pips          Average Spread 0.79 Pips

Remember spreads change constantly. Always monitor spreads closely while online trading.