Brokerage fees are an unavoidable part of forex trading. There are ways a forex broker may charge traders such as with a spread cost or a commission fee. In this comparison, we look at brokerage fees and show the best broker to save for each type.
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Below we look at the different types of forex brokerage fees and costs
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
8.17 |
ASIC,CySEC FSCA,FSA-S,FSC-M |
1.1 | 1.3 | 1.3 | 0.10 | 0.20 | 0.20 | $3.00 |
|
|
|
225ms | $100 | 70+ | 10+ | 30:1 | 500:1 |
|
|
9.33 |
SCG, ASIC FCA, CySEC |
1.10 | 1.40 | 1.20 | 0.1 | 0.6 | 0.3 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
|
8.17 | ASIC, VFSA, FSA-S | 0.93 | 1.08 | 0.92 | 0.13 | 0.21 | 0.12 | $2.25 |
|
|
|
79ms | $0 | 90+ | 10+ | 500:1 | 500:1 |
|
|
8.33 |
ASIC, FSCA CBI, KNF, CIRO ADGM, FSC-BVI |
- | - | - | - | - | - | - |
|
|
|
160ms | $100 | 55+ | 15+ | 30:1 | 400:1 |
|
|
6.67 |
ASIC, FCA, BaFin FINMA, NFA/CFTC, MAS CySEC, DFSA, FMA JFSA, BMA, FSCA |
1.13 | 1.66 | 1.01 | 0.16 | 0.59 | 0.29 | $6.00 |
|
|
|
174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
|
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7.67 |
FCA, FSCA ASIC, FSA-S, CySEC |
1.1 | 1.3 | 1.1 | 0.1 | 0.3 | 0.2 | $3.50 |
|
|
|
161ms | $0 | 46+ | 21+ | 30:1 | 500:1 |
|
Brokerage fees are a big factor in evaluating your overall trading costs. They usually take into account commissions the broker charges and spread costs. Below, we have come up with a list of forex brokers with the best brokerage fees based on a unique advantage.
The Broker That Has The Best Trading Fees Overall
Spread fees are one of the most important components when deciding which broker to choose and FP Markets are one of the best choices for low spreads.
Choosing FP Markets means you get the following features that can really make a difference to your trading
FP Markets Spreads And Trading Accounts
FP Markets has two different account types for you to select from depending on your experience and trading style. These accounts are the Standard Account and the RAW account. For the lowest spreads that FP Markets offers, choose the RAW account as this account offers some of the best ECN Pricing on the market.
FP Markets Raw Account
FP Markets Raw account is able to offer low spreads thanks to STP execution which has no dealing desk. This means quotes are sourced directly from the liquidity providers and never changed by FP Markets. This is why FP Markets spreads can be as low as 0.0 pips for selected currency pairs such as the EUR/USD. To ensure spreads stay as low as possible, FP Markets charges a commission of AUD$3.50 or USD $3.00 to open a position for each standard lot. You will then pay the same commission amount to close your position.
The below table compares the spreads of different brokers that have ECN pricing (i.. spreads + commission). As one can see, FP Market’s average spreads are consistently in the green, which means they are the best compared to other brokers for many currency pairs.
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Commission Spreads
|
|||||
|---|---|---|---|---|---|
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0.10 | 0.20 | 0.30 | 0.20 | 0.30 |
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0.10 | 0.40 | 0.60 | 0.20 | 0.40 |
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0.17 | 0.24 | 0.59 | 0.30 | 0.54 |
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0.20 | 0.30 | 0.60 | 0.40 | 0.50 |
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0.50 | 0.50 | 0.50 | 0.70 | 0.60 |
|
0.02 | 0.03 | 0.09 | 0.05 | 0.19 |
|
0.10 | 0.10 | 0.20 | 0.40 | 0.30 |
|
0.52 | 0.70 | 0.65 | 0.80 | 0.86 |
|
0.44 | 0.20 | 0.85 | 0.42 | 0.40 |
|
0.20 | 0.20 | 0.50 | 0.20 | 0.40 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/12/2023
The Standard Account has no commissions meaning the spreads are wider. This kind of will appeal to beginner traders however you will find other brokers have better spreads for this style of account.
