Forex Brokerage Fees

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.

Written by

Justin Grossbard

With over 20 years investing experience and 10 years of trading, Justin co-founded Compare Forex Brokers in 2014. He has worked within the foreign exchange trading industry for several years and for several of the largest banks globally. He has an Honours in Commerce and Masters degree from Monash University. He also owns Innovate Online offering digital marketing services with over 20 employees.

Updated: 01/07/2022

What Changed?

Each month we update average spreads data published by the brokers the retail brokers lose %

Fact Checked

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Forex Brokerage Fees

Below we look at the different types of forex brokerage fees and costs

FP Markets – Best Range of Platforms For Low Spread Trading
Pepperstone – Top Low Spread Broker For Automated Trading
Fusion Markets – Best Commission Rates For Forex Brokers
AvaTrade – Good Fixed Spread Broker For Predictable Costs
IG – Lowest Spread-Only Commission Free Standard Account
ThinkMarkets – Top Swap-Free Islamic Accounts

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Our Rating

9.33

8.17

8.33

FP Markets Review

Review Of Pepperstone

Fusion Markets Review

Review of AvaTrade

The vast majority of retail investor accounts lose money when trading CFDs.

74.7% of retail investor accounts lose money when trading spread bets and CFDs with this provider

Lowest Commissions

71% of retail investor accounts lose money when trading CFDs with this provider

Regulations and Licenses

ASIC (Australia)

FCA (UK)

FSCA (South Africa)

CYSEC (Cypus)

IIROC (Canada)

DFSA (Dubai)

BaFin (Germany)

ADGM (Abu Dhabi)

CBI (Ireland)

FSC BVI (British Virgin Islands)

SCB (Bahamas)

VFSA (Vanuatu)

Brokerage

EUR/USD Avg. Raw Spread

0.20

0.17

0.02

0.3

GBP/USD Avg. Raw Spread

0.40

0.59

0.09

0.4

AUD/USD Avg. Raw Spread

0.30

0.24

0.50

0.5

EUR/USD Standard Spread

1.30

0.75

0.90

EUR/USD Fixed Spreads

0.90

Commissions (USD Base)

$3.00

$3.50

$2.25

Minimum Deposit

$100

Swap Free Account

No Inactivity Fees

Funding Methods

10+

16+

12+

No Funding Fees

Markets and Instruments

Currency Pairs

63+

62+

90+

55+

Cryptocurrency CFDs*

12+

15+

Index CFDs

14+

10+

33+

Share CFDs

12,986+

300+

625+

Commodities CFD

16+

30+

Stockbroking

Retail Max Leverage (Australia)

Major Pairs 30:1
Minor Pairs 20:1

Pro. Max Leverage (Australia)

500:1

400:1

Retail Max. Leverage (The United Kingdom)

Major Pairs 30:1
Minor Pairs 20:1

Pro. Max. Leverage (The United Kingdom)

500:1

400:1

Retail Max. Leverage (Europe)

Major Pairs 30:1
Minor Pairs 20:1

Pro. Max. Leverage (Europe)

500:1

400:1

Retail Max. Leverage (UAE)

Major Pairs 30:1
Minor Pairs 20:1

Pro. Max. Leverage (UAE)

500:1

400:1

Retail Max. Leverage (Canada)

Major Pairs 33:1
Minor Pairs 17:1

Pro. Max. Leverage (Kenya)

Retail Max. Leverage (South Africa)

Major Pairs 30:1
Minor Pairs 20:1

Pro. Max. Leverage (South Africa)

400:1

Retail Max. Leverage (With offshore regulators)

500:1

200:1

500:1

400:1

*Cryptocurrency CFDs are not available to retail traders in the UK due to FCA regulations

Trading Platforms + Tools

MetaTrader 4 (MT4)

MetaTrader 5 (MT5)

cTrader

TradingView

Proprietary Platform

Automated Trading

Social + Copy Trading

Standard Stop Loss

Guaranteed Stop Loss

Demo Account

Unique Feature

Fastest Limit Order Execution Speed

Smart Trader Tools

Industry low commission fees

Choice of social trading tools

Overall

Our Rating

9.33

8.17

8.33

FP Markets Review

Review Of Pepperstone

Fusion Markets Review

Review of AvaTrade

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FP Markets Has The Best Trading Fees Overall

Spread fees are one of the most important components to 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

ECN pricing: Tight spreads as there is no dealing desk (NDD) thus allowing you to save on costs
Choice Of Trading Platforms: Choose between MetaTrader 4 (MT4), MetaTrader 5 (MT5), IRESS, FP Markets Copy Trading, and MyFxBook AutoTrade
Large Range Of Markets: Choose from over 60 forex pairs, commodities, stocks, indices, and cryptos (note: cryptos are not available in the UK)

FP Markets Spreads And Trading Accounts

FP Markets has two different account types for you to choose 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 bring some of the lowest spreads on the market thanks to STP-style 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 (ie. 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.


