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Forex broker fees and costs

Every foreign exchange broker charges fees in one way or another. Therefore, the cost of negotiation is related to each negotiation.

Most traders generally ignore the total cost of each transaction, which can have a significant impact on the overall result of the portfolio.

As the most common costs are generated through spreads, other fees and costs still apply and should not be ignored.

The transparent broker will always know your exchange rate and will list each transaction order on the website, trading platform or both.

Direct transaction: 

Costs include spreads, commissions, swap fees, etc. Not all costs apply to all transactions and everything depends on the type of asset being traded – whether it should be traded with margin and the duration and duration of each transaction.

The broker must mention all fees included in each transaction. In addition, transparent brokers will list them in the trading conditions and give examples of how they generate and calculate costs.

Then, transaction costs can be found within the trading platform – especially if the broker provides a proprietary trading platform.

They also provide merchants with calculators so they can calculate the cost of each transaction before placing an order.


Spread is the most common cost associated with a transaction and refers to the difference between the purchase price and the sale price.

In addition, spreads are the main source of revenue for brokers that do not count on the increase in total spreads.

The total spread of EUR / USD can be as low as 0.0 points, which is the currency pair with the least liquidity and the lowest spread. Everything above that level is the profit margin charged by the broker.


Spreads EUR / USD for multiple accounts are as low as 0.0 pips. However, the broker charges a commission for each lot.

The charge rate for the account is usually an ECN account that can perform table transactions without trading.

Here, traders obtain or approach their total spread. Then, in return, the broker charges a commission.

In addition, they charge commissions for stock transactions and will charge commissions for different assets (such as ETFs, ETCs, bonds, etc.).

Then, for complete details on which assets generate commissions, the trader should consult the asset catalog provided by his broker or obtain information directly from the trading platform.

The transparent broker will list the complete contract specifications on its website, and the proprietary trading platform will list all the details of each transaction order.

They also provide merchants with calculators so that they can calculate the cost of each transaction before placing an order.

Exchange rate:

Overnight interest or overnight interest applies to all positions held overnight. The swap rate is due to the difference in interest rates between the base currency and the quote currency.

In addition, the broker will list the method for calculating the fee, and there will be swap fees and swap fees.

Swap fees will be credited or debited from the account balance, depending on whether the trader holds a long or short position. Many brokers fail to forward favorable swap rates to traders.

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Mick is Editor in Chief and writer here on 361forex. I have been involved with the financial market for over 10 years as a self-taught professional trader and financial manager. Other features he loves to ride his bike on weekends, loves movies and going out with friends.


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