What is the cost of trading CFDs?

Most brokerages are primarily compensated by the spreads. This is basically the difference between the bid and ask prices. Let’s say you’re interested in trading the EUR/USD pair with a Buy rate of 1.2321 and a sell rate of 1.2320. This means that the spread in this example is 1 pip.

Trading CFDs on currencies, commodities and indices are usually free from commissions while share CFDs are subject to commission charges when opening and closing the trade and will be based on the overall value of the trade. Please take note that these costs vary per market and the brokerage that you’re registered with. If you would like to know the exact details, you need to verify this with your service provider.

If you’re wondering which brokerage offers competitive spreads then we highly recommend that you choose Plus500. Compared to other service providers who also charge commissions for every trade, they do not charge dealing commissions. They also feature an intuitive and proprietary platform which will give you access to more than 2000 trading products.

Visit Plus500 Site

76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

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