Which forex brokers charge commission instead of widening the spread?
Verdict
- Pepperstone does, on its Razor account: raw spreads (0.1 pips average on EUR/USD) plus a fixed commission of USD 3.50 per side on MT5 and TradingView, or USD 3.00 on cTrader.
- Its Standard account does the opposite: no commission, with a 1-point mark-up built into the spread, as Pepperstone describes it.
- Among brokers accepting Singapore residents, XS (Elite account, USD 6 round turn) and FP Markets (Raw account, USD 3 per side) also charge commission over raw pricing.
- Singapore residents are served by Pepperstone Markets Limited (SCB Bahamas, SIA-F217), which is not MAS-licensed.
Brokers earn either by marking up the spread or by charging a visible commission over the raw market price. The commission model is easier to audit, because the fee is a fixed number and the spread is the market's. Pepperstone's Razor account is the clearest example.
How Pepperstone Razor charges
Razor passes on the raw spread and adds a commission that depends on the platform and account currency. On a USD account it is USD 7 per lot charged when the trade opens on MT4, USD 3.50 per side on MT5, TradingView and the Pepperstone platform, and USD 3.00 per side on cTrader. In other currencies: SGD 4.55, EUR 2.60, GBP 2.25 and JPY 303 per side. Pepperstone's Standard account carries no commission; its cost is a 1-point mark-up inside the spread.
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Commission or mark-up: the break-even
Turn the commission into pips to compare. On EUR/USD, USD 7 round trip is 0.7 pips on a standard lot, so Razor via MT5 costs 0.1 + 0.7 = 0.8 pips, against 1.1 pips on Standard. On cTrader it is 0.1 + 0.6 = 0.7 pips. Razor is cheaper on every lot at these averages; Standard only wins on convenience, since the whole cost sits in one number.
| Account | Spread | Commission in pips | Total |
|---|---|---|---|
| Pepperstone Razor, cTrader | 0.1 | 0.6 | 0.7 pips |
| Pepperstone Razor, MT5 | 0.1 | 0.7 | 0.8 pips |
| FP Markets Raw | 0.11 | 0.6 | 0.71 pips |
| XS Elite | From 0.1 | 0.6 | From 0.7 pips |
| Pepperstone Standard | 1.1 | 0 | 1.1 pips |
Other commission-based accounts
- XS Elite: from 0.1 pips on EUR/USD with a USD 6 round-turn commission and a USD 500 minimum. XS accepts Singapore residents.
- FP Markets Raw: 0.11 pips average plus USD 3 per side; Standard averages 1.21 pips with no commission. FP Markets accepts Singapore residents.
- CMC Markets FX Active: from 0.0 pips plus a 0.0025% commission per transaction, as published on CMC's UK site; check the Singapore terms with CMC Markets Singapore, which is MAS-licensed.
- Brokers such as IC Markets, Tickmill and Vantage run raw-plus-commission accounts too, but our data does not list them as accepting Singapore residents.
When a spread-only account still makes sense
If you trade rarely, hold positions for days, or simply want one number per trade, a spread-only account is simpler. Phillip Securities' POEMS, which is MAS-regulated, advertises FX CFDs from as low as 0.3 pips with USD 0 commission; that is a minimum, so compare live quotes before concluding it is cheaper.
Sources
Commission schedules quoted above.
Is a commission account cheaper than a spread-only account?
At Pepperstone's published EUR/USD averages, yes: 0.7 to 0.8 pips all in on Razor against 1.1 pips on Standard.
Why does Pepperstone charge less commission on cTrader?
Pepperstone sets USD 3.00 per side on cTrader against USD 3.50 on other platforms; it does not explain the difference in our data.
Does the commission apply to gold and indices too?
Index and crypto CFDs at Pepperstone have no commission. Gold on Razor does carry one, for example USD 3.50 per side on cTrader.
CFD and forex trading with leverage carries a high risk of rapid losses. Costs shown are published figures and may change. This is not investment advice.