Swap vs Commission

Look-alike pair

Swap and commission are both trading costs, but they arise from different sources: a swap is a recurring interest-based charge or credit for holding a leveraged position overnight, while a commission is a one-off fee charged when you open or close a trade. The single difference that matters is that swap depends on time held and the interest-rate differential, whereas commission depends on the transaction itself and is set by the broker.

Side by side

	Swap	Commission
What it is	An overnight financing adjustment: interest paid or earned for holding a position past the daily rollover time.	A service fee charged by the broker for executing a trade, typically per lot or per transaction.
When charged	At the daily rollover point, usually once per trading day, for as long as the position remains open.	When the trade is opened, closed, or both, depending on the broker's fee structure.
How calculated	Based on the position size, the relevant interest-rate differential between the two currencies or assets, and the broker's markup.	Based on a fixed amount per lot, a percentage of trade value, or a flat fee per ticket, as set by the broker.
Who sets it	Determined by interbank interest rates and the broker's own markup; it varies by broker, instrument, and market conditions.	Set by the broker; it varies by broker, account type, and regulatory jurisdiction.
Field mark	Appears on your statement as a separate line labelled 'swap', 'rollover', or 'financing', often with a timestamp at the daily rollover.	Appears as a distinct line labelled 'commission', usually tied to a specific trade or order.
Typical context	Most common in leveraged forex and CFD trading, where positions can be held for multiple days.	Common in stocks, futures, and some forex accounts, especially those with raw-spread pricing.

Which word to use

Use swap when referring to the cost or credit for holding a leveraged position overnight, and use commission when referring to the fee for executing a trade, regardless of how long it is held.

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