Costs & Charges

What is CFD commission?

Some CFD accounts charge a small fixed commission per trade instead of a wide spread. Here's how commission works and how to compare it against spread-only accounts.

D

Daniel Rees

CFD & forex educator, Dubai· 3 min read· 163·Updated Sep 3, 2026
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The short version

  • Commission is a fixed per-trade fee some accounts charge instead of a wide spread.
  • It's common on raw/ECN accounts that offer very tight spreads.
  • Compare total cost (spread + commission), not just one part.
  • Check whether commission is charged one-way or round-turn (open and close).
  • Active traders often prefer raw + commission; beginners often prefer spread-only.

Alongside the spread, some CFD accounts charge a commission — a separate, usually fixed fee per trade. Whether that's cheaper or more expensive than a spread-only account depends on how you trade. Let's break it down.

What commission is

Commission is a direct fee the broker charges for executing your trade, separate from the spread. It's most common on 'raw spread' or ECN accounts, where the broker gives you very tight spreads (sometimes near zero) but charges a fixed commission to make its money.

So brokers broadly offer two pricing models:

Account typeSpreadCommission
StandardWider (cost baked in)None
Raw / ECNVery tightYes, fixed per trade

Neither is automatically cheaper — they're two ways of charging for the same service.

How commission is charged

Commission is usually quoted per lot, per side (or per trade value). 'Per side' means you might pay it when you open and when you close. For example, a broker might charge 3.50 dollars per lot per side, so a round-turn trade (open + close) of one lot costs about 7 dollars in commission — plus the tiny raw spread.

Always check whether a quoted commission is one-way or round-turn so you compare fairly.

Working out the total cost

Here's the key skill: compare total cost, not just one component.

Total trading cost = spread cost + commission.

  • Standard account: wider spread, no commission.
  • Raw account: tiny spread + commission.

Example on EUR/USD, one lot:

  • Standard: 1.0-pip spread ≈ 10 dollars, no commission → ~10 dollars.
  • Raw: 0.1-pip spread ≈ 1 dollar + 7 dollars commission → ~8 dollars.

In this case the raw account is slightly cheaper. But on a market with a naturally tight standard spread, the commission might tip it the other way. It depends on the market and the numbers.

Who benefits from commission-based accounts?

  • Active/high-volume traders and scalpers often prefer raw + commission, because tight spreads matter more when you trade frequently.
  • Beginners and occasional traders often find standard (spread-only) accounts simpler, with one cost to think about instead of two.

There's no universally 'right' choice — just the right fit for your trading style.

Other fees to keep on your radar

Commission and spread aren't the whole picture. Watch for:

  • Overnight financing (swap) for held positions.
  • Inactivity fees if you don't trade for a while.
  • Withdrawal or currency-conversion fees.

A truly cheap broker is one that's competitive across all of these, not just the headline spread.

The bottom line

CFD commission is a fixed fee some accounts charge instead of a wide spread, common on raw/ECN accounts with very tight spreads. To compare fairly, add spread and commission into a single total cost, check whether commission is one-way or round-turn, and factor in swaps and other fees. Active traders often prefer raw + commission; beginners often prefer simpler spread-only accounts.

This is educational content, not investment advice. Markets carry risk. Always verify a broker's regulation before opening an account. BrokerBazaar is an independent comparison platform, not a regulator or advisor.

Common questions

Is a commission account cheaper than a spread-only account?

It depends on the market and your volume. Add the tiny spread plus commission and compare it to the wider standard spread. Active traders often come out ahead on commission accounts; occasional traders may not.

What does 'per side' mean for commission?

It means the commission is charged both when you open and when you close a trade. A round-turn trade therefore costs roughly double the per-side figure.

Which account type should a beginner choose?

Many beginners prefer a standard spread-only account because there's just one cost to track. As you trade more actively, a raw + commission account may become cheaper.

Next in your journey

Can you lose more than your deposit in CFD trading?

In theory yes, because CFDs use leverage. In practice, negative balance protection stops it at many regulated brokers. Here's exactly how it works and how to stay safe.

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