What's the difference between a spread and a commission?

The spread is the gap between the bid and ask price, built into the price itself. A commission is a separate, explicit fee charged per lot traded, usually on top of a tighter (often 'raw') spread. Both are real costs; the question is which combination is cheaper for your trading style, and that depends on your volume and typical hold time.

Why do two brokers quote different spreads for the same pair?

Execution model, liquidity provider mix, and account type all affect the spread you're actually filled at. A standard account bundles a market-up spread with no commission, while an ECN or raw account shows a thinner spread plus a stated commission. Time of day and volatility also move the number, so a single quoted figure rarely tells you what you'll pay on average.

Are advertised 'spreads from 0.0 pips' honest?

They're not dishonest, but they're usually the floor, not the average. That figure typically reflects the tightest moment seen on the most liquid pair during peak London/New York overlap. Outside those hours, or on less-traded pairs, spreads widen. Treat 'from' figures as a best case and check average or typical spread data instead.

Do I need to include swaps and other fees when comparing brokers?

Yes, if you hold trades overnight or trade less liquid instruments. Swap rates, inactivity fees, and currency conversion charges sit outside the core spread/commission table but can add up to more than the spread itself for swing and position traders. A fair comparison looks at the full cost stack, not just the headline numbers.

How do I compare spread-plus-commission accounts against all-in spread accounts fairly?

Convert everything to a single number: total cost per round-turn lot, on the same pair, at the same time of day. Add the commission (both sides, if charged per side) to the spread cost in pips converted to money. PipTax's cost tool automates this so you're not doing broker-specific mental maths under time pressure.

Should I trust a broker's own comparison page against competitors?

Read it, but verify it. A broker's own materials will naturally highlight scenarios where they look competitive. Cross-check the same pairs, sizes, and times using an independent tool, and look at regulator disclosures and third-party execution reports where available.

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How to Read a Broker's Spread and Commission Schedule

Updated 26 September 2026 · 7 min read · PipTax education

Knowing how to read a broker's spread and commission schedule honestly is the single most useful skill for keeping your trading costs under control, because the headline numbers on a pricing page rarely tell you what you'll actually pay. Every broker publishes a schedule, but the format, footnotes, and account types are designed to be compared quickly rather than understood deeply — and that gap is where most traders get misled, usually without anyone lying to them at all.

Why Spread and Commission Schedules Are Easy to Misread

Pricing pages are marketing documents first and disclosure documents second. That doesn't make them dishonest, but it does mean the numbers are presented in the most flattering light by default.

Common ways this plays out:

"From" spreads show the tightest historical moment, not a typical one.
Account-type splitting means the cheap number belongs to a different account than the one you'll open.
Commission stated per side can look half the size until you realise it applies to both entry and exit.
Symbol cherry-picking shows EUR/USD or GBP/USD, the tightest pairs, while ignoring what you'll actually trade.
Footnote conditions — minimum deposit, VIP volume tiers, specific server — quietly attach to the best figures.

None of this is illegal or even unusual. It's just how pricing pages are written everywhere, from brokers to broadband providers. The fix is reading with the right questions, not assuming bad faith.

Spread-Only vs Spread-Plus-Commission: What You're Actually Comparing

Most brokers offer at least two account structures, and confusing them is the most common reading error.

Standard / market accounts: - Spread is wider because the broker's mark-up is built into the price - No separate commission line - Simpler to read, but harder to see the true cost

Raw / ECN / Razor-style accounts: - Spread is close to the interbank rate, often near-zero on major pairs at peak times - A stated commission is charged per lot, per side (check which) - The commission is the mark-up, just shown separately instead of hidden in the price

Neither structure is inherently cheaper. A trader doing high volume on tight pairs often does better on raw-plus-commission; an occasional swing trader may find the all-in spread simpler and not materially worse. The only way to know is to add spread cost and commission together in money terms, for your actual lot size, and compare that single total against the other account's single total.

This is exactly the kind of like-for-like maths PipTax's [cost tool](/audit.html) is built to do — feed in your typical trade size and pair, and it converts both schedules into a comparable total rather than leaving you to eyeball two different units.

Reading the Fine Print That Actually Moves Your Cost

The table on a broker's page is the start of the reading, not the end. Before trusting any number, check:

1. Which server/entity the schedule applies to — brokers regulated in multiple jurisdictions often run different pricing by entity. 2. Time-of-day basis — is the quoted spread an average, a minimum, or a specific session snapshot? 3. Commission direction — per lot, per side, or per round turn? 4. Volume tiers — does the good rate require a monthly volume you won't hit? 5. Platform differences — a broker's own platform and its MetaTrader offering can carry different pricing, as with IG's own platform running alongside its MT4 access, or Pepperstone's MetaTrader server list showing different account routes. 6. Currency of the account — costs quoted in USD can shift in GBP terms after conversion.

None of this is hidden deliberately; it's just spread across footnotes, FAQs, and separate legal-entity pages. Reading the schedule "honestly" means assembling these pieces yourself before you judge the price.

