Broker commission in R calculator
See how a broker-reported commission changes your edge.
Calculator
Worked example
A short-term forex strategy with a tight stop and a small positive edge before costs. These are the calculator's default inputs and the result it returns for them.
| Round-trip commission | 1 pips |
|---|---|
| Stop distance | 5 pips |
| Gross expectancy | 0.3 R |
| Commission in R | 0.20R |
| Net expectancy | +0.10R |
| Edge consumed | 67% |
The edge remains positive after commission.
Questions
- What does commission in R mean?
- It expresses your round-trip commission as a share of your risk on a trade. The calculator divides the commission in pips by your stop distance in pips.
- How do I read net expectancy?
- Net expectancy is gross expectancy minus the commission in R. Edge consumed shows how much of the gross edge the commission takes.
- What is the most common broker cost mistake?
- Ignoring costs on tight stops. The same commission costs more R when the stop is closer. A short-term strategy can lose its edge to fees alone.