FP Markets Platforms
FP Markets has a range of platforms available for Australian traders that are open for trading 24/5 on forex pairs. For Australian traders, there is the option of using IRESS which allows you direct market access (DMA) in CFD shares and futures.
Two of the most popular platforms that are used around the world are MetaTrader 4 (MT4) & MetaTrader 5 (MT5). Both platforms can be used through FP Markets and have a range of features as listed below:
MetaTrader 4 (MT4)
MetaTrader 4 (MT4) was originally designed to trade forex markets because of its powerful interface and is now widely used across the globe. MT4 is available on IOS devices like iPhones and iPads as well as Android devices. Features included with the FP Markets MT4 account include:
MetaTrader 5 (MT5)
MetaTrader 5 (MT5) is the updated and even more powerful version of MT4 that has been designed for every financial instrument traded on the market. Similar to its previous version, MT5 is available for all devices such as IOS and Android. With MT5 being the newer model, it comes with a range of new features not available on MT4, some are included below:
IRESS
IRESS is FP Market’s premier trading platform that provides you with direct market access, so you can see your orders in the queue. There is an increased range of markets when trading on the IRESS platform with over 10,000 financial instruments including forex, commodities, and cryptocurrencies. Features that come with the platform include:
FP Markets Copy Trading
FP Markets Copy Trading is a mobile app that allows you to search, follow and then automatically copy other traders that have a successful trading record. As this tool social copy-style trading platform, it spares you the need to do all the leg work when researching and building trading strategies since you can leverage the success of other traders.
Myfxbook AutoTrade
Myfxbook AutoTrade connects to your MT4 trading account and provides the tools to copy a wide range of trading systems. The key feature of MyfxBook is that only the best trading systems are shown.
View FP Markets ReviewVisit FP Markets
The Broker That Has Low Spreads For Automated Trading
70% of the $6.6 trillion daily forex trading volume is attributed to automated trading. This type of trading refers to the use of existing technologies such as computers, software, and the internet to manage one’s trades in the forex marketplace. Automation tools can analyse more markets at one time than possible manually and then execute trades. Types of traders using automation include:
Automation trading presents opportunities not easily achieved by manual traders. These features include:
The main thing in common with these features is the increase in buying and selling opportunities than what would be typical with positional or long-term traders. This means saving on costs is important, as costs will add up the more you trade, especially when using high leverage which can greatly accelerate your costs as it represents a percentage of your trading capital.
Why Low Spreads Matter
The below example shows why it helps to choose a broker with the lowest possible spreads.
If you are a long terms trader with an expensive broker and you buy 1 lot of AUD/USD with $50k and your spread is 2 pips, then your cost will be $20. This is not a big deal if you hold your position long-term and the pair moves 10% in your favour. $20 isn’t much as you will still have $4980.
On the other hand, if you are a frequent trader then you might buy 10 lots of ten different currency pairs in one day at 1 pip using $5,000k for each trade making your cost $100. In this example, you are relying on an average of more than 10% across the ten currencies to earn more than the long-term trader.
In this example, even though you have invested the same amount in both scenarios and the long-term trader has spent more on the spread, the long-term trader has come on top.
If you are using automation and plan to trade frequently with high volumes, then it is important to choose a broker with the lowest spreads.
The below table shows Pepperstone is one of the best brokers when it comes to low spreads.
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Pepperstone MT4 Spread Comparison
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|---|---|---|---|---|---|
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0.20 | 1.00 | 0.40 | 0.60 | 0.10 |
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0.17 | 0.30 | 0.14 | 0.25 | 0.02 |
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0.20 | 0.50 | 0.20 | 0.30 | 0.10 |
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0.20 | N/A | 0.20 | 0.30 | 0.20 |
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0.42 | 0.30 | 0.20 | 0.83 | 0.44 |
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0.30 | 0.68 | 0.24 | N/A | 0.17 |
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0.40 | 0.70 | 0.30 | 0.70 | 0.20 |
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0.50 | 0.80 | 0.30 | 1.10 | 0.10 |
|
0.50 | 0.40 | n/a | 0.30 | n/a |
|
1.23 | 1.23 | 0.77 | 1.41 | 0.44 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/12/2023
Pepperstone Is The Best Broker For Automated Trading With Low Spreads
Pepperstone is the best forex broker for automated trading strategies and automated copy trading platforms.
