Spread, commission and swap: the three costs of a forex trade

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Three words explain most of what a forex trade costs: spread, commission and swap. Here is what each one means, in the words of Exness's own Help Center where it gives them.

Spread

Exness defines the spread as "the difference between a trading instrument's bid and ask prices". You meet it the moment you open a trade: a new position starts slightly below zero because you bought at the higher price and would sell at the lower one.

The spread can widen, for example around news or when the market is quiet. Look at it in your trading app before you trade.

Commission

Some account types charge a commission on each trade; others build the cost into the spread. Which one applies depends on the account type you open, so read the account type's page on your broker's site before you choose.

Swap

A swap is a charge or credit for keeping a position open overnight. Exness writes that swap is "deducted or added to a trader's equity at 21:00 GMT+0 in Summer and 22:00 GMT+0 in Winter", and that it "offers swap-free status in certain circumstances".

If you close your trades the same day, you usually never see a swap.

Why this matters for a rebate

A rebate gives back part of these costs. It is still a cost you pay first, on winning and losing trades alike, so the cheapest trade is often the one you did not need to open.

Trading carries a high level of risk. Only trade with money you can afford to lose.