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
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Cost per month
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Cost per year
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Annual drag on your account
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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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