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 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 trade, you start in the negative by the spread amount. On a standard lot, a 1-pip spread costs you about $10. Trade 10 times a day, and that's $100 in spread costs daily.

For scalpers and day traders, tight spreads can be the difference between profitability and failure. Even swing traders benefit from lower entry costs.

Prop Firms with the Best Spreads

1. Traders Yard 🏆

Traders Yard offers competitive spreads through their AgenaTrader platform:

• EUR/USD: From 0.1 pips
• Gold (XAU/USD): Competitive institutional spreads
• Major forex pairs: Tight raw spreads

Their proprietary platform provides direct market access with minimal markup. Plus, payouts process in under 4 hours.

2. FTMO

FTMO provides raw spread accounts with excellent execution:

• EUR/USD: 0.1-0.3 pips average
• Gold: Competitive institutional rates
• Commission-based pricing available

3. FundedNext

FundedNext offers tight spreads across their challenge accounts:

• Major pairs: From 0.2 pips
• No commission on standard accounts
• Raw spread options available

4. The5ers

The5ers provides competitive trading conditions:

• EUR/USD: From 0.5 pips
• Suitable for swing traders
• No commission structure

Spread Comparison Table

← Scroll horizontally to compare all firms →

*Spreads vary by market conditions. These are typical averages during London/NY session.

Raw vs Standard Spreads

Calculate your typical monthly volume to determine which works better for your trading style.

How Spreads Affect Different Trading Styles

Scalpers

Spreads are critical. A 0.5-pip difference on 50 daily trades costs $250/day on standard lots. Always choose raw spread accounts.

Day Traders

Moderate impact. 10-20 trades daily means spreads matter, but slightly wider spreads are acceptable if other conditions are favorable.

Swing Traders

Minimal impact. With 2-5 trades per week, a 1-pip spread difference is negligible compared to your profit targets.

Frequently Asked Questions

Which prop firm has the tightest spreads? +

Traders Yard and FTMO offer the tightest spreads, with EUR/USD from 0.1 pips on raw spread accounts. Both provide institutional-grade execution for active traders.

Do spreads matter for swing traders? +

Spreads have minimal impact for swing traders. With only 2-5 trades per week targeting 50-200+ pips, a 1-pip spread difference is negligible. Focus on other factors like profit split and payout speed instead.

Should I choose raw spreads or standard spreads? +

Choose raw spreads if you trade frequently (10+ trades/day) or scalp. The near-zero spreads offset the commission cost. Choose standard spreads if you trade infrequently or prefer simpler cost calculations.

Do prop firm spreads widen during news events? +

Yes, spreads typically widen during high-impact news events at all prop firms. This is normal market behavior. Some firms restrict trading during news events entirely, so check the rules before news trading.

Conclusion

For the tightest spreads, Traders Yard and FTMO lead the market with raw spread options starting from 0.1 pips on EUR/USD. FundedNext offers a good balance for traders who prefer no-commission accounts.

Choose based on your trading style: scalpers need raw spreads, while swing traders can prioritize other factors like profit split and payout speed.

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