Cheapest Brokers In 2024

Written By

Paul Holmes

Edited By

James Barra

Fact Checked By

Michael MacKenzie

Updated

Dec 2, 2024

When it comes to trading, cost matters; whether you’re an experienced trader or a beginner, I know from my time as a full-time trader that fees, commissions, and spreads can make a big difference in your overall profitability.

Fortunately, we’ve compared and ranked the cheapest brokers in December 2024. Our experts have personally tested the top low-cost providers and listed the best discount brokers with low fees but terrific trading platforms.

Lowest Cost Brokers

These are the 10 best discount brokers, ranked by lowest total trading costs and overall rating:

Click a broker for details

1

FOREX.com

Go To FOREX.com
FOREX.com Review

New Customer Bonus Offer Active Trader Program With A 15% Reduction In Costs

Ratings

Regulation & Trust 4.9 / 5

Accounts & Banking 4 / 5

Assets & Markets 4.3 / 5

Fees & Costs 4.6 / 5

Platforms & Tools 4.6 / 5

Customer Support 4.3 / 5

Research 4.8 / 5

Education 4.5 / 5

iOS App 3.6 / 5

Android App 3.8 / 5

Minimum Deposit $100

Minimum Trade 0.01 Lots

Leverage 1:50

Regulator NFA, CFTC

Instruments Forex, Stocks, Futures, Futures Options

Platforms MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral

Payment Methods Wire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH Transfer

Account Currencies USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN

Go To FOREX.com
2

Interactive Brokers

Go To Interactive Brokers
Interactive Brokers Review

Ratings

Regulation & Trust 4.5 / 5

Accounts & Banking 3.5 / 5

Assets & Markets 4.6 / 5

Fees & Costs 4.3 / 5

Platforms & Tools 3.3 / 5

Customer Support 3 / 5

Research 4.4 / 5

Education 4.3 / 5

iOS App 4.3 / 5

Android App 4.5 / 5

Minimum Deposit $0

Minimum Trade $100

Leverage 1:50

Regulator FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM

Instruments Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies

Platforms Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral

Payment Methods Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card

Account Currencies USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Go To Interactive Brokers
3

NinjaTrader

Go To NinjaTrader
NinjaTrader Review

Ratings

Regulation & Trust 4.3 / 5

Accounts & Banking 2.8 / 5

Assets & Markets 2.9 / 5

Fees & Costs 4.3 / 5

Platforms & Tools 4.5 / 5

Customer Support 4 / 5

Research 4 / 5

Education 4 / 5

iOS App 3 / 5

Android App 3.2 / 5

Minimum Deposit $0

Minimum Trade 0.01 Lots

Leverage 1:50

Regulator NFA, CFTC

Instruments Forex, Stocks, Options, Commodities, Futures, Crypto

Platforms NinjaTrader Desktop, Web & Mobile, eSignal

Payment Methods ACH Transfer, Debit Card, Wire Transfer, Cheque

Account Currencies USD

Go To NinjaTrader
4

OANDA US

Go To OANDA US
OANDA US Review

CFDs are not available to residents in the United States.

Ratings

Regulation & Trust 4.5 / 5

Accounts & Banking 3.5 / 5

Assets & Markets 2.8 / 5

Fees & Costs 4 / 5

Platforms & Tools 4.5 / 5

Customer Support 3.5 / 5

Research 4.3 / 5

Education 3.8 / 5

iOS App 4.7 / 5

Android App 3.7 / 5

Minimum Deposit $0

Minimum Trade 0.01 Lots

Leverage 1:50

Regulator NFA, CFTC

Instruments Forex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)

