Forex trading fees are the costs traders pay to open, hold, or close positions in the foreign exchange market. These fees can vary depending on the broker, the trading platform, account type, and whether you’re using ECN, STP, or market maker models. Understanding these costs is essential for maximising profits and managing risk.

This article breaks down all the common forex trading fees, how they’re charged, and how to minimise them.

Key Takeaways

• Forex trading fees include spreads, commissions, swap/rollover fees, and hidden costs.
• Different brokers charge differently based on account types and execution models.
• Knowing how fees work helps you make better trading decisions.
• Traders can reduce costs by choosing low-spread brokers or trading during liquid sessions.

Types of Forex Trading Fees

1. Spread

The difference between the bid (sell) and ask (buy) price of a currency pair.

• Fixed spreads: Same cost regardless of market conditions.
• Variable spreads: Change based on volatility and liquidity.

Example: If EUR/USD has a bid of 1.1000 and ask of 1.1002, the spread is 2 pips.

2. Commission

Charged by brokers in addition to spreads, especially in ECN accounts.

• Common in low-spread accounts.
• Typical fees range from $3 to $7 per lot per side.

3. Swap Fees (Rollover)

Charged or paid when you hold a position overnight.

• Positive swap: You earn money if interest rate differential is in your favour.
• Negative swap: You pay a fee if it’s not.

4. Inactivity Fees

Some brokers charge a fee if you don’t place any trades over a certain period.

• Ranges from $5 to $30 per month after inactivity (varies by broker).

5. Deposit & Withdrawal Fees

Charges for funding or withdrawing money from your trading account.

• Many brokers offer free deposits, but third-party providers (like banks or Skrill) may charge fees.

How Forex Fees Vary by Broker Type

Broker Type	Spread	Commission	Swap Fees	Best For
Market Maker	Wider	None	Yes	Beginners
ECN	Very Tight	Yes	Yes	Scalpers, Day Traders
STP	Medium	Sometimes	Yes	Swing Traders

Case Study: How One Trader Saved £720 in a Year

Rachel, a retail trader from Manchester, switched from a high-spread market maker broker to an ECN broker with tight spreads and $4 commission per lot. She also traded major pairs like EUR/USD during the London session for tighter spreads. Over 12 months, she reduced her average cost per trade by 1.5 pips, saving over £720 in fees on her 480 trades.

How to Minimise Forex Trading Fees

• Trade during high liquidity: Major sessions (London, New York) offer tighter spreads.
• Use limit orders: Avoid slippage and potential extra costs.
• Choose the right broker: Look for brokers with transparent fee structures.
• Avoid overnight trades: If possible, close positions before rollover to avoid swap charges.
• Take a Forex Course: Learn cost-effective trading strategies and how to optimise execution.

Frequently Asked Questions

What are the main fees in forex trading?

Spreads, commissions, swap (rollover) fees, and possible deposit/inactivity fees.

Is forex trading free of charge?

No. Even commission-free brokers include costs in the spread.

How much does a forex broker charge per trade?

It depends. ECN brokers may charge $6–$10 per round-turn lot, while market makers charge through wider spreads.

Do I have to pay taxes on forex trading profits?

Yes, depending on your country. In the UK, profits may be taxed under capital gains or income tax rules.

Are forex trading fees higher than stock trading fees?

Not necessarily. Forex is often cheaper due to lower minimums and tighter spreads, especially with the right broker.

{ “@context”: “https://schema.org”, “@type”: “FAQPage”, “mainEntity”: [ { “@type”: “Question”, “name”: “What are the main fees in forex trading?”, “acceptedAnswer”: { “@type”: “Answer”, “text”: “Spreads, commissions, swap (rollover) fees, and possible deposit/inactivity fees.” } }, { “@type”: “Question”, “name”: “Is forex trading free of charge?”, “acceptedAnswer”: { “@type”: “Answer”, “text”: “No. Even commission-free brokers include costs in the spread.” } }, { “@type”: “Question”, “name”: “How much does a forex broker charge per trade?”, “acceptedAnswer”: { “@type”: “Answer”, “text”: “It depends. ECN brokers may charge $6–$10 per round-turn lot, while market makers charge through wider spreads.” } }, { “@type”: “Question”, “name”: “Do I have to pay taxes on forex trading profits?”, “acceptedAnswer”: { “@type”: “Answer”, “text”: “Yes, depending on your country. In the UK, profits may be taxed under capital gains or income tax rules.” } }, { “@type”: “Question”, “name”: “Are forex trading fees higher than stock trading fees?”, “acceptedAnswer”: { “@type”: “Answer”, “text”: “Not necessarily. Forex is often cheaper due to lower minimums and tighter spreads, especially with the right broker.” } } ] }