and zero-commission Share CFD can keep more of your edge in your pocket, so your P&L looks a lot more like what your chart promised.\u00a0<\/span><\/p>\n <\/p>\n
What is a Spread?<\/h2>\n
The spread<\/b> equals the buy (ask) price minus sell (bid) price. Because the ask price is always higher than the bid price, buying at the ask and selling at the bid makes every new trade start slightly negative by that gap.\u00a0<\/span><\/p>\nHow it shows up<\/b>\u00a0<\/span><\/p>\nFor example, on a trading platform you might see:\u00a0<\/span><\/p>\n\n- EURUSD = <\/span>1.10500 \/ 1.10506<\/b>\u00a0<\/span><\/li>\n<\/ul>\n
Here:\u00a0<\/span><\/p>\n\n- Bid (sell) price<\/b> = 1.10500\u00a0<\/span><\/li>\n<\/ul>\n
\n- Ask (buy) price<\/b> = 1.10506\u00a0<\/span><\/li>\n<\/ul>\n
\n- \u4f20\u64ad<\/b> = 0.6 pips\u00a0<\/span><\/li>\n<\/ul>\n
If you <\/span>buy 1 lot of <\/b>EURUSD at 1.10506 and immediately <\/span>\u5356<\/b> at 1.10500, you will lose 6 US dollars. That\u2019s your <\/span>cost<\/b> for opening and closing the trade.\u00a0<\/span><\/p>\nWhat this means for your cost<\/b>\u00a0<\/span><\/p>\n\n- More liquid markets usually have smaller spreads. Start by trading those more popular products.\u00a0<\/span><\/li>\n<\/ul>\n
\n- Bigger size = bigger cost. The same spread costs more when you trade more lots.\u00a0<\/span><\/li>\n<\/ul>\n
\u00a0<\/span><\/p>\nWhat is a Commission?<\/h2>\n
A commission is the fee for placing a trade. You either pay it <\/span>\u5b9e\u73b0\u6307\u6570<\/b> (once to open a position, once to close it) or <\/span>once<\/b> as a <\/span>round-turn<\/b> that covers both sides.\u00a0<\/span><\/p>\nCommissions are either charged per lot (e.g., $3.5 per lot) or as a percent of trading value (e.g., 0.2% of trading value).<\/span><\/p>\n\u00a0<\/span><\/p>\nHow it feels as a trader<\/b>\u00a0<\/span><\/p>\n\n- Pros:<\/b> entry\/exit prices can look sharp because the spread is tiny; costs are a clear line item.\u00a0<\/span><\/li>\n<\/ul>\n
\n- Cons:<\/b> minimum commissions<\/b> are always charged if trade size is below a benchmark. It makes <\/span>small trades<\/b> expensive.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n
\u00a0<\/span><\/p>\nA simple commission example<\/b>\u00a0<\/span><\/p>\n\u4f7f\u7528 <\/span>US Share CFD<\/b> as an example, the industry typically charges US$0.02 per share, with a minimum commission of US$10 per order (that\u2019s US$20 per round-turn).\u00a0<\/span><\/p>\nIf you buy 10 shares of a US stock as a CFD:\u00a0<\/span><\/p>\n\n- The calculated commission is US$0.02 \u00d7 10 = US$0.20,\u00a0<\/span><\/li>\n<\/ul>\n
\n- but because of the US$10 minimum, you still pay US$10 to open the trade.\u00a0<\/span><\/li>\n<\/ul>\n
When you later sell those same 10 shares, you pay another US$10 to close the trade.\u00a0<\/span><\/p>\nSo, on a small 10-share trade, your total commission is US$20, even though your position size is not a lot.\u00a0<\/span><\/p>\n\u00a0<\/span><\/p>\nHow Brokers Structure Trading Costs, And What It Means to You<\/h2>\n
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Once you understand spreads and commissions, the next step is to look at <\/span>how brokers combine them<\/b>, and what that means for your actual cost per trade.\u00a0<\/span><\/p>\n\u00a0<\/span><\/p>\nBroadly, there are two common pricing models:\u00a0<\/span><\/p>\n\n- Spread-only pricing<\/b>\u00a0<\/span><\/li>\n<\/ul>\n
\n- Spread + commission pricing<\/b>\u00a0<\/span><\/li>\n<\/ul>\n
