Which broker has the tightest spread on the S&P 500?
Verdict
- Pepperstone publishes an S&P 500 (US500) spread of 0.4 points on Razor, both minimum and average, with no commission, and it is our pick for trading the index from Australia.
- We could not verify a published average S&P 500 spread from any other broker, so we will not claim Pepperstone, or anyone, is the tightest.
- Pepperstone's Standard account quotes US500 at 0.5 points, and the US500 forward has a 1-point minimum.
- Because the average equals the minimum, the 0.4-point quote held steady through the period Pepperstone measured.
'Tightest spread' is easy to claim and hard to prove. Brokers publish S&P 500 spreads in different ways: some a 'from' figure, some an average, some only a live quote. Here is the one verifiable number we have, and how to compare it fairly against anyone else's.
Pepperstone's S&P 500 pricing
On Pepperstone's Australian index fee table, based on August 2026 data, US500 shows a 0.4-point minimum and 0.4-point average on Razor, and 0.5 and 0.5 on Standard. Pepperstone's UK cost page lists the same 0.4-point minimum on Razor. No commission is added on index CFDs. When an average equals the minimum, the spread barely moved from its best level across the sample, which is a stronger statement than a low 'from' figure alone. Pepperstone Group Limited (AFSL 414530) issues these CFDs to Australian clients.
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Pepperstone's US500 contracts
| Contract | Minimum | Average | Commission |
|---|---|---|---|
| US500 cash, Razor | 0.4 | 0.4 | None |
| US500 cash, Standard | 0.5 | 0.5 | None |
| US500-F forward | 1 | Not published | None |
| US500 perpetual | Not published | Not published | 0.015% per side |
How to compare S&P 500 spreads fairly
- Use averages, not 'from' figures: a minimum describes the best moment, not your typical fill.
- Check the contract size and value per point; a 0.4-point spread on a larger contract costs more in dollars than on a smaller one.
- Add any commission or platform fee; Pepperstone charges none on index CFDs.
- Note the session: S&P 500 CFD spreads are typically tightest during the US cash session, which is the Australian night.
- Include holding costs if you keep positions overnight.
What about Capital.com and others?
Capital.com (AFSL 513393), our second choice in Australia, shows live spreads rather than a static published figure in the sources we checked, and offers guaranteed stop-losses, which Pepperstone does not. For other ASIC-licensed brokers we have no verified S&P 500 average either. If you find a broker quoting a lower number, check whether it is a minimum or an average and whether a commission applies, then compare like for like.
Sources
What is Pepperstone's S&P 500 symbol?
US500 for the cash CFD and US500-F for the forward.
Is the S&P 500 cheaper to trade than the Nasdaq at Pepperstone?
In points, yes: US500 averages 0.4 on Razor against 1 for NAS100. The two indices have different levels and point values, so compare the dollar cost per contract.
Does Pepperstone charge commission on US500?
No. The cash and forward index CFDs are commission-free; only the perpetual version carries a 0.015% commission per side.
Spreads are variable and the figures shown are Pepperstone's published data for the stated period. Index CFDs are leveraged and high risk. Not investment advice.