0.20	0.30	0.40	0.30	0.40
0.17	0.26	0.59	0.24	0.40
0.17	0.24	0.59	0.30	0.54
0.20	0.30	0.60	0.40	0.50
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
0.34	0.48	0.43	0.81	0.58
0.44	0.20	0.85	0.42	0.40
0.20	0.20	0.50	0.20	0.40

Data taken from broker website. Accurate as at 01/07/2022

The Standard Account has no commissions so 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 iPhone and iPad’s as well as Android devices. Some of the features an FP Markets MT4 account can offer you are listed below:

Expert advisors (EA’s) with backtesting available for your strategies
Fully customizable charts with 3 chart types and 9 timeframes
Switch between profiles while saving chart parameters and indicator settings
Advanced order types include limit and stop orders with take profit and stop-loss points

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:

Increased customization of charts with 21 timeframes and 8 order types
Improved forex & CFD trading through trading bots for scalpers
Sophisticated automatic trading capabilities and updated expert advisors (EA’s)
Real-time market news and analysis with an economic calendar for key dates
80+ technical indicators and tools

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. Some of the other features that come with the platform are:

Access more than 50 drawing tools with advanced charting
59 different technical indicators to spot trading opportunities
Real-time price quotes to make informed decisions
Mobile app available so you can trade on-the-go

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 Review >>Visit FP Markets >>

Pepperstone Has The Top 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 analyze more markets at one time than possible manually and then execute trades. Types of traders using automation include:

Algorithmic traders – Software that analysis charts to open and close trades according to trading parameters
Social Traders – traders that use software to copy other traders signals
Scalpers and day traders – traders that set parameters for request short-term trading

Automation trading presents opportunities not easily achieved by manual traders. These features include:

Scalping – The frequent buying and selling of small volumes in a short period
Hedging – The investment in opposing assets to balance risk
High Volume trading – the purchase of high volumes in Fx at one time.

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’s important 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 currencies pairs in one day at 1 pip using $5,000k for each trade making your cost $100. then you will be 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.


0.24	0.43	0.26	0.47	0.17
0.17	0.30	0.14	0.25	0.02
0.30	0.50	0.30	0.40	0.20
0.20	n/a	0.20	0.30	0.20
0.42	0.30	0.20	0.83	0.44
0.30	0.68	0.24	N/A	0.17
0.40	0.70	0.30	0.70	0.20
0.50	0.80	0.30	1.10	0.10
0.50	0.40	n/a	0.30	n/a
1.14	0.87	0.61	1.18	0.34

Data taken from broker website. Accurate as at 01/07/2022

Compare All Spreads >>

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:

No scalping allowed
No hedging allowed
No high-frequency trading allowed
FIFO rule
Higher spread for scalping
No backtesting capabilities

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:

MetaTrader 4 trading platform with integrated programming language MetaQuotes Language 4 (MQL4)
MetaTrader 5 trading platform, which supports the MetaQuotes Language 5 (MQL5) programming language
cTrader trading platform which supports C# programming language for developing cBots
A range of third party automated social trading platforms (Myfxbook, Mirror Trader, MetaTrader Signals and DupliTrade)

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:

Limit the total transaction costs
Trade forex with flexibility
Can make small trades more profitable
Suitable for scalping algorithms and high-frequency trading (HFT)
Earn small profits without worrying the spread will eat a portion of your profits
Spread betting is also available for UK clients under FCA regulation

At Pepperstone, spreads are determined by the account types they offer (Standard vs Razor account). Generally, online brokers can offer tight spreads if:

They have a good network of liquidity providers (Pepperstone has prime relationships with tier-one liquidity providers)
How much the broker markups the spread (Pepperstone Razor account offers raw spreads with no-markups)
Trading conditions in the forex market (market volatility can impact the spread)
The available liquidity in the currency market

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 automated forex trading 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:

Less slippage
Fewer order rejections
Less re-quotes

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:

Some of the best technical analysis tools
Real-time and free historical forex quotes
Application Programming Interface API trading
FIX capabilities
VPS (Virtual Private Server) hosting 24/7
FXVM with low latency of 1ms
Autochartist
Smart Trader Tools can be used for strategy optimization
Multiple order types including risk management tools like stop-loss orders

If you’re searching for the cheapest FX broker for automated trading, you can open a demo account by clicking the button below before you risk any real money. Your money is safe with Pepperstone, which is a regulated broker by the world’s most powerful financial watchdogs Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC).

