7 minute read · Ultimo Research Desk · Reviewed 5 Sept 2026
The Real Cost of a Forex Trade: Spread, Commission and Swap Added Up
A forex trade has three costs — the spread, any commission, and the overnight swap if you hold it — and they come in three different units, which is why people add them wrong. This guide puts all three in dollars on one 0.10-lot EURUSD position, then shows the one mistake that makes a trade look more expensive than it was. The spread guide and the swap guide go deeper on each; this is the sum.
Three costs, three units
| Cost | Quoted as | Charged when |
|---|---|---|
| Spread | Pips (or points) | Built into the buy and sell prices — you pay it by trading |
| Commission | Currency per lot, per side or round trip | Booked at open and close, if the account charges one |
| Swap | Points, currency or a percentage | Booked at the daily rollover for each night held |
Ultimo's contract specifications quote forex and metal swaps in points and stock and crypto swaps as percentages; the units are not interchangeable.
Spread, in dollars
EURUSD at Ultimo is 100,000 units per lot, quoted to five decimals. One pip (0.0001) on one lot is USD 10; on 0.10 lot, USD 1. The pip calculator does this for any size.
Assume a spread of 1.2 pips — an assumption for the example, not a published Ultimo figure; live spreads move and are on the platform.
Spread cost on 0.10 lot = 1.2 × USD 1 = USD 1.20
Commission, if any
Assume an account charging USD 3 per lot per side. Round trip on 0.10 lot:
3 × 0.10 × 2 = USD 0.60
Two things to check on any commission quote: whether "per lot" means per side or round trip (doubling a round-trip figure overstates it), and whether the account charges one at all. If not, this line is zero — the trade still has the other two costs.
Swap, from the published specification
The 31 August 2026 export lists EURUSD long swap at −12 points and short at 0, with Wednesday as the triple-swap night. A point on a five-decimal quote is 0.00001.
One night, long, 0.10 lot = −12 × 0.00001 × 100,000 × 0.10 = −USD 1.20
Wednesday's rollover charges three nights: −USD 3.60. These are dated values from that export; the current rate is on the platform, and the swap calculator runs this sum for any symbol and any number of nights.
Added up
| Item, 0.10 lot EURUSD held one ordinary night | USD |
|---|---|
| Spread (assumed 1.2 pips) | 1.20 |
| Commission (assumed USD 3/lot/side) | 0.60 |
| Swap (published −12 pts, one night) | 1.20 |
| Total | 3.00 |
Three dollars to hold ten thousand euros overnight. Not much — until it is done forty times a month, when it is USD 120 the strategy has to earn before it earns anything. That is the number to know before choosing how often to trade.
The double-count
Now the same trade with real fills. You buy 0.10 lot at the ask, 1.10012, and sell at the bid, 1.09980.
(1.09980 − 1.10012) × 100,000 × 0.10 = −USD 3.20
Book the commission (USD 0.60) and one night's swap (USD 1.20): −USD 5.00. Do not now subtract another USD 1.20 "for the spread". You already paid it — it is the reason you bought at .012 and sold at .980 rather than at one price in the middle. The spread lives inside the fills; the profit and loss calculator works from prices for exactly this reason. Counting it again is the commonest way traders convince themselves a broker is charging more than it is.
Frequently asked questions
Zero commission means free? No. Spread and swap remain. It means one of three lines is zero.
Is margin a cost? No. Margin is collateral, returned when the position closes. It is also not the most you can lose.
Positive swap is income? It is a credit, and it can be smaller than the price move against you. It is not a return.
What does depositing and withdrawing cost? Nothing from Ultimo; your bank or the crypto network may charge on their side. Details on the funding page.
Educational content, not investment advice. Spread and commission figures above are assumptions; the swap is a dated published value. Costs and prices change.
Sources
Written by the Ultimo Research Desk and checked against our own contract specifications and client agreement before publication; reviewed again when those change. Educational only — nothing here is a recommendation to trade. Spotted an error? Tell us.
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