Per side and round turn
A broker quoting "$3.50 per lot" usually means per side, charged once to open and again to close, so the real cost is seven dollars a lot. Some quote the round turn directly. The difference is exactly double, and comparing one against the other makes an identical broker look half the price.
Why some accounts have it
A raw spread account passes on the market spread without a markup and charges commission instead. The alternative is a commission-free account where the broker widens the spread. Both are ways of charging for the same thing; which is cheaper depends on the instrument and the hour.
Comparing the two fairly
Convert the commission into pips and add it to the raw spread. On EUR/USD, seven dollars a lot is 0.7 pips, so a raw account at 0.1 pips plus commission is really 0.8 pips. Compare that against the commission-free account’s spread on the same pair at the same time of day.
The monthly number
A cost that looks trivial per trade is not trivial per month. Forty trades a month at seven dollars is $280, charged whether the trades win or lose. That figure is what a strategy has to clear before it earns anything.
In short
| Charged | Per lot, usually both on entry and exit |
|---|---|
| Typical quote | "$3.50 per lot per side" |
| In pips on EUR/USD | About 0.7 pips for a $7 round turn |
| Paid | Win or lose |
Common questions
Which is cheaper, commission or wide spread?
Neither by default. Add commission in pips to the raw spread and compare. On majors the two are usually close; on less liquid instruments the gap can be large in either direction.
Does commission scale with position size?
Yes, it is per lot. Half a lot costs half the commission. That is different from the spread, which is also proportional but is expressed in price rather than money.
Is commission deducted from my profit?
It is taken from the trade, so the profit or loss shown in your statement is already net of it. A trade that looks like it closed flat often shows a small loss for exactly this reason.
Trading forex and CFDs on margin carries a high level of risk. Most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade.