Overview of FXTM fees and charges
It's safe to say that FXTM's fees are low in general. They either don't charge a brokerage fee for things other brokers do charge for, or they only charge a small amount. This means that you can use FXTM even in case you trade frequently like multiple times a week or daily.
Here's a high level overview of FXTM's fees
|Assets||Fee level||Fee terms|
|S&P 500 CFD||Low||The fees are built into the spread, 1 point is the average spread cost during peak trading hours.|
|Europe 50 CFD||Low||The fees are built into the spread, 3 points is the average spread cost during peak trading hours.|
|EURUSD||Low||MT4 Advantage account: there is a commission which 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.|
|Inactivity fee||Low||$5 per month after 6 months of inactivity|
Disclaimer: 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
FXTM fees explained
We compare FXTM fees with its closest competitors, XM and Tickmill.
FXTM trading fees
FXTM's trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).
Let's break down the trading fees into the different asset classes available at FXTM.
FXTM's trading fees are low.
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 an example 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 example in this context would mean 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.
|Apple benchmark fee||$31.5||$6.7||-|
|Vodafone benchmark fee||-||$2.3||-|
|EURUSD benchmark fee||$13.2||$17.5||$12.5|
FXTM financing rates are low.
If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.
|Apple CFD financing rate||3.9%||6.0%||5.2%|
|Vodafone CFD financing rate||-||5.9%||-|
|EURUSD financing rate||2.8%||3.7%||2.9%|
|EURGBP financing rate||2.1%||3.0%||1.9%|
Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.
Currency conversion fee
FXTM will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account. The fee is charged as the following: Exchange rate received from liquidity providers plus a mark-up. We used the EURUSD trading fees for the calculation..
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.
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 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.
|Withdrawal fee with bank transfer||$3||$0||$0|
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.
|Inactivity fee||$5 per month after 6 months of inactivity||$15 one-off maintenance fee after one year of inactivity, followed by $5 per month fee if the account remains inactive||No inactivity fee|
Read more about FXTM inactivity fee on their own site.