Forex trading costs explained: spreads, commissions, and swaps (EU guide 2026)
Before you place your first trade, you need to understand what trading actually costs you. Most retail traders lose money not just from bad trades, but from not understanding the spread, overnight swap, and hidden fees that accumulate over time. This guide explains every forex trading cost in plain language.
Last updated: July 2026 · CompareFX editorial team · EU/ESMA compliant
The spread: the most common trading cost
The spread is the difference between the price you can buy at (ask) and the price you can sell at (bid). It is measured in pips. On EURUSD at a typical standard account, the spread might be 1.0 pips. On a raw ECN account, it might be 0.1 pips with a $3.50 commission added on top.
// Example: EURUSD, 1.0 pip spread, 1 standard lot ($10/pip)
Spread cost = 1.0 × $10 × 1 = $10 per round-trip trade
Real example: EURUSD standard vs ECN account
Standard account: 1.0 pip spread, no commission → cost = $10 per standard lot
ECN account: 0.1 pip spread + $3.50 commission per side → cost = $1 + $7 = $8 per standard lot
Saving: $2 per lot. Over 100 lots per month = $200 saving. ECN wins at volume.
Variable vs fixed spreads
Most EU-regulated brokers offer variable (floating) spreads that widen during low-liquidity periods (Asia session, news events, market open). The quoted spread is typically the average during the main London/New York session. During major news events like Non-Farm Payrolls (NFP), EURUSD spreads can widen from 0.8 pips to 10+ pips for several seconds. If you trade news, this matters enormously.
| Broker | Account type | EURUSD spread (avg) | Commission /lot | All-in cost /lot |
|---|---|---|---|---|
| Exness | Standard | 0.10 pips | $0 | $1.00 |
| Exness | Raw Spread | 0.0 pips (raw) | $3.50/side ($7 round) | $7.00 |
| Pepperstone | Standard | 1.0 pips | $0 | $10.00 |
| Pepperstone | Razor (ECN) | 0.07 pips avg | $3.50/side ($7 round) | $7.70 |
| IC Markets | Raw Spread | 0.0 pips (raw) | $3.00/side ($6 round) | $6.00 |
| AvaTrade | Standard | 0.9 pips | $0 | $9.00 |
All-in cost calculated at EURUSD $10/pip per standard lot (1 lot = 100,000 units). Commission shown as round-trip total. Spreads are typical London session averages — they widen during low liquidity and news events.
Commission: how ECN accounts actually charge you
ECN brokers pass near-raw interbank prices and charge a fixed commission per lot traded. Commission is charged on both opening and closing the position (hence "per round-trip"). The standard rate is $3.50–$7 per standard lot per side, or $7–$14 round-trip.
When ECN is cheaper than standard
If the commission + raw spread total is less than the standard spread, ECN wins. For EURUSD with IC Markets: 0.0 pips + $6 commission = $6 total vs. a typical standard account spread of $8–$10. ECN saves $2–$4 per lot. The cross-over is usually 5–15 lots per month.
Commission is charged in the account currency (usually USD). On MT4 and MT5, you will see it as a separate line item on your trade history, not embedded in the spread. This makes ECN account costs fully transparent — you can calculate them exactly before trading.
Swap (overnight) fees: the cost of holding positions
When you hold a forex position past the daily rollover (typically 22:00 GMT), your broker charges or credits a swap fee. The swap reflects the interest rate differential between the two currencies in the pair. If you are buying a high-interest currency against a low-interest currency, you may receive a positive swap (a credit). Most retail trades involve a cost (negative swap).
// Example: Long 1 lot EURUSD held 3 days, swap = -$0.50/day
Swap cost = 3 days × $0.50 = $1.50 total
// Wednesday holds = triple swap (covers Sat+Sun rollover)
Triple swap on Wednesdays
Brokers charge three days of swap on positions held Wednesday through Thursday to account for the weekend settlement. If you plan to hold a position over Wednesday night, expect a swap charge 3× the usual daily rate. This is standard across all regulated brokers.
Islamic (swap-free) accounts
Several EU-regulated brokers offer Islamic accounts that do not charge rollover interest (swap), in compliance with Sharia law. Instead, they may charge an administration fee for long-term positions. Both Exness and AvaTrade offer Islamic account options — check their terms for any administration fees that replace the swap.
Other costs: deposit, withdrawal, and inactivity fees
Deposit fees
Most regulated EU brokers do not charge deposit fees for standard methods (bank wire, card). Some brokers pass on card processing fees (typically 1.5–2.5%) when using Visa or Mastercard. E-wallet deposits via Skrill, Neteller, or PayPal are usually free at the broker end, though your e-wallet provider may charge a conversion fee.
Withdrawal fees
Bank wire withdrawals often incur a processing fee of $5–$25, charged by the intermediary banks in the SWIFT network rather than the broker. Card withdrawals back to the original card are usually free for EU clients under MiFID II best execution rules. E-wallet withdrawals are typically free.
Inactivity fees
Some brokers charge inactivity fees (typically $5–$10 per month) if your account has no activity for 12 months or more. Exness and Pepperstone do not currently charge inactivity fees. AvaTrade charges €50 after 3 months of inactivity on funded accounts. Always check the broker's fee schedule before opening an account if you plan to trade infrequently.
| Fee type | Exness | Pepperstone | AvaTrade |
|---|---|---|---|
| Deposit (bank wire) | Free | Free | Free |
| Deposit (card) | Free | Free | Free |
| Withdrawal (bank wire) | Free | Free | Free |
| Inactivity fee | None | None | €50 after 3 months |
| Currency conversion | Varies | Varies | Varies |
How to calculate your total trading cost
Your true cost per trade includes the spread, any commission, and any swap if you hold overnight. For intraday traders, swap is irrelevant. For swing traders, swap can exceed the spread cost on longer holds.
// Intraday EURUSD on Pepperstone Razor (1 lot):
Total cost = $0.70 (0.07 pip spread) + $7.00 (commission) = $7.70
// Held 5 days (including 1 Wednesday) — add swap:
Total cost = $7.70 + (4 × $0.80) + (1 × $2.40) = $7.70 + $5.60 = $13.30