Platforms OANDA Trade, MT4, TradingView, AutoChartist

Payment Methods Wire Transfer, Visa, Mastercard, Debit Card, ACH Transfer

Account Currencies USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD

Go To OANDA US
5

Moomoo

Go To Moomoo
Moomoo Review

New Customer Bonus Offer Get up to 15 free stocks worth up to $2000

Ratings

Regulation & Trust 4.7 / 5

Accounts & Banking 3.3 / 5

Assets & Markets 3 / 5

Fees & Costs 3.8 / 5

Platforms & Tools 3 / 5

Customer Support 2.8 / 5

Research 3.8 / 5

Education 4.4 / 5

iOS App 4.6 / 5

Android App 3.3 / 5

Minimum Deposit $0

Minimum Trade $0

Leverage 1:2

Regulator SEC, FINRA, MAS, ASIC, SFC

Instruments Stocks, Options, ETFs, ADRs, OTCs

Platforms Desktop Platform, Mobile App

Payment Methods Wire Transfer, ACH Transfer

Account Currencies USD, HKD, SGD

Go To Moomoo
6

eToro USA

Go To eToro USA
eToro USA Review

New Customer Bonus Offer Invest $100 and get $10

Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk. https://www.daytrading.com/ is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.

Ratings

Regulation & Trust 4.3 / 5

Accounts & Banking 3 / 5

Assets & Markets 3.9 / 5

Fees & Costs 3.4 / 5

Platforms & Tools 4 / 5

Customer Support 3 / 5

Research 4.3 / 5

Education 4.5 / 5

iOS App 4.3 / 5

Android App 4 / 5

Minimum Deposit $100

Minimum Trade $10

Leverage

Regulator SEC, FINRA

Instruments Stocks, Options, ETFs, Crypto

Platforms eToro Trading Platform & CopyTrader

Payment Methods ACH Transfer, Debit Card, PayPal, Wire Transfer

Account Currencies USD

Go To eToro USA
7

Firstrade

Go To Firstrade
Firstrade Review

New Customer Bonus Offer Deposit Bonus Up To $4000

Ratings

Regulation & Trust 4.3 / 5

Accounts & Banking 3.8 / 5

Assets & Markets 4.3 / 5

Fees & Costs 3.8 / 5

Platforms & Tools 3.5 / 5

Customer Support 3.5 / 5

Research 4.3 / 5

Education 4 / 5

iOS App 0 / 5

Android App 0 / 5

Minimum Deposit $0

Minimum Trade $1

Leverage

Regulator SEC, FINRA

Instruments Stocks, ETFs, Options, Mutual Funds, Bonds, Cryptos, Fixed

Platforms TradingCentral

Payment Methods ACH Transfer, Wire Transfer, Cheque, Automated Customer Account Transfer Service

Account Currencies USD

Go To Firstrade
8

RedMars

Go To RedMars
RedMars Review

Ratings

Regulation & Trust 3.3 / 5

Accounts & Banking 3.5 / 5

Assets & Markets 3.8 / 5

Fees & Costs 3.5 / 5

Platforms & Tools 3.8 / 5

Customer Support 4 / 5

Research 2.8 / 5

Education 3 / 5

iOS App 4.7 / 5

Android App 4.6 / 5

Minimum Deposit €250

Minimum Trade 0.01 Lots

Leverage 1:30 (Retail), 1:500 (Pro)

Regulator CySEC, AFM

Instruments CFDs, Forex, Stocks, Indices, Commodities, Cryptos

Platforms MT5

Payment Methods Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, Visa

Account Currencies USD, EUR

Go To RedMars
9

IG

Go To IG
IG Review

Forex trading involves risk. Losses can exceed deposits.

Ratings

Regulation & Trust 4.9 / 5

Accounts & Banking 4 / 5

Assets & Markets 4.5 / 5

Fees & Costs 3.5 / 5

Platforms & Tools 4.9 / 5

Customer Support 4.5 / 5

Research 4.9 / 5

Education 5 / 5

iOS App 4.6 / 5

Android App 4 / 5

Minimum Deposit $0

Minimum Trade 0.01 Lots

Leverage 1:30 (Retail), 1:250 (Pro)

Regulator FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM

Instruments CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting

Platforms Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral

Payment Methods PayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit Card

Account Currencies USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Go To IG
10