While most forex brokers technically support automated trading, some might come with restrictions, including:
Pepperstone doesn’t come with any types of restrictions and allows its clients to gain access to the foreign exchange market, including a good selection of CFDs. Pepperstone’s main goal is to keep the spreads low while giving FX traders access to a wide range of automated trading options, including:
Note* Pepperstone’s automated trading platforms support different programming languages that can be used for developing trading bots, Expert Advisors (EAs), custom indicators, MT4 scripts, algorithms and backtesting capabilities.
Automated Trading Strategies With Low Spreads
The top-notch technology for automated trading offered by Pepperstone comes with low spreads for trading forex and trading CFDs. Algorithmic trading is a great opportunity to build a source of passive income, but it comes with strings attached. The automated trading strategies are profitable if the broker charges tight spreads. The difference between the bid price and ask price can play a major factor in your profitability as a trader.
Pepperstone low spreads enable clients to use algorithmic strategies more efficiently and come with the following advantages:
At Pepperstone, spreads are determined by the account types they offer (Standard vs Razor account). Generally, online brokers can offer tight spreads if:
During prime hours when the forex liquidity abounds, the spreads can go as low as 0 pips on EUR/USD. However, the average spreads offered by Pepperstone are 0.13 pips on EUR/USD and USD/JPY, while the AUD/USD average spread is 0.18 pips.
Automated Trading With Fast Order Execution Speed
Pepperstone also accommodates Algo Trading Australia with fast order speeds, which reduces slippage for automated trading. In the world of currency trading, fast order entry is necessary for automated trading systems. Pepperstone handles high amounts of trading volume with an average execution speed of 80 milliseconds (for market orders).
Note* The execution speed simply measures the time from the moment you submit your order until the order reaches the broker’s servers and it’s executed internally or by the broker’s liquidity providers.
Pepperstone’s lightning-fast ECN execution speed will ensure the following advantages:
Below, we’ve ranked the best forex brokers and the real order execution speed, not the advertised numbers by each online broker.
Pepperstone Features Overview
Pepperstone is the go-to forex broker for automated trading with low spreads. There is no one size fits all when using automated trading software, which is why Pepperstone offers different programming languages (MSQL 4, MSQL5 and C#). Forex traders can develop automated strategies and benefit from significant advantages including:
Verdict On Pepperstone
Pepperstone was rated the best UK and Australia foreign exchange broker in 2023. This was based on their standard account which had the lowest published spreads (and tested spreads). Our testing also showed the broker has one of the fastest execution speeds and provides the choice of the best trading platforms backed by award-winning customer service.
The Broker That Offers Good Fixed Spreads For Predictable Costs
ECN and Standard accounts use variable spreads (sometimes called floating spreads) which means they are constantly changing in line with liquidity supply and demand. As the prices are changing so fast, you will occasionally experience slippage, which means the quoted buy or ask price can’t be filled due to the execution lag time. Slippage means there is a risk of large losses should be the market change against you suddenly and dramatically with little warning.
Fixed spreads provide certainty as the broker’s spreads do not fluctuate. This provides cost predictability, transparency and a level of protection from surprise when the market is volatile and therefore prevents unexpected losses.
Why Fixed Spreads Are Wider Than Other Accounts
If you choose to trade with fixed spreads, you will find the spreads are wider than with ECN and Standard accounts which means they are more costly. This is because the broker needs some margin or reserve as they will bear the cost differences between the market price and fixed price when the market prices differ from quoted prices.
While fixed spreads are wider and will cost you more in normal trading conditions, they can save you on costs in volatile conditions when variable spreads may become wider than the broker’s fixed spreads.
Comparing Brokers Fixed Spreads
The below table is compiled using the spreads advertised on the website of forex brokers that offer fixed spreads. As they are fixed, there is no need to find the average.
Of the brokers compared, AvaTrade clearly offers superior spreads than other brokers. Some spread AvaTrade offers are better than many of the average spread brokers offer for Standard Accounts and even some poorer performing ECN brokers.
