All-in cost per lot: the one number that reveals your broker's real price
Short answer: The all-in cost per lot is the total you pay to open and close one standard lot: the raw spread converted to dollars plus the round-turn commission. A broker advertising '0.0 pips' with a $7.00 commission costs $7.00 per lot, while one advertising '0.9 pips' commission-free costs $9.00 per lot. Always compare on this single, combined figure.
Key takeaways
- All-in cost = (spread in pips x pip value) + round-turn commission.
- A '0.0 pip' raw account with commission is usually cheaper than a 'zero commission' standard account.
- The cheapest ECN we have measured costs circa $5.50 per EUR/USD lot; the cheapest standard circa $5.00.
- Cost differences compound — a $2 saving per lot at 5 lots/day = $2,600/year.
- Always sample spreads during YOUR trading session. Averages hide peak-hour vs off-peak variation.
“Zero commission.” “From 0.0 pips.” Every broker leads with the number that makes their pricing look cheapest. Neither number is useful in isolation. The only figure that honestly compares broker pricing is the all-in cost per standard lot.
The formula
All-in cost per lot = (spread in pips x pip value) + round-turn commission.
For EUR/USD, one pip = $10 per standard lot. So:
| Account type | Typical spread | Commission (RT) | All-in per lot |
|---|---|---|---|
| Raw (IC Markets) | 0.02 pips | $7.00 | $7.20 |
| Razor (Pepperstone) | 0.07 pips | $7.00 | $7.70 |
| Standard (Exness) | 0.5 pips | $0 | $5.00 |
| Fixed (AvaTrade) | 0.9 pips | $0 | $9.00 |
The table makes the point: “zero commission” is not cheaper. The commission is absorbed into a wider spread. Exness is the exception — its standard-account spreads are genuinely tight enough to undercut most ECN pricing.
Why the difference compounds
A $2 saving per lot sounds small. At 5 standard lots per day, 5 days a week, 52 weeks:
$2 x 5 x 5 x 52 = $2,600 per year.
That is money returned to your account simply by choosing a lower-cost broker. For scalpers and day traders executing 10+ lots daily, the figure doubles.
When the cheapest is not the best
Cost is the largest controllable variable in trading — but it is not the only one. A broker with the lowest spread but:
- Weak regulation (no FCA/ASIC/CySEC) exposes your funds to operational risk.
- Slow execution adds slippage cost that does not appear in the spread.
- Slow withdrawals lock up capital you could deploy elsewhere.
Our cost-weighted scoring model weights trading cost at 35% — the highest single pillar — but includes execution, regulation, platforms, withdrawals and support in the remaining 65%.
How to sample spreads yourself
Broker-published “typical” spreads are averages. Reality varies by session:
- London open (08:00 GMT): tightest EUR/USD spreads of the day.
- London–New York overlap (13:00–16:00 GMT): tightest and most liquid.
- Asian session (00:00–06:00 GMT): wider spreads, thinner liquidity.
- Rollover (22:00 GMT): brief spike as swap rates are applied.
Open a demo account, note the live spread at 10-minute intervals during your trading hours, and calculate the all-in cost over a week. That is more useful than any published average.
The bottom line
Compare brokers on one number: all-in cost per standard lot. Convert the spread to dollars, add the commission, and ignore the marketing headlines. Our full cost ranking, updated monthly, does this calculation across {brokers.length} brokers so you do not have to.
Frequently asked questions
How do I calculate the cost per lot?
Take the spread in pips, multiply by the pip value for your pair (for EUR/USD, 1 pip = $10 per standard lot), then add the round-turn commission. That total is your all-in cost per lot.
Is a zero-spread account free to trade?
No. Zero-spread accounts charge a per-lot commission — typically $6–$7 round-turn. The total cost is the commission alone when the spread sits at 0.0, or the commission plus any spread when it widens.
Why do standard accounts sometimes look cheaper?
Because the commission is hidden inside the spread. A '1.0 pip, no commission' account costs $10 per lot — more expensive than most raw accounts at $7.00–$7.70.