Broker Cost Comparison
Compare trading costs across brokers to find the best deal for your trading style.
Trading Parameters
⚡ Results update automatically as you type
Cost Comparison
| Broker | Spread Cost | Commission | Swap Cost | Total |
|---|
Understanding Broker Costs
Spread
The difference between bid and ask price. A 1-pip spread on EUR/USD costs $10 per standard lot. Lower spreads mean lower costs per trade.
Commission
Fixed fee per trade, usually charged per lot per side (open + close). ECN brokers often have low spreads but charge commission.
Swap/Rollover
Overnight financing fee for holding positions past 5 PM EST. Can be positive (earn) or negative (pay) depending on the pair and direction.
🏦 Broker Types Explained
Market Maker (DD)
- Fixed spreads
- No commission
- Guaranteed fills
- Wider spreads
- Potential conflicts
- Requotes possible
ECN/STP (NDD)
- Tight spreads
- Better execution
- No conflict of interest
- Commission fees
- Variable spreads
- Higher minimums
📝 Tips for Choosing a Broker
Match Your Style
Scalpers need tight spreads. Swing traders should focus on swap rates. Day traders should minimize round-trip costs.
Calculate Total Cost
Don't just compare spreads. Include commission, swap, and any other fees. A low spread with high commission may cost more.
Check Regulation
Ensure broker is regulated by reputable authority (FCA, ASIC, CySEC). Regulation provides fund protection and recourse.
Test With Demo
Open demo accounts with shortlisted brokers. Test execution speed, platform stability, and actual spreads during news.
Frequently Asked Questions
What is a broker comparison tool?
A broker comparison tool helps you compare trading costs across different forex brokers. Our broker comparison calculator analyzes spreads, commissions, and swap fees to find the most cost-effective broker for your trading volume and style.
How do I calculate total broker costs?
Total cost = (Spread × Pip Value × Lots) + (Commission × 2 × Lots) + (Swap × Days × Lots). For EUR/USD with 1 pip spread and $7 commission round-trip: $10 + $7 = $17 per lot. Our broker comparison tool calculates this automatically.
Is low spread always better when comparing brokers?
Not necessarily. Some brokers offer low spreads but charge high commissions. ECN brokers may show 0.2 pips but charge $7 commission, totaling $9 per lot. Our broker comparison tool calculates total costs so you can compare accurately.
Why do swap rates differ between brokers?
Brokers source liquidity from different providers and add their own markup. Some brokers offer swap-free Islamic accounts. Swap rates reflect interbank lending rates plus broker's margin. Compare swap rates using our broker comparison tool.
What is Triple Wednesday/Triple Swap?
Forex settles T+2 (two business days). Wednesday positions held overnight settle on Friday-Monday, so you're charged 3 days of swap. Some brokers apply triple swap on Friday instead. Factor this into your broker comparison.
How much do broker costs actually matter?
Significantly for active traders. A 0.5 pip difference on 100 lots/month = $500. Over a year, that's $6,000. Our broker comparison tool shows potential annual savings from choosing the right broker.
What's the difference between ECN and Market Maker brokers?
ECN brokers offer tight spreads with commission, pass orders to liquidity providers. Market Makers provide fixed spreads, no commission, but may take the other side of your trade. Our broker comparison tool helps compare both types.
Should I choose a broker based on cost alone?
No. Consider regulation (FCA, ASIC, CySEC), platform quality, execution speed, customer support, and withdrawal reliability. The cheapest broker isn't valuable if you can't withdraw profits. Use our broker comparison as one factor in your decision.
Which broker type is best for scalping?
Scalpers need tight spreads and fast execution. ECN brokers typically offer better conditions despite commissions. Use our broker comparison tool to calculate costs for high-frequency trading volumes.
How do I use the broker comparison for swing trading?
Swing traders hold positions overnight, so swap costs matter more than spread. Enter your average holding time in our broker comparison tool to see how swap fees impact total costs over days or weeks.