The Spread Is Just the Starting Point
Most trading platforms advertise their spread as the primary cost of trading. On a major currency pair, that might be one or two pips, which sounds minimal. But spreads can widen significantly during news events, market open and close periods, and low-liquidity sessions. A spread that averages a certain level under normal conditions may be three or four times wider at the moment you actually want to enter a position. Always ask what the maximum spread has been, not just the typical or minimum figure.
Overnight Financing: The Hidden Accumulator
If you hold a leveraged position past the daily rollover time — usually around 10pm or midnight GMT, depending on the platform — you will be charged an overnight financing fee, sometimes called a swap rate. This cost is calculated as a percentage of your position size and compounds across every day you hold the trade. For traders who occasionally hold positions for several weeks, overnight fees can exceed the spread cost by a substantial margin. Check the platform's swap rates for the instruments you intend to trade before depositing.
Withdrawal and Inactivity Fees Are Rarely Headline Items
Withdrawal fees are often buried in a fee schedule document accessible only after registration. Some platforms charge a fixed fee per withdrawal, others take a percentage, and others apply both. Inactivity fees — charged when you have not placed a trade for a defined period, often 30 to 90 days — can quietly drain a dormant account. Before funding any account, locate the complete fee schedule and read the section on withdrawal costs and account maintenance fees specifically. These are the charges traders most commonly report being surprised by.
Commission Versus Spread: Which Model Costs More for You?
Some platforms advertise zero spreads but charge a commission per lot. Others offer commission-free trading but embed their cost in a wider spread. Neither model is inherently more expensive — the answer depends entirely on your trading style and frequency. A high-frequency trader placing many smaller orders may pay less overall with a commission model and tight spread. A position trader making fewer, larger moves might find a wider spread with no commission more predictable. The key is to calculate your actual expected cost per trade in both models using your own intended volume.