Fees · 7 min read · Updated 2 June 2026
What trading really costs: spreads, commissions and the fees nobody advertises
"Zero commission" is a marketing phrase, not a price. Learn where the money actually goes on each trade.
Every trade has at least one cost, and often three or four. Brokers highlight the one that looks smallest. To compare fairly you need to add them all up for the way you actually trade.
The spread
The gap between the buy and sell price. It is paid instantly on every position and it is the main revenue line for "commission-free" CFD brokers. A one-pip spread on a standard EUR/USD lot is roughly $10.
Commission
A fixed or percentage fee per order. Common on real shares and on raw-spread forex accounts. Meridian's €4.90 + 0.25% and Kestrel's $3.50 per lot are both commissions, just charged on different products.
Overnight financing
Leveraged positions held past the daily cut-off are charged interest. Hold a CFD for months and financing can dwarf the spread. Swap-free accounts remove this but often widen the spread instead.
Currency conversion
Buying US shares from a euro account means a conversion, typically 0.2% to 1%. On a buy-and-hold portfolio this is frequently the largest cost of all.
Inactivity, withdrawal and data fees
- Inactivity fees start after 6 to 12 quiet months at some brokers
- Withdrawal fees are usually a flat $5 or nothing
- Real-time market data can be a paid subscription on full-service brokers
This guide is general information, not financial, tax or legal advice.