CFD Trading Fees Reviewed: Which CFD broker has the best spreads?
Best Overall
High-volume tradersFusion Markets
ASIC RegulatedFixed commissionSpreads starting at 0.9 pips
Active tradersPepperstone
ASIC RegulatedCommissions only apply to share CFDsLow spreadsUnderstanding the cost of trading contracts for difference (CFDs) is critical to succeed at this activity.
These instruments are financial derivatives with unique characteristics and settlement mechanisms compared to traditional instruments like stocks and exchange-traded funds (ETFs).
In Australia, top-tier brokers are regulated by the Australian Securities and Investments Commission (ASIC). To easily identify how brokers charge for their services, their fees are classified into two: spreads and commissions.
In this article, we rank the top 6 brokers in Australia that offer the most competitive fees for budget-conscious traders who aim to boost their returns by reducing the cost of operating with CFDs.
Types of CFD Trading Fees
Trading costs extend beyond direct charges. When it comes to CFD trading, there are a handful of indirect fees that must also be considered to estimate the cost of each transaction.
CFD trading fees generally fall into two main categories: Direct Trading Costs (incurred when executing a transaction) and Indirect/Account Fees (charged based on account activity or position duration).
Direct Trading Costs
Bid/ask Spreads: A spread is the difference between the price at which a trader can buy and sell a specific asset. It is a built-in fee that is charged immediately upon opening a new position. Standard CFD accounts typically embed the cost of each transaction in this spread rather than charging a flat fee or commission per trade.
Commissions: Rather than embedding the cost of each trade, brokers may offer institutional-grade spreads of 0.0 pips and opt to charge a flat fee or a percentage-based commission calculated based on the size of each trade.
Overnight Financing: CFDs were primarily conceived for scalpers and day traders. Hence, maintaining a position open for longer than a trading session forces the trader to pay an overnight financing fee. The applicable interest rate is calculated based on a central bank’s interest rates (e.g., the federal funds rate in the United States) plus a premium or administrative mark-up added by the broker.
Indirect Trading Costs and Account-Related Fees
Currency Conversion Fees: When trades are executed in a foreign currency (other than the Australian dollar), brokers tend to charge a currency conversion fee. This includes U.S.-listed stocks and ETFs.
Inactivity Fees: Dormant accounts that have not placed any trades within a certain number of days may be subject to a monthly inactivity charge.
Guaranteed Stop-Loss: This is a type of provision that forces the execution of a stop order at the established price to prevent higher losses resulting from slippage. The applicable fee is usually a percentage of the trade’s size.
Top 6 CFD Brokers with The Lowest Spreads
#1 - Mitrade
(Trustpilot)Mitrade offers a seamless trading experience for beginners via its proprietary trading platform. All users get access to a Standard account, and the cost of trading is embedded in the bid/ask spreads of each instrument.
This broker supports thousands of financial instruments in the form of contracts for difference (CFDs) and is legally authorized by the Australian Securities and Investments Commission (ASIC) to operate in the country. You can open an account with Mitrade with just AUD $100.
Spreads on Most Popular Trading Assets
AUD/USD - 0.00007
EUR/USD - 0.00006
USD/JPY - 0.010
GOLD - 0.45
US OIL (WTI) - 0.08
US500 (S&P 500) - 0.6
Bitcoin - 128.90
Why it Ranks First?
Mitrade combines transparent pricing with zero indirect platform fees, offering beginner traders one of the lowest barriers to entry in the Australian market. This provider also supports trading via its highly user-friendly proprietary trading platform.
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“Trade CFDs with an ASIC-regulated broker. Fast AUD funding via PayID. ”
#2 - Fusion Markets
(Trustpilot)Founded by industry veterans in 2017, Fusion Markets has rapidly established its footprint in the marketplace by offering industry-leading trade execution times and highly transparent fixed fees.
This broker supports the most popular trading interfaces like MetaTrader and cTrader and also offers a webhook to place trades from within TradingView. This provider does not require a minimum deposit to open an account.
Account types
Zero Account - No spreads, fixed commission of $4.5 per trade.
Classic Account - No commissions, low spreads starting at 0.9 pips.
Spreads on Most Popular Trading Assets
AUD/USD - 0.01
EUR/USD - 0.01
USD/JPY - 0.04
GOLD - 0.50
US OIL (WTI) - 1
US500 (S&P 500) - 0.3
Bitcoin - 14
Why Does it Rank Second?
Offers what could be considered the lowest raw commission-based pricing among all ASIC-regulated brokers, making it an exceptional alternative for high-volume operators and cost-conscious traders.
#3 - Pepperstone
(Trustpilot)Pepperstone serves over 900,000 traders across the globe and has processed over AUD $1 trillion since its launch. Users get access to thousands of financial instruments via CFDs with this provider, including precious metals, major and minor forex pairs, and top indexes.
Apart from a top-notch web-based and mobile trading platform, this broker supports MT4, MT5, cTrader, and a TradingView webhook. No minimum deposit is required to activate a trading account.
Account types
Standard Account - The cost of trading is embedded in each instrument’s bid/ask spread. Commissions only apply to share CFDs starting at 0.07% per side per trade.
Razor account - Same conditions as the Standard account but with the added benefit that it supports fixed commissions of £2.25 per side for gold and selected forex pairs.
