Forex Commission Explained: What Brokers Charge Per Trade

Forex commission is a fixed fee a broker charges per lot traded, usually $3.50 per lot per side ($7.00 round turn) on raw spread accounts at brokers like IC Markets and Pepperstone. Commission-free accounts charge $0 but widen the spread instead. Total cost equals commission plus spread.

A typical forex commission is $3.50 per lot per side, which means $7.00 for a full round trip on a standard 100,000-unit trade. That fee applies to raw spread accounts only. Commission-free accounts charge $0 but build the cost into a wider spread. This guide shows how each model works, with real broker numbers, so you can compare any option in our forex broker directory on total cost.

What Is Forex Commission?

Forex commission is a fixed fee a broker charges for each lot you trade. It is separate from the spread, which is the gap between the buy price and the sell price.

A lot is 100,000 units of the base currency. On EUR/USD, one pip on a standard lot is worth $10. A 0.1 pip spread therefore costs $1.00.

Brokers price trades in two main ways:

• Raw spread plus commission: spreads start near 0.0 pips, and you pay a fixed fee per lot.
• Spread only: the broker adds its fee into a wider spread and charges no separate commission.

Fixed fees appear most often on ECN, Pro and Raw accounts, where spreads are lower (Source: BrokerChooser). That ECN commission replaces the markup a spread-only broker adds to the price.

The fee is flat per lot. The spread moves with the market, so judge a broker on both.

Per Side vs Round Turn: How Commission Is Charged

Per side means one charge when you open a trade and one when you close it. Round turn is both charges added together, so $3.50 per side equals $7.00 round turn.

Brokers usually quote the commission per side figure. That makes the cost look half as large as it is. Always double it, and use the round turn commission when you compare brokers.

Commission by Lot Size

Commission follows position size, not margin or leverage. At $3.50 per side, the cost scales like this:

Data sourced from IC Markets and Pepperstone official sites. Last updated: October 2026.

A Common Beginner Mistake

A BabyPips forum thread shows a new Razor account user unsure whether $3.50 covered the whole trade. It does not. It covers one leg, and the exit leg adds the same amount.

Some brokers deduct the full round turn fee at entry, so the charge can appear right after you open the position.

How Much Does a Broker Charge Per Trade?

How much do forex brokers charge? Raw spread accounts usually run $2.00 to $3.50 per lot per side, which is $4.00 to $7.00 round turn. That range is the typical forex commission per lot on regulated raw accounts today.

IC Markets lists its Raw Spread account at $3.50 per lot per side ($7.00 round turn), with an average EUR/USD spread of 0.1 pips (Source: IC Markets official site, October 2026). Its Raw Pro and Raw Pro+ tiers cut that to $3.00 and $2.00. Read our IC Markets review for account details.

Pepperstone's Razor account charges a fixed $3.50 per lot per side (Source: Pepperstone official site, October 2026). Fusion Markets charges $2.25 per side on its Zero account, or $4.50 round turn (Source: Fusion Markets official site, October 2026). AvaTrade charges no separate commission and builds its fee into the spread.

Broker Commission Comparison

Data sourced from IC Markets, Pepperstone and Fusion Markets official sites, plus independent fee tests for AvaTrade. Last updated: October 2026. Check the official register for your own entity.

Commission can change by platform, account currency and regional entity. IC Markets quotes its cTrader Raw account at $3.00 per $100,000 traded instead of a per lot rate. Confirm the rate for your own entity before funding an account.

Commission vs Spread: Which Costs More?

Neither is cheaper by default. In any spread vs commission comparison, add both to get the true cost per lot.

The rule is simple: total cost = round turn commission + spread cost. On a standard EUR/USD lot, each pip of spread costs $10.

Data sourced from IC Markets and Fusion Markets official sites and independent AvaTrade fee tests. Last updated: October 2026.

The lowest advertised spread does not give the lowest total cost. IC Markets has a tight 0.1 pip average, yet the lower Fusion Zero fee wins on the all-in number. Fusion's own page puts its Zero account near 0.5 pips all-in and its Classic account near 0.9 pips (Source: Fusion Markets, October 2026). Live spreads move with volatility, so treat these as normal-market estimates.

Five-Trade Example

A trader opens five 1.0 lot EUR/USD trades in one session. At IC Markets Raw Spread, the cost is 5 × $8.00 = $40.00. At Fusion Zero, it is 5 × $5.00 = $25.00. At AvaTrade, it is 5 × $9.00 = $45.00.

