The real cost of trading

Spread and commissions look like crumbs per trade… until you add them up. Find out what they really take per month, per year, and what % of your account your strategy must beat just to break even.

Your trading

COST PER TRADE
Cost per month
Cost per year
Annual drag on your account

Why this decides more than you think

Every time you open and close a trade you pay the spread (the gap between buy and sell) and, with many accounts, a commission. Individually it looks like nothing: a couple of dollars. But multiply it by your frequency and the number gets scary. A scalper doing 100 trades a day can be giving away thousands of dollars a month in costs — a drag their strategy has to beat before earning a single cent.

This is the number-one reason systems that look profitable on paper end up red: the backtest ignores or underestimates costs. An edge of +2 pips per trade evaporates if the spread is 2 pips. So the more you trade, the more cost matters — and that's why brokers love overtraders.

Related: how spread spikes in dead hours, and why we validate with real ticks (which include the real cost) instead of trusting a clean backtest. Learn it in depth in the hidden costs lesson.

Frequently asked questions

What do I put for "pip value per lot"?
For most USD-quoted pairs (EUR/USD, GBP/USD…) with a USD account, it's $10 per standard lot. For gold and yen pairs it varies; you can work it out with our position size calculator or ask your broker.
Is commission per side or round-turn?
Many ECN brokers charge "per side" (on open and on close). Here enter the round-turn commission (both sides combined) so the per-trade cost is complete. If your broker charges no commission ("commission-free" accounts), put 0 — but beware: the cost is baked into a wider spread there.
Is my data sent anywhere?
No. Everything is computed in your browser. No signup, no cookies, no server.

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