Zacks Trade

Go To Zacks Trade
Zacks Trade Review

Ratings

Regulation & Trust 3.5 / 5

Accounts & Banking 3 / 5

Assets & Markets 3 / 5

Fees & Costs 3.5 / 5

Platforms & Tools 3.8 / 5

Customer Support 3.5 / 5

Research 3.9 / 5

Education 1 / 5

iOS App 0 / 5

Android App 0 / 5

Minimum Deposit $2500

Minimum Trade $3

Leverage

Regulator FINRA

Instruments Stocks, ETFs, Cryptos, Options, Bonds

Platforms Own

Payment Methods Wire Transfer, ACH Transfer, Cheque

Account Currencies USD, EUR, GBP, CAD, AUD, NZD, INR, JPY, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, SGD, RUB, PLN, CZK, HUF

Go To Zacks Trade

Here is a short overview of each broker's pros and cons

FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
NinjaTrader - NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
OANDA US - OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.
Moomoo - Moomoo is an SEC-regulated app-based investment platform that offers a straightforward and affordable way to invest in Chinese, Hong Kong, Singaporean, Australian and US stocks, ETFs and other assets. Margin trading is available and the brand offers a zero-deposit account as well as several bonuses.
eToro USA - eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.
Firstrade - Firstrade is a US-headquartered discount broker-dealer with authorization from the SEC. The company is also a member of FINRA/SIPC. With welcome bonuses, powerful tools and apps, plus commission-free trading, Firstrade Securities is a popular and top-tier online brokerage. It is also quick and easy to open a new account.
RedMars - Launched in 2020, Cyprus-based RedMars offers competitive spreads on more than 300 instruments and leverage up to 1:500. Three accounts are available - Standard, Pro and VIP - serving a range of budgets and experience levels, with a fast and fully digital account opening process.
IG - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
Zacks Trade - Zacks Trade is a FINRA-regulated US broker offering trading on stocks, ETFs, cryptocurrencies, bonds and more through a proprietary terminal. The broker is geared toward active traders and offers very affordable fees on most assets as well as an app and a vast amount of market data.

Comparison of Low Cost Brokers

Comparison of Low Cost Brokers
Cost Rating	Fee on EUR/USD	Fee on FTSE	Fee on Stocks	Fee on Oil	Fee for Inactivity
4.6 / 5	1.2	1.0	0.14	2.5	$15
4.3 / 5	0.08-0.20 bps x trade value	0.005% (£1 Min)	0.003	0.25-0.85	$0
4.3 / 5	1.3	-	-	-	$25
4 / 5	1.6	-	-	-	$0
3.8 / 5	-	-	$0 per trade	-	$0
3.4 / 5	-	-	$0	-	$10
3.8 / 5	-	-	$0 per trade	-	$0
3.5 / 5	0.7	15	Variable	15	€20 one-off, €10 thereafter
3.5 / 5	0.8	1.0	0.02	2.8	$12
3.5 / 5	-	-	$0.01 per share ($1 minimum)	-	$15

FOREX.com

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer

FOREX.com Quick Facts

Bonus Offer	Active Trader Program With A 15% Reduction In Costs
Demo Account	Yes
Instruments	Forex, Stocks, Futures, Futures Options
Regulator	NFA, CFTC
Platforms	MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
Minimum Deposit	$100
Minimum Trade	0.01 Lots
Leverage	1:50
Account Currencies	USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN

Pros

The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.

Cons

FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.

Visit FOREX.com

FOREX.com Review

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Christian Harris, Reviewer

Interactive Brokers Quick Facts

Demo Account	Yes
Instruments	Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
Regulator	FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
Platforms	Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
Minimum Deposit	$0
Minimum Trade	$100
Leverage	1:50
Account Currencies	USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.

Cons

IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.

Visit Interactive Brokers

Interactive Brokers Review

NinjaTrader

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer

NinjaTrader Quick Facts

Demo Account	Yes
Instruments	Forex, Stocks, Options, Commodities, Futures, Crypto
Regulator	NFA, CFTC
Platforms	NinjaTrader Desktop, Web & Mobile, eSignal
Minimum Deposit	$0
Minimum Trade	0.01 Lots
Leverage	1:50
Account Currencies	USD

Pros

NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets
Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract

Cons

Non forex and futures trading requires signing up with partner brokers
There is a withdrawal fee on some funding methods
The premium platform tools come with an extra charge

