Commission versus spread-only accounts: a break-even calculation
Posted: Mon Nov 02, 2026 7:24 pm
Many brokers offer two account types: one with wider spreads and no commission, and one with tight raw spreads plus a commission per lot. Which is cheaper depends on how you trade.
A worked example: account A has an average spread of 1.2 pips on EURUSD and no commission. Account B has 0.2 pips plus a round-turn commission equivalent to 0.7 pips. Account B costs 0.9 pips in total, cheaper by 0.3 pips per trade. For a trader doing 200 lots a month, that difference adds up.
The calculation changes for pairs where raw spreads are wider, during news when spreads widen on both accounts, and for traders using very small sizes, where minimum commissions may apply.
A practical method is to export a month of your own trades and compute the total cost on both account types. That gives a personalised answer rather than a general one.
Some brokers also have different execution models for the two account types, which may matter.
Which account type do you use, and did you run the numbers?
A worked example: account A has an average spread of 1.2 pips on EURUSD and no commission. Account B has 0.2 pips plus a round-turn commission equivalent to 0.7 pips. Account B costs 0.9 pips in total, cheaper by 0.3 pips per trade. For a trader doing 200 lots a month, that difference adds up.
The calculation changes for pairs where raw spreads are wider, during news when spreads widen on both accounts, and for traders using very small sizes, where minimum commissions may apply.
A practical method is to export a month of your own trades and compute the total cost on both account types. That gives a personalised answer rather than a general one.
Some brokers also have different execution models for the two account types, which may matter.
Which account type do you use, and did you run the numbers?