How Much Do Forex Brokers Charge? Full Review

logomark Anthony Gallagher calendar Last Updated: December 2021 timer 5 min read
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When it comes to forex broker fees, you should check out our best forex brokers in the world listing for some with the best value fees.

You may still wonder though, exactly how much do forex brokers charge?

We have the answer to this and much more with a full breakdown of each fee type you are likely to encounter along the way and what it means. This should help you be fully clear on your fees and what is suitable for your own trading.

Let’s get started.

Table of contents

How much do forex brokers charge?

Forex broker charges differ from broker to broker. They may charge a commission per lot traded, or on transactions. Typically, the commission can be up to $10 per standard lot traded.

With deposits and withdrawals no commissions are usually charged or if they are, these are very low.

Below you will see a list of sample commissions and fees that can be charged.

Type of Fee Lower Commission Higher Commission
Forex Spread (per lot) $1,00 $10,00
ECN Fees (per lot) $0,00 $6,00
Rollover Fee (per lot) $0,00 $0,05
Deposits (100 USD) $0,00 $1,00
Withdrawals (100 USD) $0,00 $1,00
Currency Conversion Fee (100 USD) $0,00 $1,00

Forex Brokers Fees: What are they and how to calculate them

There are several fees to be aware of when trading with a broker. We have listed each one below along with a description to explain what each is.

Spreads: The main forex brokers fee

The broker spreads can often be their main fee and way of generating money. These spreads are calculated on lots with 1 standard lot being 100,000 currency units. So, if you trade USD, then 1 lot is 100,000 USD.

The spread itself is calculated in pips with 1 pip in USD being 0.0001 USD so a 1 pip spread per lot on USD is $10.

In many cases, brokers allow you to open positions of less than 1 lot with proportionately lower fees.

The broker with some of the lowest spreads is Pepperstone. Pepperstone spreads start from 0 pips (0.09 pips on average on EUR/USD). You can visit Pepperstone for more information on what they offer (74-89% of retail CFD accounts lose money)

pepperstone spreads on forex

ECN Forex Commission: When are they Charged?

This commission is only charged by ECN brokers. These brokers usually offer extremely low spreads from 0 pips so they tend to add a small commission. This can vary but is usually between 4 USD to 7 USD per lot traded.

Despite the low commissions and fees, there still may be ways to partially avoid ecn fees that you can check out anytime.

Swap Fees: the interest on trading positions

Swap or overnight fees are charged only when trading CFDs or leveraged products like forex. It is typically very low and is a kind of interest charge for keeping a position open after the market closes. It means, the longer a position is open, the more you will pay.

For Islamic traders, this kind of swap fee is not permitted. In that case, you can find many top brokers with swap-free accounts you can open.

Forex Deposits and Withdrawals: How much are they?

The deposit or withdrawal fee charged again will depend on the broker and the payment method you use. Typically, brokers will not charge a deposit or withdrawal fee from their side. When they do, it is usually a percentage of something up to 3% or a fixed fee that is often not higher than $30.

You will find most brokers requiring some amount of minimum deposit. This can be from $0 up to $500 in general with more advanced account types often running into higher amounts even thousands in some cases.

Conversion Fee: an underestimated broker feature

Another common fee you will find, the conversion fee is charged when you deposit or withdraw a currency not supported by the broker as a base currency. For example, If you open a USD account, but you deposit money in EUR, the broker may charge a small conversion fee when depositing or withdrawing money.

To negate this fee, simply make sure the currency you’re using matches the account currency and is supported by the broker as a base currency.

FAQs

How much do currency brokers charge?

Currency brokers charge a range of fees. But, in order to get started, a deposit must be made. The industry average for this minimum deposit is usually around $200.

How much do forex brokers charge per trade?

On average, brokers charge between 5 USD and 10 USD per forex trade executed. There are many variable factors though such as the broker, the market, and other costs which could make that number higher or lower.

Do Forex brokers charge a fee?

They do charge fees, though these fees depend on the broker. They can charge trading fees such as spreads, and non-trading fees which are all the fees not related to trading such as deposit and withdrawal fees.

What is the monthly fee for Forex?

There is not a monthly fee for forex trading. It will depend on the fee model of the broker but the vast majority charge per transaction and not based on a monthly fee amount.


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74-89% of retail CFD accounts lose money

About the Author

Anthony Gallagher

Broker Expert

Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world.

A trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.

He is a keen golfer with a very high handicap so when not helping you find the best broker for your needs, you may find him on the course or just as likely following any number of sports from the comfort of his sofa.


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