Commissions in CFD Trading: When Are They Charged?

Learn when and how CFD brokers charge commissions, from share CFDs to indices, forex, and commodities. Understand the difference between commission-based and spread-only pricing models, and how costs affect your trading strategy.

Commissions are a key cost in CFD trading, but not every trade incurs them. Whether you pay a commission depends on the asset class you trade, the broker you use, and the pricing model they apply. Some brokers charge a flat fee per trade, others a percentage of the notional value, and many offer zero-commission trading on certain instruments, making up revenue through the spread. Understanding when commissions are charged is essential to calculating your real trading costs, evaluating broker offers, and choosing the right strategy.

In this article, we break down the exact scenarios in which CFD commissions apply, explain the different fee structures used by major brokers, and show how commission costs compare with other charges such as the spread and overnight financing.

Why Some CFDs Have Commissions and Others Don’t

The core principle is simple: commissions are most common on share CFDs and ETF CFDs, while indices, forex, and commodities are usually offered on a spread-only basis. This difference stems from the underlying market structure and the broker’s cost of hedging. When you trade a share CFD, the broker often hedges by buying or selling the actual underlying share on a stock exchange, incurring exchange fees, clearing fees, and regulatory levies. These costs are passed on to you as a commission. In contrast, forex and index CFDs are typically traded over-the-counter (OTC) or through futures, where the broker earns revenue exclusively from the spread.

Some brokers, especially newer online platforms, also offer zero-commission share CFDs as a marketing tool, but they widen the spread to compensate. This is analogous to the “free trading” model seen in US equities. However, in the CFD industry, zero-commission offers usually apply only to major US stocks or ETFs, with standard commission rates applying to European, Asian, or smaller-cap shares.

When Exactly Is a Commission Charged?

Commissions are triggered at specific moments in the trading lifecycle. The most common scenarios are:

On opening a position, most brokers deduct the commission when you enter the trade. For example, if you buy 1,000 CFDs of Apple Inc. with a broker charging 0.1% per side, you pay commission on entry.
On closing a position, many brokers charge a second commission when you exit. This is sometimes called a “buy commission” and a “sell commission,” or more formally a round-turn cost. Some brokers, like IG Group, list the commission as “per side” in their fee schedule. Others, like eToro, may charge only on opening for certain share CFDs.
On partial closing, if you close only part of your position, the commission is typically proportional. For instance, closing 500 of your 1,000 Apple CFDs may incur 50% of the standard closing commission.
On guaranteed stop-loss orders (GSLOs), some brokers add a small additional commission for using guaranteed stop-losses on share CFDs, though this is usually a separate fee rather than a commission.
On dividend adjustments, while not a commission, dividend adjustments (cash adjustments for long positions receiving dividends or short positions paying them) are sometimes grouped with cost disclosures. They are not commissions but they affect your net cost.

It is crucial to read the broker’s fee schedule carefully. Some brokers list “commission-free” but apply a fixed cost per trade instead, such as €2.50 per trade on European shares. This is still a commission, just a flat one rather than a percentage.

Commission Structures by Broker Type

Different brokers use different commission models. Below are the most common approaches used by well-known CFD providers.

Percentage-Based Commissions

Most traditional CFD brokers charge a percentage of the trade’s notional value (the total value of the position, not just your margin). For example:

IG Group (UK): 0.10% per side on UK and US share CFDs, minimum £9 or $9 respectively. For French shares (Euronext), 0.10% per side, minimum €9.
CMC Markets (UK): 0.10% per side on most share CFDs, minimum £9. For US shares, 0.02% per side, minimum $10.
Saxo Bank: 0.08% per side for platinum clients, 0.12% for classic clients on US shares, minimum $15 per trade.

Percentage-based structures favor larger traders because the minimum fee caps the cost for small positions. For a £500 trade, the 0.10% commission would be only £0.50, but the broker will charge the minimum of £9. So your effective commission becomes 1.8%, not 0.10%. Conversely, on a £20,000 trade, you pay the real 0.10% (£20).

For indices, forex, and commodities, these same brokers usually do not charge a commission. Instead, they embed their revenue in the spread, which is typically tight on major indices like the FTSE 100 (1-2 points) and major forex pairs such as EUR/USD (0.6-1 pip).

Flat Fee Commissions

Some brokers, particularly those targeting retail traders, charge a fixed flat fee per trade rather than a percentage. This is common on smaller-sized trades:

Plus500 (Cyprus/Israel): No commission on any CFD trades. All revenue is from the spread and overnight financing. This is their core model for shares, indices, forex, and commodities.
eToro (Cyprus/Israel/US): No commission on most CFDs, but charges a $2.50 commission per trade on US share CFDs for smaller positions (under $10,000). On larger positions, the fee may be 0.09% per trade. This hybrid model is not always clearly disclosed.
Capital.com (Cyprus/UK): No commission on most CFDs, but charges a flat €1.50 commission per side on share CFDs for European users. For UK shares, £1.50 per side.

Flat fees are simpler for small traders to understand but can be proportionally high on tiny positions. For example, €1.50 on a €100 trade is 1.5%, far more expensive than the spread on a large index CFD.

