The short version
- Every trade has a spread; many also carry commission, and leveraged positions held overnight pay financing.
- Crypto adds its own layers: maker and taker fees, network withdrawal fees and funding payments on perpetual futures.
- Add up the full round trip before comparing providers, and check typical costs rather than best-case ones.
Trading fees explained in one sentence: you pay to get money in, to trade, to hold and to get money out, and each step can be priced differently. None of these costs is hidden in a legal sense, but several are easy to miss because they appear in a price rather than on a fee line. This entry lists them in the order you meet them, with illustrative numbers that have been checked.
Costs of getting money in
- Deposit fees: bank transfers are often free; card payments and some e-money methods may carry a percentage charge.
- Currency conversion: if you deposit pounds into a dollar account, or buy USDT with euros, someone converts the money and usually adds a margin to the exchange rate. It rarely shows up as a separate fee.
- Instant-buy markups: crypto apps with a simple "buy" button often quote a price slightly above the market and may add a fee on top.
Costs of trading
The spread
The gap between the buy and sell price is paid on every trade, whichever market you are in. On a liquid currency pair it may be a fraction of a pip; on a small token or an exotic pair it can be many times wider. Spreads also widen at quiet times and around big news.
Commission
Some forex accounts, most share-dealing services and nearly all crypto exchanges charge commission. Crypto exchanges usually use maker and taker fees: a limit order that rests on the order book "makes" liquidity and may pay less, while an order that fills immediately "takes" liquidity and pays more.
Taker fee of 0.5%: $2,000 × 0.005 = $10
Effective spread of 0.2%: $2,000 × 0.002 = $4
Cost on the way in: $14, before the same again on the way out.
Slippage
Slippage is the difference between the price you expected and the one you got. It happens when the market moves between clicking and filling, or when your order is larger than the volume at the best price. It is not a fee anyone charges, but it is a real cost, and it tends to be worst in fast markets and thin order books.
Taxes on the trade itself
Some countries levy a tax on buying shares, and it is added to the purchase cost by the broker. Check the rules for the market whose shares you are buying, not just where you live.
Costs of holding a position
Overnight financing (swap)
Leveraged forex, gold and CFD positions held past the daily rollover at 17:00 New York time are charged, or occasionally credited, financing. The rate reflects interest rates plus the provider's markup. Most providers charge three days' worth on Wednesday night to cover the weekend.
Rollovers: Monday 1 + Tuesday 1 + Wednesday 3 + Thursday 1 = 6 nights
Financing: 6 × $6.50 = $39.00
Funding rates on perpetual futures
Crypto perpetual futures have no expiry date. Instead, holders on one side pay holders on the other side at regular intervals so the contract price stays near the spot price. When most traders are long, longs usually pay shorts, and the payments can add up quickly on a leveraged position. The rate changes constantly, so check it before holding a perpetual for days.
Account and inactivity fees
Some brokers charge monthly platform fees, custody fees for shares, or an inactivity fee if you do not trade for a period. They are small individually but easy to forget on an old account.
Costs of getting money out
- Withdrawal fees: a flat charge or percentage on bank withdrawals with some providers.
- Crypto network fees: moving coins off an exchange costs a withdrawal fee that differs by network. For USDT, the same exchange may charge very different amounts for different chains.
- Conversion back: turning dollars or USDT back into your home currency often carries the same kind of exchange-rate margin as on the way in.
Trading fees explained with a full round trip
Put the pieces together for a crypto example, all figures illustrative. You buy $2,000 of a coin with a 0.5% taker fee and a 0.2% effective spread ($14), the price stays flat, and you sell with the same charges ($14), then withdraw the proceeds to a bank for a $5 fee. You have lost $33 without the market moving at all, about 1.65% of the amount.
That is the number to compare between providers, and the number your trade has to beat before it makes anything. The crypto profit calculator includes fees on both sides, and the pip calculator converts forex spreads into dollars.
A forex round trip, costed
Illustrative figures again. You trade one standard lot of EUR/USD on an account with a 0.2-pip spread and a $7 round-trip commission, and you hold the position from Monday to Friday afternoon at $6.50 per night of financing.
- Spread: 0.2 pips × $10 = $2
- Commission: $7
- Financing: 6 nights × $6.50 = $39
- Total: $48
The financing is by far the largest item, even though it appears nowhere on the order ticket. For short trades, spread and commission dominate; for positions held for weeks, overnight charges usually overtake them. Knowing which kind of trader you are tells you which cost to compare first.
How to compare costs fairly
- Use the same trade size and holding period for every provider.
- Use typical spreads, not the best advertised figure.
- Include financing if you hold overnight and withdrawal fees if you plan to move money out.
- Check the fee schedule document, not just the marketing page.
The broker checklist puts cost comparison in its proper place: after regulation and client money protection, not before.
Reader questions
What is the difference between maker and taker fees?
A maker order rests on the order book and adds liquidity, such as a limit order below the current price. A taker order fills immediately against existing orders. Exchanges usually charge takers a higher fee.
Why did I pay more than the fee shown on the app?
The fee line often excludes the spread, currency conversion and, for crypto withdrawals, the network fee. Slippage can also give you a worse price than the one you saw.
Are zero-commission trades free?
No. Providers that charge no commission earn from the spread, currency conversion, financing or other sources. The cost is still there, only built into prices rather than itemised.