Forex Money Management

How to Save Money on Broker-Related Fees

When it comes to trading forex, from the outside it looks like it is a fantastic and quite straightforward way to make money. In reality, there are a lot of hidden costs that your broker may be adding to our trades. We are talking about spreads, commissions, swap charges, deposit fees, withdrawal fees, and more. All of these fees will add up over time and if you are not careful they can really eat into your profits. We are going to be looking at a few of the things that you can do that could help you to reduce the fees that you are paying and to help you save some of your profits from going into the broker’s profits.

Find the Right Broker

There are a lot of brokers out there, with so many being available, there is also a lot of variety when it comes to the fees that are being charged. Some have high, some have low and some do not have any, but you will need to weigh up the benefits between the fees and the features that you will receive. A broker with very low fees may not be offering the same features as one that charges higher fees. However, if you are paying too much on all fronts, then it may be time to look for another broker. There are industry standards when it comes to the fees, so if you are with one that is far higher than the rest of the market, then you should probably think about changing brokers and going for one with slightly lower overall fees.

Swap Charges

A swap charge is a fee that your broker charges when you hold a trade overnight, these charges are applied directly to the trade that is being held. You won’t find many brokers that do not have swap fees, but there are some out there and some brokers also offer Islamic accounts which do not have swap fees, but the spreads on those accounts are often higher. For many brokers there isn’t much you can do when it comes to the swap fees, they are something that you may need to accept, but you can of course reduce the amount of money that you are paying by trying to close out your trades before the cut-off point in the evening. You will need to weigh up whether it would be worth closing our trade early to avoid the swap or to accept the swap if your trade will make more profit.


Spreads are a big one, the spread is the difference between the buy price and the sell price, if a broker has a big spread then the markets will need to move a lot more in order for you to make the same profit than you would with a broker with a lower spread. Brokers often offer different account types, accounts like ECN accounts will have generally lower spreads, so these accounts are good ones to go for If you have a high spread account, there is no harm in getting in touch with your broker to ask if they can lower your spreads, most can do this on an individual account and if you are a good customer of theirs, many will b happy to give a little discount to your spreads.


The average commission being charged these days seems to be around $6 per lot traded. Some accounts have commissions and some do not, those without commissions often have large spreads as the commission is often charged as a way of reducing h spreads on the account. If you are being charged anything more than $6 per lot traded then you are most likely being ripped off, either look for a new broker with a lower commission or get in touch with your broker in order to ask that your commission is reduced, if you have a high trade volume with the broker, they will most likely be happy to reduce your commissions a little bit.

Deposit Fees

A bit of a dinosaur this one, but some brokers actually still charge for depositing money into your account, that is right, they charge you to put your money into their accounts. If your broker does this, get out, that is the only advice, there is no place in the forex trading world for brokers that charge you for putting your money into their account.

Withdrawal Fees

Just like the deposit fees, some brokers will charge to withdraw your money. This can be a bit of a pain especially if it is not advertised on the site. There are a few things that you can do, you could look for a broker that does not offer withdrawal fees, there are a lot of them out there but this can be a bit of a hassle, moving all your money into another trading account. You could also check which withdrawal methods are available as some brokers will charge for one method but not for another, so it may be worth changing the method used in order to use one of the ones that do not have a charge. If you are a big player, with a high trade volume, get in touch with your broker, some may be willing to waive any fees that you would otherwise have to pay for your withdrawals.


You may have heard of rebates, this is a way of getting back a bit of the money that you are paying through your commission or spreads. There are a number of reputable companies out there that offer you rebates for your trades through a number of different brokers. You will have to sign up for a new account through their introducing broker link, but apart from that, it is a completely automated process. There are also some brokers that will offer rebates directly from them. There will often be a trade volume requirement on these rebates, but if you manage to achieve them, it will save you money getting back a percentage of the commission that you are paying, well worth it if the commissions and spreads are already quite low or at least in line with the industry standards.


Some brokers will offer you interest for simply having money in your account, a fantastic way to make a little extra money and to help counter the effects of the fees that you are paying. Of course, you are not going to be making thousands a month through interest, but even a few extra dollars per week or month will help to offset some of the fees that you are paying. There aren’t as many brokers offering this sort of thing, but if you are able to find one with other decent features and fees, then it is a great way of making a little more.

Those are some of the things that you can do to help reduce or counteract the fees that your broker may be charging. For many, there may be nothing you can do about them, but for others, it may be worth at least getting in touch with your broker in order to ask whether or not they can reduce any of the fees that you are being charged. There is no harm in asking and many brokers will be happy to offer you something new if you are a good customer of them.

