I’m trying to compare FBS fairly against other brokers but I keep confusing myself on what actually costs me money and what the rebates are actually worth.
Here’s what I’m confused about: If I’m looking at a 0.8 pip spread on EUR/USD with a 0.3 pip rebate through GlobeGain, is my real cost 0.5 pips? Or does the rebate calculation work differently? And how do I factor in commissions if I’m using an ECN account?
Morely importantly, what’s a realistic way to compare total trading costs across different brokers without getting lost in all the numbers? Should I be tracking this per trade or calculating averages over a month?
Has anyone actually done this calculation and figured out which broker is genuinely cheaper for their specific trading style?
Calculate it simply: True Cost = Spread + Commission - Rebate
For your example: 0.8 pip spread minus 0.3 pip rebate equals 0.5 pips net cost. If there’s a commission, add that. On a standard lot, every 0.01 pip costs about $1, so 0.5 pips = $5 cost per lot.
For ECN accounts, spreads are tighter but commission is explicit. Example: 0.2 pip spread plus $3.50 commission per lot is roughly 0.35 pips equivalent cost. Rebates reduce this.
Track monthly. Download your statement, sum all spreads paid, subtract all rebates, account for commissions. Divide by total lots traded. That’s your average cost per lot. Do this for 2-3 months to see the pattern. Comparing weekly is noise. Monthly reveals real trends and which broker actually costs less for your volume.
I spent an embarrassing amount of time confused about this before I figured it out.
Yes, you subtract the rebate from the spread. 0.8 minus 0.3 equals 0.5 pips real cost. If there’s commission, you add that separately. Most trade journal software can break this down automatically.
The trick is testing multiple brokers over the same time period with the same strategy. Not comparing their advertised spreads, but comparing what you actually pay in a month of real trading.
I found that FBS with GlobeGain rebates cost me about 0.6 pips average on majors after everything. That includes spreads, rebates, and occasional slippage. Another broker would be 0.75 pips. Difference is small but compounds over hundreds of trades.
Track monthly. Weekly numbers are too volatile. And make sure you’re comparing the same instruments on both brokers.
Spread minus rebate equals net cost easy calculation.
The math is pretty straightforward once you get it. Spread minus rebate is your actual cost per pip.
The harder part is comparing fairly across brokers because they calculate commissions and rebates differently. Some quote them separately, some bake them in.
I’d suggest opening micro accounts with 2-3 brokers you’re considering and trading the same pairs for a month. Track your exact costs on each. That real-world data beats spreadsheet estimates every time.
For most traders, the difference between cheap and mid-range brokers is less than $50 a month anyway. Don’t overthink it.
Spread minus rebate. Commission if there is one. Track monthly. Done.