I’m trying to figure out Deriv’s cost structure and I’m getting confused between spreads and commissions. I’ve looked at their site and some options mention spreads only, while others mention both spreads and commissions. I can’t quite figure out how much I’m actually paying per trade, and how the rebates fit into that calculation.
I know the community here talks about calculating net profitability using rebates, but I want to understand the basics first. Does Deriv charge spreads, commissions, or both? How do you compare that to other brokers when they structure their costs differently? And when I get a rebate, does it apply to the spread, the commission, or both?
Spreads vary. Most Deriv accounts no commission. Rebates cover spreads.
Calculate total cost before worrying about it.
Deriv’s Standard account charges a spread, no separate commission. The spread changes depending on the pair and market conditions. During calm markets, EUR/USD might be 1 pip. During news, it widens to 2-3 pips. That’s your cost.
GlobeGain rebates apply to the spread you paid. So if you trade EUR/USD and pay 1 pip spread, and your rebate rate is 0.3 pips, your net cost becomes 0.7 pips. That’s how you compare fairly to other brokers.
Some brokers charge commission instead of spreads, or both. When comparing, add spread plus commission to get total cost, then subtract rebate. Whichever broker gives you the lowest net cost is usually the best choice, assuming execution quality is equal.
On Deriv, you’re paying spreads. No hidden commissions the way I’ve set it up.
The spread is the difference between buy and sell price. When you open a trade, you immediately lose that spread amount. That’s your real cost per trade.
With GlobeGain, you get some of that spread back as rebate. It’s straightforward once you understand that the spread is your only cost.
Other brokers might charge commission on top of spreads, which makes the comparison more complex. But with Deriv, it’s just spreads.
Deriv spreads only. No commission for most accounts. Check their site for exact rates.
Spreads vary by pair and time of day. Your real cost depends on when you trade.
Here’s the practical breakdown: Deriv charges spreads, not commission. EUR/USD spreads are usually 1-1.2 pips during regular hours, maybe 2-3 during high volatility.
Your cost is spread × lot size. So trading 1 lot on a 1 pip spread costs you $10 (assuming 100k lot size standard). The GlobeGain rebate on that trade might be $3, bringing your real cost to $7.
When you compare to a broker charging 0.5 pips spread plus 0.5 pip commission, you’re paying the same total but structured differently. Always calculate net cost to compare fairly.
I track my costs like this: when I close a trade, I note the entry spread, exit spread, add them up, multiply by lot size, then subtract the rebate I received. That’s my actual cost for that trade.
Over 50 trades, I can see my average cost per lot and compare it to brokers I’ve tested before. Deriv’s spreads are consistently tight enough that my net cost ends up competitive. But I didn’t know that until I tracked it myself.