Forex Brokers

Forex Broker Account & Trading Costs Explained

All Forex brokers charge fees in one form or another and there are commercial costs associated with each transaction performed. Many operators often do not report the total cost per transaction, which can make a big difference in the overall result of a portfolio. While the best-known cost is spread, there are other charges and costs that are applicable and should not be ignored. Transparent brokers will always be aware of their commissions and will include them on their website, on their trading platform with each operating ticket (or, ideally, in both locations).

Summary of Direct Commercial Costs

Direct trading costs consist of spreads, commissions, exchange rates, overnight financing costs, storage fees, and custody fees. Not all costs apply to all transactions and all depends on which asset is traded if traded by margin and the duration of each transaction. The broker must mention all the costs involved in each transaction; transparent brokers report them in their trading conditions section, and also provide examples of how they work, and all costs are calculated. In addition, trading costs can also be reported within the trading platform. This is usually the case if the broker offers its own trading platform. Some brokers also provide calculators so traders can calculate the cost of each trade before they start trading.


Spreads are the best-known cost associated with a transaction and refer to the difference between the purchase and sale price. Spreads are the first and main source of income for brokers who live off the profit margin of gross spreads. Gross spreads can reach 0.0 pips in the EUR/USD pair, the most liquid currency pair having the lowest spread. All that’s above this level is the profit margin the broker charges.

While normally spreads are listed on each broker’s website or on the same trading platform, traders can easily view them at their terminal.


Some accounts may have spreads as low as 0.0 pips in EUR/USD, but the broker charges a commission per lot. Fee-collecting accounts are generally ECN accounts that operate on a non-executive execution table. The traders get the gross spreads, or very close to them, and in return, the broker charges a commission.

Commissions are also charged on equity transactions and other assets (ETFs, bonds, etc.) will carry a commission. In order to obtain full details on which assets a commission is held, traders should consult the list of assets provided by your broker or obtain the information on the trading venue. More transparent brokers will report full contract specifications on their website, while the proprietary trading platforms will list all information on each transaction ticket. Volume discounts are often given to accounts that have commissions.

Rates of Exchange

Swap rates, which sometimes refer to refinancing rates, apply to each overnight position. Swap rates occur because of differences in interest rates in the base currency and in the trading currency. Brokers must report how this cost is calculated and there is a Long Swap Rate and a Short Swap Rate. Depending on whether operators take long or short positions, swap rates are credited or charged to the account balance. Many brokers cannot send positive exchange rates to traders.

  1. Forex traders can check the precise swap on your MT4 trading platform by doing the following:
  2. Right-click on the symbol you want inside the “Market Watch” window and choose “Symbols”.
  3. Select the desired coin and then click on “Properties” on the right side.
  4. Look at the bottom of the window until you can see “Swap Long” and “Swap Short.

One-Day Financing Costs To-One

This is a cost related to margin operations. Brokers will explain how the actual one-day financing rate can be calculated. Depending on the amount of leverage held by transaction and which asset is being traded. This is a significant cost of monitoring, as it increases the longer an asset remains open in the account.

Storage Rates

Some brokers charge merchants a storage fee for keeping certain assets. This is an unnecessary charge, but you will be charged for holding positions in the account that add to the swap and/or financing charges. In essence, it is a commission charged for holding positions in its portfolio of assets. Brokers who charge storage fees should be avoided, as few brokers charge this fee.

Charges of Custody

The capital, the ETF, and the bonds come with custody fees, which are usually a small percentage that is charged annualized, but which can be deducted monthly with a minimum. Not all brokers offer trading shares or bonds and use CFDs that are excellent to enter the price stock without incurring escrow fees.

Summary of Indirect Trading Costs

Indirect commercial costs are costs that are not charged per transaction but include costs such as withdrawal costs and account inactivity fees. All brokers waive deposit charges, which is standard industry practice. Some brokers even reimburse their dealers for deposits made through a bank transfer that is usually charged by the merchant’s bank. Brokers generally do not charge withdrawal fees, but third-party charges, such as bank transfer charges, may apply. All charges related to deposits and withdrawals must be listed on the Broker’s website.

Another unnecessary charge that some brokers charge is an account inactivity charge. This generally applies after three months without commercial activity. The broker will then charge a quarterly fee, which will be listed in the terms and conditions of operation of the broker’s website until the account balance is exhausted or the transaction resumes.

In general, all fees that a broker can charge will be listed on their website under conditions of operation. Traders should review this section as the less known costs are only mentioned in it. In case this information is not provided, it is best to avoid the broker. Customer service can always be contacted, but again, a transparent and reliable broker will not hide your costs. Costs such as spreads and swaps are better informed directly from the trading platform as they can change quickly due to market conditions. The use of cost calculators provided by brokers can also be used to determine the precise costs per asset and traded volume.

