What is CFD commission?

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 type	Spread	Commission
Standard	Wider (cost baked in)	None
Raw / ECN	Very tight	Yes, 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.