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Fixed Spreads
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|---|---|---|---|---|---|
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0.90 | 1.10 | 1.50 | 1.80 | 1.50 |
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0.70 | 1.20 | 1.50 | 1.80 | 1.30 |
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1.94 | 2.36 | 2.11 | 2.24 | 2.05 |
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1.60 | 1.90 | 1.70 | 2.40 | 2.10 |
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1.50 | 1.80 | 2.00 | 2.00 | 2.00 |
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3.00 | 3.00 | 3.00 | 3.00 | 3.00 |
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4.00 | 4.00 | 3.00 | 5.00 | 5.00 |
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1.00 | 1.00 | 1.50 | 2.00 | 2.00 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/12/2023
AvaTrade Is Our Best Broker For Fixed Spreads
AvaTrade offers fixed spreads across all its account types and across 7 different financial markets. You can review below AvaTrade’s trading conditions for each asset class and their spread cost:
Forex currency pairs – 55 major, minor and exotic pairs with EUR/USD spread of 0.9 pips, GBP/USD spread of 1.6 pips and AUD/USD spread of 1.1 pipsThere are five global regulatory bodies that oversee AvaTrade and authorized this brokerage trading firm to offer financial services, including the CBI, ASIC, FSCA, FSA and FRSA.
Note* AvaTrade fixed spreads come with 5 major advantages, including transparency, lower total costs, compatibility with news trading, protection against volatility (spreads don’t widen) and efficiency for scalping.
AvaTrade clients also have the option to choose between a wide range of trading platforms, including:
With AvaTrade Education centre, both beginner and advanced traders can fine-tune their skills. AvaTrade offers top-notch educational materials, including trading video tutorials, trading e-books, articles, free webinars and daily market analysis.
AvaTrade also has excellent customer support that is available in over 21 languages. On top of that, AvaTrade is the official partner of Manchester City, one of the best football teams in Europe.
Traders can open a live trading account with a minimum deposit of only USD 100 (for accounts with US Dollar as their base currency) or 100 euros for the EUR-based accounts.
The Broker With Best Commission Rates For Forex Broker
Charging Commissions
Commission fees are usually found with NDD brokers, so the spread they can offer traders is the same as quoted by their liquidity providers. Therefore, you will find market makers do not charge commissions, market makers are your counterparty to your trades so make money by profiting through your losses (however some market makers may offer NDD trading account options).
The commission fee is typically a standard broker fee that is charged when you open your position and when you close your position, however, some brokers may charge the opening and closing commission fee when you open your position. In either case, your final commission cost is the same.
Commission – Relative Fee
With relative commission, the commission fee advertised is based on one standard lot. If you are trading with mini, micro or even the rare nano lots, then the commission cost will usually be a relative or pro rata amount based on the commission for a standard lot. Some brokers, however, may charge slightly more commission for smaller lots to encourage larger trades.
If the commission is based on the forex contract size, then:
Commission – Fixed Fee
Some brokers charge a fixed commission instead of a relative commission. This means you will be charged the same regardless of the size and volume of your trade. This method is less common than relative commission.
Tiered Commission
While most brokers charge the same relative commission regardless of volume. Some brokers offer commission discounts when trading in large volumes. This means the more you trade, the lower your commission will be. This is known as variable or tiered commission.
Commission Currency Conversion
Most brokers advertise the commission costs in USD. Unless stated by the broker, you will need to convert your commission costs to your home currency to determine your final costs.
Brokers Commission Fees
The table below shows commissions for 13 different brokers’ ECN pricing accounts. Fusion Markets come out on top when it comes to commission costs being around 36% cheaper than many competitors.