View Pepperstone Review >>Visit Pepperstone >>

AvaTrade 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 costs 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.


0.90	1.10	1.50	1.80	1.50
0.70	1.20	1.50	1.80	1.30
1.79	2.43	1.97	2.31	2.09
1.60	1.90	1.70	2.40	2.10
1.50	1.80	2.00	2.00	2.00
3.00	3.00	3.00	3.00	3.00
4.00	4.00	3.00	5.00	5.00
3.00	4.00	4.00	6.00	4.00

Data taken from broker website. Accurate as at 01/07/2022

Compare All Spreads >>

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 pips
Stock CFDs – 627 stocks (major exchanges include NYSE, NASDAQ and London Stock Exchange) with 0.13% spread on Apple, Amazon, Google and Facebook
Commodities CFD – 18 soft and hard commodities (Gold spread of $0.35 and Crude Oil fixed spread of $0.03)
Indices CFDs – 22 leading US, European & Asian stock indices with S&P 500 spread of 0.25 over-market
FX Options – 44 options contracts
ETFs CFDS – 5 ETFs with spread starting from 0.13%
Bonds CFDs – 2 bond contracts with spread starting from 0.03 over-market
Cryptocurrencies CFDs – 14 digital currencies with Bitcoin spread of 0.35% over-market

There 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:

Most popular forex trading platforms MetaTrader 4 and MetaTrader 5
AvaTradeGO App that comes with AvaProtect, which give traders protection against losing trades in exchange for a small AvaProtect fee
AvaOptions is a dedicated and proprietary forex options trading platform
Social trading platforms, including DupliTrade, ZuluTrade and MQL5 Signal Service
WebTrader is designed for beginner traders and it can be accessed from any browser

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.

Visit AvaTrade >>

Fusion Markets 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 markets 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:

Mini Lots will be calculated as $ per standard lot * 0.10
Micro Lots will be calculated as $ per standard lot * 0.01
Nano Lots will be calculated as $ per standard lot * 0.001

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:

Standard lot – $4.50 * 1 =$4.45 (round turn) or $2.25 side ways
Mini lots – $4.50 * 0.10 =$.45 (round turn) or $.25 side ways
Micro lots – $4.50 * 0.01 = $0.045 (round turn) or $.025 side ways

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 All Spreads >>

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:

No minimum deposit requirement for opening a live account
No fees on deposits and withdrawals.
Two account types (ZERO Account and Classic Account) – The Zero account has STP/ECN pricing and Classic is a Standard Account
Access to financial markets via the popular MetaTrader 4 platform (with desktop, web-based and mobile variations)
Ultra-fast order execution speed of 0.02ms.

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:

over 90 Forex pairs
5 Cryptocurrency CFD contracts
10 Stock Index CFDs
3 Energy CFDs
9 Metals

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.

Fusion Markets Full Review >>Visit Fusion Markets >>

IG 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, spreads are widened so brokers can earn profits.

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 will usually add fewer pips to major currency pairs and widen more for minor and exotic 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 sources the liquidity you will trade with. This allows DD brokers to set their own bid and ask prices and are your counter-party 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 counter-party, 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:

Beginner traders: The simpler cost structure without the need to factor in commission may appeal to beginners who are still learning forex
Extra inclusions: Some DD brokers may include free inclusions with these accounts, such as risk management tools and education.


