CFDs: Commission vs. Spread

[jono1887]

Which is cheaper?

a 2pt spread each way or a 0.055% commission?

When commission is charged like with comsec, is there any spread?

 

[Largesse]

Re: CFDs Commission v. Spread

Which is cheaper?

a 2pt spread each way or a 0.055% commission?

When commission is charged like with comsec, is there any spread?

couldn't you have put both of your questions in one thread?

 

[skyQuake]

Re: CFDs Commission v. Spread

Which is cheaper?

a 2pt spread each way or a 0.055% commission?

When commission is charged like with comsec, is there any spread?

0.055% commission.

Obviously.

 

[jono1887]

Re: CFDs Commission v. Spread

couldn't you have put both of your questions in one thread?

huh?

0.055% commission.

Obviously.

mind elaborating.. perhaps an example?

 

[skc]

Re: CFDs Commission vs. Spread

Which is cheaper?

a 2pt spread each way or a 0.055% commission?

When commission is charged like with comsec, is there any spread?

Basically you are calculate the spread in percentage terms. So 2pts in the SPI (~4300) would be 0.0465% (2/4300).

So it depends on what you are trading. If you are trading hang seng with 2 points spread then it's super cheap... If you get 2 pt spread on Taiwan index (~200 points) then it's bad.

 

[skyQuake]

Re: CFDs Commission v. Spread

huh?

mind elaborating.. perhaps an example?

0.055% commission is far cheaper than 2pt spread unless its on notional value of trade, see skc's comment.

As for the 2nd question, there will probably be a spread if the commission is not on notional value.

 

[jono1887]

ok, i think i get it now.. thanks