Instead of re-explaining each term, let\u2019s focus on how these two models <\/span>feel in practice<\/b>.\u00a0<\/span><\/p>\n\u00a0<\/span><\/p>\nHow the cost shows up on your screen<\/span><\/i>\u00a0<\/span><\/h3>\nSpread-only pricing<\/b>\u00a0<\/span><\/p>\n\n- You see <\/span>ask and bid prices of each product<\/b>\u00a0<\/span><\/li>\n<\/ul>\n
\n- There\u2019s <\/span>no extra cost item<\/b>.\u00a0<\/span><\/li>\n<\/ul>\n
\n- So, once you see the chart and prices, you can know how much your cost is.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n
Spread + commission pricing<\/b>\u00a0<\/span><\/p>\n\n- The spread often looks very tight on screen.\u00a0<\/span><\/li>\n<\/ul>\n
\n- A separate commission is added when you open and close the trade.\u00a0<\/span><\/li>\n<\/ul>\n
\n- You need to calculate the commission fee plus the spread to know your total cost.\u00a0<\/span><\/li>\n<\/ul>\n
The key difference<\/b>: with spread-only, you\u2019re looking at <\/span>one number<\/b>. With spread + commission, you must <\/span>add things up<\/b> to know your real cost.\u00a0<\/span><\/p>\n <\/p>\n
Zero Commission with Phillip Nova\u00a0<\/span><\/i><\/h3>\nAt <\/span>Phillip Nova<\/b>, our goal is to keep trading costs <\/span>clear and easy to understand<\/b>:\u00a0<\/span><\/p>\n\n- \u5728 <\/span>\u5916\u6c47\u548c\u5dee\u4ef7\u5408\u7ea6<\/b> via <\/span>\u7684\u76f8\u5173<\/b>, we offer <\/span>spread-only accounts<\/b> with tight spreads.\u00a0<\/span><\/li>\n<\/ul>\n
\n- There is <\/span>no extra commission fee<\/b> on these products \u2013 your cost is the spread you see on screen + the financing costs if you hold positions ovenight.\u00a0<\/span><\/li>\n<\/ul>\n
\u00a0<\/span><\/p>\nThe following table compares the <\/span>minimum spreads<\/b> of major Forex pairs offered by <\/span>Phillip Nova<\/b> against a typical <\/span>industry average<\/b>:\u00a0<\/span><\/p>\n\n\n\n| <\/td>\n | Phillip Nova (pips)*<\/span><\/td>\n | Industry Average (pips)<\/span><\/td>\n<\/tr>\n\n| \u6b27\u5143\/\u7f8e\u5143<\/span><\/td>\n | 0.6<\/span><\/td>\n | 0.8<\/span><\/td>\n<\/tr>\n\n| \u7f8e\u5143\/\u65e5\u5143<\/span><\/td>\n | 0.6<\/span><\/td>\n | 0.8<\/span><\/td>\n<\/tr>\n\n| \u82f1\u9551\/\u7f8e\u5143<\/span><\/td>\n | 0.7<\/span><\/td>\n | 1<\/span><\/td>\n<\/tr>\n\n| \u7f8e\u5143\/\u745e\u90ce<\/span><\/td>\n | 0.7<\/span><\/td>\n | 1.5<\/span><\/td>\n<\/tr>\n\n| \u6fb3\u5143\/\u7f8e\u5143<\/span><\/td>\n | 0.6<\/span><\/td>\n | 0.6<\/span><\/td>\n<\/tr>\n\n| \u7ebd\u5143\/\u7f8e\u5143<\/span><\/td>\n | 0.9<\/span><\/td>\n | 1.4<\/span><\/td>\n<\/tr>\n\n| \u7f8e\u5143\/\u52a0\u5143<\/span><\/td>\n | 0.9<\/span><\/td>\n | 1.3<\/span><\/td>\n<\/tr>\n\n| \u6b27\u5143\/\u6fb3\u5143<\/span><\/td>\n | 1.1<\/span><\/td>\n | 2.4<\/span><\/td>\n<\/tr>\n\n| \u82f1\u9551\/\u65e5\u5143<\/span><\/td>\n | 0.9<\/span><\/td>\n | 2.1<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n *\u6700\u4f4e\u70b9\u5dee\u4ec5\u4f9b\u53c2\u8003\uff0c\u5b9e\u9645\u70b9\u5dee\u53d6\u51b3\u4e8e\u5f53\u65f6\u7684\u5e02\u573a\u72b6\u51b5\u3002<\/span><\/em><\/span><\/p>\n <\/p>\n Across major and minor pairs, Phillip Nova’s minimum spread is competitive against other platforms, helping to keep your day-to-day trading costs low.\u202f\u00a0<\/span><\/p>\n\u00a0<\/span><\/p>\nSmall vs Large Trades: What the Numbers Show\u00a0<\/span><\/i><\/h3>\nIn real life, the \u201cbetter\u201d model often comes down to <\/span> | | | | | | | | | |
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