A forex account can look inexpensive when you consider only its advertised spread. A useful comparison includes commission, financing, conversion and account charges, with the same instrument, trade size and holding period for every provider.
This guide uses hypothetical figures, not current broker quotes. Forex and CFDs can cause substantial losses; understanding costs does not make a strategy profitable.
Spread: the difference between buying and selling
If EUR/USD is quoted 1.1000/1.1002, the spread is two pips when a pip is 0.0001. Buying 10,000 euros at the ask and immediately selling at the unchanged bid produces a $2 gross loss: 10,000 × 0.0002.
That example isolates the spread. In an actual trade, your entry and exit prices already reflect the sides used. Do not subtract an estimated spread again from a result calculated using those actual fill prices.
Commission: check the units
A commission may be quoted per side, per lot or per million traded. “Per side” means opening and closing are charged separately. Confirm the contract size, currency, minimum charge and whether discounts apply to your account.
Suppose commission is $3.50 per side per standard 100,000-unit lot. For 0.1 lots, the illustrative round-trip commission is $3.50 × 2 × 0.1 = $0.70. A minimum commission could change that result.
Two hypothetical accounts
For a 0.1-lot EUR/USD trade in a USD account, one pip is $1. Account A has a 1.5-pip spread and no commission: estimated spread cost is $1.50. Account B has a 0.6-pip spread plus $0.70 round-trip commission: estimated combined cost is $1.30.
Account B is cheaper in this particular example before other charges. It is not a broker recommendation. Spreads vary, and different trade sizes, minimum commissions or holding periods can change the comparison.
Overnight financing
Holding a position across a provider’s rollover time may create a debit or credit. The rate can differ for long and short positions, change over time and include an administrative adjustment. Holiday and weekend treatment also varies.
For illustration only, if a contract uses exposure × annual rate ÷ 365, a $10,000 exposure at a 5% annual charge costs approximately $1.37 for one chargeable day. Providers can use different formulas, day-count conventions and multi-day adjustments; calculate from their actual terms.
As one provider-specific example, OANDA Corporation’s financing explanation describes its rollover, rate and holiday treatment. Those terms should not be assumed to apply to another entity or broker.
Other charges to check
- Currency conversion for funding, realised results or withdrawals.
- Withdrawal, inactivity or account-maintenance charges.
- Optional market data, chart packages, servers or platform subscriptions.
- Fees or premiums for special order types, where offered.
Make a fair comparison
- Record the legal entity, account type and source date.
- Choose the same pair, size and intended session.
- Compare typical spreads with clearly stated measurement assumptions.
- Add round-trip commission and a matching holding-period estimate.
- Record conversion and account charges separately.
Execution quality and slippage also affect results, but a headline fee table cannot prove how your orders will fill. A low price does not settle questions about regulation, suitability or service.
Continue with the broker checklist, position sizing and demo practice. Read Risk of Loss before considering live trading.