In Dec, 2018, Foreign Exchange Professionals Association conducted a spread quality comparison in a report reviewing top 30 online Forex brokerage websites and their live accounts’ spread value. Among brokers, the top 5 brokers with actual spread values were selected as follows:
As shown in the table above, 5 legitimate FX broker sites were selected and compared by each known spread information. Landfx offers EUR/USD 0.2~0.4 pip with ECN account and its actual spread is equivalent to 0.8~1.0 pip after $6 commission ($3 per side). ICMarkets has ECN account with EUR/USD 0.0~0.3 pip, and it also has $7 commission ($3.5 per side), which makes the actual spread as 0.7~1.0 pip. GFtrade offers spread of EUR/USD 0.9~1.1 pip with VIP account, but the actual spread is 0.5~0.7 pip with $4 per lot cashback, and no commission. Exness requires commission for ECN account at $5 starting spread from 0.4~0.6 pip, which brings the actual spread up to 0.9~1.1pip after commission.
The spread report was investigated in order to prevent traders from opening accounts with misleading information, which is common among many forex broker ads, and to encourage people to check the actual value of spread. Foreign Exchange Professionals Association (FEPA) who conducted the report in the last December of 2018, stated that “In most cases, the actual spread count from MT4 is a lot different from the advertised value. There are a lot of exaggerated online ads from well-known brokers more than you can imagine.”
FEPA added that the report was based on the data collected by each broker’s live account trading cost after applying all the benefits, and the 5 brokers listed in the table has the least spread among others. The president of FEPA, Chip Lowry, warned “all traders have right to claim transparency from brokerage providers who has critical responsibility of preserving fair Forex trading environment,” and he also promised that “FEPA will continue to fight against fraudulent promotion in the industry and to inform about false advertisements for all traders’ right to know.”