How Trading Costs and Commissions Work
The real cost of a trade, and how pricing models differ.
This guide explains how a market or product works, including its material risks. It is educational only and is not investment advice. Leverage magnifies losses as well as gains, education does not remove financial risk, and trading is not a reliable source of income.
Trading costs are the charges a provider makes for opening, holding and closing a position. Some accounts charge a separate commission on each trade; others build the charge into the prices they quote.
Other charges
Overnight financing (swap) charges, currency conversion fees, inactivity fees and withdrawal fees can add up. Costs can rise during volatile periods or outside main trading hours.
What to check
Compare the total cost of a typical trade, including every fee, using the provider’s official price list. Low costs do not reduce the risk of loss.
Sources and data
- Broker published rate cards and key information documents
Corrections and updates
No corrections recorded. See our Corrections Policy.