Reading CFD cost disclosures without the sales layer

Headline pricing such as “spreads from” or “zero commission” describes the best case, not the typical one. A realistic picture of cost requires reading several documents together and modelling how you actually intend to trade.

The five cost layers

1. Spread: the difference between buy and sell prices. Look for average or typical spreads by time of day, not minimums.
2. Commission: a fixed or per-lot charge. Some account types trade a wider spread for no commission; others the reverse.
3. Overnight financing: charged or credited when a position is held past the daily cut-off. For multi-day positions this can exceed all other costs.
4. Currency conversion: applied when an instrument is priced in a currency different from your account currency.
5. Account charges: inactivity, withdrawal, data or platform fees.

Where to look

In many jurisdictions retail providers publish key information documents or cost and charges disclosures. These are usually more conservative than marketing pages. Compare the figures in the legal document with those on the website and note any differences.

Model your own trading

Write down a typical trade: instrument, size, how long you hold it. Then compute the round-trip spread, any commission, and financing for the holding period. A provider with a lower spread but higher financing can be more expensive for swing trading, and the opposite for intraday trading.

A worked structure, not a recommendation

• Spread cost = typical spread in points × value per point × size.
• Commission = per-side charge × 2 (if charged on open and close).
• Financing = notional value × financing rate ÷ 365 × nights held.

Signals to treat with caution

• Cost pages without a date or version number.
• Spreads quoted only as minimums or “from”.
• Financing rates described only as “competitive” without a formula.
• Withdrawal fees disclosed only in support articles rather than in the terms.

FXBrokerAlert does not publish fee figures for any provider until they have been taken from a dated official document and recorded with a source. Until then, every fee field reads “Not independently verified”.