What Are Prop Firm Spreads?
Definition of Spreads in Trading
Spreads in trading are the difference between the bid and ask price of a financial instrument. In simpler terms, it’s the tiny fee you pay every time you open a trade — whether you win or lose. Think of spreads like the hidden cost of doing business in the financial markets.
In prop firms, spreads are a make-or-break factor. Why? Because when you’re trading someone else’s capital, every pip counts. The tighter the spread, the less friction your trade faces to get into profit. Simple math: lower spreads = higher potential net returns.
Why Spreads Matter for Prop Traders
Imagine sprinting with a backpack full of bricks — that’s what trading with high spreads feels like. For scalpers and high-frequency traders, this friction can chew through profits faster than a scalpel through soft butter.
Traders with tight spreads start closer to breakeven, making the margin for success that much wider. This advantage is especially critical in prop trading, where you’re under pressure to perform within evaluation phases, drawdown rules, and time limits.
Spread Types (Fixed vs. Variable, ECN, etc.)
- Fixed Spreads remain constant regardless of market conditions but are generally wider.
- Variable Spreads fluctuate with market liquidity and volatility.
- ECN (Electronic Communication Network) spreads are ultra-low but usually come with commissions.
Most leading prop firms use ECN or Raw Spread models with a commission per lot. Always read the fine print—“tight spreads” can mean nothing if the commission eats it all up.
How We Compared Spreads Across Prop Firms
Methodology (Live Data, Platform, Asset Class)
Our 2025 comparison used real-time spread feeds from MT4, MT5, and cTrader, focusing on major assets: Forex pairs, indices, commodities, and crypto. We opened demo and evaluation accounts across the top 20 firms and measured spreads using identical conditions — no bias, no cherry-picking.
Tools Used to Measure Spreads
- MyFXBook Spread Analyzer
- cTrader Spread Monitor Plugin
- MT5 Built-in Spread Logger
- Custom scripts in TradingView for Crypto
Spread Measurement Timeframes
- London Open: 8:00–10:00 GMT
- NY Open: 13:30–15:00 GMT
- Asian Session: 00:00–03:00 GMT
- News Releases (e.g., NFP, CPI): Variable
This gives us both average and peak spread behavior insights.
Best Prop Firms with the Tightest Spreads (Ranked)
FTMO – Tight Spreads with Strong Reputation
FTMO continues to dominate the industry. With spreads as low as 0.1 pips on EUR/USD via their custom liquidity pool, plus consistently high ratings from Trustpilot and Forex Peace Army, FTMO is the gold standard. They also provide data transparency, which earns major trust points.
FundedNext – Competitive Forex Spreads
Boasting spread averages of 0.2–0.3 pips and raw data access via MT4/MT5, FundedNext is a rising star for Forex enthusiasts. Their platforms offer low latency, and they work with Tier-1 liquidity providers.
FXIFY – Great for Futures & Indices
If you love indices like NASDAQ and S&P500, FXIFY is your playground. Spread on NASDAQ? As low as 1.0–1.2 points, even during NY open. Their cTrader integration is a big plus.
DNA Funded – Tight Raw Spreads on Majors
DNA Funded uses a pure ECN model with raw spreads and charges a flat commission. This model provides spreads near zero on pairs like EUR/USD and GBP/USD — ideal for scalping.
BrightFunded – Consistent Low Spreads
Not the flashiest name, but consistent. BrightFunded maintains tight spreads across all major assets. Their average spread on USD/JPY during Asia session was a mere 0.4 pips—a scalper’s delight.
ThinkCapital – No Commissions, Higher Spreads
ThinkCapital offers zero commission trading, which sounds appealing — until you notice spreads can reach 2–2.5 pips. Better for swing traders who want simplicity over precision.
IC Funded – Variable Spreads Explained
IC Funded runs hybrid liquidity models, meaning spreads vary more than the others. However, during non-volatile sessions, they’re highly competitive.
Blueberry Funded – Niche Pair Advantage
Looking to trade exotics like USD/ZAR or GBP/NZD? Blueberry Funded shines in niche pairs, offering spreads 30–50% tighter than industry averages for those instruments.
OANDA Prop Trader – Institutional Spreads Access
Thanks to OANDA‘s institutional backing, their prop branch gives institution-level spreads, particularly for commodities and FX majors. The only downside? A steeper learning curve in their evaluations.
Factors That Influence Prop Firm Spreads
Liquidity Providers and ECN Access
Firms that partner with Tier-1 liquidity pools can offer better pricing. ECN access usually leads to raw spreads but includes commissions. Know what you’re paying for.
Trading Platforms (MT4, MT5, cTrader)
Different platforms route orders differently. cTrader often edges out MT4/MT5 on spread transparency and latency. Always test both if you can.
Account Type (Raw vs. Standard)
“Raw” or “ECN” accounts generally mean lower spreads but higher commission. “Standard” accounts flip that — wider spreads but no commission.
Trading Time / Session Volatility
Spreads explode during news events or illiquid hours (like Sunday night). Avoid trading during these times if your prop firm doesn’t have spread protections.
Other Key Features to Consider Besides Spreads
Profit Split & Scaling Plans
Some firms offer up to 90% profit splits and scaling plans based on consistency. Don’t fall for high spreads just because the payout sounds sexy.
Maximum Drawdown Rules
Tight spreads won’t save you from tight drawdown rules. Look for daily and overall drawdown flexibility.
Evaluation Process (1-phase, 2-phase, instant funding)
One-size-fits-all doesn’t apply in prop trading. DNA Funded offers instant funding but stricter rules, while FTMO’s 2-phase model gives you time to shine.
Most Popular Prop Trading Firms in 2025
Global Market Share Leaders
- FTMO
- FundedNext
- OANDA Prop Trader
Fastest Growing Firms by Trader Volume
- FXIFY
- BrightFunded
- DNA Funded
How to Choose the Best Prop Firm for Your Trading Style
Scalpers vs. Swing Traders – Spread Sensitivity
Scalpers live or die by spread differences. Even a 0.2 pip shift changes profitability. Swing traders? They care more about max drawdown and weekend holding rules.
Forex vs. Indices – Which Firms Win?
- Forex: DNA Funded, FTMO
- Indices: FXIFY, OANDA
- Crypto: Blueberry Funded
Platform & Broker Integration
If you’re allergic to MT4, go with cTrader or Web-based dashboards (BrightFunded’s platform is surprisingly slick). Integration speed and reliability matter.
Conclusion – Which Prop Firm Has the Best Spreads in 2025?
Best Overall
FTMO – Still the king with tight spreads, high trust, and smooth operations.
Best for Forex
DNA Funded – Raw spreads, no fluff.
Best for Futures
FXIFY – Indices & futures spreads are unbeatable.
Best for Beginners
BrightFunded – Easy setup, consistent spreads, intuitive interface.
FAQ
Not always. Raw spreads come with commissions. Add both costs to know what you’re really paying.
Technically, yes. But many firms widen spreads during news, even if they advertise otherwise.
Low liquidity and market uncertainty make brokers increase spreads to reduce risk.
About the Author
I’m Ronan Edwards, a funded futures trader and content creator with over 7 years of experience in cryptocurrency and financial markets. My trading journey began in the early boom cycles of 2017 and 2018, where I built a foundation in crypto markets before expanding into forex, gold, and more recently, meme coins.
