Trade commissions often are overlooked by casual investors, but their impact on large, active accounts is substantial. High commissions and poor market spreads on highly leveraged products like futures contracts and currencies will result in a large negative impact on returns. When comparing trade costs for trading stocks, options and futures the information is relatively straightforward. The brokers are offering access to the same markets with the only difference being their commission charged for entering and exiting trades.
Forex requires much more investigation to unearth hidden costs and commissions charged by each broker. Many brokers advertise "commission-free" accounts, but there’s a catch: The spread between the bid and the ask price is increased to compensate the broker for the trade. This increased spread especially can be troublesome considering forex trading is done on such high leverage. Frequent traders easily can accumulate spread-based costs that eliminate otherwise profitable trades. Trade costs arguably are the most important factor if you are an active trader or managing a large account.
The broker from this group of 16 offering the most cost effective forex trading is MB Trading. Unlike many brokers, MB Trading provides their low-cost trade structure to all their traders. Whether investors have $500 or $50 million in their account, they will trade the same market with the same low commission rate. MB Trading delivers market spreads that can go as low as 0.1 pips on the EUR/USD while charging a flat commission rate. They advertise this commission rate very clearly ($2.95 per 100k USD in volume), which equates to $5.90 for round-trip market orders. In addition to their low market order rate, MB Trading recently started paying their traders back $1.95 of their commission for using limit orders in lieu of a market order. Limit orders create liquidity that helps MB Trading deliver their clients even tighter spreads. So traders that use limit orders will end up paying only $1-$2 per round trip.
Winner: MB Trading
Runners-up: Dukascopy, Alpari, FxPro, CitiFX Pro