US500 CFD Spreads Differ More Than Threefold Across Brokers

AI summary of the source article

A live cTrader testing study by BestBrokers.com revealed a more than threefold difference in US500 CFD spreads across six major brokers. FP Markets posted the lowest average spread at 2.5 pips, followed by Fusion Markets at 3.3 pips, IC Markets at 3.6 pips, and Pepperstone at 4 pips. Meanwhile, BlackBull Markets averaged 6 pips and FxPro averaged 8.4 pips, roughly 81% above the six-broker average of 4.63 pips. The report highlights that while competition has tightly compressed major forex spreads, index CFD pricing remains far less uniform, giving retail brokerages a key area to differentiate their pricing.

Why it matters

Spread differences on widely traded index CFDs can materially change strategy economics for active traders, making sustained index pricing a stronger competitive differentiator for brokers than commoditised forex spreads.

Key facts

• Average US500 spreads across six brokers showed a more than threefold difference, ranging from 2.5 pips to 8.4 pips.
• FP Markets recorded the lowest average spread at 2.5 pips, while FxPro recorded the highest at 8.4 pips.
• The six-broker average was approximately 4.63 pips, with FP Markets 46% below and FxPro roughly 81% above the benchmark.