What is the total cost of a forex trade?
For a cost estimate, add the spread cost, round-trip commission, overnight financing and execution slippage, then subtract any eligible rebate. Convert every item to the same currency and use the same position size and holding period.
Estimated net cost = spread cost + commission + signed swap cost + signed slippage cost − eligible rebate. Treat a financing charge or adverse slippage as a positive cost; treat a credit or favourable slippage as negative. This is a comparison framework, not an extra deduction from an already calculated trade profit.
Which costs should you compare?
Compare the full transaction, including both opening and closing charges where applicable.
| Item | What to check |
|---|---|
| Spread | The gap between bid and ask. Convert the quoted points or pips to money for your position size. |
| Commission | Whether the rate is per side or for a complete round trip, and which currency it uses. |
| Swap / financing | The long or short rate, calculation method, rollover schedule and any credit rather than charge. |
| Slippage | The difference between the intended reference price and actual fill, measured consistently at entry and exit. |
| Rebate | Confirmed eligible volume and terms. Keep an estimated or pending payment separate from money received. |
MetaTrader's Market Watch documentation explains bid/ask quotes and symbol specifications. Check the symbol in your own account; a pip or point is not a universal cash amount.
A hypothetical USD cost example
An assumed USD 25 spread cost minus an assumed USD 10 rebate leaves USD 15 of net cost when all other items are zero.
| One hypothetical round trip | USD |
|---|---|
| Spread cost | 25 |
| Total commission | 0 |
| Swap cost | 0 |
| Slippage cost | 0 |
| Eligible rebate, subtracted | 10 |
| Estimated net cost | 15 |
These numbers are arithmetic inputs, not a TMGM quote, account offer or promised rebate. A change in the spread, holding period, execution or eligibility changes the result.
How do you avoid counting a cost twice?
When reconciling completed trades, start with the actual fills and your statement's definitions rather than subtracting every estimated cost again.
- Identify whether the reported profit already includes commissions, fees and swaps. Add only entries excluded from that figure, using their recorded signs.
- Do not subtract spread or slippage again from profit calculated using actual entry and exit prices; those prices already reflect the execution.
- Add a rebate received only if it is not already included in the result you are reconciling. Track pending rebates separately.
- Keep deposits, withdrawals and transfers separate from trading performance.
Report labels matter: MetaTrader 5's Trading Report documentation distinguishes gross figures excluding swaps and commissions from profit/loss figures that include them. Check the report and section you actually use.
Does a lower spread mean a cheaper account?
No. Compare the same instrument, position size, holding period and currency across accounts, including commissions and confirmed rebates.
A smaller advertised spread alone cannot establish a lower total cost. Use your actual activity and account terms; increasing trading just to earn a rebate also creates additional costs and market exposure. Read the IB and rebate guide for eligibility checks and the meaning of a full rebate.
Frequently asked questions
Are spread and commission the same cost?
No. Spread is the bid/ask price gap; commission is a separate charge where applicable. Check both and whether commission is quoted per side or round trip.
Does a rebate refund every trading cost?
No. Subtract only the eligible rebate under the confirmed arrangement. Do not assume that spreads, commissions, financing or losses will all be refunded.
Should I subtract the spread from my statement profit?
Not again if that profit was calculated from actual entry and exit prices. Check separately whether the figure already includes commissions, fees, swaps and any rebate.
Can I compare a rebate in dollars with a spread in points?
Only after converting both to the same currency and position size using the instrument's specifications. Confirm the units and use eligible trading volume, not an assumed universal value per point.
Sources and related guides
The linked MetaTrader documentation supports the platform definitions and report distinctions. The worked example and reconciliation checklist explain the calculation; they do not verify any broker's current rates.