Overview of MarketsX fees and charges
MarketsX'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 MarketsX 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 MarketsX's fees
|Assets||Fee level||Fee terms|
|US stock fee||-||Not available|
|EURUSD fee||High||The fees are built into spread, 0.6 pips is the average spread cost.|
|US tech fund fee||-||Not available|
|Inactivity fee||Average||$10 per month after 3 months of inactivity|
MarketsX 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 MarketsX fees with its closest competitors, Plus500 and eToro.
MarketsX trading fees
We see MarketsX'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 MarketsX.
MarketsX'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 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.
|Apple benchmark fee||$6.4||$8.9||$6.3|
|Vodafone benchmark fee||$6.7||$7.6||-|
|EURUSD benchmark fee||$24.5||$17.9||$19.6|
MarketsX 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||7.6%||13.9%||8.7%|
|Vodafone CFD financing rate||5.4%||12.1%||-|
|EURUSD financing rate||6.3%||4.5%||3.8%|
|EURGBP financing rate||5.0%||3.1%||3.0%|
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MarketsX non-trading fees
When it comes to looking at all the non-trading fees MarketsX 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 MarketsX 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.
MarketsX 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 MarketsX is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods MarketsX offers.
MarketsX withdrawal fee
Unlike the majority of the online brokers we have reviewed MarketsX 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||$25|
MarketsX inactivity fee
MarketsX 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 MarketsX charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.
MarketsX has average inactivity fee.
|Inactivity fee||$10 per month after 3 months of inactivity||$10 per quarter after 3 months of inactivity||$10 per month after one year inactivity|
Read more about MarketsX inactivity fee on their own site.