Costs & risk
Trading costs: spread, commission and swap
What you pay to open, hold and close a trade, how each cost is calculated and where NextTrade publishes its figures.
NextTrade Education TeamUpdated 8 min read
Key takeaways
- The main trading costs are the spread, the commission and the swap, and each is paid whether a trade gains or loses.
- Standard accounts include trading costs in the spread; Raw and VIP accounts pair raw spreads with a commission per lot.
- Swaps apply only to positions held open overnight and can be a charge or a credit.
- Comparing accounts means adding every cost for the same trade, not looking at one figure alone.
On this page
The three main costs at a glance
Every trade has a cost, even before the price moves. Most of it comes from three sources: the spread you pay to enter, the commission charged on some account types, and the swap on positions you keep open overnight.
| Cost | When you pay it | How it is measured |
|---|---|---|
| Spread | On every trade, built into the buy and sell prices | Pips × pip value × lots |
| Commission | Per lot, once for opening and closing (round trip) | A fixed amount per lot |
| Swap | For each night a position stays open | A rate per lot, set per instrument |
The spread
The spread is the difference between the price at which you can buy (the ask) and the price at which you can sell (the bid). A new position starts negative by that amount. If pips and lots are new to you, start with pips, lots and spreads explained.
At NextTrade, Raw and VIP accounts have raw spreads from 0.0 pips. The Standard account has an all-in spread that includes its trading costs, with no separate commission. "From" is the lowest spread, not the usual one: spreads are variable and widen in quiet or fast-moving markets.
The pricing page lists typical spreads per instrument, measured in normal market conditions. For EUR/USD it shows 13 points (1.3 pips) on Standard and 2 points (0.2 pips) on Raw and VIP. Actual spreads may vary with market volatility and liquidity.
Commission
A commission is a fee charged per lot traded. At NextTrade it is charged round trip: one amount covers both opening and closing the position. It depends on the account type and on the asset class.
| Account | Forex | Metals and energies | Indices |
|---|---|---|---|
| Standard | None | None | None |
| Raw | $7 | $6 | $0.80 |
| VIP | $4 | $4 | $0.50 |
Commission scales with trade size. Opening and closing 0.1 lots of a forex pair on a Raw account costs $0.70 in commission; 2 lots cost $14.
Comparing the cost of a trade across accounts
Because the accounts charge in different ways, the only fair comparison is the total for the same trade: spread cost plus commission.
Hypothetical example: 1 lot of EUR/USD on each account type, at typical spreads
- Trade
- Open and close 1 lot of EUR/USD the same day
- Value of 1 pip
- $10
- Standard: 1.3 pips × $10 + no commission = $13
- Raw: 0.2 pips × $10 + $7 commission = $9
- VIP: 0.2 pips × $10 + $4 commission = $6
Result: $13, $9 or $6 in costs for the same trade, before any swap
Typical spreads are measured in normal market conditions and actual spreads vary. Read the risk note.
The result for any account depends on the spread at the moment you trade, on your trade size and on how often you trade. Account types also differ in other conditions, which you can compare on the account types page.
Swap: the cost of holding a position overnight
A swap, also called rollover, is interest charged or paid on a position kept open overnight. It is based on the difference between the interest rates of the two currencies in a pair, or on the financing rate of the instrument. Depending on the instrument and the direction of the trade, it can be a charge or a credit.
Swap rates are set per instrument and are not listed on the website. The rate for each instrument is shown in the trading platform before you open a position. Once a week, a triple swap covers the weekend; the FAQ gives the processing time and the day of the triple charge for each instrument group.
Hypothetical example: a position held for several nights
- Position
- 1 lot
- Swap
- −$6 a night (made-up figure)
- 3 ordinary nights: 3 × −$6 = −$18
- 3 nights including the triple-swap night: (2 + 3) × −$6 = −$30
- If the swap were a credit of $2 a night instead: 3 × $2 = +$6
Result: from −$30 to +$6 in swaps, whatever the price does
Read the risk note.
Swap-free (Islamic) accounts are available on request on Standard, Raw and VIP accounts. They do not incur overnight swap charges but incur handling fees after a set number of days. Eligibility criteria and specific conditions may apply.
Other costs to know about
- Slippage. Not a fee, but in fast markets an order can fill at a price different from the one on screen, better or worse. See slippage.
- Deposits and withdrawals. NextTrade charges no fee on deposits or withdrawals. Crypto transfers carry the blockchain network fee, and your bank may charge intermediary fees on bank wires.
- Other account fees. The Terms and Conditions list the fee types, including currency conversion fees and a dormancy fee on accounts with no trading activity for a long period.
Working out the total cost of a trade
Add the costs together:
Total cost = spread cost + commission + swaps (charges minus credits)
Costs are paid whatever the result. They reduce a gain and add to a loss, so the price has to move in your favour by at least the total cost before a trade breaks even. Costs that look small on one trade add up over many trades and longer holding periods.
Hypothetical example: a Raw-account trade with all three costs, closed with a gain or a loss
- Trade
- 1 lot of EUR/USD on a Raw account, held 2 nights
- Spread
- 0.2 pips (typical)
- Commission
- $7 round trip
- Swap
- −$6 a night (made-up figure)
- Costs: $2 spread + $7 commission + 2 × $6 swap = $21
- Price moves 30 pips in your favour: +$300 − $21 = +$279
- Price moves 30 pips against you: −$300 − $21 = −$321
Result: a net gain of $279 or a net loss of $321; costs of $21 apply either way
Read the risk note before trading.
Risk note
Trading forex and CFDs with leverage carries a high level of risk and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment. You should not invest money that you cannot afford to lose.
High leverage magnifies both potential profits and potential losses. Before deciding to trade, carefully consider your investment objectives, level of experience, and risk appetite. Seek independent financial advice if necessary. NextTrade provides negative balance protection on all retail accounts, meaning you cannot lose more than your deposited funds, but you can lose all of your deposited funds.
Trading costs reduce gains and add to losses. The spreads, swaps and results in this guide are hypothetical or typical figures for education. They are not a forecast of your costs or results.
Frequently asked questions
Does the Standard account have a commission?
No. The Standard account has no separate commission: its trading costs are included in the spread, which is why its typical spread is wider than on Raw and VIP accounts. Swaps still apply to positions held overnight, as on every account type, unless you have a swap-free account.
What does round trip mean?
Round trip means one commission covers both sides of a trade, the opening and the closing. At NextTrade, a Raw account pays $7 per lot round trip on forex, so opening and closing 1 lot costs $7 in commission in total, not $7 each way.
Where can I see the swap rate for an instrument?
Swap rates are set per instrument and are not listed on the website. You can see the rate for each instrument in the trading platform before you open a position. Rates can change over time, so it is worth checking them again if you plan to keep a position open for several nights.
Can a swap be positive?
Yes. A swap is based on the difference between two interest rates, or on an instrument's financing rate, so depending on the instrument and the direction of your trade it can be a charge or a credit. The trading platform shows the rate for buying and for selling each instrument.
Are spreads fixed at NextTrade?
No, spreads are variable. Raw and VIP spreads start from 0.0 pips, and the typical spreads on the pricing page are measured in normal market conditions. Actual spreads may vary with market volatility and liquidity, and they can widen around major news or when markets are quiet.
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