Tiered / Volume-Based Commissions

Professional traders and high-volume accounts (often under a “Platinum” or “VIP” tier) receive lower commission rates. Brokers like Saxo Bank and Interactive Brokers (for CFDs offered through affiliates) have tiered schedules:

Monthly volume < €10 million: standard rate (e.g., 0.10%)
€10, €50 million: 0.08%
€50, €100 million: 0.06%
Above €100 million: negotiated

Minimum commissions still apply at each tier, but the per-side rate drops. This encourages large traders to stay loyal to a single broker.

Zero-Commission Models

Zero-commission CFDs are not truly free. The broker widens the spread to compensate. For example, a broker might offer “0% commission on US share CFDs” but set the spread at 0.20% instead of the normal 0.05% you would see on a commission-based account. On a $10,000 trade, you pay $20 in spread instead of $10 in spread + $10 in commission (hypothetical). The net cost is identical or slightly higher. Zero-commission is a marketing angle, not a savings opportunity.

Commissions on Different Asset Classes

The asset class determines the commission policy. The table below outlines typical treatment across major categories, but always check your broker’s specific terms.

Share CFDs (equities): Commission almost always applies. Rates vary by exchange. US stocks: 0.01%, 0.10% per side. UK stocks: 0.05%, 0.10% per side. European stocks: 0.05%, 0.12% per side. Asian stocks: 0.07%, 0.20% per side. Minimum fees range from $1 to $15.
ETF CFDs: Treated like shares. Commissions similar to share CFDs for the same underlying exchange. For example, an ETF listed on the LSE will have UK stock commission rates. Some brokers treat major ETFs (e.g., SPY, QQQ) as zero-commission with a wider spread.
Index CFDs: Almost always commission-free. Revenue comes from the spread. For example, the FTSE 100 spread is typically 1.0-1.5 points, the S&P 500 spread is 1.5-2.5 points. Day traders care more about the spread than a hypothetical commission.
Forex CFDs: No commission. Costs are embedded in the pip spread. For major pairs, spreads are 0.6-1.4 pips on standard accounts, and 0.2-0.4 pips on ECN accounts (which may charge a small commission per lot, e.g., $3.50 per $100k traded on the raw spread model). Note: “ECN forex” is distinct from typical retail CFD forex, but some CFD brokers offer ECN pricing with a small commission.
Commodity CFDs: No commission on most commodities (gold, silver, oil, natural gas). Spread-based. For gold, the spread is often 0.2-0.8 points. For crude oil, 2-4 points. However, some brokers charge a commission on “mini” commodity contracts.
Cryptocurrency CFDs: Mostly commission-free, but the spread can be very wide (1%, 3% on Bitcoin single trade). Some brokers, like eToro, charge a flat 1% commission on bitcoin CFDs for opening and another 1% on closing, effectively a 2% round-turn cost. Cryptocurrency CFD regulation varies by jurisdiction.

Comparing Commission Costs vs. Spread Costs

The true cost of a CFD trade is the sum of the spread and any commission. Overnight financing (swap) applies only if you hold positions beyond a single day. To evaluate which model is cheaper, you need to calculate the all-in cost for your typical trade size and holding period.

Example: You want to trade 1,000 CFDs of Tesla (US stock) at $250 per share, notional $250,000. Broker A charges 0.10% commission per side and a 0.02% spread. Broker B charges 0% commission and a 0.20% spread.

Broker A: Commission entry $125, exit $125 = $250 total. Spread cost = $50 (0.02% of $250,000). Total = $300.
Broker B: Commission = $0. Spread cost = $500 (0.20% of $250,000). Total = $500.

For a large trade, Broker A is cheaper. But for a small trade of $1,000 notional:

Broker A: Commission minimum $9 each way = $18. Spread $0.20. Total = $18.20.
Broker B: Commission $0. Spread $2.00. Total = $2.00.

For small trades, zero-commission is far cheaper. This is why many retail traders prefer brokers like eToro or Plus500 for small share CFD positions, while professional traders with large volumes use IG or Saxo Bank.

Always read the broker’s disclosure document regarding the spread. Some brokers quote a tight spread but add a hidden markup during volatile markets. Regulated brokers must disclose all costs, including the spread and any commissions, in the “Key Information Document” (KID) required under ESMA rules for retail clients in Europe.

Hidden Commission Pitfalls: Currency Conversion and Settlement Fees

Not all costs are called “commission.” Watch for these additional charges that can affect your net cost:

Currency conversion: If your account is denominated in euros and you trade a US share CFD, the broker automatically converts the trade value from USD to EUR. The exchange rate often includes a markup of 0.3%, 1.5%. This is not a commission, but it is a real cost. Some brokers (e.g., IG Group) charge a 0.50% conversion fee on each trade where the instrument is in a different currency than your account base currency. Others, like Saxo Bank, apply a 0.30% spread on the conversion.
Exchange and regulatory fees: In some jurisdictions, there are statutory charges that the broker passes on. For example, the UK’s Stamp Duty Reserve Tax (SDRT) applies to UK share trading, but CFDs are exempt. However, some countries levy a “financial transaction tax” on CFD trades, such as France’s 0.3% tax on high-frequency trading of CFDs on French shares. This is rare and usually disclosed as a separate line item.
Inactivity fees: Not a commission, but they reduce your account balance if you don’t trade for months. Brokers like Plus500 charge $10 per month after 3 months of inactivity.