Forex Brokers

Hidden Forex Brokerage Charges to Watch For

Forex brokerages aren’t always transparent about some of their costs. Many use sleek, impressive websites to make themselves seem more legitimate, which keeps some of their potential clients from reading the fine print. Don’t let us scare you – trustworthy brokers are out there, but it is important for traders to understand how to spot scammers. One of the most common things that brokers try to hide are unfavorable fees. 

We’ll start with two fees that should be advertised transparently, although some brokers try to hide these fees if they are unfavorable.


The spread is the difference between the bid and ask price on a trade. This is how most forex brokers make their profit, alongside commissions. The amount of the spread can vary widely, but the average spread on the pair EURUSD is around 1.5 pips. Anything above 2 pips on this pair is quite high, while anything of 1 pip or below is favorable. It’s common practice for brokers to offer lower spreads on accounts that require larger deposits. However, some brokers try to hide their spreads, or they don’t list them on their websites at all. This is a sign that the spreads are high, and traders should run in the other direction. While spreads should be listed transparently on every broker’s website, this isn’t always the case with some scammers. 


Most brokers charge commission fees unless they have high spreads to make up for them. Just like with spreads, this is something that should be clearly advertised on the broker’s website. If a broker doesn’t charge commission fees, this is something that they should also advertise on their website. If you can’t find any information about commissions, then chances are that high commission fees are applicable. 

Now that we’ve covered two of the main brokerage fees, we will move on to the charges that aren’t usually presented transparently on the broker’s website. It’s easy to find a broker that doesn’t charge any of the following fees, aside from withdrawal fees.  

Deposit/Withdrawal Fees

There are brokers out there that offer fee-free deposits and withdrawals, although most charge some type of fee. Most commonly, deposits do not carry charges, but withdrawals do. Our advice would be to look for a broker that charges one or the other and to be sure that those charges are listed transparently. If the broker doesn’t even have a funding/payment methods page or information on their website, then there is no telling how high those fees may go. For example, some brokers charge fees of 7% on debit/credit card withdrawals. If you’re withdrawing $1,000, then you’d be looking at a steep fee of $70. If you can’t find a brokerage offering fee-free withdrawals, look for one with fees of around 1-3% on your preferred funding method, or look for fee caps of around $30 so that you don’t get charged a crazy amount.

Inactivity Fees

Many brokerages that charge inactivity fees list those fees somewhere on their website, possibly under their terms & conditions. Unfortunately, many traders don’t take the time to look over those sections of the website or they don’t read it thoroughly, so this can be easy to miss. Inactivity fees are charged on trading accounts that haven’t had any trading activity for a certain amount of time. Some brokers begin to charge those fees after 30 days with no activity, up until the account has been reduced to $0. Others give traders a little more time, around 3-6 months before they start charging them. The exact amount of the charge can vary widely, from $0 to $100 or more, sometimes increasing with longer periods of inactivity. Inactivity fees are only charged on accounts that have a remaining balance; they will never make your account go into the negative. This is a way for brokers to wipe out any remaining balance on the account. 

Fees for Withdrawing with no Trading Activity

If you fund your trading account and then change your mind and decide to make a withdrawal (without any trading activity), be careful. Some brokerages will charge you a fee for doing this. We’ve seen fees in the $30 range, but some will charge a high percentage of the amount you originally deposited. These fees are often hidden under a broker’s terms & conditions, although more transparent brokers might list them on their main funding page. 

Maintenance Fees

Most brokers don’t charge maintenance fees because they understand that this is obviously an unnecessary charge that will anger their clients. This is basically like an unnecessary charge your home phone or internet provider might throw on your bill for no reason. The reason these fees are taken is usually described as being for “accounting” purposes, or more generically they are simply described as monthly account maintenance charges. If a broker charges maintenance fees, then it is likely that they have other hidden charges as well, so be cautious or look for another broker altogether.  

The Bottom Line

Traders should be aware that there can be hidden charges with forex brokers. Spreads and commission fees are common charges that should be expected, but if you can’t find any information about these charges on the broker’s website, it is usually a bad sign. Funding fees are also pretty typical, but transparency is important for this category. You should be provided with a complete overview of the aforementioned fees before you ever open a trading account. Then we move on to fees that are less common and often hidden in less obvious sections of a broker’s website. Inactivity fees, maintenance fees, and fees for making withdrawals with no trading activity are a few examples of these, although shady brokers might be able to come up with more options in this category. 

Be reassured that there are reputable brokerages out there that aren’t trying to scam you out of your hard-earned money, you simply need to know how to spot these things and compare all of the applicable fees for your options. Start by checking for the spread, commission, and funding charges. If all of these are detailed on the website, then read through the terms and conditions fully to check for any hidden charges. Look towards the very bottom of the broker’s website for important links or PDF files you’ll need to read and be sure to read everything you can find.