Every trade costs money before the price moves at all. Some trading fees are visible, such as a commission. Others are built into the price, such as the spread. If you add them up before you open a position, you know how far the price must move just to get back to zero.
Fill in the empty fields to see the result.
Cost = spread × pip value + commission × lots × 2 − swap × lots × nights (a negative swap is a charge). Spreads change during the day and widen around news.
The calculator above takes your instrument, lot size, spread, commission and holding time and returns the total cost in money and in pips. Use it for every example on this page. Type your own inputs, because spreads, commissions and swaps change by instrument, account and time of day.
What makes up the cost of a trade
For a beginner, the total cost of a forex or CFD trade usually comes from these parts:
| Cost | What it is | When you pay it |
|---|---|---|
| Spread | Gap between the buy (ask) and sell (bid) price | When you open the trade |
| Commission | Fee charged per lot traded | On opening, closing, or both |
| Swap | Overnight financing charge or credit | Each night the position stays open |
| Conversion | Exchange of profit, loss or fees into your account currency | When results are in another currency |
| Slippage | Difference between the price you asked for and the price you got | On fast or thin markets |
Slippage is not a fee, but it affects your result in the same way. See what is slippage.
Spread
The spread is the difference between the bid and ask prices. You buy at the ask and sell at the bid, so a new position starts with a small loss equal to the spread.
In money, the spread cost equals the spread in pips multiplied by the pip value for your lot size. A pip is the standard unit of price change for an instrument. Spreads can be fixed or floating; floating spreads often widen at session opens, around news and during low liquidity. More detail: what is spread and fixed vs floating spread.
Commission
Some accounts charge a commission per lot instead of, or on top of, a wider spread. Check whether a quoted commission is per side (charged on opening and again on closing) or round turn (opening and closing together). Mixing these up doubles or halves your estimate.
Commission in money equals the commission rate multiplied by the lots traded, counted for each side that is charged. To compare it with the spread, divide it by the pip value. That gives the commission in pips. See commission per lot.
Swap
A swap is applied to positions held past the daily rollover time. It reflects the interest difference between the instruments in the pair, plus the provider's markup. It can be a charge or, less often, a credit. Long and short positions have different swap rates.
Usually the swap for a weekend is charged on one weekday, which is called the triple swap day. If you hold trades for days or weeks, the swap can become the largest cost. See swap fees and rollover.
Conversion
If your account is in US dollars and you trade a pair quoted in yen, profit, loss, swap and sometimes commission are calculated in yen first. Then they are converted to dollars at the current rate. The conversion rate may include a markup, and it also adds exchange-rate risk to every result.
A separate conversion happens when you move money between rupees and your account currency. That cost depends on your payment method. It is not part of the trade, but it is part of what trading costs you overall. See deposits and withdrawals and exchange rates.
The break-even move
The break-even move is how far the price must move in your favour before the trade is back to zero after costs. Put simply:
Break-even move in pips = spread in pips + commission in pips + swap in pips (for the planned holding time)
Put those inputs into the calculator. It shows the result in pips and money for your lot size. A short-term trade with a small target needs a small break-even move. Otherwise most of the target goes to costs.
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Cost as a share of your target
A useful check is to compare total cost with the profit target of the trade:
Cost share = total cost in pips ÷ target in pips
Enter your planned take profit distance next to the cost inputs. If the share is high, the trade has to work almost perfectly to be worth it. The same cost is a small share of a wide target and a large share of a tight scalping target. That is why frequent short-term trading often costs more over time than people expect.
Do the same with your stop loss: the costs are added to every losing trade, so a loss is always larger than the stop distance alone.
Precise definitions for experienced traders
- Spread cost is charged once, when you open. When you close, you are on the other side of the quote, so the spread is not charged again. If the spread is wider when you exit than when you entered, the price you need to close at moves against you.
- Pip value depends on contract size, lot size and the quote currency. For non-USD quote currencies it changes with the conversion rate, so recompute it for big positions. See lot sizes.
- Commission is set per lot or per traded notional. A partial close is charged on the closed volume. See closing trades.
- Swap is usually quoted in points or money per lot per night. It is taken at rollover based on the position open at that moment. Opening and closing within the same day avoids it. Swap rates are updated, so check them before each trade, not only once.
- Effective cost is spread, commission, swap and conversion added together, plus slippage you actually got, for each trade. Calculate it from your trade history to compare accounts or instruments.
- Margin is not a cost. It is collateral that is locked while the trade is open. But costs reduce equity, and that brings you closer to a margin call and stop out.
If you trade with Exness, check the current spreads, commissions and swaps for your account type in the Exness personal area or on the official site.
Costs, risk and the Pakistani context
Costs are certain; profits are not. Leveraged CFD and forex trading can lose money fast, and costs are added to every loss. See why retail traders lose money and risk management.
Pakistani readers should also know the regulators' position. On payments: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). In addition, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Read law and regulators before you put money in.
Frequent questions
What is the biggest part of forex trading costs?
It depends on how long you hold. For short trades the spread and commission dominate. For trades held over many nights the swap can be larger. Enter your holding time in the calculator to see the split.
Is a zero-commission account cheaper?
Not necessarily. The cost may be in a wider spread instead. Compare spread plus commission in pips for the same instrument and lot size.
Why does my trade show a loss right after opening?
Because you bought at the ask and the position is valued at the bid. The spread, and any commission, is already deducted.
Can swap be positive?
Sometimes, on one side of some pairs, depending on the interest difference and the provider's rates. Check the current swap rate for each direction before relying on it.
Do I pay the spread twice?
No. The spread is crossed once, when you open. Commission may be charged on both sides, depending on how it is quoted.
Where can I practise without real costs?
A demo account shows spreads and swaps in practice without real money. Live conditions, especially slippage, can differ. See demo vs live.