What Sits Outside the Spread and Commission Table

A schedule that only shows spread and commission is, by definition, incomplete. Costs that typically live elsewhere on the site:

| Cost type | Where it usually hides | Who it affects most | |---|---|---| | Overnight swaps | Separate swap/rollover page | Swing and position traders | | Inactivity fees | Terms & conditions | Infrequent traders | | Withdrawal/deposit fees | Payments FAQ | All account sizes | | Currency conversion | Account funding page | Traders funding in a different currency to the account base | | Guaranteed stop premiums | Risk management page | Traders using guaranteed stops |

If you trade infrequently or hold overnight, swaps can outweigh the spread and commission entirely. Check current figures on PipTax's [rates page](/rates.html) rather than relying on a broker's example, since swap rates move with interest rate differentials and are updated regularly.

A Practical Workflow for Reading Any Schedule

Use this sequence every time you evaluate a broker or account type, rather than skimming the top-line number:

1. Identify your real trade profile — typical pair, lot size, hold time, trades per month. 2. Pull the schedule for your exact account type and entity, not the general marketing page. 3. Convert spread to money for your lot size, at a realistic (not best-case) spread. 4. Add commission, checking whether it's charged once or twice per round turn. 5. Add relevant swaps or fees if you hold overnight or trade infrequently. 6. Compare the single total against another broker's total, same conditions. 7. Re-check periodically — schedules and swap rates change, sometimes without much notice.

This is slower than glancing at a "spreads from" banner, but it's the only method that produces a number you can actually trust and act on.

Comparing Brokers Without Guessing

Once you can read a schedule properly, comparing brokers becomes a matter of consistent inputs rather than trust in marketing copy. Look at each broker's live schedule on their [broker pages](/brokers/index.html), apply the workflow above, and be sceptical of any comparison — including a broker's own — that doesn't specify pair, size, and time of day.

Learning to read a broker's spread and commission schedule honestly won't make trading risk-free, and no amount of cost analysis changes the fact that trading forex carries real risk of loss. But it does mean the costs you're paying are ones you chose knowingly, not ones you missed in a footnote. For a full breakdown of how PipTax calculates comparable totals, see the [methodology page](/methodology.html), or run your own numbers through the cost tool before your next account decision.

Key takeaways

A spread and commission schedule only tells the full story when you read the footnotes, account type, and execution model together
'Raw spread + commission' and 'standard spread, no commission' can cost the same or wildly different amounts depending on volume and pair
Advertised 'from' spreads are typically the best-case, low-liquidity-hour figure, not the average you'll actually get
Always check whether swaps, inactivity fees, and currency conversion charges sit outside the headline spread/commission table
Use a like-for-like comparison, on the same lot size, pair, and time of day, before judging any broker as cheap or expensive
PipTax's cost tool applies your real trade pattern to current schedules so you're comparing outcomes, not marketing copy

Want the real number for how you trade? Audit your MT4/MT5 statement free — see your true all-in cost and the genuinely cheapest broker for your style.

Frequently asked questions

What's the difference between a spread and a commission?: The spread is the gap between the bid and ask price, built into the price itself. A commission is a separate, explicit fee charged per lot traded, usually on top of a tighter (often 'raw') spread. Both are real costs; the question is which combination is cheaper for your trading style, and that depends on your volume and typical hold time.
Why do two brokers quote different spreads for the same pair?: Execution model, liquidity provider mix, and account type all affect the spread you're actually filled at. A standard account bundles a market-up spread with no commission, while an ECN or raw account shows a thinner spread plus a stated commission. Time of day and volatility also move the number, so a single quoted figure rarely tells you what you'll pay on average.
Are advertised 'spreads from 0.0 pips' honest?: They're not dishonest, but they're usually the floor, not the average. That figure typically reflects the tightest moment seen on the most liquid pair during peak London/New York overlap. Outside those hours, or on less-traded pairs, spreads widen. Treat 'from' figures as a best case and check average or typical spread data instead.
Do I need to include swaps and other fees when comparing brokers?: Yes, if you hold trades overnight or trade less liquid instruments. Swap rates, inactivity fees, and currency conversion charges sit outside the core spread/commission table but can add up to more than the spread itself for swing and position traders. A fair comparison looks at the full cost stack, not just the headline numbers.
How do I compare spread-plus-commission accounts against all-in spread accounts fairly?: Convert everything to a single number: total cost per round-turn lot, on the same pair, at the same time of day. Add the commission (both sides, if charged per side) to the spread cost in pips converted to money. PipTax's cost tool automates this so you're not doing broker-specific mental maths under time pressure.
Should I trust a broker's own comparison page against competitors?: Read it, but verify it. A broker's own materials will naturally highlight scenarios where they look competitive. Cross-check the same pairs, sizes, and times using an independent tool, and look at regulator disclosures and third-party execution reports where available.

Keep going: Audit Index Methodology Rates