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Forex trading cost calculator
Compare a spread-only account with raw spread plus commission: cost per trade, per month and per year, and the spread at which they cost the same.
Quick answer: Cost per lot = spread in pips × pip value + round-turn commission. Multiply by lots per trade and trades per month. On EUR/USD, a 1.2-pip spread costs $12 a lot; a 0.2-pip spread plus $7 commission costs $9. The cheaper account per lot stays cheaper at any volume.
| Cost | Account A | Account B |
|---|---|---|
| Per lot, round turn | ||
| Per trade | ||
| Per month | ||
| Per year 12 months |
Spreads and commissions here are illustrative, not quotes from any broker. Real spreads move during the day and widen around news and the daily rollover. Pip values use illustrative exchange rates, not live prices.
How it's calculated
Every trade pays the spread. A raw spread account shows a tighter spread and charges a commission on top. To compare them, put both into the same unit: cost per standard lot, round turn.
- Account A: cost per lot = spread × pip value per lot.
- Account B: cost per lot = spread × pip value per lot + commission per lot.
- Cost per trade = cost per lot × lots. Per month = per trade × trades. Per year = per month × 12.
- Break-even spread for Account A = Account B's spread + commission ÷ pip value.
Worked example
EUR/USD on a US dollar account, where one pip on one lot is worth $10. You trade 0.5 lots, 40 times a month.
- Account A, 1.2 pips: 1.2 × $10 = $12 a lot, so $6.00 a trade, $240 a month and $2,880 a year.
- Account B, 0.2 pips + $7: 0.2 × $10 + $7 = $9 a lot, so $4.50 a trade, $180 a month and $2,160 a year.
- Account B is cheaper by $1.50 a trade, which is $60 a month or $720 a year.
- Break-even: $7 ÷ $10 = 0.7 pips, so the two cost the same when Account A's spread is 0.2 + 0.7 = 0.9 pips.
Costs are a small, steady drain rather than a single big loss, which is why they are easy to ignore. Over a year of active trading they can add up to a meaningful share of a small account, before any trade has won or lost.
Common mistakes
- Comparing per-side commission with a round-turn spread. $3.50 per side is $7 for the full trade. Use the "Per side" option if that is how your broker quotes it.
- Using the advertised minimum spread. "From 0.0 pips" is the best moment of the day. Use the typical or average spread at the hours you trade, which is often wider.
- Forgetting the pip value changes by pair. A $7 commission is 0.7 pips on EUR/USD but about 1.05 pips on USD/JPY at 150, where a pip on one lot is worth about $6.67.
Frequently asked questions
Is a raw spread account always cheaper?
No. It is cheaper only when the spread you save is worth more than the commission. On EUR/USD a $7 round-turn commission is worth 0.7 pips, so the raw account wins when the spread-only account is more than 0.7 pips wider. With a 0.2-pip raw spread, that means a spread-only spread above 0.9 pips. On a pair with a smaller pip value the same commission is worth more pips.
Does trading more change which account is cheaper?
Usually not. Spread and commission are both charged per lot, so the account that is cheaper on one lot is cheaper on a hundred. Volume changes how much the choice is worth. The exceptions are a minimum commission per trade, which makes very small trades dearer on a raw account, and volume discounts on commission.
What does round turn mean?
Round turn means opening and closing the trade. Some brokers quote commission per side, for example $3.50 to open and $3.50 to close, which is $7 round turn. Always convert to round turn before you compare.
What about swap and other costs?
This calculator covers the costs of opening and closing a trade. If you hold positions overnight, add swap with the swap calculator. Slippage, deposit and withdrawal fees and inactivity fees are extra and vary by broker.
Learn more
- Academy lesson: the real cost of trading
- Academy lesson: bid, ask and the spread
- Raw spread vs standard account: which is cheaper for you?
- Forex trading costs explained: spread, commission and swap
- Bid, ask and spread in forex: what they mean and what they cost
Related tools: swap calculator, pip value calculator and compare brokers. See all tools.