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OANDA Spread Cost Calculator
The impact of spread on trading profitability is often overlooked. Going from a 3-pip spread to a 2-pip spread may not sound like much, and going from a 2-pip spread to a 1.8-pip spread may seem even less significant. But in both cases, depending on your trading style, the impact on profitability can be huge.
The OANDA Spread Cost Calculator below can be used to quantify and compare the impact of different spreads. (See also Explanation of math used in Spread Cost Calculator.) We encourage you to study different scenarios by inserting your own variables.
The calculator has been pre-populated for a scenario that might be typical of a conservative professional trader. For a more aggressive trader weighing the difference between 2 pips and 1.8, consider entering, for example: Trading activity: 5 deals per day; Average deal leverage: 20:1; Past return on equity: 20%; Current spread: 2 pips; New spread: 1.8 pips.
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| Number of trades per year = |
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| Annual Trading Volume = |
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number of trades x leverage x account equity |
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| Absolute Spread Cost = |
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| Relative Spread Cost = |
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absolute spread cost
account equity |
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| Return on equity = |
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with new spread
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of account equity |
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