5 Offshore Forex Brokers with Low Spread for 2024 

Spreads are the difference between the buying and selling price of a currency pair, and they play a vital role in a trader’s overall profitability. Low spreads are particularly important for active traders, such as scalpers and day traders, as even minor variations can significantly affect trading costs. Choosing a broker that offers low spreads allows traders to maximize their returns by minimizing transaction costs, making it easier to capitalize on market movements.

Offshore forex brokers are increasingly sought after by traders looking for low spreads due to their ability to operate in less regulated environments. These brokers often provide more competitive pricing structures compared to those regulated in regions like the U.S. or Europe. The competition among offshore brokers drives them to offer tighter spreads, which can be particularly beneficial for traders who execute multiple trades throughout the day.

In this guide, we’ve researched and compiled a list of the best offshore forex brokers with low spreads in 2024. Our goal is to assist you in finding a reliable broker that offers competitive spreads while ensuring a secure and efficient trading environment suited to your trading needs.

Best Offshore Forex Brokers with Low Spreads (Reviewed and Compared)

What is an Offshore Forex Broker?

An offshore forex broker is a brokerage firm that operates outside a trader’s home country, often in jurisdictions with relaxed financial regulations and lower tax obligations. These brokers provide access to the global forex market, enabling traders to buy and sell currencies, as well as other financial instruments like contracts for difference (CFDs), commodities, and cryptocurrencies. Offshore brokers often offer benefits such as higher leverage and lower trading costs compared to those in more regulated regions, like the United States or Europe.

However, trading with offshore forex brokers comes with risks. These brokers may have less oversight, leading to reduced investor protection and transparency. Therefore, traders should carefully assess the broker’s reputation and the regulatory framework of the country where the broker is based. The safety of client funds and the effectiveness of dispute resolution processes can vary significantly among offshore brokers, making thorough research essential before choosing to trade with them.

What is a Spread in Forex Trading?

Spreads refer to the difference between the buying price (ask price) and the selling price (bid price) of a currency pair in forex trading. This difference represents the transaction cost incurred by traders when executing a trade. In other words, the spread in forex trading is a small cost embedded in the buy (ask) and sell (bid) prices of every currency pair trade. Spreads can be classified as fixed or variable; fixed spreads remain constant regardless of market conditions, while variable spreads fluctuate based on market liquidity and volatility. The type of spread can significantly impact a trader’s overall costs, as lower spreads reduce transaction expenses.

Spreads are a key consideration for traders, as they directly affect overall trading costs and potential profitability. A lower spread allows traders to enter and exit positions more cost-effectively. Forex brokers typically earn their revenue from spreads, making this an important factor in selecting a broker. Traders should evaluate spreads along with other aspects, such as leverage and trading fees, to make better decisions and optimize their trading strategies.

Do Offshore Forex Brokers Have Low Spreads?

Yes, offshore forex brokers often provide low spreads, making them an attractive option for traders seeking to minimize trading costs. These brokers typically operate with more flexible pricing models compared to their regulated counterparts, allowing them to offer competitive spreads across various trading instruments, including major currency pairs, commodities, and indices.

Based on our research and broker ratings, Hugosway, OspreyFX, Fyntura, and PlexyTrade are some top offshore forex brokers that have low spreads. For instance, Hugosway offers exceptionally tight spreads starting from just 0.1 pips on major currency pairs, making it a favorable choice for high-frequency traders and scalpers. OspreyFX and Fyntura both provide spreads of 0.4 pips, which are also competitive within the offshore brokerage space, appealing to day traders looking for cost-effective trading conditions.

Additionally, N1CM offers spreads starting at 0.5 pips, while PlexyTrade has spreads beginning at 0.7 pips. These low spreads allow traders to enter and exit positions with lower transaction costs, enhancing their overall trading efficiency and potential profitability, particularly in volatile market conditions.

While the low spreads offered by offshore brokers can significantly benefit traders, you should consider other factors such as execution speed, leverage options, and the reputation of the broker when choosing it. 

A List of Top Offshore Forex Brokers with Low Spreads

• Hugosway: Offshore Brokers with spreads Starting From 0.1 Pips 
• OspreyFX: Offshore Brokers with spreads Starting From 0.4 Pips 
• Fyntura: Offshore Brokers with spreads Starting From 0.4 Pips 
• PlexyTrade: Offshore Brokers with spreads Starting From 0.7 Pips 
• N1CM: Offshore Brokers with spreads Starting From 0.5 Pips 
• FXSway: Offshore Brokers with spreads Starting From 0.4 Pips

Final Verdicts:

Low spreads are an important factor for traders looking to maximize their profitability in the forex market. A spread refers to the difference between the buying and selling prices of a currency pair, and tighter spreads can significantly reduce trading costs. Offshore forex brokers often provide more competitive spreads compared to their regulated counterparts, making them appealing options for day traders, scalpers, and those executing high-frequency trades.

The best offshore forex brokers with low spreads include OspreyFX, PlexyTrade, and N1CM. OspreyFX offers tight spreads starting from just 0.5 pips, which is advantageous for traders looking to minimize transaction costs while maximizing potential returns. PlexyTrade stands out with ultra-low spreads beginning at 0.0 pips, allowing traders to capitalize on market movements with minimal expense. N1CM also provides competitive spreads, combined with its STP execution model, ensuring fast and efficient trading conditions ideal for traders focused on cost-effectiveness.

While low spreads can enhance trading performance, traders should also consider other factors such as execution speed, leverage options, and overall broker reliability. A trader should do thorough research and implement effective risk management strategies when choosing an offshore broker with low spreads to ensure a successful trading experience.

Our Methodology:

Our team developed over 170 data points grouped into 6 macro areas for assessing the performance of forex brokers. They are as follows:

• Regulation and Security
• Fees and Commissions
• Trading
• Trading tools
• Customer Support
• Trading Education

Our team collated information from various sources and verified them before assessment and rating. We tested the services offered by the brokers using various devices, software, and strategies. Final fact-checking, evaluation, and editing were done and the best brokers were selected. To find out more, read our methodology.