How to calculate trading commissions
Worked example
- A broker charges a flat $10: buying 1 share or 1,000 shares costs $10 each way.
- A crypto exchange charges 0.1%: buying $10,000 of Bitcoin costs $10.
- Round trip $20 on $10,000 → price has to move 0.2% just to cover fees.
How to interpret trading commissions
The break-even move is the number to watch: if your typical target is 1%, a 0.2% round-trip cost takes a fifth of every winner. Add your spread with the spread cost calculator and include all costs in your trade results with the profit & loss calculator.
Limitations and common mistakes
- Flat fees punish small orders; percentage fees punish large ones — choose the model that fits your trade size.
- Exchange, regulatory and currency conversion fees often come on top of the advertised commission.