A forex trade’s cost can include the spread, commission on opening and closing, and overnight financing. Convert each item into the same account currency and use the same trade size and holding period before comparing accounts. The lowest advertised spread does not tell you the complete cost.
Start with three separate costs
The spread is the distance between the available sell price, called the bid, and buy price, called the ask. A commission is a separate charge under the account’s fee schedule. A swap is a debit or credit for carrying a position through a rollover. These are different inputs: a zero commission does not mean there is no spread, and a narrow spread does not remove financing costs.
Write down the symbol, account type, platform, account currency, trade size and expected holding period. These details make a comparison reproducible. A quote for one account, symbol or moment is not evidence of what every trade will cost. Execution can also differ from the price requested.
A worked calculation in US dollars
Assume a USD account and a 0.20-lot EUR/USD trade, with 100,000 EUR per lot. The position is 20,000 EUR. A one-pip movement of 0.0001 is therefore worth USD 2.00. The following prices and charges are invented for the calculation; they are not Traders Trust rates or a live quote.
For this simplified calculation, assume the underlying midpoint does not move, the spread remains 0.8 pip at entry and exit, and there is no slippage. The round-trip bid/ask difference costs USD 1.60. A hypothetical commission of USD 3.00 per lot per side costs USD 0.60 to open and USD 0.60 to close. Add an assumed USD 0.70 financing debit: the total is USD 3.50.
- Pip value
- 20,000 × 0.0001 = USD 2.00
- Spread cost
- 0.8 pip × USD 2.00 = USD 1.60
- Opening commission
- 0.20 × USD 3.00 = USD 0.60
- Closing commission
- 0.20 × USD 3.00 = USD 0.60
- Assumed swap debit
- USD 0.70
- Total assumed cost
- USD 3.50
The USD 3.50 total equals 1.75 pips at this trade size. Actual spread, commission, financing, conversion and execution may differ.
Do not subtract the spread twice
There are two useful ways to build a worksheet. In a planning estimate, begin with a midpoint-based price scenario and add an explicit spread assumption. In a reconciliation, use the actual buy and sell execution prices. Their difference already reflects the bid/ask prices you received, so subtracting an estimated spread again would overstate the loss.
A hypothetical buy at 1.10008 followed by a sale at 1.10000 loses 0.8 pip before separate charges. At USD 2.00 per pip, that is already a USD 1.60 price loss. Add the actual commission and swap entries to that result; do not deduct another USD 1.60 spread line. Keep the worksheet method clear so the same cost cannot appear in two places.
Check the units before calculating swap
A swap figure can be expressed in points, money or a percentage-based model. The number alone is not enough. Read the symbol specification’s swap calculation type, the long or short rate, and the rollover schedule. Confirm whether a displayed monetary estimate is per lot or for your entire position.
Do not assume every overnight position has a single day’s adjustment. Weekend and holiday settlement can produce a multi-day charge, and the applicable day can depend on the instrument. Rates may change. A swap-free label also needs its own terms: eligibility or administration charges may apply. Use the current account and symbol conditions rather than a rate copied from an old screenshot.
Compare the same trading scenario
Use the same symbol, volume, account currency and holding period for each account. Record an observed spread with its time and conditions, not only the advertised minimum. Check whether the commission is per side or round trip. For a multi-day scenario, include the correct direction and financing assumptions.
Keep deposit, withdrawal, conversion or other conditional fees in separate rows when they apply. They may affect the overall cost of using an account without being a charge on every trade. A useful comparison explains its assumptions and missing inputs; it does not declare a universal cheapest account from one spread observation.
Reconcile the estimate with trading history
After a practice trade, compare the recorded open and close prices, volume, commission and swap with the estimate. Check that the report separates gross price profit or loss from separate charges, and identify any account-currency conversion. A partial close or multiple fills can require more than one deal row.
Save the assumptions alongside the result. Differences can come from a changed spread, execution, holding period or fee unit rather than a calculation error. Demo conditions and results may differ from live trading. This worksheet explains cost arithmetic; it does not predict returns or make leveraged trading suitable for you.
Sources and editorial note
This Traders Trust educational guide explains general mechanics using original, hypothetical scenarios. The sources below support the definitions and platform behaviour. Other providers’ terms do not describe a Traders Trust account. No investment recommendation or personal suitability assessment is provided.
Sources checked 6 November 2026. This is a source-check date, not a claim of publication or professional review. Current account, instrument and execution terms take precedence over an illustration.
- MetaTrader 4 Help: Contract SpecificationSpread units, swap calculation types and symbol-level conditions.
- MetaTrader 5 Help: Executing TradesPosition and deal fields used to reconcile prices, volume and swap.
- Pepperstone: How its pricing model worksIndustry explanations of distinct spread, commission and overnight-funding charges; its prices are not used here.
- Pepperstone: Costs and feesWhy financing estimates and multi-day rollover assumptions need checking; terms belong to that provider.