Visit NinjaTrader

NinjaTrader Review

OANDA US

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
Jemma Grist, Reviewer

OANDA US Quick Facts

Demo Account	Yes
Instruments	Forex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)
Regulator	NFA, CFTC
Platforms	OANDA Trade, MT4, TradingView, AutoChartist
Minimum Deposit	$0
Minimum Trade	0.01 Lots
Leverage	1:50
Account Currencies	USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD

Pros

The broker offers a transparent pricing structure with no hidden charges
There's a strong selection of 68 currency pairs for dedicated short-term forex traders
Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave

Cons

The range of day trading markets is limited to forex and cryptos only
It's a shame that customer support is not available on weekends
There's only a small range of payment methods available, with no e-wallets supported

Visit OANDA US

OANDA US Review

Moomoo

"Moomoo remains an excellent choice for new and intermediate stock traders who want to build a diverse investment portfolio. What really stands out is the broker's user-friendly app and the low trading fees."
Jemma Grist, Reviewer

Moomoo Quick Facts

Bonus Offer	Get up to 15 free stocks worth up to $2000
Demo Account	Yes
Instruments	Stocks, Options, ETFs, ADRs, OTCs
Regulator	SEC, FINRA, MAS, ASIC, SFC
Platforms	Desktop Platform, Mobile App
Minimum Deposit	$0
Minimum Trade	$0
Leverage	1:2
Account Currencies	USD, HKD, SGD

Pros

There is no minimum deposit requirement making the broker accessible for beginners
There are reduced options contract fees from $0.65 to $0
The broker offers access to extended pre-market trading hours

Cons

It's a shame that there is no 2 factor authentication (2FA), despite the other security features on offer
There is no negative balance protection, which is a common safety feature at top-tier-regulated brokers
There is no phone or live chat support - common options at most other brokers

Visit Moomoo

Moomoo Review

eToro USA

"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."
Jemma Grist, Reviewer

eToro USA Quick Facts

Bonus Offer	Invest $100 and get $10
Demo Account	Yes
Instruments	Stocks, Options, ETFs, Crypto
Regulator	SEC, FINRA
Platforms	eToro Trading Platform & CopyTrader
Minimum Deposit	$100
Minimum Trade	$10
Account Currencies	USD

Pros

eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
A free demo account means new users and prospective day traders can try the broker risk-free
The low minimum deposit and straightforward account opening process means beginners can get started quickly

Cons

There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
Average fees may cut into the profit margins of day traders
The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools

Visit eToro USA

eToro USA Review

Firstrade

"Firstrade is perfect for beginners looking to trade US stocks with zero commissions. There is a wealth of free education plus premium-quality research, notably through its latest FirstradeGPT tool, plus trading ideas from Morningstar, Briefing.com, Zacks and Benzinga."
William Berg, Reviewer

Firstrade Quick Facts

Bonus Offer	Deposit Bonus Up To $4000
Demo Account	No
Instruments	Stocks, ETFs, Options, Mutual Funds, Bonds, Cryptos, Fixed
Regulator	SEC, FINRA
Platforms	TradingCentral
Minimum Deposit	$0
Minimum Trade	$1
Account Currencies	USD

Pros

Enhanced stock trading environment with overnight trading and fractional shares added
Highly trusted US-regulated brokerage and SIPC member
Excellent broker for budget-conscious traders with low OTC fees

Cons

Visa credit/debit card deposits and withdrawals are not accepted
Firstrade focuses on stocks at the expense of forex, limiting diversification opportunities
Customer support still needs work following testing with no 24/7 assistance

Visit Firstrade

Firstrade Review

RedMars

"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."
Christian Harris, Reviewer

RedMars Quick Facts

Demo Account	Yes
Instruments	CFDs, Forex, Stocks, Indices, Commodities, Cryptos
Regulator	CySEC, AFM
Platforms	MT5
Minimum Deposit	€250
Minimum Trade	0.01 Lots
Leverage	1:30 (Retail), 1:500 (Pro)
Account Currencies	USD, EUR

Pros

Clients in the EU, in particular, can trade with peace of mind knowing RedMars is authorized by the CySEC with up to €20K compensation available through the ICF in the event of bankruptcy
RedMars offers one of the best platforms for day trading, MT5, hosting 21 timeframes, dozens of analytical tools, flexible templates and algo trading
The broker supports a range of flexible payment methods, including wire transfers, credit cards, e-wallets, and notably cryptocurrencies

Cons

While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
The no-frills trading environment offers little beyond the basics, with no Islamic account, PAMM account or copy trading.

