Index CFD spreads vs EURUSD: comparing cost per unit of movement
Posted: Tue Oct 20, 2026 10:32 am
Index CFDs like NAS100 or GER40 show spreads in points, EURUSD in pips. Comparing the two directly says nothing. A fairer comparison is cost relative to how much the instrument usually moves.
A simple ratio:
Cost ratio = all-in cost per trade / average 15-minute range (same session)
Illustrative numbers for the first hour of the US cash session:
- EURUSD: cost 0.7 pips, 15-minute range 7 pips → ratio 0.10.
- NAS100: cost 1.5 points, 15-minute range 45 points → ratio 0.03.
- GER40 at the same hour: cost 1.5 points, range 20 points → ratio 0.075.
In this example the index is cheaper relative to its movement. But that's only half the picture:
- Index spreads widen far more outside cash hours. The same ratio at 07:00 UK might be several times worse.
- Overnight financing on indices is relevant if anything is held.
- Volatility in indices comes in bursts. A larger range also means larger slippage on stops.
Run the ratio for your own broker and session. It's a quick way to see whether an instrument is worth adding or just looks cheap because the numbers are bigger.
What ratio do you get for the instruments you trade?
A simple ratio:
Cost ratio = all-in cost per trade / average 15-minute range (same session)
Illustrative numbers for the first hour of the US cash session:
- EURUSD: cost 0.7 pips, 15-minute range 7 pips → ratio 0.10.
- NAS100: cost 1.5 points, 15-minute range 45 points → ratio 0.03.
- GER40 at the same hour: cost 1.5 points, range 20 points → ratio 0.075.
In this example the index is cheaper relative to its movement. But that's only half the picture:
- Index spreads widen far more outside cash hours. The same ratio at 07:00 UK might be several times worse.
- Overnight financing on indices is relevant if anything is held.
- Volatility in indices comes in bursts. A larger range also means larger slippage on stops.
Run the ratio for your own broker and session. It's a quick way to see whether an instrument is worth adding or just looks cheap because the numbers are bigger.
What ratio do you get for the instruments you trade?