Overview of Markets.com fees and charges
Markets.com's fees are considered to be high. This is usually a result of high fees across multiple fee types. It's important to be aware of this and to decide whether other advantages of Markets.com can still make it a good choice for you. These deciding features can be its research options, its education section or the general user experience you get on its trading platforms.
Here's a high level overview of Markets.com's fees
|Assets||Fee level||Fee terms|
|S&P 500 CFD||Average||The fees are built into the spread, 4 points is the average spread cost during peak trading hours.|
|Europe 50 CFD||Low||The fees are built into the spread, 1.6 points is the average spread cost during peak trading hours.|
|EURUSD||High||The fees are built into the spread, 0.4 pips is the average spread cost during peak trading hours.|
|Inactivity fee||Average||$10 per month after 3 months of inactivity|
Disclaimer: 79.9% 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.
Markets.com fees explained
We compare Markets.com fees with its closest competitors, Capital.com and eToro.
Markets.com trading fees
We see Markets.com's trading fees to be high because they charge more than most of its competitors.
Let's break down the trading fees into the different asset classes available at Markets.com.
Markets.com's trading fees are high.
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||$15.8||$2.3||$6.4|
|Vodafone benchmark fee||$45.8||$4.2||-|
|EURUSD benchmark fee||$25.9||$13.1||$15.6|
Markets.com financing rates are high.
If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.
|Apple CFD financing rate||15.2%||2.3%||10.3%|
|Vodafone CFD financing rate||15.2%||10.2%||-|
|EURUSD financing rate||6.5%||3.1%||3.5%|
|EURGBP financing rate||5.5%||2.3%||3.4%|
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
Markets.com 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: 0.6% mark-up.
Markets.com non-trading fees
When it comes to looking at all the non-trading fees Markets.com is an average broker. This means that some of the non-trading fees are high, but the others are low or not charged at all.
Non-trading fees include various brokerage fees and charges at Markets.com 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.
Markets.com 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 Markets.com is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods Markets.com offers.
Markets.com withdrawal fee
Unlike some online brokers we have reviewed Markets.com does not charge a withdrawal fee. This means that you'll see the same amount of money on your bank account that you transferred from your brokerage account.
|Withdrawal fee with bank transfer||$0||$0||$5|
Markets.com inactivity fee
Markets.com does apply an inactivity fee and it is $10 per month after 3 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 Markets.com charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.
Markets.com has average inactivity fee.
|Inactivity fee||$10 per month after 3 months of inactivity||No inactivity fee||$10 per month after one year inactivity. Inactivity means that you don't log in to your account|
Read more about Markets.com inactivity fee on their own site.