Visit RedMars

RedMars Review

IG

"IG continues to provide a comprehensive package with an intuitive web platform, best-in-class education for beginners, advanced charting tools bolstered by its recent TradingView integration, real-time data, and fast execution speeds for experienced day traders."
Christian Harris, Reviewer

IG Quick Facts

Demo Account	Yes
Instruments	CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
Regulator	FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM
Platforms	Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral
Minimum Deposit	$0
Minimum Trade	0.01 Lots
Leverage	1:30 (Retail), 1:250 (Pro)
Account Currencies	USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Pros

The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading, while IG has also added TradingView integration.
IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis.
The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met.

Cons

IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors.
IG has discontinued its swap-free account, reducing its appeal to Islamic traders.
Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges.

Visit IG

IG Review

Zacks Trade

"Zacks Trade will suit active day traders with experience using powerful platforms. Fees and margin rates are low while the market research is excellent."
Tobias Robinson, Reviewer

Zacks Trade Quick Facts

Demo Account	Yes
Instruments	Stocks, ETFs, Cryptos, Options, Bonds
Regulator	FINRA
Platforms	Own
Minimum Deposit	$2500
Minimum Trade	$3
Account Currencies	USD, EUR, GBP, CAD, AUD, NZD, INR, JPY, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, SGD, RUB, PLN, CZK, HUF

Pros

Regulated by FINRA with access to the Securities Investor Protection Corporation
Customizable proprietary trading platform and mobile app
Demo account

Cons

Shortcomings regarding platform loading times and technical glitches
Withdrawal fees apply if removing funds more than once per month
No forex, commodities or futures trading

Visit Zacks Trade

Zacks Trade Review

How We Chose The Cheapest Brokers

We ranked brokers with the lowest trading fees using two core metrics that draw on nearly 300 data points:

Cost Rating: We scored each broker from 1 to 5 for their trading fees across popular markets, including forex, stocks, indices, commodities, and CFDs. We then compared everything against industry standards.
Overall Rating: We gave each broker a 1 to 5 score after testing every inch of their offering. This reflects our belief that low costs must pair with an outstanding trading environment for the best overall experience.

Infographic explaining how DayTrading.com scores the cheapest discount brokers

Why Cost Matters In Trading

When it comes to popular instruments with short-term traders like CFDs and forex, every dollar counts.

The allure of trading lies in its potential to multiply small investments into significant profits, but excessive fees can erode your gains, leaving you with little to show for your efforts.

As a day trader making frequent trades, minimizing trading costs is crucial to achieving profitability.

For example:

A trader executing 50 trades per month with a $10 commission per trade will spend $500 just on commissions.
Similarly, wide spreads on popular currency pairs like EUR/USD can inflate costs for scalpers and high-frequency traders.

Understanding The Fees You’ll Pay To Trade

Let’s break down the primary costs like spreads and commissions, which are often the most visible costs of short-term trading:

Spreads

This is the difference between the bid (selling) and ask (buying) price of an asset.

Tight spreads (eg 0.0-0.5 pips for EUR/USD) are ideal for traders, especially scalpers and day traders making frequent transactions.
Brokers may offer variable or fixed spreads. Variable spreads tend to be lower during normal market conditions but widen during volatility.

Commissions

These are charged per trade, usually alongside raw spreads.

Commissions are often preferred by professional traders who value transparency and consistent pricing.

Overnight/Swap Fees

While these can generally be avoided by day traders, if you hold positions overnight, you’ll incur swap fees reflecting the interest rate differential between two currencies.

Positive swaps: You may earn interest if you hold higher-yielding currency.
Negative swaps: Most positions result in a fee, which can be substantial for long-term trades.

A long position on EUR/USD may incur a daily fee of $1.50 per standard lot. Over a month, this could total $45, significantly affecting profitability.

