Two ways brokers get paid

Spread-only accounts bundle the cost into a wider spread. Commission accounts charge a transparent per-lot fee and usually show a tighter spread.

Neither is automatically cheaper. The right choice depends on your trade size and frequency.

How to compare them fairly

Convert both to the same unit: cash per round trip. Add the spread cost (spread in pips x pip value) to any commission (charged per side, so doubled per round trip).

The Trading Cost Calculator does this automatically so you can compare accounts like for like.

  • Spread-only: spread cost only
  • Commission: spread cost + 2 x commission per lot

Which suits you?

High-volume and scalping strategies often prefer commission accounts because tight spreads reduce cost at scale. Occasional traders may find spread-only simpler and competitive.

Frequently asked questions

Why would anyone choose a wider spread?
Simplicity and predictability. You see one price and no separate fee, which some traders find easier to manage.
Can a broker charge both?
Yes. Some accounts charge both a commission and a spread. Always total both before judging the cost.