I’m trying to calculate my real trading costs across different brokers and it’s getting confusing. XM advertises pretty tight spreads but I want to understand the actual numbers.
Let’s say I’m trading EUR/USD 10 times a month with standard lot sizes. I see XM quotes around 1.0-1.2 pips on that pair, but I also see other brokers saying 0.8 pips or even lower. The question is - what’s actually comparable? Some brokers have commissions built in, some use pure spreads, and then there’s the rebate programs that can change everything.
I’ve been looking at GlobeGain’s rebate structure and it seems like it could make a real difference in my bottom line, but I’m not sure how to fairly compare XM against, say, FP Markets or Swissquote when they all have different fee structures.
How do you actually calculate your true trading cost when rebates are involved? What’s been your experience - does the rebate actually bridge the gap if a broker’s spreads are higher, or should I just focus on finding the lowest base spreads first?
Total cost formula is simple: spread + commission minus rebate equals your real cost per trade.
For EUR/USD example: XM at 1.1 pips with a 0.3 pip GlobeGain rebate actually costs you 0.8 pips per round trip. A broker quoting 0.8 pips with no rebate costs you 0.8 pips. They’re identical on cost, so execution quality becomes the tiebreaker.
Here’s what matters: calculate costs on the pairs you actually trade. Some brokers offer tight spreads on major pairs but wider spreads on crosses. XM is fairly consistent across their pair lineup. Also track actual slippage over 30 days - sometimes a cheap spread gets eaten by poor execution, making your real cost higher.
Rebates absolutely bridge gaps if the numbers work. But don’t chase rebates at a broker with sketchy execution. Cost per pip means nothing if your entry/exit gets slipped.
I used to jump between brokers chasing the lowest spreads. Wasted months doing it.
Here’s what I learned: pick one broker, track your actual costs for a full month - spreads, any commissions, minus rebates. Don’t just look at advertised spreads because they change during volatility.
With XM plus GlobeGain rebates, my effective cost came out to about 0.85 pips on EUR/USD trades. That’s competitive with most other STP brokers I tested. I switched to ECN accounts with FxPro after that and realized the way higher commission wasn’t worth it for my style of trading.
The real answer: your trading results matter infinitely more than saving 0.1 pips per trade. Focus on that first.
I track this pretty carefully since I’m trying to optimize my costs too. What I do is I calculate my costs monthly based on what I actually paid in spreads and any commissions, then I subtract my GlobeGain rebate.
For my trading, XM with the rebate comes out cheaper than a couple of other brokers I tested. But the difference isn’t huge - maybe 5-10% over a month. What matters more is that I like their platform and their support is responsive.
I think if the cost difference is small, just stick with what works for you rather than constantly switching around.
Calculate spread minus rebate. Compare across three brokers. Pick best execution.