When trading with Fusion Markets you will be charged the following commission:
| Commissions | USD | GBP | AUD | EUR | CHF | SGD | HKD | CAD | JPY | NZD |
|---|---|---|---|---|---|---|---|---|---|---|
| Fusion Markets | $2.25 | £1.78 | $2.25 | €2.03 | 2.23 | $3.10 | $17.65 | $3.00 | 247.5 | $3.45 |
| GO Markets | $2.50 | £2.00 | $3.00 | €2.00 | 2.50 | $3.50 | $20.00 | $3.00 | N/A | $3.50 |
| FP Markets | $3.00 | £2.25 | $3.50 | €2.75 | N/A | $3.50 | $20.00 | $3.50 | 250 | N/A |
| Admiral Markets | $3.00 | £2.40 | $4.00 | €2.60 | 3.00 | N/A | N/A | N/A | N/A | N/A |
| IC Markets | $3.50 | £2.50 | $3.50 | €2.75 | 3.30 | $4.50 | $27.13 | $3.50 | 350 | $4.50 |
| AxiTrader | $3.50 | £2.25 | $3.50 | €3.25 | 3.63 | $5.00 | $22.25 | $4.50 | 425 | $5.50 |
| Pepperstone | $3.76 | £2.20 | $3.50 | €2.61 | 3.30 | $4.55 | $28.17 | $3.50 | 303 | $4.75 |
| FXTM | $4.00 | £4.00 | $4.00 | €4.00 | N/A | N/A | N/A | N/A | N/A | N/A |
| XTB | $4.00 | £3.00 | N/A | €3.50 | N/A | N/A | N/A | N/A | N/A | N/A |
| London Capital Group | $5.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Dukascopy | $5.00 | £3.50 | N/A | N/A | 4.00 | N/A | N/A | N/A | N/A | N/A |
| ATC Broker | $5.00 | £3.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| IG | $6.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Compare Low Spread Forex Brokers
Fusion Markets Is Our Best Broker For Commissions
Fusion Markets is a trading name of Melbourne-based Gleneagle Asset Management Limited and is regulated by the ASIC.
The broker has the following features:
Fusion Markets also allow clients to open a Demo Account, which may have the features of either a ZERO or a Classic Account. Another option is to open multiple Demo Accounts (one functioning as a ZERO and one functioning as a Classic).
The broker offers:
Fusion Markets Spreads And Commissions
Fusion Markets is among the best Forex brokers for commission fees. Its trading commission rate is nearly 36% lower compared to its competitor’s commissions. Fusion Markets charges a commission of as low as AUD$4.50 per round turn for 1 Standard lot traded on its ZERO Account, while spreads have no mark-up and start from 0.0 pips for Forex, Metals and Commodities.
In order to trade Forex in another base currency on the ZERO Account, clients will be charged a commission as presented in the table below.
Note* Apart from the spread and the trading commission, there are no other (hidden) charges.
We should note that Fusion Markets will charge no commissions on its Classic Account since they are included in the spread itself. Spreads are variable and start from 0.8 pips on major currency pairs such as EUR/USD and USD/JPY. Grab your demo account 100% risk-free for you to try it out by clicking the button below.
The Broker That Offers The Lowest Spread-Only Commission-Free Standard Account
Most brokers, regardless of whether they are an A-Book or B-Book broker, will offer what’s commonly called a standard account. This type of account is a spread-only account, meaning there are no commission costs. Rather than charge commissions, the broker includes their service fee in the spread.
Standard Accounts With NDD Brokers (ECN, STP, DMA)
NDD brokers, much like with commission accounts, connect you with liquidity providers using ECN, STP or DMA trading execution. Unlike with commission accounts, the broker (or liquidity provider) will artificially widen the spread, this is done as there are no commission charges.
The number of pips added to each spread will vary with each broker. Some brokers add the same amount of pips for all currency pairs they offer, and others will have a variable number of pips which can change through the trading day. Brokers that vary their pips often widen the spread more for minor and exotic pairs compared to major pairs.
Most brokers will typically add around 1 pip to the spread. If the market rate for a currency pair is 0.3 pips, then the standard account rate will be 1.3 pips.
Standard Accounts With Dealing Desk Brokers (Market Makers, B-Book)
Dealing Desk (DD) brokers own or source the liquidity you will trade with. This allows DD brokers to set their own bid and ask prices and are your counterparty for each trade you do. This type of broker profits when you lose and loses when you profit.
While DD broker certainly has their own interests as your counterparty, a good market marker can still offer competitive spreads. The forex broker industry is competitive, so it’s not in the broker’s interest to offer a spread that is not competitive with the market. Some DD brokers even peg their prices to prices set by liquidity providers.
Standard Account Spreads Comparison
Spreads with Standard accounts are always going to be wider than with commission accounts. So you will pay more for the spread however there is no commission. Overall costs will generally be higher than an ECN pricing account.
