I’ve been trying to figure out what I’ll actually pay when I trade, and I keep getting confused by different numbers. One broker shows 0.8 pip spreads, another shows 1.2 pips, but then there’s commission, overnight fees, and rebates on top of that.
I found out about GlobeGain rebates earlier this week, and it seems like they cashback a portion of the spread depending on the broker. But how do you actually factor that in when you’re comparing two brokers side by side?
Let me try to think this through with an example: if I’m trading EUR/USD and I open and close a position, what’s the actual cost I’m paying? I see spreads quoted, but are there hidden costs I should know about, or do the ones listed include everything except commission?
Maybe someone on here has already done this calculation and can walk me through how to compare two brokers properly?
You’re thinking about this the right way. Here’s the exact calculation:
Total cost per lot = (spread in pips + commission if any) minus (rebate in pips from GlobeGain).
Example: Broker A has 0.8 pip spread on EUR/USD and offers 0.3 pip rebate through GlobeGain. Broker B has 1.2 pip spread and 0.5 pip rebate. Real cost is Broker A at 0.5 pips, Broker B at 0.7 pips. Broker A wins.
But there’s a catch: spreads widen during news and volatile sessions. A broker showing 0.8 pips during calm market might jump to 2 pips during volatility. Most rebate rates stay flat, so your real cost swings more than the quoted spreads suggest.
Check both quoted spreads and average spreads during high volatility before deciding. Then multiply by your typical monthly volume to see actual dollar savings. That’s how you catch which broker truly costs less.
Don’t forget overnight holding costs. Swap fees or financing charges apply if you hold positions past market close. Some brokers charge flat rates, others charge percentages.
If you day trade only, ignore swap fees. If you swing trade, factor them in. A broker with tighter spreads but brutal swap charges might actually cost more overall.
Also check if commissions are included in the quoted spread or added separately. STP accounts usually quote all-in spreads. ECN accounts quote spread plus commission separately. Make sure you’re comparing apple to apples.
Once you’ve calculated total cost, backtest it against your actual trading volume and style. A 0.2 pip savings per trade doesn’t matter if you scalp 100 times a day, but it adds up if you take 5 positions a day.
I spent weeks trying to do this exact calculation when I was switching brokers. Here’s what actually worked for me:
I took my last three months of real trades, counted how many lots I traded each month, and multiplied that volume against each broker’s total cost. Used a spreadsheet with columns for spread, commission (if any), rebate, and swap fees for positions I held overnight.
For EUR/USD alone, the difference between my old broker and Tickmill came to about $45 per month saved. Doesn’t sound like much until you realize that’s $540 a year from one currency pair.
The real eye-opener was seeing that half my cost was actually coming from swap fees, not spreads. I switched to a broker with lower overnight rates and that was just as important as finding tighter spreads.
I’d recommend doing this honest calculation yourself instead of trusting any broker’s claims about low costs. Your actual trading pattern is unique.
The clearest way I found was writing it out like this:
Per lot round trip = (entry spread + exit spread) + commission - rebate + swaps if held overnight.
So if you’re on EUR/USD and hold it for two hours, you’re just paying spread and rebate. But if you hold overnight, add the swap fee, which changes everything.
I checked three brokers this way and picked the one that was cheapest for my actual trading style, not the one with the lowest headline spread.
It takes a bit of math but it’s worth doing once. Makes everything clearer.
Spread plus commission minus rebate equals actual cost. Check swap fees if you hold positions overnight.
Total cost is spread plus commission minus rebate.
Widen spreads during news blow up your actual costs.