Commission
Assume EUR/USD commission is USD 3.50 per standard lot per side, with no minimum fee. Opening 0.20 lot costs USD 0.70 and closing it costs another USD 0.70: USD 1.40 round trip. With USD 2 per pip for this position, that equals 0.7 pip. Spread and financing are separate.
Read the tariff before multiplying
Establish whether the quoted amount is per side or round trip, per lot, contract, currency million or percentage of notional. Minimum ticket fees, tiers and the fee currency can prevent simple proportional scaling. A partial close can generate an additional charge; use the actual statement rather than count each position as one transaction.
Keep a consistent cost convention
When price P&L uses actual Ask entry and Bid exit, the spread is already embedded. Deduct commission only if the recorded result excludes it; financing and conversion also require their own treatment. A “commission-free” offer may charge through spreads or other fees, but its cost structure must be verified rather than assumed.
Compare the same trading activity
Compare the same symbol, quantity, holding period and expected executions. Express cash commission in pips only after calculating the position’s pip value in a compatible currency. A lower commission does not necessarily offset worse fills or wider spreads. Record both advertised conditions and the charges actually booked.
FAQ
Does USD 3.50 per side mean USD 3.50 for the whole trade?
No. Under the stated proportional tariff, opening and closing one standard lot together cost USD 7. Check minimum fees and currency conversion.
Is commission already part of my reported profit?
It depends on the report. Reconcile price P&L, separate commission rows and net result so the same fee is counted once.
