Is your Broker over charging you?

Variable spreads are how some brokers make extra money from you!  It’s a “hidden” cost and most traders don’t even realise they are getting ripped off.

Many brokers advertise tight spreads “From 1 point” – but do you ever get that spread when you want to trade?

When a broker widens their spreads without notice (especially in peak times when you want to trade), you are paying a lot more for your trading – and you may not even realise it!

Angry Trader Overlayed With Chart

Why you should only trade with Fixed Spreads

Fixed spreads mean that the price you pay for trading doesn’t change.  You don’t start paying wider spreads just because the market gets volatile.

And you can manage your trades properly.  How can you place your stop losses and profit targets if you don’t know what the spread is going to be when you order is triggered?  

The lower the spread, the more money you get to keep. Sounds good, right? 

Let’s Look at Some Numbers

Andy’s yearly cost: 

Andy trades with a well known CFD provider. He trades the ASX 200 index 3 times each day. His stake size is 25 CFD’s which is $25 per point. The spread of the ASX 200 index is variable from 1 point but on average it is 3 points.

3 trades a day * $25 stake * 3-point spread * 250 days = $56,250

Julie’s yearly cost:

Julie trades with TradeDirect365. She trades the ASX 200 index 3 times each day. Her stake size is 25 CFD’s which is $25 per point. The spread of the ASX 200 index is always 0.9 points at TradeDirect365.

 3 trades a day * $25 stake * 0.9-point spread * 250 days = $16,875

Andy could have a savings of $39,375 a year like Julie in the above scenario.

The same amount of trades, the same stake, and yet Julie comes out $39,375 ahead at the end of the year. 

TradeDirect365 – Tight Fixed Spreads

We don’t believe in being sneaky about our costs.  Not only do we offer fixed spreads so you always know your trading costs, we also have very competitive tight spreads.

You can trade the Aussie 200 with a fixed day spread of just 0.9pts (with no commission) or the Euro-Dollar at just 0.6 pips and Dollar-Yen at just 0.7 pips.

And these spreads are FIXED.

Check out all our spreads here