Module 1 — Foundations
Brokers, fees and slippage
5 minute read
In plain English
Your real cost per trade is commission plus spread plus slippage — the difference between the price you wanted and the price you got.
Why it matters
Small accounts are hurt most by fixed costs. Costs are a certainty; profits are not.
Example
On a $300 position, $2 of commission plus $4 of spread is 2% before the stock does anything.
Try this
Work out your all-in cost for a typical trade size using the calculators in Trading Maths.
Common mistake
Overtrading a small account until fees consume it.
What this does not mean
Zero-commission does not mean free. Costs move into the spread and routing.
Educational content only. Not financial advice.