Hey guys, what’s the best type of account for day trading – one that charges spreads or one that’s mainly commission?

 

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[Sebster4024]

I prefer raw spreads with commission accounts. 1. Spreads are tighter which is key when you’re concerned with small price movements. 2. Costs are more transparent as you only pay a fixed commission per trade. 3. Commissions can be less significant if you’re dealing in large sizes. 4. In seriously volatile markets getting narrower spreads can be even more beneficial.

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[John]

DD Trader, for me it’s a question of preference and where you are in your day trading journey.

I found spread accounts a good starting point – there’s no commission to factor in, which can make calculating costs more convoluted. There’s so much to learn and do at the beginning as it is.

Nowadays I mainly opt for commission pricing for some of the reasons outlined by Seb. Ultimately I’ve found commission accounts cheaper overall, so they make sense when you’re ready.

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[DD Trader]

Cheers guys.

After reading your comments I’ve gone away and mapped out the costs at the broker I was considering (Pepperstone) and their Razor account looks like the cheaper option for me. I’m still pretty new to intraday strategies but want to find the most economical account from the off.

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[Major Trader 35]

Spreads all day long. Keeps costs down in the long run

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[Author]

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