💡

Some cheap brokers like IC Markets offer swap-free accounts (often called Islamic accounts) to traders who avoid interest due to religious beliefs.

Other Hidden Fees

These are less obvious but can still have a significant impact:

Inactivity Fees: Some brokers charge monthly fees for dormant accounts. Look for brokers, such as Pepperstone, that explicitly avoid such charges.
Withdrawal Fees: Fees for withdrawing funds vary; some brokers charge a percentage or a fixed amount per transaction. Look for brokers, such as Eightcap, that don’t charge internal withdrawal fees.
Currency Conversion Fees: These apply when trading in a currency other than your account’s base currency. If you frequently trade in this currency, opt for brokers with multi-currency accounts, such as Swissquote, to minimize conversion losses.
Leverage Considerations: Leverage lets you control larger positions with less capital, magnifying both profits and losses. Retail traders typically get up to 1:30 leverage in regulated markets (EU, UK, Australia) or up to and beyond 1:500 in less regulated areas. While it increases exposure, it also raises the risk of significant losses and may include extra risk management fees.

Higher spreads or commissions can eat into profits, particularly for short-term traders like us day traders.

I’ve always compared brokers based on all the cost metrics to assess my overall trading fees, and I suggest you do too.

Paul Holmes

Author

An Example Trade With The Costs Laid Bare

Let’s bring all the fees you could incur to life by taking a look at a short-term CFD trade on the SPX500 with a price movement from 6,000 to 6,050.

Trade Details:

Index: SPX500 (S&P 500 Index)
Account Type: Standard CFD Account
Position: Buy (Long)
Lot Size: 1 standard lot (representing $1 per point move in the SPX500 price)
Opening Price: 6,000
Closing Price: 6,050
Duration of Trade: Held for three days (including two overnight periods)
Leverage: 1:20 (5% margin requirement)

1. Spread Costs

Assume my broker charges a spread of 0.5 points on the SPX500.

Cost:

Spread = 0.5 points x $1 per point = $0.50.

2. Commission Costs

Many brokers charge commissions in addition to spreads. For example:

Commission = $4 per round turn per lot.

Cost:

Commission = $4.00.

3. Overnight/Swap Fees

Holding a leveraged position overnight incurs financing costs (you can avoid this by day trading).

For a long position:

Typical rate = 3% annualized interest on the borrowed amount.

Calculation:

Borrowed amount = Position value – Margin = ($6,000 x 1 lot) – ($6,000 / 20 leverage) = $5,700.
Daily interest = (3% / 365) x $5,700 ≈ $0.47 per day.

Cost For 2 nights:

$0.47 x 2 = $0.94.

4. Currency Conversion Fees (If Applicable)

If your account currency isn’t USD (over 90% of brokers we’ve evaluated offer a USD trading account), conversion fees might apply. Assuming:

Fee = 0.5% of profit or trade value.

For simplicity, if you make a $50 profit:

Conversion fee = 0.5% x $50 = $0.25.

Total Charges

Total Trade Charges
Charge Type	Cost
Spread	$0.50
Commission	$4.00
Overnight Fees (two days)	$0.94
Conversion Fee	$0.25

Total Trading Costs: $5.69

Net Profit/Loss Calculation

If the trade moves 50 points in my favor (from 6,000 to 6,050):

Profit = 50 points x $1 per point = $50.
After deducting total costs of $5.69:

Net Profit = $44.31.

💡

Short-term traders can minimize overnight fees by closing positions quickly, avoid conversion fees by trading in their account’s currency, and remember leverage amplifies profits but increases swap fees and risk exposure.

Why “Cheap” Isn’t Always Better

While finding a low-cost broker is essential, cheaper isn’t always better. Here’s why:

Hidden Costs: We’ve observed an increasing number of brokers with “zero commission” models, such as Robinhood and Freetrade, but they sometimes widen spreads or impose high overnight fees to compensate.
Limited Features: Some low-cost brokers cut corners, offering fewer research tools, educational resources, or slower customer service.
Lack Of Security: A broker advertising unrealistically low fees might skimp on regulatory compliance, putting your funds at risk.

