Which brokers are the cheapest for trading 1 lot of EURUSD?

Brokers with the lowest fees for FX trading

Forex fees explained: What are you actually paying for?

Forex trading costs come down to two main things: commissions and spreads. Understanding how brokers charge these fees helps you know exactly what you’re paying. Here’s a quick and simple breakdown.

FX commissions

Some brokers charge a fixed commission per lot when you trade. This means you pay a set fee based on your trade size, making it easy to calculate in advance. Most brokers that charge commissions follow this model, applying a cost per round-turn (opening and closing the trade). If you trade for example 0.1 lot, you’ll pay one-tenth of the full commission.

This pricing model is most common with ECN, Pro, and Raw Spread accounts, where spreads are lower, but you pay a fixed fee per trade. In contrast, Standard accounts often have zero commission, but they build the cost into the spread, meaning you pay a higher spread instead of a separate commission.

FX spreads

When you place a forex trade, there’s typically a small difference between the price you can buy (ask) and sell (bid) a currency for—that’s the spread. It’s a built-in fee that brokers charge, so every time you open a trade, you’re paying a little extra upfront.

Spreads are measured in pips, and the actual cost you will pay depends on your lot size – the bigger your trade, the more you pay. That’s why, if you’re trading larger volumes, it’s smart to go with the lowest possible spread to keep costs down.

To see exactly how this works, let’s break down what a lot and a pip actually mean.

What does 1 lot mean?

In forex, a lot refers to the volume of a trade

What is a pip and what is it worth?

You’ve probably heard the word “pip” thrown around in forex trading. Maybe you even nodded along like you totally got it. But what exactly is a pip, and why does it matter? In forex, brokers often quote their spreads in pips, so understanding this small unit is crucial to knowing how much you're actually paying when you trade.

A pip is the smallest price movement a currency pair can make. For most major pairs like EURUSD or GBPCHF, 1 pip = 0.0001. However, for JPY pairs like USDJPY or EURJPY, 1 pip = 0.01. In other words, it's the fourth decimal place of the exchange rate for most currencies, and the second decimal place for JPY pairs. To illustrate:

* The rates shown are examples only, designed to help you understand pips and price movement. They are not live market data.

Let’s take a simple example: trading 0.1 lot of EURUSD at an exchange rate of 1.05, with a 1 pip spread.

1. Pip value formula:

2. Plugging in the numbers:

• Lot size: 10,000 (0.1 lot)
• Pip size: 0.0001
• Exchange rate: 1.05

3. Spread cost:

• Spread: 1 pip
• Cost: 0.95 × 1 = $0.95

So, the spread cost for this trading scenario is approximately $0.95.

If it seems complicated, fear not. You will hardly ever need to do this calculation by hand – you can use our FX fee calculator instead, or any other online calculator that you prefer.

Other fees to keep in mind

Our calculator focuses on the two most important FX trading costs—spreads and commissions– but it’s good to know that other fees can come into play. One additional trading fee is the swap rate (also called overnight or financing rate), which traders only pay when holding a position overnight. This cost is usually much smaller than spreads and commissions.

Beyond trading fees, some brokers also charge non-trading fees like inactivity fees, deposit and withdrawal fees. To get the full picture of a broker’s pricing, check out our detailed broker reviews, where we break down all these costs for you.