There has been increasing popularity in recent years, for retail market markers. Most 'brokers' which advertise, are actually making the market, not acting as a broker between you and the market. This means that they can afford to call the spreads what they wish, (top 100 brokers site, I think) has listings of all of these types of brokers and respective spreads, ranging from 1 to 3 depending on the pair.
The most sensable alternative for the lowest spread, is the Currenex spread. This is the one given from the actual exchange network that makes the primary market for currencies. Currenex spreads for €/$ vary between 0.5 to 1.2 during Asian/EU overlap and EU/US overlap (apart from seconds before and after major news events).
As these types of brokers (I use MasterForex and I'm very happy with them) do not make a spread, they do charge commission. With my broker which is the lowest I could find, it's $ 24 / Lot. Meaning that these days I pay 0.7 commission on a 0.1 Lot contract (10K base currency). This given you a 'synthetic' spread of (0.5 + 0.7) 1.2 pips.
The other nice thing is that they will be no stop loss minimal distance from price, nor dealing desk. They are also named ECN accounts and the minimum for them tends to be $ 500.
Hope that helps :)