Low Spread CFD Brokers
Find CFD brokers with the tightest spreads and lowest trading costs. Compare ECN brokers offering raw spreads from 0.0 pips.
What are Spreads in CFD Trading?
The spread is the difference between the bid (sell) and ask (buy) prices of a CFD instrument. It represents one of the main costs of trading CFDs and is typically measured in pips for forex pairs or points for indices.
Lower spreads mean lower trading costs, which is especially important for active traders and scalpers. ECN (Electronic Communication Network) brokers typically offer the tightest spreads by providing direct market access and charging a small commission per trade instead of markup on spreads.
Raw spread accounts offer spreads starting from 0.0 pips, with brokers adding a small commission. This transparent pricing model often results in lower overall trading costs compared to standard accounts with wider spreads but no commission.
Types of Spreads
Raw Spreads
- • Start from 0.0 pips
- • Direct market spreads
- • Commission charged per trade
- • Most transparent pricing
- • Best for active traders
- • ECN execution model
Variable Spreads
- • Fluctuate with market conditions
- • Tighter during high liquidity
- • Wider during news events
- • No commission usually
- • Most common type
- • Market maker model
Fixed Spreads
- • Remain constant
- • Predictable trading costs
- • Don't widen during news
- • May be re-quoted
- • Good for beginners
- • Dealing desk model
How to Calculate Trading Costs
For Raw Spread Accounts: Total cost = Spread + Commission. For example, if EUR/USD has a 0.1 pip spread and commission is $3.50 per lot, your total cost per standard lot trade would be approximately 0.4-0.5 pips equivalent.
For Standard Accounts: Total cost = Spread only. A 0.6 pip spread on EUR/USD means you pay 0.6 pips per trade with no additional commission.
Compare Total Costs: Don't just look at spread size. Calculate the total cost including commissions. Raw spread accounts often provide better value for frequent traders despite the commission structure.
Consider Your Trading Style: Scalpers and day traders benefit most from tight spreads, while swing traders may prioritize other factors like regulation, platform features, or customer service over minimal spread differences.