I’ve been trying to compare IC Markets against a couple other brokers I’m considering, but every time I calculate costs, I get different numbers depending on what I include.
One day I’m comparing just spreads. Another day I add commissions. Then I wonder if I should factor in rebates from GlobeGain. And what about swap costs if I’m holding overnight? Withdrawal fees? The slippage I actually experience versus the advertised numbers?
It feels like there’s no standard way to do this. People online throw around different metrics and it’s confusing. Some focus only on spreads. Others include rebates but not execution quality. I haven’t seen anyone actually measure their real cost per trade in a practical way.
Here’s what I want to know: what should I actually be measuring? Is there a framework that includes everything relevant without getting ridiculous? And how much does actual execution quality factor into this - like, what’s the value of getting filled at the quoted price versus getting slipped?
How do you calculate your true cost per trade across different brokers?
Spread plus commission minus rebate equals actual cost.
Build a simple framework. Your true cost per lot is: (spread in pips + commission in pips if any - rebate in pips) = net cost.
For IC Markets on EUR/USD: 0.6 pip spread, no commission, 0.3-0.4 pip rebate through GlobeGain. Net cost 0.2-0.3 pips.
Then add expected slippage. If you usually get filled 0.1-0.2 pips away from quoted price, real cost is 0.3-0.5 pips per round trip.
Compare this to other brokers using the same formula. The one with the lowest net number is cheapest. Simple.
Swaps and overnight fees matter only if you hold positions. Most scalpers don’t need to factor them. If you swing trade, add swap cost per day divided by average trade duration.
Track this over 30-50 trades on each broker. Record actual entry price versus filled price, the spread you saw, and calculate backwards. Real data beats estimated numbers every time.
Also, measure this during different market conditions. Spreads and slippage differ between quiet hours and volatile news times. Your true cost varies by when you trade.
I built a simple spreadsheet where I track:
Broker name, instrument, spread, rebate, commission, actual slippage, and total cost per round trip.
I do this for about 20 trades on each broker, then average the results. Gives me a realistic picture.
IC Markets usually comes out competitive on this metric for me, mainly because their rebates are solid and execution is clean.
But I also track which broker feels easiest to use and has the best support. Sometimes a tiny cost difference isn’t worth switching if you’re comfortable where you are.
One thing I learned - advertised spreads and real spreads are different. Test each broker with real money on 5-10 small trades first. You’ll see their actual spread and slippage. That’s more accurate than reading their website.
GlobeGain rebates definitely factor in. They’re real money back to you, so don’t ignore them in the calculation.
Track actual costs over 20-30 trades not just advertised numbers on the website.
I use this framework and it’s been solid:
Total cost per round trip = (bid-ask spread on real trades + commissions and fees) - rebates awarded.
I track this data for 50 trades on each broker I’m comparing. Average the costs. Highest average wins in terms of being cheapest.
For IC Markets I averaged 0.35-0.45 pips per round trip on EUR/USD when including GlobeGain rebates. Other brokers I tested were 0.50-0.80 pips per round trip. IC Markets was cheaper.
But here’s the thing I learned - don’t just chase the cheapest. Measure and compare the consistency too. If IC Markets costs 0.35 pips on average but ranges from 0.15-0.75 depending on conditions, and another broker costs 0.40 pips but ranges 0.35-0.45, the second one might be better even if slightly more expensive. Consistency matters for risk management.
Also include withdrawal fees in your annual calculation. If one broker charges $50 per withdrawal and you withdraw monthly, that’s $600 per year. Matters more than people think.
And factor in which broker actually owns your account infrastructure. IC Markets for example uses solid backend systems. I’ve tested some cheaper alternatives that had platform issues during volatility. The cost savings disappeared when I lost money on bad execution.
Measure everything but also measure reliability under stress. Cheapest isn’t always best.