Forex Broker Fees Explained: Spreads, Commissions and Swaps

The headline spread is only part of your trading cost. To compare brokers fairly, you need to understand all three components.

1. The spread

The spread is the gap between the buy (ask) and sell (bid) price. On EUR/USD it might be 0.1–1.5 pips depending on the broker and account type. Tighter is cheaper.

2. Commission

Raw-spread and ECN accounts often show near-zero spreads but charge a fixed commission per lot (e.g. $3.5 per side). The true cost is spread + commission combined.

3. Swap (overnight financing)

Hold a position overnight and you pay or receive a swap based on the interest-rate difference between the two currencies. For swing traders this can quietly add up.

A quick comparison

• Standard account: wider spread, no commission — simpler for beginners.
• Raw/ECN account: tiny spread + commission — usually cheaper for active traders.