Forex brokers charge in two ways: a spread-only account builds the whole cost into a wider spread, while a raw-spread account shows a narrow spread and adds a fixed commission per lot. To compare them, convert both to a cost per lot.
How do I turn a spread into a cost?
On EUR/USD one pip on a standard lot of 100,000 units is worth $10. A spread of 1.0 pip therefore costs $10 per lot for a round trip. A raw-spread account with a 0.1 pip average spread and a $7 round-turn commission costs about $8 per lot.
Why are advertised spreads misleading?
Advertised “from” spreads are the best case, usually seen in the most liquid hours. The spread you pay is the average during the hours you trade, and it widens around news and at the daily rollover. That is why this site labels broker figures as advertised and keeps measured figures separate.
What other costs should I count?
- Swap: interest charged or paid on positions held overnight.
- Currency conversion when your account currency differs from the quote currency.
- Withdrawal and inactivity fees.
Which account type is cheaper?
Raw-spread accounts are usually cheaper for frequent traders in major pairs. Spread-only accounts are simpler and can be competitive for small, infrequent trades. Work out your own cost with the pip calculator.