Which Prop Firm Has the Best Spreads in 2026? [Full Comparison]
Which Prop Firm Has the Best Spreads in 2026?
Spreads eat into your profits on every single trade. For active traders, even a 0.5 pip difference can mean thousands of dollars over a month.
We analyzed spread data from 18 major prop firms to find out who actually offers the tightest spreads. Here's what the numbers show.
Why Spreads Matter for Prop Traders
Every time you open a position, you start in the red. That's the spread working against you.
For scalpers and day traders, this cost multiplies fast. Trade 20 times a day with a 1.5 pip spread on EUR/USD, and you're paying 30 pips daily just to enter positions.
On a $100K account trading 1 lot per trade, that's roughly $300 per day in spread costs. Over a month, that's $6,000 gone before you make a single profitable trade.
The firms with the tightest spreads give you a real edge.
Top 5 Prop Firms with the Best Spreads
Based on our research of live spread data, here are the prop firms offering the most competitive spreads in 2026:
1. The5ers (Best Overall Spreads)
The5ers consistently delivers some of the tightest spreads in the industry.
Typical Spreads: - EUR/USD: 0.1 pips - USD/JPY: 0.0 pips - GBP/USD: 0.1 pips - Gold (XAU/USD): 0.22 pips - US30: 2.2 points
The5ers uses institutional-grade liquidity. Their EUR/USD spread of 0.1 pips is among the lowest we've seen from any prop firm.
Best for: Scalpers and high-frequency traders who need minimal spread costs.
2. Hantec Trader
Hantec Trader offers excellent spreads, especially on indices.
Typical Spreads: - EUR/USD: 0.1 pips - USD/JPY: 0.1 pips - GBP/USD: 0.1 pips - Gold (XAU/USD): 0.3 pips - US30: 0.8 points
Their US30 spread of 0.8 points is the lowest we found. If you trade indices, Hantec is worth considering.
Best for: Index traders and those who want consistent spreads across all pairs.
3. OANDA Prop Trader
OANDA brings their retail broker reputation for tight spreads to their prop trading arm.
Typical Spreads: - EUR/USD: 0.1 pips - USD/JPY: 0.3 pips - GBP/USD: 0.5 pips - Gold (XAU/USD): 0.14 pips
OANDA offers the tightest gold spreads we found at just 0.14 pips. They don't offer crypto trading, which may be a dealbreaker for some.
Best for: Gold traders and those who value a regulated broker backing their prop firm.
4. FundingPips
FundingPips balances competitive spreads with solid trading conditions.
Typical Spreads: - EUR/USD: 0.2 pips - USD/JPY: 0.2 pips - GBP/USD: 0.1 pips - Gold (XAU/USD): 0.14 pips - US30: 1.0 point
Their gold spread matches OANDA's at 0.14 pips. The US30 spread of 1.0 point is also competitive.
Best for: Traders who want a balance of tight spreads and flexible trading rules.
5. Traders Yard
Traders Yard offers competitive spreads combined with other trader-friendly features.
Key Features: - Raw spreads from liquidity providers - No commission on standard accounts - Static drawdown (not trailing) - Payouts under 4 hours
Traders Yard focuses on overall trading conditions rather than just spreads. Their static drawdown policy gives traders more flexibility compared to firms with trailing drawdown.
Best for: Traders who value fast payouts and static drawdown alongside competitive spreads.
Full Spread Comparison Table
Here's how the major prop firms stack up across key instruments:
| Prop Firm | EUR/USD | USD/JPY | GBP/USD | Gold | US30 |
|---|---|---|---|---|---|
| The5ers | 0.1 | 0.0 | 0.1 | 0.22 | 2.2 |
| Hantec Trader | 0.1 | 0.1 | 0.1 | 0.30 | 0.8 |
| OANDA Prop | 0.1 | 0.3 | 0.5 | 0.14 | 3.0 |
| FundingPips | 0.2 | 0.2 | 0.1 | 0.14 | 1.0 |
| For Traders | 0.1 | 2.0 | 1.5 | 0.28 | 2.0 |
| BrightFunded | 0.2 | 0.3 | 0.3 | - | - |
| FundedNext | 1.3 | 7.2 | 10.0 | 0.28 | 3.3 |
| E8 Markets | 0.5 | 7.0 | 10.3 | 0.28 | 2.9 |
| Alpha Capital | 0.7 | 1.1 | 1.1 | 0.43 | 7.5 |
| FTMO | ~1.0 | ~1.5 | ~1.5 | ~0.35 | ~3.0 |
Spreads measured during London/New York overlap. Actual spreads vary by market conditions.
Spreads Aren't Everything
Low spreads matter, but they're not the only factor to consider when choosing a prop firm.
Other factors to weigh:
- Profit split: A firm with 0.5 pip higher spreads but 95% profit split may be better than one with tight spreads and 80% split
- Drawdown rules: Static vs trailing drawdown significantly impacts your trading flexibility
- Payout speed: Some firms pay in hours, others take weeks
- Trading restrictions: News trading, weekend holding, and EA policies vary widely
- Challenge fees: Lower entry costs mean less risk to test a firm
The best prop firm for you depends on your trading style and priorities.
Best Spreads by Trading Style
For Scalpers
Top pick: The5ers
Scalpers need the absolute lowest spreads. The5ers' 0.1 pip EUR/USD spread and 0.0 pip USD/JPY spread make them ideal for quick in-and-out trades.
For Swing Traders
Top pick: Traders Yard
Swing traders hold positions longer, so spreads matter less. Traders Yard's static drawdown and fast payouts become more valuable than saving 0.2 pips per trade.
For Index Traders
Top pick: Hantec Trader
Hantec's 0.8 point US30 spread crushes the competition. Most firms charge 2-3 points or more.
For Gold Traders
Top pick: OANDA Prop Trader or FundingPips
Both offer 0.14 pip gold spreads, the tightest we found. OANDA has the backing of a major regulated broker.
How to Check Live Spreads
Don't rely solely on advertised spreads. They can vary significantly based on:
- Time of day (spreads widen during Asian session)
- Market volatility (spreads spike during news)
- Liquidity provider relationships
- Account type
To verify spreads yourself:
- Open a demo or challenge account
- Check spreads during your typical trading hours
- Monitor spreads during high-impact news
- Compare weekend and overnight spreads
The Bottom Line
The5ers offers the best overall spreads for forex traders. Hantec Trader leads for index trading. OANDA and FundingPips tie for gold.
But spreads are just one piece of the puzzle. Consider your full trading style before choosing a prop firm based on spreads alone.
If you value fast payouts and static drawdown alongside competitive spreads, Traders Yard offers a strong balance of features for most trading styles.
FAQ
Which prop firm has the lowest EUR/USD spread?
The5ers and Hantec Trader both offer 0.1 pip EUR/USD spreads, the lowest among major prop firms.
Do prop firm spreads differ from retail broker spreads?
Yes. Prop firms often have different liquidity arrangements. Some offer tighter spreads than retail brokers, while others may have wider spreads to offset their business model.
Are wider spreads worth it for better profit splits?
It depends on your trading frequency. High-frequency traders should prioritize spreads. Swing traders may benefit more from better profit splits.
Do spreads affect my ability to pass a prop firm challenge?
Yes. Wider spreads mean you need more pip movement to profit. This is especially important for scalping strategies during evaluations.
Why do some prop firms have much wider spreads?
Firms with wider spreads may be using different liquidity providers, adding markup for revenue, or operating a B-book model. Always test spreads on a demo before committing.
