Brokers and trading infrastructure
The real costs of trading: spread, commission and swap
This post is also available in Persian ←
The three main costs of every trade and how together they build your true cost — with the details that like to hide.
Your net return = gross return minus costs. Know the three main costs so none of them stays hidden.
The three main costs
| Cost | When? | What to check |
|---|---|---|
| Spread | Every trade | Average or instantaneous? What happens at news? |
| Commission | Per trade or per lot | “Commission-free” accounts usually carry wider spreads. |
| Swap | Overnight holds | Decisive for long-term strategies. |
The practical takeaway
Compute each broker’s triple cost for your own style; the cheapest spread for a scalper is not necessarily cheapest for a long-term trader. Follow the account and broker comparison in the broker list and the fees guide.
Frequently asked questions
Is a commission-free account better? Not necessarily; “commission-free” means the cost moved into the spread. Compute the sum of all three costs for your style.
Where does swap come from? From the interest-rate difference of the pair and the broker’s policy; it is decisive for multi-day positions.
Floating or fixed spread? It depends on style: a scalper likes low floating in calm markets; at news, fixed is safer but wider.
Where can I see my costs? In your own trading panel: the spread on the symbol, the commission in the account terms, the swap in the symbol specifications. For the full picture, add up the cost of one typical trading day of yours; that number is the basis for judging both strategy and account.
Summary
Your real cost = spread + commission + swap, in your trading style. The calculators in the toolbox help.
The three costs of every trade
- Spread: the buy/sell gap
- Commission: the explicit per-trade/per-lot cost
- Swap: the overnight holding cost
- Compute the sum of all three for your style
- “Commission-free” means the cost moved into the spread
The cost and size calculators: See it.
Compare the track record, drawdown and costs of PAMM, MAM and copy-trading accounts, with the source and time of every figure.
Review and compare accounts Calculate scenarios and costsSubmit a verifiable track record so investors can review it against transparent criteria.
Discuss cooperationhttps://pamm.ir/blog/?r=hepDcDIYVUKo2O8jz38kSA
Rate this post
No ratings yet.
Related posts
Take demo seriously: the bridge most people skip
A demo account is where you test strategy and broker infrastructure for free; taken seriously, it prevents the most expensive live mistakes.
Read moreBroker regulation: what does it actually guarantee?
Licence, supervision and client-asset segregation; what regulation guarantees — and what it cannot.
Read moreChoosing a broker: where to start?
Regulation, execution, costs and support; a four-pillar framework for choosing a forex broker.
Read more
Comments (0)
No comments yet — be the first.