Trying to optimize my scalping strategy. The Broker Fee Comparison Chart looks useful but I’m struggling to interpret it. For fixed fee brokers - do I just compare their commission + spread against spread-only brokers after rebates? How do swaps factor in? Maybe I’m missing something obvious - how do you personally use this tool for apples-to-apples comparisons?
Compare total cost per round trip.
Breakdown methodology:
- Normalize all costs to cost per 100k traded
- Fixed fee brokers: (Spread*Pip Value) + Commission
- Spread-only: (Spread - Rebate)*Pip Value
- Multiply by your average daily lots
- Add swap costs if holding overnight
Example: If trading 10 lots/day:
- Fixed: (0.6*$10) + $3 = $9/lot → $90/day
- Spread-only: (1.4 - 0.7)*$10 = $7/lot → $70/day
Result: Spread-only better here despite higher nominal spread.
Don’t forget to check typical execution quality. Some spread-only brokers have wider effective spreads due to slippage. The chart shows static data - combine it with real trading data from community reports.
I made a spreadsheet comparing chart numbers against my actual trade receipts for two months. Found three brokers where real costs were 18% higher than advertised.
Use same time frame for all comparisons.
Pro tip: Create two scenarios in the chart - one for daytime scalping (use NY/London overlap spreads) and another for overnight holds (factor swaps heavily). I discovered brokers that look expensive for scalping actually have the best swap rates for my carry trades. Changed my entire allocation strategy.