In order to improve the cutting performance in broaching, the lubrication and cleaning effects offered by water-based cutting fluids with green additives need to be studied from the viewpoint of green manufacturing. Therefore, water-based solutions with castor oil, surfactant (linear alkylbenzene sulfonate, LAS), and nanographite were prepared by ultrasonic agitation and sprayed into the zone of broaching via atomization. The performances of the cutting fluids, in terms of the viscosity, specific heat, wetting angle, and droplet size, were evaluated to discuss their effects on the broaching load. Among the fluids, the addition of LAS into oil-in-water (WO-S), where its cutting fluid with 10 wt.% castor oil and 1.5 wt.% surfactant, exhibited the lowest broaching force. With regard to the lubricating and cleaning mechanisms, WO-S has good wettability and permeability, and hence, can lubricate the cutting edge of the tool to decrease the cutting load, cool the cutting edge to keep it sturdy, and clean the surface of the cutting edge to keep it sharp. The results reveal that the simultaneous addition of castor oil and LAS had remarkable effects on the lubrication and cleaning, and resulted in a broaching load reduction of more than 10% compared to commercial cutting fluids. However, the addition of nanographite could not improve the lubrication owing to its agglomeration.