A broker's advertised spread is only one part of the price of an account. A fair comparison asks what a particular transaction would cost under the same assumptions, then identifies the charges that depend on time, currency, or account activity. The aim is not to find a universally cheapest broker, but to understand the bill before accepting it.
Fix the comparison before comparing the price
Choose the same instrument, position size, account currency, and expected holding period for each account you research. Record whether a quoted spread is a minimum, a typical figure, or an observation at a particular time. Those descriptions are not interchangeable.
The Australian regulator's Moneysmart CFD guide identifies spreads, commissions, and overnight financing as trading costs and advises reading the issuer's disclosure documents and terms. A marketing label alone cannot describe how those charges interact for your chosen trade.
Convert spreads and commissions into comparable amounts
A spread expressed in pips and a commission expressed in currency cannot be compared by looking at the two numbers. Work out both in the same account currency using the contract specifications and conversion assumptions that apply to the instrument.
Check whether a commission is quoted per side or for a complete opening-and-closing transaction. Also establish whether the stated amount applies per lot, per order, or by volume tier. A comparison sheet should show these assumptions explicitly rather than hiding them in a single "low cost" label.
Useful fields include:
- Spread basis and the time or period to which it relates.
- Commission basis and whether both sides are included.
- Contract size and the currency used for the calculation.
- Financing assumptions and the intended holding period.
- Conversion, payment, and account-level charges that may apply.
Read financing as a schedule, not a slogan
For positions held beyond the broker's specified cut-off, inspect the actual financing rules. Ask where rates are published, when they can change, and how non-trading days are treated for that instrument. Read any alternative administration fee attached to an account described as swap-free.
Do not assume that "swap-free" means every cost disappears. Ask the narrower question: which charge is absent, what replaces it if anything, and under which eligibility or holding conditions?
Separate the trading bill from the account bill
Look for withdrawal processing charges, payment-provider costs, currency conversion, inactivity rules, and minimum transaction amounts in the applicable terms. Record "not found" when a charge cannot be established. That is more honest than inserting zero.
Keep execution questions alongside the cost worksheet. A quoted price comparison does not establish the price you will receive in every market condition. Avoid treating a small advertised price difference as a complete measure of account quality.
Save a comparison you can reproduce
Date the worksheet and link each figure to its source. If a broker updates a fee schedule, you should be able to see which conclusion needs revisiting. When a number depends on assumptions, publish those assumptions with it.
Use the broker directory to organise your research, then consult each firm's current legal and pricing documents. An incomplete fee field is a question to resolve, not a reason to declare one account the winner.
Primary referenceAdditional references are linked in the guide.
This guide provides general information, not personal financial or legal advice. Rules, permissions, and account terms can change. Check the original records before making a decision.