The key is to balance cost and quality. Look for brokers offering competitive pricing without compromising reliability, features, or safety.

💡

A demo account lets you experience a broker’s platform and fee structure without risking real money. Use a demo account for at least 30 days to simulate your trading strategy under different market conditions.

What To Look For In A Low-Cost Broker

A “cheap” trading platform must still meet high standards of transparency, flexibility, security, and usability to support a positive trading experience.

Based on my many years of trading, here’s what to prioritize:

Transparency: Transparent brokers provide upfront details about their costs, allowing traders to make informed decisions. Key areas to check:
- Spreads and Commissions: Look for trading platforms offering clearly defined rates (eg spreads from 0.0 pips with commissions around $3.5 per lot).
- Additional Fees: Ensure clarity on potential charges like:
  - Inactivity fees.
  - Deposit/withdrawal fees and currency conversion rates.
  - Regulatory documents and website FAQs should outline all possible fees.
Account Flexibility: Options to suit different trading styles. Common options include:
- Standard Accounts: Ideal for beginner traders with zero or low commissions and slightly wider spreads.
- Raw Spread Accounts: Suitable for advanced day traders and professional traders, offering interbank spreads (eg starting at 0.0 pips) paired with a flat commission.
- Micro Accounts: Allow trading with smaller positions (eg 0.01 lots), perfect for those starting with limited capital.

I’ve always looked for brokers that allowed easy switching between account types as my trading strategy evolved.

Paul Holmes

Author

Pros And Cons Of Low-Cost Brokers

Pros

Reduced Trading Costs: Tight spreads and low or zero commissions allow traders to retain more profits, which is particularly beneficial for day traders who make frequent trades. For example, trading like IC Markets providing raw spreads starting at 0.0 pips with minimal commission fees are ideal for high-frequency trading.
Suitability For Scalping And Frequent Trades: Scalpers, who rely on minute price movements, benefit significantly from brokers with low spreads and fees, such as Fusion Markets. Traders executing dozens of trades daily save considerably when commissions are low or non-existent.
Accessibility For New Traders: Affordable options like micro or standard accounts let beginners enter the market with lower upfront costs. Lower minimum deposits (some brokers like XM allow as little as $5) encourage broader participation in trading.
Transparency In Pricing: Many budget brokers like FBS pride themselves on clear, upfront fee structures, helping traders avoid surprises.

Cons

Limited Features Or Research Tools: Some low-cost brokers like FXCC may sacrifice advanced features like market analysis tools, trading signals, or educational resources to maintain competitive pricing. Full-featured platforms like TradingView integrations may be absent or cost extra.
Reduced Customer Support: I’ve seen that cost-cutting can extend to customer service. Traders may experience slower response times or limited support hours compared to premium brokers. For example, some brokers like RedMars only offer basic email or ticket-based support rather than 24/7 live chat.
Hidden Costs: While spreads and commissions may appear low, hidden fees like inactivity charges, withdrawal costs, or currency conversion fees can add up over time. Carefully read the fee structure to avoid unpleasant surprises.
Compromises In Regulation: Not all low-cost brokers are regulated by top-tier authorities, potentially exposing traders to greater risk. Always prioritize brokers regulated by ‘green tier’ entities in DayTrading.com’s Regulation & Trust Rating like ASIC (Australia) or FCA (UK), even if their costs are slightly higher.

Low-cost brokers offer significant advantages, particularly for traders who maximize profits by minimizing fees.

However, early in my career, I discovered that trading with budget brokers may cause trade-offs that could impact your overall trading experience.

Paul Holmes

Author

Bottom Line

When it comes to choosing the cheapest broker for short-term trading, it’s essential to look beyond the surface and evaluate the overall value they provide.

With trading firms increasingly aiming to position themselves as “discount brokers”, featuring attractive low fees and tight spreads, that’s just part of the equation.

A brokerage that aligns with your trading style, offers a user-friendly platform and ensures safety through proper regulation, is just as important. That’s why we blended cost with the overall quality of the trading environment to compile our rankings.

To find the right trading platform for your needs, see DayTrading.com’s choice of the best brokers with low fees.