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Spread Cost Calculator

What this tool does

The spread is the gap between the bid and ask price — a cost you pay on every trade the moment you open it. This calculator converts a spread quoted in pips into real money based on your position size and pip value, so you can compare brokers and avoid overtrading on high-spread pairs.

How to use it

  1. Enter the spread in pips (e.g. 1.5).
  2. Enter your pip value per lot in your account currency.
  3. Enter your position size in lots.
  4. Read the cost per trade — that is your broker's cut before the market even moves.

Frequently asked questions

What is a normal spread?

Majors like EUR/USD often trade at 0.1-1.5 pips on good brokers. Exotics and news spikes can push spreads to 5+ pips.

Does spread matter for long-term trades?

Less — a 2-pip spread is noise on a 500-pip target but brutal on a 10-pip scalp. It matters most for short-term strategies.

Risk disclaimer: This calculator is for education only. Trading forex and CFDs carries substantial risk. Not financial advice.

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