Spread, swap and commission: the real cost of a forex trade
A trade can be right about direction and still lose money if costs are ignored. Forex has three main costs: the spread, commission on some accounts, and swap when a position is held overnight.
By the TradeFather education team · Updated 27 Oct 2026 · Educational content, not financial advice
- Spread is paid on every trade; it is wider on exotic pairs and during news.
- Commission accounts usually have tighter spreads plus a fixed fee per lot.
- Swap is interest charged or paid when you hold a position past the daily rollover.
- Small targets suffer most: a 2-pip cost on a 5-pip target is 40% of the move.
The spread
The spread is the difference between the bid and ask. On EUR/USD with a 1.2-pip spread, one standard lot (100,000 units, about $10 per pip) costs roughly $12 just to open.
Spreads are not fixed on most accounts. They widen at the daily rollover, around major news and when liquidity is thin, such as late Friday or on holidays.
| Spread | Per 0.01 lot | Per 0.1 lot | Per 1 lot |
|---|---|---|---|
| 0.5 pip | $0.05 | $0.50 | $5 |
| 1.2 pips | $0.12 | $1.20 | $12 |
| 3 pips | $0.30 | $3.00 | $30 |
Commission
Some accounts (often called raw or ECN-style) show very tight spreads and charge a commission instead, for example a fixed amount per lot per side. Add both sides to get the round-trip cost.
To compare accounts fairly, convert everything into pips: total cost = spread + (round-trip commission ÷ pip value).
- 1Note the spread
Example: 0.2 pip on EUR/USD.
- 2Note the commission
Example: $3.50 per lot per side = $7 round trip.
- 3Convert to pips
$7 ÷ $10 per pip = 0.7 pip.
- 4Add them
0.2 + 0.7 = 0.9 pip total cost per trade.
Swap (overnight financing)
Holding a leveraged position past the daily rollover usually triggers a swap — an interest adjustment based on the interest-rate difference between the two currencies plus the broker's markup. It can be a charge or, less often, a small credit.
Many platforms apply a triple swap on one weekday to cover the weekend. Check the swap figures in the contract specification before holding trades for days. Swap-free (Islamic) accounts exist at some providers, often with other fees instead.
How beginners keep costs low
EUR/USD, GBP/USD and USD/JPY usually have the tightest spreads.
Spreads often widen around the daily rollover hour.
Costs matter less on a 40-pip target than a 5-pip scalp.
Record spread and swap so you see the real result.
Frequently asked questions
+Is a zero-spread account free?
Rarely. Zero or raw spread accounts usually charge commission, so compare the total cost in pips.
+Why did I pay swap?
Your position was open at the daily rollover, so interest was applied based on the two currencies' rates.
+What is a good spread for EUR/USD?
It varies by provider and time of day; under about 1.5 pips during active sessions is common on standard accounts.