Forex Basics

Spread vs Commission

Compare pricing using the same trade size and holding period.

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Different ways to charge

A spread is embedded in the bid/ask quote. A commission is charged separately under an account schedule. Accounts can combine both.

Check the charging basis

A commission described as per lot may apply per side or for a completed round trip. Confirm the lot definition, currency, minimum charge and whether the published figure covers opening and closing.

Build a fair comparison

For the same hypothetical trade, add the monetary spread cost and both sides of commission. Add expected financing for the holding period and any conversion fees. Use actual account terms, not a promotional minimum alone.

Review after execution

Compare the estimated cost with the recorded execution prices and charges. Market movement between submission and execution can also affect a result.

Frequently asked

Is a zero-commission account free?

No. Spread, financing, conversion or other disclosed charges may still apply.

Further reading

FCA: Contracts for difference ↗

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