How much does a standard lot cost in spread?

The cost depends on the broker and currency pair. For example, a 1-pip spread on EUR/USD costs $10 per standard lot. Spreads can be as low as 0.1 pips on raw accounts, but those often charge a commission.

Is commission charged per side or round turn?

It varies by broker. Some charge per side (open and close), while others charge a single round-turn fee. Always check the fee structure before opening an account.

Does swap affect my trade if I close within a day?

No. Swap is charged only when you hold a position past the daily rollover time (usually 5 PM New York). If you open and close within the same day, you avoid swap.

Can cashback reduce my spread or swap?

Cashback doesn't change the spread or swap you pay to the broker. Instead, it returns a portion of the broker's commission to you, effectively lowering your overall cost per lot.

Is it safe to use a cashback service like Expaid?

Yes. Expaid is an introducing broker, not a custodian of funds. You trade directly with your chosen broker, and Expaid pays you rebates from the commission it receives. Your funds remain with the broker.

Does cashback affect my trading conditions?

No. Cashback is an independent service. Your spreads, commission, and swap remain exactly as set by your broker. Cashback is an extra benefit on top.

What a Trade Really Costs You: Spread, Commission & Swap Explained

Learn how spread, commission, and swap fees impact your trading costs per lot, and how cashback can reduce your true cost.

TL;DR — Every trade carries three main costs: spread, commission, and swap. These directly reduce your profit or increase your loss on each lot. Understanding and minimizing these costs is essential for consistent profitability, and per-lot rebates can effectively lower your true cost per lot.

Why trading costs matter more than you think

When you open a position, you don't just pay the price you see. Brokers make money through spreads, commissions, and overnight swaps. These costs are deducted from your trading account, win or lose. Over time, they can eat into your returns significantly, especially if you trade frequently or hold positions overnight.

For example, a typical spread on EUR/USD is around 1 pip, which equals $10 per standard lot. If you trade 10 lots a day, that's $100 in spread costs daily. Over a month, that's $2,000. Add commissions and swaps, and the total can be substantial.

Breaking down the spread

The spread is the difference between the bid (sell) and ask (buy) price. It's how most brokers charge for executing your trade. Spreads vary by broker, account type, and market conditions. During high volatility, spreads widen, increasing your cost.

To minimize spread costs:

Choose a broker with tight spreads, especially on major pairs and gold.
Avoid trading during news releases or market opens when spreads spike.
Consider raw spread accounts with a small commission instead of a wider spread.

Commission: flat fee or per lot?

Some brokers charge a commission per trade, typically per lot. This is common with raw or ECN accounts. Commission can be charged per side (open and close) or as a round turn. For example, $7 per lot per side means $14 round turn.

Commissions are transparent and predictable, but they add up. If you scalp or trade many lots, commission can be a significant cost. Always factor commission into your risk-reward calculation.

Swap: the overnight cost of holding positions

Swap, also known as rollover, is the interest paid or earned for holding a position overnight. It's based on the interest rate differential between the two currencies. Positive swap means you earn interest; negative swap means you pay. Gold (XAUUSD) typically has a negative swap because it's a commodity.

Swap rates are usually charged at 5 PM New York time. If you hold positions for several days, swap can be a major cost, especially for long-term trades. Some brokers offer swap-free accounts, but they may charge a fee instead.

True cost per lot: how to calculate it

To know your true cost per lot, add spread cost, commission, and swap (if held overnight). For a standard lot (100,000 units), a 1-pip spread is $10. If commission is $7 per side, that's $14 round turn. If you hold overnight, add the swap rate.

Here's a simple comparison table:

Cost type	Example (per standard lot)
Spread (1 pip)	$10
Commission (round turn)	$14
Swap (1 night)	$5 (negative)
Total	$29

If you trade 10 lots a day, that's $290 in costs daily. Reduce those costs, and you keep more of your profits.

In our view — Most traders underestimate the impact of trading costs. A small difference in spread or commission can compound over hundreds of trades. That's why we built Expaid to help you recover a portion of those costs through per-lot rebates.

How cashback reduces your real cost per lot

Cashback, or rebate, is a portion of the broker's commission returned to you. As an introducing broker, Expaid shares a percentage of the commission with you on every lot you trade, win or lose. This effectively lowers your true cost per lot.

For example, if your total cost per lot is $29 and you receive $5 cashback, your real cost drops to $24. Over a month of heavy trading, that adds up. Cashback is paid daily, so you see the benefit immediately.

To see how much you could save, use our cashback calculator and check the rate board for current rebate rates.

Why you should care about every pip

In trading, small edges matter. Reducing your costs by even 10% can significantly improve your profit margin, especially if you trade frequently. Many traders focus on entries and exits but ignore costs, which is a mistake.

By understanding spread, commission, and swap, you can choose the right broker and account type for your style. And by using a platform like Expaid, you can recover some of those costs automatically.

Where to go next: If you want to see how much you could save on your current trading volume, check out our cashback calculator. Then explore how cashback works and compare brokers on our rate board. For more tips on cutting costs, read our guide to forex cashback.