A Comparison of Commissions: OctaFX, Pepperstone & CityIndex

When picking an online broker to invest with, you’ll want to take a close look at their fees, charges and commissions. Some brokers offer a zero-commission model, which sounds like a big positive, but brokers have to make money somehow. A no-commission broker generally takes a profit from the spreads, and might also levy other account charges.

Take the time to check commission charges carefully when you’re making a broker comparison. Today we’re comparing commissions at three popular online brokers: OctaFX, Pepperstone and CityIndex.


OctaFX offer a commission free model when you trade with them using their MT4 and MT5 platforms. This means you don’t have to worry about commission charges on these platforms, but do keep an eye on the spreads. As already mentioned, that’s how you pay your broker fees, when you trade commission free.

OctaFX do charge commission when you trade using their CTrader platform. Trading commission on CTrader is USD0.03/0.01 lot for most major Forex pairs such as EUR/USD and GBP/USD. Remember, there will also be spreads to consider, alongside the commission fee, so factor all costs in to avoid any unpleasant surprises. 


At Pepperstone, commission charges depend on the type of account you open, the platform you use, and what you are trading. With the Standard account, there are no commissions. With the Razor account, you will pay a small commission, which will be reflected in the fact that spreads will generally be considerably lower. In fact, Pepperstone boast that during times of high liquidity, spreads can go as low a 0 pips with your Razor account, on many popular Forex pairs.

The Razor account, however, charges a set commission fee of $3.50 for each standard lot that you buy, and a further $3.50 when you sell. This is calculated pro-rata for those trading mini lots or micro lots. Pepperstone, like Octafx, also charge a commission when you trade with CTrader (as opposed to using the MT4 and MT5 platforms). The CTrader commission is charged at 3.5% of the base currency being traded.


With CityIndex, commissions will again depend on a number of factors. This broker operates a commission free model on most contracts for difference (CFDs), Forex trading and Spread Betting. With these instruments, broker profits will be taken from the spreads.

They do, however, charge a commission on CFD equities, which vary by market. For most UK and European equities, there is a 0.08% commission, and for most Asian equities it is 0.2%. There is variation between equities, markets and platforms, so it is important to check commission rates within the Market Information sheets which can be found on each trading platform.

Things to remember

We hope you found our comparison of commission fees helpful, but remember commissions are just one type of fee, and it’s important to assess all the costs you’re likely to incur with any online broker. Factor in the spreads on top of commission fees, where necessary, and also look for other hidden fees such as administration, inactivity or withdrawal fees.