Which brokers offer index CFDs with no commission?
Verdict
- Pepperstone, our pick, charges no commission on index CFDs on either its Razor or Standard account; you pay the spread, plus financing on positions held overnight.
- IG, Plus500 and Trading 212, all licensed by ASIC, also describe their standard CFD pricing as spread-only on the pages we checked.
- Commission-free is not the same as free: Trading 212 adds a 0.5% FX fee, and Pepperstone's index perpetuals carry 0.015% commission per side.
- On indices, Pepperstone's Razor account costs the same as or less than Standard on every index where both averages are published, with no commission to offset the gap.
Most CFD providers charge index traders through the spread alone, so 'no commission' narrows the field less than you might expect. What separates them is how wide that spread is, whether they publish it, and which extra charges sit outside it.
Pepperstone: spread-only pricing on cash index CFDs
Pepperstone Group Limited (ASIC, AFSL 414530) publishes a minimum and an average spread for each index and states there is no commission on index CFDs. That gives you a figure you can check against the platform, which most commission-free rivals don't offer. Its Australian accounts list 26 indices, including AUS200, US500, NAS100, GER40, UK100, JPN225 and HK50, tradable from a $10 deposit on MT5, cTrader, the Pepperstone app, and on Razor also MT4 and TradingView.
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Why Razor is the better index account
On currency pairs, Razor trades a tighter spread for a per-lot commission. On indices that trade-off disappears, because neither account pays commission. The published averages show Razor level with or ahead of Standard on every index:
| Index | Razor avg | Standard avg | Razor saving per round trip |
|---|---|---|---|
| AUS200 | 1.5 | 1.5 | 0 |
| HK50 | 5 | 5 | 0 |
| US500 | 0.4 | 0.5 | 0.1 |
| NAS100 | 1 | 1.2 | 0.2 |
| US30 | 2 | 2.3 | 0.3 |
| GER40 | 1 | 1.3 | 0.3 |
| UK100 | 1.5 | 1.9 | 0.4 |
| JPN225 | 7.4 | 9.4 | 2.0 |
Other commission-free index CFD providers licensed in Australia
None of these three publishes an index average that we hold, so their real cost can only be compared on a live screen.
- IG (IG Australia Pty Ltd, AFSL 515106): states that its standard spread bets and CFDs are spread-only with no commission.
- Plus500 (Plus500AU Pty Ltd, AFSL 417727): earns through the spread and charges no commission; it also offers a guaranteed stop order, priced through a wider spread.
- Trading 212 (Trading 212 AU Pty Ltd, AFSL 541122): its CFD account is commission-free with dynamic spreads, plus a 0.5% FX fee.
- Capital.com (AFSL 513393), our second choice overall: our data doesn't include its index commission terms, so read its fee page before comparing.
Charges that sit outside the 'no commission' label
- Overnight financing: every cash index CFD held past the daily rollover pays or receives it.
- Perpetual CFDs: Pepperstone's NAS100 and US500 perpetuals charge 0.015% per side plus a daily funding rate, so they are not commission-free.
- Forwards: wider spreads instead of commission; US500-F starts at 1 point against 0.4 for the cash CFD, and AUS200-F at 3 against 1.
- Currency conversion: trading a US or European index from an AUD account converts each result, and some providers, such as Trading 212, charge a stated FX fee for it.
Sources
Pricing statements as published by each provider.
Is a commission-free index CFD always cheaper?
No. A wide spread can cost more than a tight spread plus commission. Compare the total round-trip cost in points for the size you trade.
Does Pepperstone charge commission on the ASX 200 CFD?
No. AUS200 has no commission on either account and a published average spread of 1.5 points on both.
Why choose Razor for indices if there is no commission either way?
Because its average spreads are equal or tighter on every index Pepperstone publishes for both accounts, and the JPN225 gap is 2 points.
CFDs are complex instruments with a high risk of losing money rapidly because of leverage. Published spreads are averages and widen in fast markets. Consider the PDS and TMD for any product before trading; nothing here is investment advice.