Compare spread, both sides of commission and the intended holding period in one currency. A minimum spread is only one input.
Put both pricing models in the same unit
A spread-only account incorporates the difference between buy and sell quotes into the displayed price. A raw-spread account can combine a narrower quoted spread with a separate commission. Neither label establishes the cheaper choice for every instrument, trade size or holding period.
Pepperstone’s official UK account documentation provides a concrete example of those two structures. Rates and treatment can differ by market and legal entity, so compare the account available to you. The forex broker directory helps identify the regional offering before you work through a cost estimate.
Calculate a hypothetical round trip
Assume an illustrative currency trade whose pip value is $10. A 1.2-pip spread would represent about $12 of spread cost. Another fictional account quoting 0.2 pips plus a $3 commission per side would imply about $2 of spread plus $6 of round-trip commission, or $8 before other costs.
These are invented rates to demonstrate the arithmetic, not current quotes or a provider comparison. Check the contract’s lot size, pip value, commission currency and whether a published commission is one side or both. Converting a per-lot price into a round-trip price correctly is essential before declaring one model cheaper.
Account for the time you hold the trade
A trade closed quickly and a position held across several funding cutoffs can have very different total costs. Overnight charges depend on the instrument, direction, size and the current rate. The applicable day-count convention and holiday treatment can also matter. Read the broker’s official cost information rather than extrapolating from one screenshot.
IG’s overnight-funding help page explains a provider-specific calculation framework. Use such documentation to identify the inputs your own estimate needs. Keep funding separate from commission so you can change the holding-period assumption without rebuilding the entire comparison. A quoted minimum spread is not an all-in holding cost.
Use realistic observations rather than headline minimums
Observe the instrument during the sessions you intend to use. Record indicative spreads, actual commissions and execution outcomes where available, with the date and account type. A brief minimum spread says little about the average during a busy announcement or a thinly traded period.
Include currency conversion, withdrawal charges where applicable and the possibility of slippage. Use the FXSort calculators for a simple budget estimate, then replace assumed inputs with the broker’s current schedule. The goal is a transparent comparison for a defined trade, not a claim that one account structure always wins. Check product and regional terms before opening an account.
Sources & further reading
Educational research. Examples are hypothetical. Provider terms and regional availability can change. Suggest a correction.
Put the comparison into practice
Open the directory, choose a category and select up to three providers to compare.
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