Overview of FXTM fees and charges

When it comes to brokerage fees FXTM shows a mixed picture: some fees are high but some are low. First you need to figure out your approach or you should use our questionnaire to be able to tell whether FXTM fees are an advantage for you. Continue reading about FXTM fees and charges to see if this is the right brokerage for you or a similar broker like XM or XTB is better for you.

Here's a high level overview of FXTM's fees

FXTM Fees snapshot
Assets Fee level Fee terms
US stock fee - Commission free real stock available outside EU and UK (Mauritius regulation)
EURUSD fee Average ECN account pricing: only opening a position is charged and the commission is based on your account balance and monthly trading volume. There is also a spread cost; 0.5 pips is the average spread cost during peak trading hours.
US tech fund fee - Not available
Inactivity fee Low $5 per month after 6 months of inactivity

FXTM fees
FXTM fees explained

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that online brokerages' businesses can be much better scaled: From a purely technical standpoint it doesn't make that much of a difference for them if they have 100 or 5000 clients.

This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually do a trade, i.e. buying an Apple stock or an ETF. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
    • A commission is either based on the traded volume or it is fixed.
    • A spread is the difference between the buy price and the sell price
    • Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.

We compare FXTM fees with its closest competitors, XM and XTB.

FXTM fees
FXTM trading fees

FXTM's trading fees are mid-tier which means you need to pay special attention to asset classes with high trading fees.

Let's break down the trading fees into the different asset classes available at FXTM.

Trading fees

FXTM's trading fees are average.

It is super hard to compare trading fees for CFD brokers. What we did at BrokerChooser? Instead of quoting long fee tables, we compare brokers by calculating all fees of a typical trade for three assets.

For the assets we chose cleverly and arbitrarily:

  • Apple, a large US stock
  • Vodafone, a large European stock
  • EURUSD, a popular currency pair

The typical trade means buying a position, holding for one week, and selling it. For the volume we chose a $2,000 position for the stocks and $20,000 for the EURUSD.

This super catch-all benchmark includes spreads, commissions and financing costs for all brokers.

Here is the verdict.

FXTM fees benchmarked
FXTM XM XTB
Apple benchmark fee $20.6 $4.9 $17.9
Vodafone benchmark fee - $1.4 $19.3
EURUSD benchmark fee $18.5 $17.1 $14.8

Financing rates

FXTM financing rates are average.

If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.

FXTM yearly financing rates
FXTM XM XTB
Apple CFD financing rate 4.9% 6.7% 5.7%
Vodafone CFD financing rate - 4.3% 4.0%
EURUSD financing rate 4.5% 3.8% 3.5%
EURGBP financing rate 2.4% 2.2% 1.9%

FXTM fees
FXTM non-trading fees

When it comes to looking at all the non-trading fees FXTM is an expensive broker. This means that they tend to charge you a lot for non-trading related activities on your trading account, like withdrawal fee.

Non-trading fees include various brokerage fees and charges at FXTM that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.

A high level overview of how FXTM stacks up in non-trading fees
FXTM XM XTB
Withdrawal fee $3 $0 $0
Deposit fee $0 $0 $0
Inactivity fee Yes Yes Yes
Account fee No No No

FXTM fees
FXTM deposit fee

Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and FXTM is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods FXTM offers.

FXTM deposit methods
FXTM XM XTB
Bank transfer Yes Yes Yes
Credit/Debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Deposit fee $0 $0 $0

FXTM fees
FXTM withdrawal fee

Unfortunately, quite like the majority of the online brokers we have reviewed FXTM does charge a withdrawal fee of $3 for the bank transfer. This means that you need to pay this amount of money when you transfer your money back to your bank account. It's up to you to decide whether this is a high amount or not as it's dependent mostly on the size of the transferred amount.

FXTM withdrawal fees and options compared
FXTM XM XTB
Bank transfer Yes Yes Yes
Credit/Debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Withdrawal fee with bank transfer $3 $0 $0

FXTM fees
FXTM inactivity fee

FXTM does apply an inactivity fee and it is $5 per month after 6 months of inactivity. This means that you need to be strategic about your trading activity to avoid getting charged after a longer time of no trade. The fact that FXTM charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.

FXTM has low inactivity fee.

FXTM XM XTB
Inactivity fee Yes Yes Yes
Inactivity fee $5 per month after 6 months of inactivity $15 one-off fee after one year of inactivity, followed by $5 per month fee if the account remains inactive. €10 per month after 1 year of trading inactivity and if no deposit was made in the last 90 days

Read more about FXTM inactivity fee on their own site.

Author of this article

Bence András Rózsa

Author of this article

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Bence András Rózsa

Broker Analyst

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Share

Comments

Open account
74% of retail CFD accounts lose money
×