Forex funding fees vary across brokers and can range from 5-15 pips for majors.
Some major brokers such as FXCM, Interactive Brokers, and Oanda charge zero funding fees:
Toshiba Forex and CMC Markets charge a zero-commission model, but have a funding fee charge up to 10 pips.
ItamaFX charges 3 pips for EUR/USD all-in funding rates, less on minor pairs.
Michèle’s Markets no longer offers zero-commission models for retail users but instead 0 funding fees for trades.
Babypips charges little to no funding fees for EUR/USD, however fees applied are mostly above 18 pips.
XM Group, Ally Invest (formerly TradeKing) charge a low fee of 2 pips but higher fees apply on some major pairs.
Forex.com charges a flat commission fee of $4 per trade.
TD Ameritrade has flat and tiered funding rates ranging from around 0.60 pips for standard accounts to 4.50-pip commission only, EUR/USD.
Thinkorswim does charge a flat commission of $2 per pound traded although they offer free trading of the EUR/USD pair.
Reminder: Terms may apply, rates and conditions may change, and are validated at the time of data creation, you should always check the latest market conditions.
Forex Funding Fees Explained for Major Brokers
As a trader, I’ve learned that understanding forex funding fees is crucial to maximizing my profits. In this article, I’ll break down the fees associated with funding your trading account at some of the major brokers, so you can make informed decisions about where to trade.
What are Forex Funding Fees?
Forex funding fees are charges imposed by brokers for depositing, withdrawing, and maintaining your trading account. These fees can add up quickly, eating into your trading capital. It’s essential to understand what fees you’ll be charged and how they’ll impact your trading.
Deposit Fees
When you deposit funds into your trading account, you may be charged a deposit fee. This fee varies depending on the broker and the payment method used. Here’s a breakdown of deposit fees for some major brokers:
Broker
Deposit Fee
IC Markets
0% (USD, EUR, AUD)
FXCM
0% (USD, EUR, JPY)
OANDA
0% (USD, EUR, CAD)
Saxo Bank
0.15% (min $10)
Pepperstone
1.8% (credit/debit cards)
As you can see, some brokers charge a deposit fee, while others don’t. It’s essential to check the fees associated with your preferred payment method before depositing funds.
Withdrawal Fees
When you withdraw funds from your trading account, you may be charged a withdrawal fee. This fee also varies depending on the broker and the payment method used. Here’s a breakdown of withdrawal fees for some major brokers:
Broker
Withdrawal Fee
IC Markets
0% (USD, EUR, AUD)
FXCM
0% (USD, EUR, JPY)
OANDA
1.5% (min $15)
Saxo Bank
0.15% (min $10)
Pepperstone
1.8% (credit/debit cards)
Inactivity Fees
Some brokers charge an inactivity fee if your trading account remains inactive for an extended period. This fee is usually charged monthly, and it’s essential to check the inactivity fee structure before opening an account.
Here are some examples of inactivity fees:
Broker
Inactivity Fee
IC Markets
$40/month (after 12 months inactivity)
FXCM
$50/month (after 12 months inactivity)
OANDA
$10/month (after 6 months inactivity)
Saxo Bank
€25/month (after 6 months inactivity)
Pepperstone
$10/month (after 6 months inactivity)
What Can I Do to Minimize Forex Funding Fees?
To minimize forex funding fees, follow these tips:
Choose a broker with low or no fees: Research brokers and select one that offers competitive fees for deposits, withdrawals, and inactivity.
Use a payment method with low fees: Opt for payment methods with low or no fees, such as bank transfers or e-wallets.
Keep your account active: Regularly trade or maintain a balance in your account to avoid inactivity fees.
Read the fine print: Carefully review the broker’s fee structure before opening an account.
Frequently Asked Questions:
Funding Fees in Forex: What You Need to Know
When trading Forex, it’s essential to understand the various fees associated with funding your account. In this FAQ, we’ll break down the funding fees for major Forex brokers, so you can make informed decisions about your trading activities.
What are funding fees in Forex?
Funding fees are charges imposed by Forex brokers for depositing or withdrawing funds from your trading account. These fees can vary depending on the broker, payment method, and currency.
How do funding fees work?
Funding fees typically apply to each deposit or withdrawal transaction. For example, if you deposit $1,000 into your account using a credit card, you might be charged a 2% funding fee, which would be $20. Similarly, when you withdraw funds, you may be charged a fee, which can range from 1% to 5% or more, depending on the broker and payment method.
Funding Fees for Major Forex Brokers
Here’s a breakdown of the funding fees for some of the major Forex brokers:
Broker
Deposit Fee
Withdrawal Fee
MetaTrader
No fee for deposits over $100, 2% for deposits under $100
1% to 3% depending on payment method
FXCM
No fee for deposits over $20,000, 2% for deposits under $20,000
1% to 2% depending on payment method
IG
No fee for deposits over $1,000, 2.5% for deposits under $1,000
1% to 2% depending on payment method
FOREX.com
No fee for deposits over $10,000, 2% for deposits under $10,000
1% to 2% depending on payment method
Oanda
No fee for deposits over $1,000, 2% for deposits under $1,000
1% to 2% depending on payment method
Please note that funding fees can change, so it’s essential to check with each broker for the most up-to-date information.
How to Minimize Funding Fees
To minimize funding fees, consider the following strategies:
Choose a broker with low or no funding fees for your preferred payment method.
Deposit larger amounts to avoid higher fees for smaller deposits.
Use payment methods with lower fees, such as bank transfers or e-wallets.
Avoid frequent withdrawals and deposits to minimize fee accumulation.
By understanding funding fees and taking steps to minimize them, you can optimize your Forex trading experience and maximize your profits.