0.86	0.74	1.62	1.19	1.76
0.70	1.30	0.30	1.30	1.40
0.80	0.90	2.80	1.70	2.30
1.10	1.10	1.70	1.10	1.70
1.20	1.40	2.30	1.70	2.50
0.62	0.77	1.50	1.27	1.30
1.10	1.20	1.40	1.40	1.50
1.30	1.40	1.70	1.50	1.60
0.75	0.85	1.67	1.40	1.43
1.20	1.20	1.40	1.40	1.20
1.20	1.20	1.40	1.40	1.40
1.30	1.50	2.30	1.50	1.90
1.30	1.70	2.40	2.10	1.70
1.20	1.40	1.50	1.40	1.60
1.52	1.65	3.13	1.64	2.24
1.40	1.20	2.70	1.90	2.70
1.70	1.80	3.30	2.00	2.30

Data taken from broker website. Accurate as at 01/07/2022

Compare All Spreads >>

IG Is The Best Broker For Standard Spreads

IG traders can choose between over 17,000 financial markets with spreads for the following

EUR/USD and AUD/USD Forex pairs starting from 0.6 points
Gold (Metals) from 0.3 points
US 500 Indices with a minimum spread of 0.4 points.

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. Besides tight spreads, a wide selection of CFD instruments and strong regulation, other major IG features include:

Award-winning platforms available across multiple devices (MetaTrader 4, ProRealTime, L2 Dealer and IG’s web trading platform)
Risk management tools with advanced order types including guaranteed stop loss
Multiple channels for support including phone, email, live chat, Twitter and the IG community forum
Online trading courses through IG Academy (free courses, webinars, quizzes and live sessions)
Money protection through segregated accounts at tier-one banks
Premium services for professional traders
Advanced charting package
Integrated Reuters news into IG trading platform
IG platform handles on average over 7 million orders each month
38% of orders have positive slippage
IG uses 256-bit SSL encryption
Real-time trading signals from Autochartist and PIA-First. Trading signals are only offered in selected forex currency pairs, indices and commodities.

IG is a well-established FTSE 250 company that has strong relationships with a wide network of liquidity providers. IG’s access to deep liquidity allows this brokerage trading firm to offer some of the lowest spreads in the forex industry. IG’s liquidity venues 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.

View IG Markets Review >>Visit IG Markets >>

ThinkMarkets Has 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 business profiting through usury (called a riba in Islam) fees. That is any financial transaction where interest is involved in the transaction. 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 (usually 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 will usually be in the form of a daily, weekly or monthly administration fee (sometimes called a carrying charge) for the currency pairs you own, this usually is usually 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.

Some brokers may limit the spread types you can use (ie standard or ECN),
Some Broker may limit the currency pairs available
Some Brokers may limit the home or base currency
Some Brokers may restrict regions available
Some brokers may limit the day you can hold your position open
You are eligible for an Islamic Account (most brokers require proof you are of Muslim faith)

Islamic Account Fee

ThinkMarkets offers a great Islamic Account. Fees are charged only every 6 days, and you can choose 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:

$5 for major currency pairs
$10 for minor and exotic currency pairs
$0.002 and $5 for cryptocurrencies

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:

Trading with a multi-regulated broker – authorized by the FCA, ASIC and FSCA
Wide range of instruments – +1,200 CFD instruments including FX, cryptocurrencies (excluding UK traders due to the FCA ban on crypto assets), indices, metals commodities and shares
A powerful range of trading platforms, including MetaTrader 4, MetaTrader 5 and proprietary trading platform ThinkTrader
Autochartist is a powerful market screener (PowerStats, key levels, percentage probability indicators, customized searches, timesaving trading and custom alerts)
ThinkZero account with raw spreads and $3.5 commission per 1 standard lot
Daily market commentaries by ThinkMarkets expert analysts
Free $50,000 of paper money with ThinkMarkets demo account
$1 million insurance protection scheme with Lloyd’s of London in case of bankruptcy
Deposit and withdrawal methods – besides the traditional payment methods (credit cards, debit cards, bank transfer, Skrill, etc.) it also accepts Bitcoin deposits

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:

69.19% of orders received no-requotes
52.02% of orders received positive slippage
18.82% of orders received negative slippage
109ms order execution speed

Click the button below and don’t miss the chance to get your free $50,000 in virtual funds.

View ThinkMarkets Review >>Visit ThinkMarkets >>

*Your capital is at risk ‘71.89% of retail CFD accounts lose money’

Markets.com Has The Lowest Spreads Standard Account Broker

Markets.com only offers a Standard style account which means the broker does not charge commissions. The good thing about Markets.com spreads is that your commission costs are already factored as part of the spreads and while these spreads are wider than the ECN pricing account, they can actually cost less.

In addition to tight spreads, Markets.com has excellent financial products to trade and trading platforms.

Markets.com Spreads

With spreads being such a large part of the cost to a trader, it is important to create an account with a broker that has tight spreads. Markets.com is a top choice for tight spreads because their spreads have no commissions and still compete well with ECN pricing accounts when their commissions are factored in.

