trading-costs
Spread, commission and swap: what is the difference?
Separate the three trading costs traders most often meet: spread, commission and swap; understand when each matters and why a lower spread does not always mean a cheaper account.
When traders compare accounts, one number is easy to notice: “spreads from 0.0 pips.” But a trade can carry several layers of cost. Three of the most common are spread, commission and swap.
Looking at only one layer can make an account appear cheaper even when it does not fit the way you trade.
What is spread?
Spread is the difference between the ask price and the bid price at a given moment.
If you open and immediately close a position while the market does not move, spread is one reason the position normally starts slightly negative.
Spread can:
- differ by instrument;
- widen when liquidity falls;
- increase around news or strong volatility;
- differ across account types.
That means “from 0.0” is a starting level under certain conditions, not a promise that spread is always 0.0.
What is commission?
Commission is a fee charged separately by the broker. It can be calculated:
- per lot per side;
- as a round-turn fee for opening and closing;
- as a percentage of notional/value;
- or not charged separately when more of the cost is built into the spread.
For example, Exness currently describes its Standard account as commission-free with spreads from 0.2 pips, while Zero and Raw Spread use lower-spread structures with separate commissions. This is a practical example of why account types cannot be compared by spread alone.
What is swap?
Swap is an overnight financing charge or adjustment linked to holding a position through rollover. The amount can depend on:
- the symbol;
- Buy or Sell direction;
- the day the trade is held;
- broker/account rules;
- whether a swap-free condition applies.
A scalper who closes within the day may care less about swap than a trader who holds XAUUSD or an index position for several nights.
A simple example
Imagine two accounts:
Account A
- wider spread;
- no separate commission.
Account B
- tighter spread;
- commission per lot.
For a trader using small size, few trades and longer holding periods, the result can be very different from a scalper who opens and closes many trades each day. There is no account that is automatically “cheapest” for every trading style.
How should total cost be viewed?
A practical approximation is:
Total trading cost ≈ Spread cost + Commission + Swap + other applicable charges
For a specific trade, you need to know:
- The spread at the time, or a reasonable spread assumption.
- Trade size.
- Commission for the exact account type.
- Expected number of overnight holds.
- Buy/Sell swap for the exact symbol.
Which cost matters most by trading style?
Scalping / very short-term trading
Spread and commission often dominate because the number of entries and exits is high.
Intraday trading
Spread + commission still matter. Swap may not apply if the position is closed before rollover, but the broker’s rules should be checked.
Swing / multi-day trading
Swap can become meaningful. An account with attractive spreads but expensive overnight financing may still be a poor fit.
Three common comparison mistakes
1. Treating “from spread” as the real cost
“From” is a minimum starting point. Actual spread can vary with market conditions.
2. Ignoring commission on raw/zero/ECN-style accounts
Very low spread does not automatically mean very low total cost.
3. Checking the wrong instrument
Costs on EURUSD, XAUUSD and NAS100/US100 should not be assumed to be the same.
A practical Yoshi workflow
Before choosing an account:
- identify your main instruments;
- estimate how often you trade;
- decide how long positions are usually held;
- collect spread, commission and swap from the exact account/symbol;
- test a few scenarios with the Trading Cost Estimator.
Sources to verify
- Exness Standard Accounts: https://www.exness.com/standard-accounts/
- Exness Professional Accounts: https://www.exness.com/pro-accounts/
Fees can change by account, instrument, jurisdiction and time. Always check the current specification in your own broker/account before trading.