Standard accounts are popular with:
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Standard Account Spreads
|
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|---|---|---|---|---|---|
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1.13 | 1.01 | 1.62 | 1.71 | 2.27 |
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0.90 | 1.30 | 1.70 | 1.40 | 1.40 |
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0.70 | 2.20 | 2.20 | 1.10 | 1.60 |
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1.20 | 0.90 | 1.80 | 1.50 | 2.20 |
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1.20 | 1.40 | 2.30 | 1.50 | 2.80 |
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0.62 | 0.77 | 1.50 | 1.27 | 1.30 |
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1.10 | 1.20 | 1.40 | 1.40 | 1.50 |
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1.10 | 1.20 | 1.40 | 1.30 | 1.40 |
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1.10 | 1.20 | 1.60 | 1.40 | 2.00 |
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1.20 | 1.30 | 1.40 | 1.20 | 1.20 |
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1.70 | 1.60 | 1.40 | 1.70 | 2.50 |
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1.20 | 1.80 | 2.80 | 1.90 | 2.30 |
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1.30 | 1.70 | 2.40 | 2.10 | 1.70 |
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1.12 | 1.64 | 1.80 | 0.86 | 1.55 |
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1.32 | 1.95 | 3.19 | 1.37 | 1.87 |
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1.20 | 1.30 | 2.70 | 1.50 | 1.70 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/12/2023
IG Is The Best Broker For Standard Spreads
IG traders can choose between over 17,000 financial markets with spreads for the following
The table below demonstrates the range of markets and spreads IG offers:
As a world-leading CFD provider, IG is required to meet the tighter regulatory frameworks imposed by local financial authorities, including the UK’s FCA, the USA’s CFTC and NFA and the Australian ASIC broker rules. Besides tight spreads, a wide selection of CFD instruments and strong regulation, other major IG features include:
IG is a well-established FTSE 250 company that has strong relationships with a wide network of liquidity providers. The broker’s access to deep liquidity allows for some of the lowest spreads in the forex industry. Liquidity venues with the broker include Tier 1 banks, exchanges, MTFs, investment banks and non-bank liquidity providers.
With IG, there is no minimum account balance to create an account.
The Broker With A Top Swap-Free Islamic Account
With 1/3 of the world’s population of Muslim faith, many forex brokers offer a swap-free account that meets the sharia law requirements of Islam. Islam forbids businesses from profiting through usury (called ‘riba’ in Islam) fees which means profiting through interest costs. In Islamic law, the lender must share in the borrower’s risk, when interest is charged, all the risk is taken by the borrower which is considered exploitative by the lender in Islam.
In forex trading, brokers apply a swap fee (also called rolling interest or overnight fee) where a trader keeps their position open after closing (5 pm New York time). With this swap rate, you will either receive or be charged interest on all your open positions held overnight based on the differential in market interest rates for the currency pairs held. This fee is not acceptable in sharia law.
How Swap-Free Accounts Charge You
In place of a swap fee, brokers will use other means to recover the costs. This is typically in the form of a daily, weekly or monthly administration fee (sometimes called a carrying charge) for the currency pairs you own, this is commonly applied only if you have held your position for a minimum of 3 or 5 nights or with wider spreads (less common).
When researching brokers, ensure the broker offers an Islamic account that meets your needs. Depending on your broker, the following are things to look for:
Islamic Account Fee
ThinkMarkets offers a great Islamic Account. Fees are charged only every 6 days, and you can select spreads that match either their zero or standard account.
