IC Markets
Written byAbir KhanWriter
Market analysis byTanbir Habib RiyadCo-Founder & Trader
Fact-checked & QC byJowel RanaFact-Checker & QC
Edited byRanjan NiskrityChief EditorThis tool is for education and planning only and is not financial advice. Forex and CFD trading carries a high risk of losing money rapidly due to leverage. Check your broker's own contract specifications, fees and margin rules before you trade.
The three costs of every forex trade
| Cost | How it is charged | Formula per trade |
|---|---|---|
| Spread | Built into the price: you buy at the ask and sell at the bid | Spread in pips × pip value × lots |
| Commission | A fee per lot, usually on raw or ECN accounts; quoted per side or round turn | Round-turn commission × lots |
| Swap | Interest adjustment for positions held past the daily rollover | Swap per lot per night × lots × nights |
Some brokers quote commission per side ($3.50 to open, $3.50 to close). Enter the round-turn total, $7, in the calculator.
Standard vs raw-spread accounts
Brokers usually offer two pricing models. A standard account has no commission but a wider spread, often around 1 to 1.5 pips on EUR/USD. A raw or ECN account passes on a much tighter market spread, often 0 to 0.3 pips, and charges a commission instead.
Which is cheaper depends on the numbers. At a $10 pip value, a raw account with a 0.1-pip spread and $7 round-turn commission costs $8 a lot, against $12 for a 1.2-pip standard account. For traders who trade often, the gap adds up to thousands of dollars a year; for occasional traders it may not matter.
See which brokers offer the tightest pricing on our lowest spread brokers page.
Worked example: an active trader's yearly costs
- His trading
Tanvir trades 1 lot of EUR/USD about 60 times a month and closes before the daily rollover.
- Standard account
A 1.2-pip spread costs $12 a trade: $720 a month, $8,640 a year.
- Raw account
A 0.1-pip spread plus $7 commission costs $8 a trade: $480 a month, $5,760 a year.
- The difference
Switching account type saves about $2,880 a year with no change to his strategy.
For an active trader, account type is a strategy decision. The calculator shows the break-even point for your own volume.
Cost comparison mistakes
A 0.0-pip spread is not free if the commission is $7 a lot.
Advertised "from" spreads are the lowest, not the typical, figure.
Holding for weeks can make swap the biggest cost.
A $3.50 per-side quote is $7 per round turn.
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Trading Cost Calculator FAQs
How do I calculate the cost of a forex trade?
Add the spread cost (spread in pips × pip value × lots), the round-turn commission × lots, and any swap for nights held. The calculator does this for you.
Is a raw spread account cheaper than a standard account?
Often, for active traders. A 0.1-pip spread with $7 commission costs $8 per EUR/USD lot, against $12 for a 1.2-pip standard spread. The saving depends on the broker's actual figures.
What is a round-turn commission?
The total commission for opening and closing one lot. A broker charging $3.50 per side charges $7 per round turn.
How much does 1 pip cost on EUR/USD?
$10 on a standard lot, $1 on a mini lot and $0.10 on a micro lot.
Do spreads change during the day?
Yes. They are usually tightest during the London and New York sessions and widen around news, the daily rollover and the Sunday open.
Sources: FCA PS19/18: restricting CFDs for retail clients, ESMA: CFD product intervention.