Spent 2 months tracking CFD broker spreads - the differences are bigger than I expected
Got tired of conflicting claims so I tracked spreads on the same instruments across 4 platforms for about 8 weeks - demo and small live positions. Instruments: EUR/USD, DAX, Gold, Brent Crude. All measurements during EU session (09:00-17:00 CET).
EUR/USD:
\- Platform A (large spread-based broker, UK-registered): 1.2-1.4 pips, occasionally 1.8+ around data
\- Platform B (German-registered, spread-based): 0.9-1.1 pips, more consistent
\- Platform C (commission model, CySEC/BaFin regulated): 0.1-0.2 pips + fixed commission. All-in on a €5k position: roughly €0.80-1.20 per round trip
DAX:
\- Platform A: 1.5-2 points
\- Platform B: 1.0-1.5 points
\- Platform C: 0.4-0.6 points + commission. Cheaper overall for position sizes above €1,000
Gold: Platform C again cheapest at 0.15–0.25 points vs 0.4–0.6 on the spread-based ones.
Platform C for transparency: Libertex. Commission model, just naming it since withholding at least one name makes the comparison useless.
Caveats: spreads widen around major releases (ECB, NFP, etc) - my numbers are regular-hours averages. Overnight financing rates are a separate cost I didn't compare systematically. The commission model works out cheaper for me at €2k–10k position sizes; for very small trades the fixed commission might offset savings.
Curious what others are seeing on their platforms. What are your EUR/USD and DAX spreads?