Spreads on Most Popular Trading Assets
AUD/USD - 0.2
USD/JPY - 0.3
GOLD - 0.13
US OIL (WTI) - 0.02
US500 (S&P 500) - 0.4
Bitcoin - 15
Why Does it Rank Third?
Flexible account types and zero deposit or withdrawal fees for domestic AUD funding. This broker offers some of the lowest spreads on gold and oil.
#4 - IC Markets
(Trustpilot)Founded in Australia in 2007, IC Markets has scaled its business rapidly by offering fast execution speeds to high-frequency traders (HFTs) and algo traders who also enjoy its multi-platform support.
This broker supports over 1,800 different instruments and offers virtual private servers (VPS) that can host trading bots at a low cost. Users can get started with this provider with a minimum deposit of $200.
Account types
Raw Spread (cTrader) - no spreads, commissions start at $3 per side, per trade for every $100,000.
Raw Spread (MetaTrader) - no spreads, commissions start at $3.5 per side, per lot.
Standard Account - no commissions, spreads start at 0.8 pips.
Fees for Most Popular Trading Assets
AUD/USD - 0.1
EUR/USD - 0.1
USD/JPY - 0.11
GOLD - 0.23
US OIL (WTI) - 0.027
US500 (S&P 500) - 0.492
Bitcoin - 12
Why Does it Rank Fourth?
Institutional-grade liquidity routing with minimal markup, highly favored by day traders and algo traders. Its spreads on Bitcoin are among the lowest in this list.
#5 - IG Markets
(Trustpilot)Catering to over 300,000 customers around the globe, IG Markets is a leading player in the trading industry that is widely known for its in-depth research materials and market commentary.
This broker launched in Australia in 2022 and has been expanding its footprint locally by offering access to over 18,000 different financial instruments via CFDs. Its ProRealTime solution allows algo traders to launch sophisticated bots with the assistance of a purpose-built platform that keeps these automations running 24/7.
Account types
Standard Account - IG offers only one type of account. The cost of trading is embedded in each instrument’s bid/ask spread.
Fees for Most Popular Trading Assets
AUD/USD - 0.6
EUR/USD - 0.6
USD/JPY - 0.7
GOLD - 0.3
US OIL (WTI) - 2.8
US500 (S&P 500) - 2.4
Bitcoin - 52
Why Does it Rank Fifth?
IG Markets excels at its stable spreads, offering deep market liquidity across 18,000+ assets. In addition, this broker offers volume-based discounts for active traders.
#6 - CMC Markets
(Trustpilot)Over 1 million customers enjoy access to the financial markets via this CFD trading platform. CMC Markets started its journey in the trading industry in the United Kingdom in 1989 and came to Australia just 4 years ago.
Its strong regulatory oversight and the fact that the company is a publicly listed business give it a pad of credibility that few trading platforms possess. CMC Markets supports both a proprietary system and third-party integrations like MetaTrader.
Account types
Standard Account - Available for MT4 and CMC’s proprietary platform. This account charges fees via spreads (starting at 0.6 pips) and does not require a minimum deposit.
FX Active Account - This account is designed for high-volume traders as it features a 25% discount on forex spreads. There is a commission of $2.5 per lot, but spreads start at 0.0 pips for selected instruments.
Fees for Most Popular Trading Assets
AUD/USD - 0.6
EUR/USD - 0.5
USD/JPY - 0.7
GOLD - 0.20
US OIL (WTI) - 2.5
US500 (S&P 500) - 0.50
Bitcoin - 15
Why Does it Rank Fifth?
CMC Markets offers attractive pricing for high-volume forex traders and competitive spreads on indexes like the US500 and cryptocurrencies.
Spreads or Fixed Fees – What’s Best?
Determining which of these two alternatives is the best depends primarily on each trader's strategy, execution requirements, transparency, and cost-efficiency.
Spreads make it easier for traders to estimate the cost of each transaction as it is embedded in the opening and closing price. This is advantageous for calculating what the risk-reward ratio of each operation is.
Meanwhile, fixed commissions tend to be the best choice for scalpers and high-frequency traders (HFT) who prefer to pay a predictable amount on each transaction and make decisions based on their projected after-fee P&L.
Commissions are the most transparent alternative of the two as well, as they can be easily calculated and do not vary based on market conditions or special events.
How to start trading with low spreads?
You might be interested in…
1. What is the difference between direct trading costs and indirect account fees in CFD trading?
Direct trading costs are incurred when a transaction is executed, such as bid/ask spreads, fixed commissions, and overnight financing fees. Indirect fees are administrative charges applied to the account based on its status or currency handling (e.g., inactivity fees).
2. Which CFD account structure is better for beginners: Standard or Raw/ECN?
Standard accounts are generally better suited for beginners because all trading costs are conveniently embedded into the bid/ask spread, simplifying cost tracking and P&L estimates. Raw/ECN accounts offer near-zero spreads but charge a separate commission per lot, which is more advantageous for high-frequency or algorithmic traders who need to know their costs in advance.
3. Why are overnight financing fees charged on CFD positions?
Because CFDs are leveraged financial products, holding a position past the daily market close requires the broker to maintain the borrowed capital used for leverage. The broker applies an overnight financing rate calculated by using central bank benchmark interest rates plus an administrative markup on the position’s total value.
Disclaimer: The content presented above, whether from a third party or not, is considered as general advice only. CFD trading involves significant risk of loss. Past performance does not guarantee future results. This article serves informational purposes only and does not constitute financial advice. Consider your risk tolerance before trading.