How to Find Commission Information in a Broker’s Documentation

Before opening an account, locate the “Fees,” “Charges,” or “Pricing” section on the broker’s website. Trusted brokers publish: a detailed fee schedule in PDF, a Key Information Document (KID) for each instrument class, and an example of total cost for a typical trade. Look for the following specifics:

Commission per side (or per round-turn) and the minimum amount.
Whether commission applies to opening, closing, or both.
Whether there is a maximum commission (some brokers cap it, e.g., $30 per side on certain exchanges).
Whether the commission is different for limit orders vs. market orders (rare, but some offer lower fees for limit orders).
Any discounts for using the broker’s own trading platform vs. third-party platforms like MetaTrader 4 (MT4). Some brokers charge a higher commission on MT4 because it requires additional licensing costs.

For example, CMC Markets charges a commission of 0.10% on UK share CFDs on its own platform, but the same trade via MT4 costs 0.12% per side with a higher minimum. These differences are disclosed in their “CFD Charges” document.

Commissions and Leverage: The Interaction

Commissions are calculated on the notional value of the trade, not on the margin amount. If you use leverage in CFDs, you control a larger notional position with a smaller deposit. But the commission is based on the full notional value. For example, with 10:1 leverage, you buy $10,000 notional worth of Apple shares by depositing $1,000 margin. The commission (say 0.10%) is $10 per side, not $1. Leverage magnifies both profits and costs.

This is important for frequent traders. A high-leverage strategy can quickly generate significant commission costs, eating into small profits. Always factor commission into your margin requirements and risk planning.

Commission Refunds and Rebates

Some brokers offer volume-based rebates or “cashback” on commissions for high-turnover accounts. For instance, a broker might return 10% of the total commissions paid in a month, credited to the account. These rebates are usually discretionary and not guaranteed. In certain jurisdictions, third-party rebate services (like “IB” programs) can return a portion of the commission to the trader. However, be cautious, some regulated brokers prohibit rebate arrangements for retail clients under inducement rules. The UK FCA, for example, restricts inducements that encourage excessive trading.

Regional Differences in Commission Models

Commission models vary by regulation and market tradition.

European Union (ESMA): Regulated brokers must publish a standardized fees document. Most EU brokers charge commissions on share CFDs, but zero-commission offers are rare because the regulator scrutinizes total cost transparency.
United Kingdom (FCA): Similar to ESMA. FCA rules restrict leverage for retail clients to 30:1 on forex and 5:1 on shares, but commissions are unregulated. IG, CMC Markets, and Plus500 UK all maintain competitive commission models. The FCA also prohibits brokers from offering “free” shares or cash bonuses that might mislead about costs.
Australia (ASIC): ASIC has similar leverage restrictions as ESMA. Australian brokers often charge commissions on ASX-listed share CFDs (0.05%, 0.10% per side). Some offer zero-commission on international shares with a wider spread.
Offshore jurisdictions (Cyprus, Seychelles, BVI, etc.): Many retail brokers operate under a CySEC license (Cyprus) and offer commission-free trades as a marketing tool. These brokers may have wider spreads and higher overnight costs to compensate. Also, currency conversion fees can be higher. Always check whether the broker is properly regulated in your country.

Summary: How to Minimize Commission Costs

To reduce the impact of commissions on your CFD trading, consider these practical steps:

Choose an asset class that matches your trading size. For small trades, zero-commission share CFDs (with wider spread) may be cheaper. For large trades, percentage-based commission models with tight spreads are more efficient.
Consolidate trades to avoid multiple minimum charges. For example, instead of buying 100 CFDs of five different stocks, consider a single CFD on an index that tracks those stocks (e.g., S&P 500). The index CFD pays no commission and has a tight spread.
Read the fine print on overnight financing. A trade held for several days may incur overnight financing swap costs that exceed the commission saved by choosing a zero-commission broker. Always calculate the total cost.
Use long and short positions strategically. Short positions typically incur the same commission as long positions, but the spread and financing costs may differ. Be aware that shorting a stock CFD might also involve a “stock borrow fee” in the financing rate, which is separate from the commission.
Consider the broker’s reputation and transparency. Well-established brokers like IG Group and CMC Markets clearly state their commissions. Lesser-known brokers may obscure costs. If you cannot find a clear fee table, it is a red flag.

Commissions are only one part of the cost equation. To fully understand the total cost of a CFD trade, you must also account for the spread, overnight financing, and any currency conversion charges. For a comprehensive overview, refer to our complete guide to contracts for difference, which includes a detailed cost breakdown.

Finally, remember that the cheapest broker is not always the best. Execution quality, platform features, customer support, and regulatory protection matter just as much as the fee schedule. A broker that charges a few extra dollars in commission but provides fast execution and negative balance protection is often preferable to a rock-bottom broker that widens the spread during volatility.