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Bigger Trades, Same Spread with Plus500
Tiered spreads widen as your trade size grows, flat spreads don't. See how each works, how costs add up, and how Plus500 structures its flat spreads.
Flat Spreads vs. Tiered Spreads: What You Really Pay as Your Trades Get Bigger
The spread you see on a small trade isn't always the spread you pay on a big one. Many platforms use tiered pricing, where the tightest spread applies only to the smallest positions and widens as size increases. Plus500 (LON:PLUSP), on the other hand, takes a different approach: one spread per instrument, regardless of trade size.
This guide explores how the two spread models compare, and why it matters the moment your trades get bigger.
TL;DR
- Spread structure matters: The spread shown for a small trade may not apply to larger positions.
- Tiered spreads widen with size: Smaller trades may receive tighter spreads, while larger trades can move into wider pricing tiers.
- Flat spreads stay consistent: The same spread applies regardless of trade size.
- Plus500 (LON:PLUSP) uses flat spreads: The spread for an instrument does not change based on the size of the trade.
- Neither model is always cheaper: Tiered spreads may cost less for smaller trades, while flat spreads can become more competitive as trade size increases.
- Consider total trading costs: Spreads are only one component; overnight financing, currency conversion and other applicable charges should also be considered.
What Is a Spread, and Why Does It Matter?
The spread is the difference between the buy price (ask) and the sell price (bid) of an instrument. It is one of the main costs of trading CFDs. You pay it when you open a position, and the market has to move past it before the trade is in profit.
The spread applies to every trade you place, so small differences add up. A wider spread on each of many trades becomes a material cost over time. How a spread is structured matters as much as how wide it is.
76% of retail CFD accounts lose money.
Not All Spreads Work the Same Way
Most traders compare the headline spread first. But the number you see on a small trade isn't always the number you pay on a bigger one. There are two common models.
Tiered (Size-Based) Spreads
With a tiered model, the spread depends on how big your trade is. Small trades get the tightest spread. As your position moves into higher tiers, the spread steps up, sometimes more than once.
Flat Spreads
With a flat model, the spread doesn't change with trade size. A small position and a large position get the same spread. Plus500 uses this approach.
Why Spread Structure Matters as You Trade Bigger
Tiered spreads often look attractive because the advertised number usually belongs to the smallest tier. If you regularly trade larger sizes, you may be paying the wider spreads from higher tiers without realising it.
While competitor spreads increase with your trade size, Plus500 (LON:PLUSP) spreads stay the same as your trade size increases.
The Value of Predictability: How Flat Spreads Help
Cost is not only about the lowest number. A flat spread removes a variable from your planning:
- Simpler position sizing: you don't need to check whether a larger size pushes you into a wider tier.
- Easier comparison: one spread per instrument makes it simple to compare platforms.
- Cleaner risk planning: you know the spread before you trade, whatever the size.
How Plus500 Handles Spreads
Plus500 offers flat spreads. In other words, at Plus500, the spread doesn't depend on your trade size. You see one spread on the instrument, and it applies whether your trade is large or small, so you know what you're paying before you trade.
For traders who scale up their positions, this means the spread you see at small size is the spread you pay at large size. You can review current spreads on each instrument on the Plus500 platform.
How to Trade with Flat Spreads on Plus500
To trade CFDs with tight spreads on Plus500, you need to:
- Open an account at www.plus500.com
- Practise risk-free demo
- Trade for real
76% of retail CFD accounts lose money.
What to Check Before Your Next Large Trade
Before you place your next trade, you may want to ask yourself:
- Does the spread change with my trade size? Look for tier tables, size thresholds or "from" pricing.
- What spread am I actually paying at my usual size? Compare that figure, not the headline.
- How do the costs add up over many trades? Multiply by your typical monthly trade count.
- What other costs apply? Check overnight financing, currency conversion and other fees. The spread is only one part of the total cost.
Conclusion
The headline spread tells you what the smallest trade costs. It doesn't always tell you what you will pay as your positions grow. Tiered spreads widen with size, while flat spreads stay the same, so the better model depends on how you trade.
If your trade sizes increase or vary, check which spread applies at your real size and add it up across your trades. Plus500 keeps one spread per instrument regardless of size, so you know the cost before you trade.
* Spread Disclaimer: "Flat spread" means that our spread structure does not change or increase based on your trade size. However, spreads on our platform are dynamic and will fluctuate according to real-time market conditions, liquidity, and volatility.
76% of retail CFD accounts lose money.
FAQs
What is a flat spread?
A flat spread stays the same regardless of trade size. The same spread applies to a small position and a large one.
What is a tiered spread?
A tiered spread changes with position size. The smallest trades get the tightest spread, and it widens as trades move into higher size tiers.
Are flat spreads always cheaper than tiered spreads?
No. On small trades a tiered model can be cheaper. A flat model tends to cost less as trade size increases, and it gives you one predictable spread.
Does Plus500 charge a different spread for larger trades?
No. At Plus500 the spread doesn't depend on your trade size. You see one spread on the instrument, and it applies to large and small trades alike.
How do I find out which spread I'm paying?
Check the platform's spread information for the instrument, look for any tier or size thresholds, and compare at the size you normally trade.
Is the spread the only cost of trading CFDs?
No. Depending on the instrument and how long you hold a position, overnight financing and other charges may apply.