The spread is the difference between the bid (buy) and ask (sell) price when you are trading financial instruments such as forex currency pairs. Forex brokers charge you a spread on each trade that you place, which can immediately put your position into the red.
To calculate the spread in forex, you have to work out the difference between the buy and the sell price in pips. You do this by subtracting the bid price from the ask price. For example, if you’re trading GBP/USD at 1.32089/1.2091, the spread is calculated as 1.2091 – 1.2089, which is 0.0002 (2 pips).
Some brokers will also charge a commission fee on top of the spread, not to mention there might be delayed trade execution speeds which can cause slippage on your trades and lead to a different price than you might have expected. For this reason, prop firms with low spreads are favourable for those of you who might be using spread sensitive strategies, such as forex scalping.
Prop Firms with Lowest Spreads
Why Are Low Spreads Important?
Using a prop firm with low spreads is important because it can save you on trading costs. If you are day trading and placing multiple trades throughout the day, the costs can add up – especially if you are trading large position sizes which you might be with high leverage and a prop firm scaling plan. Even a few pips spread can costs hundreds and thousands over the course of a few trading days.
Tight spreads are important for scalpers who are targeting just a few pips on each trade. The difference in prop firm spreads can be the difference between a winning and losing trading strategy.
For example, if you had a profit target on each trade of 5 pips and the spread was 2 pips with a 2-pip commission and 1 pip slippage, you would need to make 5 pips to just break-even.
On the other hand, if you had a prop firm with low spreads starting from 0.0 pips, no slippage and a 2-pip commission, that same 5 pips would see 3 pips of profit on the trade.
On the other hand, there are some trading strategies that do not require tight spreads. If you are holding positions for a few days or weeks, then you probably wont really notice a big difference in spreads. You would probably be more concerned with finding a prop firm that allows weekend holding and has no time limit.
OnlyFunds provide funded trading accounts with a large 90% profit share, along with straightforward and fair trading conditions to ensure a level playing field for all traders.
FTMO is an award-winning prop trading firm where you can take part in challenges to qualify to trade the company’s capital and receive up to $2 million in funds and keep 90% of profits. The company provide you with support along the way and will even cover the losses.
The Funded Trader is a popular prop trading firm where aspiring traders can potentially unlock up to $600k accounts to become professional traders and earn a 90% share of the profits.
SurgeTrader accelerates your path to becoming a professional trader by putting real capital into live accounts for you to trade. They have a good variety of funded trader programs where you can keep up to 90% of the profits if you successfully pass the audition phase and scale up to $500K.
The 5%ers give instant funding to successful traders. You can choose from various trading programs to show them you have what it takes to trade their capital up to $4 million and keep 50% of profits.
Low spread prop firms are important for anyone who is using a scalping strategy that is spread dependant. Even if this is not the case, you can still save on trading costs in the long run with tight spreads. Just keep in mind, this is not the only thing you need to look for when choosing a proprietary trading firm. You will also want to consider the trading rules, objectives, profit share and user feedback.
**Maverick Trading**: Maverick Trading is another prop trading firm that offers competitive spreads, particularly in equities and options markets. 4. **SMB Capital**: Specializing in equities trading, SMB Capital is known for its low trading costs and competitive spreads. 5.
Apex Trader Funding is the best futures prop trading firm on this list for a variety of reasons, but most notably because it boasts the highest pass rate for its evaluation program out of all the futures prop firms on this list. It is also by far the most friendly option for beginner futures traders.
Funded Trading Plus. Funded Trading Plus stands out in the competitive landscape of prop trading firms, distinguishing itself with unparalleled access to affordable trading opportunities. ...
While FTMO stands out as the best overall prop firm, other options such as Fidelcrest, 5%ers, BluFX, Glow Node, Smart Prop Trader, FTUK, Instant Funding, and SurgeTrader also offer attractive features and benefits.
Smart Prop Trader is probably one of the best instant funding prop firms offering up to 90% profit splits without any strings attached. If you are unprepared for our challenge, choose the free trial option. Remember, there's no payout in a free trial, this is just practice for when you purchase our challenge account.
Yes, prop firms do pay. While there are some scams out there popping up everyday, reputable prop trading firms like True Forex Funds, FTMO,5%ers,FundedNext are legitimate and pay traders according to their profit-sharing agreements. As for True Forex Funds, I can vouch for their credibility.
One of the main reasons why FTMO is a good prop firm is their investment options. They offer traders the opportunity to trade with their own capital, as well as access to additional capital from FTMO.
{quote} FTMO (unless you are a US citizen), The5ers, and City Traders Imperium are the three oldest prop firms, and probably the only ones with 5+yrs reputable history of reliable payouts. I'd start with those three.
FTMO have now restricted access to all new US-based traders as of January 2024. This appears to be related to regulatory issues and may have something to do with the recent My Forex Funds case.
The first step when deciding on any prop trading firm should be an in-depth look at its reputation and history in the industry. A firm's standing within the trading community will highlight its reliability and ability to support its traders with a secure trading environment.
A prop trading firm looks to recruit talented traders and fund them with the company's capital. The funds that a trader makes, is then split between the trader and the company. The profit share is between 50 – 95%, with the trader taking the lion's share.
Prop firm trading is a legitimate way to make money, but it is not without its risks. Prop firms provide traders with access to a significant amount of capital, typically in exchange for a percentage of the profits generated.
What pairs have the lowest spread in forex? The forex pairs with the lowest spreads are typically the most traded ones, including EUR/USD, USD/JPY, and GBP/USD. These pairs enjoy high liquidity, resulting in tighter spreads and lower trading costs.
FTMO is considered one of the best Forex prop firms for traders due to its unique evaluation process, high capital allocation, and comprehensive support resources. Other top Forex prop firms for scalpers include City Traders Imperium (CTI), SurgeTrader, FundedNext, and My Forex Funds.
If you want prop firms with no minimum trading days, Smart Prop Trader is the right choice. We are a proprietary firm in Austin, Texas, established in 2022, and we aim to offer exemplary benefits and spreads to traders.
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