The gap between the cheapest and the dearest account is $20.00 for one session, and it grows with every trade.

Are Commission-Free Forex Accounts Really Free?

No. Commission free forex brokers charge $0 in commission but add their fee to the spread. You still pay on every trade, just inside the price.

Fusion Markets shows this clearly. Its Zero account totals about 0.5 pips, while its Classic account totals about 0.9 pips. On one standard lot, that is roughly $5.00 against $9.00.

When Commission-Free Makes Sense

• Small positions: on a 0.01 lot, 0.9 pips costs about $0.09, so the gap against a raw account is about a cent.
• Simple pricing: one number to check, which suits beginners.

When a Raw Account Wins

• High frequency: scalpers and expert advisor users trade often, so a spread saved on each trade adds up.
• Larger lots: a 0.9 pip markup costs $9.00 per standard lot, which exceeds most round turn fees.
• Tier discounts: raw accounts offer lower commission tiers as volume grows.

Volume Tiers and Rebates: How Active Traders Pay Less

Higher account tiers cut commission by up to 43%. IC Markets charges $3.50 per side on Raw Spread, $3.00 on Raw Pro and $2.00 on Raw Pro+ (Source: IC Markets official site, October 2026).

Data sourced from IC Markets official site. Last updated: October 2026.

A scalper who trades 10 lots a day for 20 days pays $1,400 a month at $7.00 but $800 at $4.00. That is $7,200 saved per year. Check each tier's eligibility rules on the broker's site first.

Other Trading Costs Beyond Commission

Commission and spread are only part of your forex trading fees. Swaps, inactivity charges and conversion costs also reduce returns.

Fees to Check

• Swap: charged or paid on positions held past the daily rollover.
• Inactivity fee: AvaTrade reportedly charges $50 after three months with no activity. Verify this on its fee page.
• Currency conversion: applies when your funding currency differs from your account base currency.
• Deposit and withdrawal fees: Fusion Markets advertises no deposit fees.

Spread Widening Risk

On 15 January 2015, the Swiss National Bank removed its 1.20 EUR/CHF floor. Spreads on CHF pairs widened sharply, and Alpari UK entered insolvency the next day.

A fixed commission stays predictable, but raw spreads do not. Check a broker's regulation and financial standing, not only its fee.

How to Calculate Your Forex Commission (Step by Step)

Multiply your lot size by the per side rate, then double the result.

Commission = lots × rate per side × 2

• 0.50 lot at $3.50 per side: 0.50 × 3.50 × 2 = $3.50
• 2.00 lots at $3.00 per side (Raw Pro): 2.00 × 3.00 × 2 = $12.00
• 0.25 lot at $2.25 per side (Fusion Zero): 0.25 × 2.25 × 2 = $1.13

Then add spread cost: pips × pip value × lots. For example, 0.1 pips × $10 × 1.0 lot = $1.00.

If your account base currency is EUR or GBP, your broker may quote the rate in that currency. Use the broker's own calculator to confirm.

How to Choose a Low-Commission Broker Safely

Choose a regulated broker first, then compare total cost per lot. The lowest commission forex brokers mean little if client funds are not protected.

1. Verify the exact legal entity on the FCA, ASIC or CySEC register.
2. Add commission and spread at your usual lot size.
3. Match the account tier to your monthly volume.
4. Confirm the platform rate. IC Markets charges $3.00 per $100,000 on cTrader, not $3.50 per lot.
5. Read the fee schedule for swaps, inactivity and conversion.

Before funding, ask support whether the rate is per side or round turn, and which legal entity holds your account.

Use our broker categories to filter by regulation and account type.

Low fees do not remove market risk. IC Markets' European site reports that 72.52% of retail CFD accounts lose money with that provider (Source: icmarkets.eu risk warning, October 2026).

Conclusion

Forex commission is simple once you double the per side rate and add the spread. Raw spread accounts charge $2.00 to $3.50 per lot per side. Commission-free accounts charge the same cost inside spreads near 0.9 pips.

In the examples above, one standard lot costs between $5.00 and $9.00 all-in. Compare total cost at your own lot size, verify the regulator, and review your account tier as your volume grows.

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial or investment advice. Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Always verify a broker's regulatory status through official authorities such as FCA, ASIC, or CySEC before depositing funds.