Markets.com doesn’t publish their average or minimum spreads on their website so we had one of our analysts look into some of their live spreads to see where they are priced, and this is what we found:

We couldn’t help but note that their live spreads match or better the minimum spread other brokers advertise. IG, NovaFX, and Pepperstone spread for EUR/USD start from 0.6 pips for their standard account.

The table below shows some brokers’ average spreads being far higher than the live spreads we witnessed.


0.60	0.80	1.00	0.60	0.90
1.30	1.40	1.50	1.40	1.50
1.52	1.45	1.10	1.65	1.64
1.30	1.70	1.70	1.50	1.50
3.00	2.00	4.00	4.00	4.00
1.90	2.20	2.00	2.00	2.40
1.20	1.30	1.50	1.40	1.70

Data taken from broker website. Accurate as at 01/07/2022

Markets.com Platforms

Markets.com gives you access to 3 different platforms if you are based in Australia. The first is their own Marketsx platform which is an easy-to-use platform with a wide range of analysis and risk management tools.

Marketsx is for the trader that needs a trading platform with the best tools to help you take advantage of Market.com large range of CFD trading products. With Marketsx you get 14 exclusive tools for better fundamental, technical and sentimental analysis to give you greater insights into financial markets so you can make better trading decisions and find more trading opportunities.

Some of these features are listed below:

6 sentimental tools to better measure the general market sentiment about assets you may be considering
2 technical tools for greater market analysis using historical data
3 fundamental tools so you can assess impacts micro and macroeconomic factors will have
One-click trading makes on chart trading easy and gives it a fast execution
News alerts for sentiment trading and commentary
Get a look into the moves that major hedge funds are making with the activity section
Advanced charting with 88 technical indicators on 10 different timeframes
Economic calendar so you will never miss the next big financial event

MetaTrader Platforms

If the Marketsx platform is not what you are looking for and want a more universally used option, then Markets.com also offers the MetaTrader 4 & 5 platforms as an alternative. These platforms developed by MetaQuotes have quickly become two of the most popular platforms available. Some of the key features of these platforms are listed below:

Automated or algorithmic trading with Expert Advisors (EA’s)
Access MetaTrader’s larger trading community
Better charting customization with MQL4 & MQL5 coding
Hedge trades with lots as small as 0.01
64-bit processing and improved backtesting (MT5 only)

View Markets.com Review >>Visit Markets.com >>

*Your capital is at risk ‘70% of retail CFD accounts lose money’

Forex Brokerage Fees FAQ

How do forex brokers make money?

The forex brokers earn an income by matching buy and sell orders and execute 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:

Payment processing commission
VPN fees
Third-party tools
Risk management tools (guaranteed stop-loss orders)
Trading volume fees
Inactivity fees

What are the brokerage fees when trading forex?

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 competitive raw spread account. For a complete review please check Pepperstone Razor vs Standard Account.

Do you have to pay a monthly fee for Forex?

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.

Other Direct Transaction Charges

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 usually 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

If you trade AUD/USD and the overnight interest of AUD set by Interbank is 6% and overnight interest for USD is 4% then you would be charged a 2% rollover fee.

When swaps are revenue

If you trade AUD/USD and the overnight interest of AUD set by Interbank is 4% and overnight interest for USD is 6% then you would earn 2% in paid rollover fees

Indirect Costs

Spreads costs, commission fees, swap rates, 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 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 Neteller involve a particular fee.

Additionally, withdrawals via bank wire transfer involve fees that are charged by the corresponding banks. The corresponding bank usually charges 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:

Guaranteed stop-loss – which sets an absolute limit on potential losses and closes an active position at the specified price level with 100% certainty. However, to use such a tool when operating with high-risk derivative instruments (CFDs), traders will have to pay either a premium (CMC Markets case) or an additional spread will be applied to their position (Plus 500).
Guaranteed negative balance protections – Some brokers that offer guarantee negative balance protection spreads are wider compared to other brokers by default, as this is the cost of having an account with such protection
Unique protection tools – some brokers have their own risk protection tools. easyMarkets, for example, offers dealCancellation for a small premium. This allows you to reverse your trade within a short period of time after your transaction is completed.

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 exist 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 often there will be a monthly access fee or widened spread.

Currency Conversion

When trading Foreign Exchange, if, for instance, a trader places a 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.

About the author: Justin Grossbard

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