| Broker/Details | Charge Type | No Charge Period | Fee Period | Currency Pair Charge EUR/USD per lot |
Limitation |
|---|---|---|---|---|---|
| ThinkMarkets | Administration Fee | 6 nights | Weekly | USD$5 | 1. Can choose either standard or Zero Account for Spreads 2. Following Currencies not accepted CNH, HKD, HUF, MXN, PLN, TRY, ZAR |
| HYCM | Administration Fee | 14 days | Daily | USD$5.00, €4.00, £3.50 | |
| Admiral Markets | Administration Fee | 3 Days for Major 1 Day for Minors, Exotics |
USD$6 | 1. Spreads as per commission free accounts | |
| XTB | Commission | Not Applicable | Not Applicable | USD$10 per lot | 1. Base currencies must be EUR, GBP, USD |
| eToro | Included In Existing Spread | Not Applicable | Not Applicable | Spread | |
| AxiTrader | Spread | 7 days | Weekly | $60 | 1. Available with Standard and MT4Pro accounts |
| Pepperstone | Administration Fee | 10 days | Every 10 days | $50 | 1. Selected Countries Only 2. Only with following base currencies AUD, EUR, GBP, USD 3. Spreads Taken From Standard Account |
| FP Markets | Administration Fee | 5 nights (Commences 6th night) | Daily | $5 | 1. Major Pairs only 1. Available with Standard and Raw Account spreads |
| IC Markets | Administration Fee | From First Overnight Holding | Daily | $5 | 1. Can choose Standard or Raw Account for Spreads |
ThinkMarkets Is Our Best Broker For Swap-Free Islamic Account
ThinkMarkets is our top pick for Muslim traders that want access to swap-free forex trading. ThinkMarkets Islamic accounts are compliant with Islamic Sharia law. However, in order to compensate for not charging its clients an overnight interest rate, ThinkMarkets will charge its clients a “weekly administrative fee.” The ThinkMarkets administrative fee varies between:
For a detailed overview of ThinkMarkets’ fees for Islamic traders, please study the table below.
Note* Muslim traders will not have access to swap-free trading the following currencies: CNH, HKD, HUF, MXN, PLN, TRY, ZAR.
As one of the top Islamic forex brokers, ThinkMarkets offer the following advantages:
ThinkTrader Mobile App
One of the most powerful features offered by this multi-asset brokerage trading firm is the in-house mobile platform ThinkTrader. ThinkTrader is an award-winning mobile app that uses the latest software technologies that can be accessed directly from the palm of your hand.
ThinkTrader has been downloaded more than 240,000 times and has over 15,000 5-star reviews on the App store. Additionally, the ThinkTrader platform can be accessed from multiple devices including phones, tablets and desktops. According to the data collected from Nov 2019 through Nov 2019:
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The forex brokers earn an income by matching buy and sell orders and executing them on the interbank market. Forex brokers typically make money through the bid-ask spread cost (fixed or variable), commissions, rollover fees (also known as the overnight swap rate) and other alternative sources, including:
The cost of trading forex varies from broker to broker. The typical trading cost varies from $0.9 to $3.0 per one standard lot or up to $6.0 round-trip spread costs. More, to access interbank spreads (the raw spread account) FX brokers are going to charge an additional commission that can vary from $2 per side ($4 round-turn commission) and can go as high as $5 per $100,000 units traded.
Pepperstone offers a competitive raw spread account. For a complete review please check Pepperstone Razor vs Standard Account.
No, trading forex is absolutely free, forex traders only need to deposit a small amount of money to start trading. However, a monthly (or yearly) inactivity fee might be charged to your account if there is no trading activity for the past year. The monthly inactivity fee varies from broker to broker and on average you can expect to be charged around $15.
Swaps Rates / Overnight Fees / Rolling Interest
If you hold your position overnight, then the broker will charge you swap fees. In the forex market, all currencies have interest rates set at the interbank level and these costs are passed onto you when you have an open position once the market has closed. This will be 5 pm New York time. This charge is known as swap fees, which are sometimes called overnight interest rates or rolling costs.
The overnight interest is the difference between the interest rates of the two currencies that make your pair. This means your swaps could be an expense or a source of revenue, depending on if the difference in interest between the pair is positive or negative. When choosing a broker, you may want to check the broker is passing on the swaps, as some untrustworthy brokers may keep your swaps when these costs are positive for you.
Swap costs will increase the larger your position is and the more leverage you use. This is because swaps are percentage-based.
Calculating Swaps
When swaps are costs
When swaps are revenue
Indirect Costs
Spreads costs, commission fees, swap rates, and administration charges (for Islamic accounts) are considered direct costs as these are costs are directly tied to your trading activities. These costs are unavoidable. Trading may also result in indirect costs and sometimes called hidden fees. These costs are usually avoidable unless your action or inaction makes these costs necessary.
