GBP/USD Spread Comparison UK: 10 Brokers Tested (2026)
Which Broker has the lowest GBP/USD spread?
GBP USD spreads compared from ten different brokers
I wanted to find out which broker has the lowest spreads on GBP/USD. So I ran a little experiment of my own.
Rather than just reading the headline spreads, or the “GBP USD from XXXX” adverts, I figured the best way was to do a little broker spread test for myself.
So I loaded up ten CFD or spread betting brokers, squashed them all onto one screen and took a screenshot of all of them at once.
That way it mimics a typical trader’s flow, right?
You see a pattern setting up on the chart, load up your platform and place a trade. No one is waiting for the spread to narrow… if you see an opportunity, you want to take it.
Lowest GBP/USD Spread: My Method
So that’s what I did.
On Wednesday, 29th April at 15:29 BST, I did exactly that. I figured that at that time, both the UK and US markets are open, so liquidity on GBP/USD should be as good as it can be.
If a broker can’t get a nice, tight spread, then when can they?
I also made sure we had nothing unusual going on, like some sort of wild market, economic data imminent or something else that could affect price action.
In fact, it was just a typical Wednesday afternoon in Sterling.
I selected these brokers:
- IG
- CMC Markets
- Pepperstone
- City Index
- Plus 500
- FXCM
- Capital
- Oanda
- Forex
- SpreadEx
Lowest GBP/USD Spreads
So that’s my very scientific spread test method. What were the actual results?
Which broker had the lowest GBP/USD spreads?
Oh, and before I continue, these were spreads with no extra commission.
So the price you pay is just the spread. It’s pointless saying this broker has zero spread when they charge the equivalent of a pip in charges. It was a mix of CFD and spread betting brokers. Some offer both.
In no particular order, just how the brokers were on my screen at the time:
Pepperstone 0.9 pips
SpreadEx 0.9 pips
Capital 1.3 pips
CMC 0.9 pips
FXCM 0.9 pips
Plus 500 1.4 pips
Forex 1.8 pips
Oanda 1.6 pips
IG 0.9 pips
City Index 1.8 pips
Quite a range… the best was 50% cheaper than the worst.
That means you could be paying double to trade cable unnecessarily… And all these brokers are top brokers; they aren’t some dodgy, unregulated firms.
You’re going to get fair execution, a range of platforms and decent support…
Let’s do the maths quickly: If you traded, say £5pp as a spread bet, maybe twice a day. That extra 0.9 pips is an additional £45 a week, £180 a month, or a couple of grand a year saving. Money in your pocket…
Now imagine if you were a mega active scalper trading GBP/USD. That could be an extra £20,000 profit! (tax-free if it’s a spread bet)
GBP/USD Broker Spreads: Ranked from Best to Worst
So if we tidy up this little experiment and rank the brokers in order, we have… drum roll please:
- Pepperstone, SpreadEx, CMC, FXCM and IG on 0.9 pips
- Capital 1.3 pips
- Plus 500 1.4 pips
- Oanda 1.6 pips
- City Index and Forex on 1.8 pips
I should point out that FXCM was 0.9 pips at the time of the screenshot, but it was a variable spread and I saw them widen to 1.1 pips at one point whilst observing for a minute or so.
Same with City Index, they ranged between 1.6 and 1.9 pips. Forex went from 1.5 pips to 1.7 pips.
Did the top spreads hold during volatility?
And just to be sure the top ones weren’t a fluke, I logged in the next evening to check things hadn’t changed with the top brokers.
Now, interestingly, when I logged in, GBP/USD was having a wide range.
The second largest range of the month, actually, so it was an unintentional good litmus test to see what changed.
Pepperstone, IG, SpreadEx and CMC were still on 0.9 pips (nice job, gents)
FXCM was still variable between 0.9 pips and 1 pip (and as I was typing this up a few minutes later, it went to 1.2 pips)
So the winner of the lowest GBP/USD spread was tied:
Pepperstone, CMC, IG, SpreadEx and FXCM with 0.9 pips
If you want to explore these brokers for yourself, you can (and should) do your own due diligence.
>> Pepperstone’s GBP/USD spreads <<
>> CMC Markets <<
>> IG <<
>> SpreadEx <<
>> FXCM << (although these guys were variable, unlike the other top brokers)
Remember that spreads can change, different times, under different market conditions or just a commercial decision by the broker. They often look at competitors and adjust to stay competitive.
What’s important is tight spreads on the markets you specifically like to trade. Not headline stuff, but real world…
I also did this same experiment on other markets:
Spread comparison pages: FTSE, DAX, DOW, Nasdaq, GOLD, EUR/USD.
And if you’re in the UK trading via a spread betting account, then have a look at my spread betting strategies page for some setup inspiration.