CFD Trading Costs and Fees: What You Actually Pay

CFD trading has four main costs: the spread (the gap between the buy and sell price), commission (a flat charge per lot on some account types), overnight financing or swap (charged when you hold a position past the daily rollover), and situational fees such as currency conversion.

However, on a Standard account at PU Prime, there is no commission.

So most traders pay only the spread and any overnight financing.

There is a catch that most cost guides skip: the same trade can cost you $16 or $283, depending solely on how long you hold it.

Below is the full breakdown, including the cost that quietly does the most damage.

Key Overviews

• The spread is a one-off cost paid on every trade — it is why a trade starts slightly negative.
• Commission is charged per lot on Prime and ECN accounts, but is $0 on Cent and Standard accounts.
• Overnight financing (swap) is charged daily for as long as you hold the position.
• For short-term trades, the spread is your highest cost. For longer holds, financing overtakes it completely.
• A lower spread does not always mean a cheaper trade — you have to add the commission to compare properly.
• Costs are certain; profits are not. Keeping costs low is one of the few things a trader fully controls.

The Four Costs of a CFD Trade

Before looking at the numbers, it helps to see the four costs side by side. Two are charged the moment you open a trade. The other two depend on what you do next.

1. The Spread: What You Pay to Enter

The spread is the difference between the price you can buy at and the price you can sell at. It is quoted in pips, and it is the most common way brokers charge for a trade.

Here is the practical effect: the moment you open a trade, you are slightly down.

The price has to move in your favour by at least the spread before you break even.

On a standard lot of EUR/USD with a 1.3-pip spread, that is roughly $13 before you are level.

If you are unsure how pip values translate into cash, our pip calculator works it out for any instrument.

Spreads widen during volatile periods and outside main trading hours, which is one reason trading after hours can cost more than it first appears.

2. Commission: Only on Some Accounts

Commission is a flat fee per lot traded, charged on each side of the trade (once to open, once to close). Not every account has one.

At PU Prime, Cent and Standard accounts charge no commission — the cost is built into the spread instead. Prime and ECN accounts charge a commission but offer much tighter spreads, starting from 0.0 pips.

A single CFD account can give you exposure to currency pairs, gold, crude oil, stock indices, individual shares, and cryptocurrency, without setting up separate accounts for each.

3. Overnight Financing: The Cost of Holding

This is the cost that catches people out. When you hold a CFD position past the daily rollover time, you are charged (or occasionally paid) a financing amount known as the swap. It reflects the interest on the full position value you are controlling with leverage.

The keyword is daily. Unlike the spread, which you pay once, financing is charged every single night you keep the position open.

Our guide to rollover and overnight financing explains exactly how the charge is calculated.

The Cost Most Traders Forget: Time

Here is the part that other cost guides do not show you.

Take one trade — a single lot of EUR/USD — and change nothing except how long you hold.

Hold for one day, the trade costs about $16, and the spread is almost all of it.

Hold for three months, the same trade costs around $283 — and now the spread is a rounding error while financing is 95% of the bill.

The lesson is not “do not hold positions.” It is that your cost structure changes completely depending on your trading style.

A day trader should obsess over spreads.

A swing trader holding for weeks should care far more about swap rates. Optimizing the wrong one wastes your effort.

Which Account Type Actually Costs Less?

To compare properly, add both together. A Standard account with a 1.3-pip spread and no commission costs about $13 per lot to enter.

An ECN account with a 0.0-pip spread, but $1.50 per lot per side, costs about $3 per lot round-turn — cheaper, but it requires a $10,000 minimum deposit.

The right account depends on how much you trade, not on which number looks smaller in isolation.

Other Costs to Know About

Currency conversion. If you trade an instrument priced in a currency other than your account currency, a conversion cost may apply to your profit or loss.

Dividend adjustments. Hold a share or index CFD through an ex-dividend date and an adjustment is applied — credited if you are long, debited if you are short.

Our guide to dividend adjustments on index and share CFDs covers when these apply.

Inactivity fees. Some brokers charge if an account sits dormant.

Always check the terms before you fund an account.

How to Keep Your CFD Trading Costs Down

Match your account type to your volume. If you trade rarely, a no-commission account is simpler and usually cheaper. If you trade frequently, the tighter spreads on a commission account will more than pay for themselves.

Be aware of how long you hold. If a trade is going to run for weeks, factor the financing into your target from the start. A position needing a 30-pip move to break even after costs is a very different trade from one needing 13.

Trade during main market hours. Spreads are tightest when liquidity is highest. Trading in thin conditions means paying more to get in and out.

Size your positions sensibly. Every cost above scales with your position size. Because leverage magnifies your position value, it magnifies your costs too — not just your profit and loss.

Ready to Compare for Yourself?

The clearest way to understand costs is to see them on a live platform.

You can practise on a free demo account to watch how spreads appear on real trades, and when you are ready, you can open a CFD trading account and choose the account type that suits how you trade.

Frequently Asked Questions

What are the main costs of CFD trading?

CFD trading has four main costs: the spread (the difference between the buy and sell price), commission (a flat charge per lot on some account types), overnight financing or swap (charged daily while you hold a position), and situational fees such as currency conversion or dividend adjustments.

How much does it cost to trade CFDs?

It depends on the instrument, your account type, and how long you hold. As a guide, one standard lot of EUR/USD with a 1.3-pip spread costs roughly $13 to enter. If you hold it overnight, expect an additional financing charge each night, which for that position is typically a few dollars per day.

What is the overnight fee in CFD trading?

The overnight fee, also called the swap or financing charge, is applied when you hold a CFD position past the daily rollover time. It reflects the interest cost on the full position value you control through leverage, and it is charged every night the position stays open.

Does PU Prime charge commission on CFD trades?

Cent and Standard accounts at PU Prime charge no commission; the cost is built into the spread. Prime accounts charge $3.50 per lot per side, and ECN accounts charge $1.50 per lot per side, in exchange for spreads starting from 0.0 pips.

Is a lower spread always cheaper?

No. Accounts with very tight spreads usually charge a commission instead. To compare fairly, add the spread cost and the commission together for a full round-turn trade. A tight-spread commission account is often cheaper for frequent traders but not for occasional ones.

Can I avoid overnight fees on CFDs?

The only way to avoid overnight financing entirely is to close positions before the daily rollover time, which is what day traders do. If you hold longer, treat the financing as a planned cost and factor it into your profit target from the outset.

Which CFD costs apply even if my trade loses money?

All of them. The spread, commission, and any overnight financing are charged regardless of whether the trade is profitable. This is why costs matter so much: they are certain, while profits are not.

Risk Disclaimer: All figures are illustrative and based on indicative spreads and financing rates; live rates vary by instrument and market conditions. Trading CFDs carries a high risk of rapid loss due to leverage. PU Prime is regulated by the FSA (Seychelles, SD050), FSCA (South Africa, FSP 52218), FSC (Mauritius, GB23202672), and CMA (UAE, 20200000388).