Inactivity Fees
Many brokers implement an inactivity fee when there is no trading activity on your account for a certain period of time or have not met the minimum trading volume each month, quarter or year.
While most (but not all) brokers only activate inactivity charges when you have not traded for long periods of time, most charge the inactivity fees on a monthly basis so this can add up. If you are not an active trader and tend to leave your account dormant for long periods, then a broker with no inactivity fees might be an important consideration.
| Broker | Inactivity Fees | Inactivity period | Broker | Inactivity Fees | Inactivity period | Broker | Inactivity Fees | Inactivity period |
|---|---|---|---|---|---|---|---|---|
| FP Markets | None | GO Markets | None | Saxo Capital Markets | None | |||
| easyMarkets | None | Fusion Markets | None | Pepperstone | None | |||
| Admiral Markets | $10 per month | 24 months | ATC Brokers | $50 every 6 months | 6 Months | City Index | $15 per month | 24 months |
| Alpari | $5 per month | 6 months | AvaTrade | $50 every 3 months | 3 months | CMC Markets | $15 per month | 12 months |
| eToro | $10 per month | 12 months | Forex.com | £12 per month | 12 months | Friedberg Direct | $50 per month | 12 months |
| FXCM | $50 per year | 12 months | FxPro | $15 followed by $5 per month | 12 months | FXTM | $5 per month | 6 months |
| Hugo's Way | None | IC Markets | None | IG | $12 per month | 24 months | ||
| Interactive Brokers | $0-$20 per month, varies by account or account balance | Varies by account or account balance | Oanda | $10 per month | 12 months | Plus500 | $10 every 3 months | 3 months |
| XM | $5 per month with 90 days inactivity | 90 days | ThinkMarkets | None | Trader's Way | None |
Funding Fees – Deposit And Withdrawals
When it comes to fees on deposits, most leading Forex brokers have already waived such charges. However, there may be fees on fund withdrawals, which vary depending on the payment method.
Withdrawals via Debit Card or Credit Card are usually fee-free, but withdrawals via payment service providers such as Skrill or NETELLERinvolve a particular fee.
Additionally, withdrawals via bank wire transfer involve fees that are charged by the corresponding banks. The corresponding bank may charge a transfer fee between USD 25 and USD 75 for facilitating your transfer.
Note* Top brokerages such as IG Markets, Hot Forex, Pepperstone or Fusion Markets will not charge clients any withdrawal fees.
Other Trading Costs – Education, Trading Tools, Market Analysis
Forex brokerages may also charge some additional fees for add-on services they offer. Examples of these include:
Risk Management Tools
Brokers may charge extra to access advanced risk management tools. Risk management tools that may incur costs include:
Market Analysis And Education Tools
Most brokers include complimentary Market Analysis and Education tools as part of their service, but some may charge extra fees for in-depth market analysis, daily trading signals, or for private trading education classes, education materials and webinars.
Retail clients with a good understanding of Forex basics, fundamental and technical analysis, as well as money management, will probably find these options unnecessary. For clients with little knowledge of the market, there exists a plethora of web sources offering trading guides and other educational materials completely free-of-charge.
Software / Platforms
Top forex brokers will often offer additional tools to help with your trading. This might be social/mirror/copy trading tools such as MyfxBook, Pelican, Mirror Trader, DupliTrade or charting tools such as Autochartist, Trading Central and even platforms such as RealTimePro. Sometimes these tools may be complementary, but may have fees in the form of monthly access fees or widened spread.
Currency Conversion
When trading Foreign Exchange, if, for instance, a trader places an EUR/GBP trade in his/her USD-denominated account, the profit or loss registered along with all trading fees will be converted to USD and will incur a conversion fee. At brokers such as Interactive Brokers, the conversion charge will be based on the mid-price of the applicable FX spot rate for the conversion, plus an extra spread of 0.03% at the broker’s discretion.
In the example above, the trade will settle in GBP and will be converted to USD at the GBP/USD mid-price +/-0.03%.
Disclaimer: Trading the financial markets is a high-risk activity, and you can accumulate profits if done correctly, but you can just as easily accumulate losses with your retail investor accounts.
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