Is FXTM free?
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.
Overview of FXTM fees and charges
When it comes to brokerage fees, FXTM is a mixed bag. To see how they may affect you, first you need to figure out your approach to trading - i.e. whether you are more of a buy-and-hold investor or if you want to trade frequently; or what type of assets and in what volumes you'll want to trade. Alternatively, use our questionnaire to help you tell whether FXTM fees are beneficial for you. Continue reading about FXTM fees and charges to see if this is the right broker for you, or if a similar broker like FP Markets or Markets.com might suit you better.
Here's a high-level overview of FXTM's fees
|Assets||Fee level||Fee terms|
|US stock fee||-||Commission free real stock available outside EU and UK (Mauritius regulation)|
|EURUSD fee||Average||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.|
|US mutual fund fees||-||Not available|
|Inactivity fee||Low||$5 per month after 6 months of inactivity|
FXTM fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because 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 5,000 clients.
This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:
- Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
- A commission is either fixed or based on the traded volume.
- A spread is the difference between the buy price and the sell price.
- A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.
We compare FXTM fees with its closest competitors, FP Markets and Markets.com.
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FXTM trading fees
FXTM's trading fees are mixed, which means that some asset classes come with high trading fees - be sure to check these carefully.
Let's break down trading fees according to the different asset classes available at FXTM.
FXTM's trading fees are average.
Stock fees and ETF fees
FXTM has stock trading fees.
FXTM's forex fees are low.
|EURUSD benchmark fee||$9.1||$5.9||$16.2|
|EURGBP benchmark fee||$10.6||$7.0||$17.6|
FXTM has high CFD trading fees.
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 non-trading fees, FXTM is a rather expensive broker. This means that it tends to charge you a lot for non-trading-related activities.
Non-trading fees include various brokerage fees and charges at FXTM that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.
FXTM deposit fee
FXTM withdrawal fee
Unfortunately, FXTM does charge a withdrawal fee of $3 for bank transfers. This means that you need to pay this amount when you transfer money from your brokerage account back to your bank account. Sometimes this is a flat fee, but a percentage charge may be applied in some cases. It's up to you to decide whether you can tolerate this, keeping in mind that flat fees can hurt more if you withdraw small amounts only.
|Withdrawal fee for 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. Keep this in mind to avoid getting charged after a longer idle period. The fact that FXTM charges an inactivity fee makes it less ideal for you if you are a buy-and-hold investor.
The inactivity fee charged by FXTM is low.
|Inactivity fee||$5 per month after 6 months of inactivity||No inactivity fee||$10 per month after 3 months of inactivity|