What are spreads?
Bid, Ask and the Cost of Opening a Trade
When trading a financial instrument, two prices are displayed: the Bid price and the Ask price.
The Bid is the price available when selling, while the Ask is the price available when buying. The difference between the two is known as the spread and forms part of the cost of opening a trade.
Bid Price · Sell
The price at which a trader can sell the instrument.
Ask Price · Buy
The price at which a trader can buy the instrument.
How are spreads calculated?
Ask Price Minus Bid Price
For Forex pairs, spreads are commonly measured in pips. The spread is calculated by finding the difference between the Ask and Bid prices.
Example shown for illustration only.
Commissions
Standard and Pro Account Pricing
Standard Accounts
CFD Edge, CFD Plus and CFD Standard
CFD First does not charge a separate trading commission on these accounts. Applicable costs are incorporated into the spread for each instrument.
Spreads may vary with the instrument, liquidity, volatility and prevailing market conditions.
Pro Accounts
CFD Prime, CFD Signature and CFD Infinity
CFD First charges a $5 commission per lot on Pro Accounts. The commission is calculated according to the trading volume of each transaction.
Fractions of a standard lot are calculated proportionally alongside applicable spreads.
Pro Account commission
Proportional Commission Calculation
| Transaction size | Illustrative commission at $5 per lot |
|---|---|
| 1.00 lot | $5.00 |
| 0.50 lot | $2.50 |
| 0.10 lot | $0.50 |
The commission payable depends on the transaction size. These figures illustrate proportional calculation using the published $5-per-lot commission.
Commission applies according to applicable trading volume and account conditions.
Understanding the difference
Spread-Based and Commission-Based Pricing
Spread
The difference between the available Bid and Ask prices. It can change with liquidity, volatility and market conditions.
Commission
A separate charge calculated from trading volume for applicable Pro Accounts.
Before you trade
Important Information
Spreads and commissions form part of trading costs. Applicable pricing can vary by account, instrument, liquidity, volatility and prevailing conditions.
Review current instrument specifications and account terms before opening a position. Trading leveraged products involves significant risk.