Calculate Forex Commission
When trading on Forex trading platform you receive raw market spreads, meaning we do not apply a mark-up. On trading platforms brokers charges a commission fee of $65 USD per million traded. If your account is denominated in a currency other than USD you will need to convert this figure. Broker’s commission calculator does this for you. Simply enter the size of your trade, the currency pair you are trading, your account currency, and click ‘calculate’ to determine how much commission you will pay for opening and closing the position.
The calculation is performed as follows:
Commission = (trade size * $65 per million traded) * account currency exchange rate.
- Trading 100,000 GBP/JPY with an account currency in EUR
- 0.000065 * 1,000,000 = $65
- GBP/EUR = 1.19
- 65 * 1.19 = €77
*Please note: Since its inception in 1999 the euro always takes precedence as the base whenever it is paired with another currency. For the above calculation, we need to know how many euros one unit of GBP is. In this case we simply divide 1 by the EUR/GBP exchange rate in order to reverse the pair (1/0.84 = 1.19).