Checklist summary
- Every trade pays the spread; most also pay a commission or a maker/taker fee.
- Holding leveraged positions overnight costs financing (swaps or funding rates) that can outweigh the trading fee.
- Deposits, withdrawals, currency conversion and blockchain network fees are easy to miss.
This page gives you trading fees explained line by line, because the fee a platform advertises is rarely the whole cost. Some charges appear on a fee schedule; others are built into the price you are shown. Add them all up before you trade, and the "cheapest" option often changes.
The spread: the cost built into every price
Every market shows a buy (ask) price and a slightly lower sell (bid) price. The difference is the spread, and you pay it each time you open and close. On EUR/USD, a spread of 1.2 pips on one standard lot costs 1.2 × $10 = $12. On a crypto "instant buy" screen, the spread may be a percentage built into the quoted price rather than shown separately; comparing the quoted price with the exchange's live order book reveals it.
Commissions and maker/taker fees
- Stock commissions are charged per trade, per share or as a percentage. Many brokers advertise zero commission on some shares and earn instead from spreads, currency conversion or payment for order flow.
- Forex commissions are common on "raw spread" accounts, charged per lot traded.
- Crypto exchanges usually charge maker fees on orders that wait in the order book (limit orders) and higher taker fees on orders that fill straight away (market orders).
Illustrative example: buying $2,000 of bitcoin with a 0.1% taker fee costs $2.00. If the same order waited as a limit order and paid a 0.08% maker fee, it would cost $1.60. Selling later incurs the fee again.
Holding costs: swaps and funding rates
Overnight financing on forex and CFDs
Leveraged positions held past the daily rollover, 17:00 New York time for forex, are charged or credited a financing amount, often called a swap. It reflects the interest-rate difference between the two currencies plus the broker's markup. Many brokers apply three days' worth on Wednesday to cover the weekend. Held for weeks, swaps can cost more than the spread.
Funding rates on perpetual futures
Crypto perpetual futures have no expiry date. Instead, traders on one side pay the other a funding rate at set intervals, often every eight hours. When most traders are betting on rises, buyers typically pay sellers. Illustrative example: on a $5,000 position, a funding rate of 0.01% per eight hours is $0.50 each time, or $1.50 a day, about $45 over 30 days, before any trading fees. Note that the UK bans the sale of crypto derivatives to retail consumers.
Money in, money out: the fees people forget
- Deposit fees, especially for card payments.
- Currency conversion: buying US shares with pounds or euros often adds a percentage to the exchange rate, both when you buy and when you sell.
- Withdrawal fees: a flat bank fee, or for crypto a fixed fee per coin and network.
- Blockchain network fees: paid to the network to process a transfer; they vary with how busy the chain is.
- Inactivity and account fees: some platforms charge monthly if you do not trade.
Slippage: the cost you cannot see in advance
Slippage never appears on a fee schedule, yet for frequent traders or anyone trading small, thinly traded coins it can be one of the largest costs of all. A market order fills at the best available prices when it arrives, not necessarily the price you saw. In a fast market or a thin order book, the average fill can be worse. A stop-loss order can also fill beyond its level during a sudden move or a weekend gap. Limit orders avoid slippage on entry, at the risk of not filling.
Trading fees explained in one full example
Illustrative numbers for a beginner who buys $1,000 of bitcoin on an exchange and later withdraws it to a personal wallet:
| Step | Charge | Cost |
|---|---|---|
| Card deposit of $1,000 | 2% card fee | $20.00 |
| Buy with the remaining $980 | 0.1% taker fee | $0.98 |
| Spread paid on entry | about 0.05% | about $0.49 |
| Withdraw to own wallet | fixed network fee, say | $3.00 |
| Total before any price move | about $24.47 |
That is about 2.4% of the original $1,000 gone before the price has moved at all, and selling later would add another trading fee and spread, and most of it came from the card deposit, not the trading fee. A bank transfer instead of a card would have changed the picture completely.
Where the main costs sit in each market
| Cost | Forex / CFDs | Stocks | Crypto |
|---|---|---|---|
| Spread | Main cost on most accounts | Small on large companies, wide on small ones | Varies; often wide on "instant buy" screens |
| Commission | On "raw spread" accounts | Per trade or zero | Maker and taker fees |
| Holding cost | Nightly swap | Usually none for owned shares | Funding rates on perpetual futures |
| Moving money | Bank or card fees | Conversion on foreign shares | Network and withdrawal fees |
How to compare platforms fairly
- Write down how you actually intend to trade: how often, how large, which markets and how long you hold.
- For each platform, find the full fee schedule, not the headline.
- Price one realistic round trip: deposit, buy, hold, sell, withdraw.
- Compare typical spreads at the times you would trade, not the best spread advertised.
- Only then weigh costs against the safety checks in our platform checklist.
To see how fees on both sides change a crypto result, try the crypto profit calculator; for forex position costs, use the pip calculator.
Beginner questions, answered
What is the difference between a maker fee and a taker fee?
A maker fee applies when your order waits in the order book and adds liquidity, usually a limit order. A taker fee applies when your order fills straight away against existing orders, usually a market order. Taker fees are normally higher.
Why does my platform say zero commission if I still pay something?
Zero commission only means no separate per-trade charge. The platform can still earn through the spread, currency conversion, financing charges or other fees, so check the full schedule.
Are crypto network fees paid to the exchange?
The network fee goes to the miners or validators who process the transaction. Exchanges usually set a fixed withdrawal fee that covers it, which may be higher than the actual network cost.
Sources
- UK Financial Conduct Authority, ban on crypto-derivatives for retail consumers
- European Securities and Markets Authority, MiFID II cost and charges disclosure rules