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MultiBank fees explained

Sep 2019
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74-89% of retail CFD accounts lose money
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Overview of MultiBank fees and charges

MultiBank logo

When it comes to brokerage fees MultiBank 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 MultiBank fees are an advantage for you. Continue reading about MultiBank 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 MultiBank's fees

MultiBank Fees snapshot
Assets Fee level Fee terms
US stock fee High $3 per share for opening a position, closing is free
EURUSD fee Average ECN account pricing: $3 per lot per trade commission for accounts less than $20,000 balance. There is also 0.1 pips spread cost
US tech fund fee - Not available
Inactivity fee High $60 per quarter after 3 months of inactivity

MultiBank fees
MultiBank 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 MultiBank fees with its closest competitors, XM and XTB.

MultiBank fees
MultiBank trading fees

We see MultiBank'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 MultiBank.

Trading fees

MultiBank'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.

MultiBank fees benchmarked
MultiBank XM XTB
Apple benchmark fee $28.2 $3.9 $18.1
Vodafone benchmark fee $39.9 $5.2 $24.4
EURUSD benchmark fee $20.5 $20.0 $17.1

Financing rates

MultiBank financing rates are low.

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

MultiBank yearly financing rates
MultiBank XM XTB
Apple financing rate 2.9% 6.7% 6.0%
Vodafone financing rate 2.2% 4.4% 3.1%
EURUSD financing rate 5.2% 4.6% 4.1%
EURGBP financing rate 1.9% 1.9% 1.7%

MultiBank fees
MultiBank non-trading fees

When it comes to looking at all the non-trading fees MultiBank is a cheap broker. This means that they don't 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 MultiBank 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 MultiBank stacks up in non-trading fees
MultiBank XM XTB
Withdrawal fee $0 $0 $0
Deposit fee 0 0 0
Inactivity fee Yes Yes No
Account fee No No No

MultiBank fees
MultiBank 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 MultiBank is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods MultiBank offers.

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

MultiBank fees
MultiBank withdrawal fee

Unlike the majority of the online brokers we have reviewed MultiBank 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.

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

MultiBank fees
MultiBank inactivity fee

MultiBank does apply an inactivity fee and it is $60 per quarter 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 MultiBank charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.

MultiBank has high inactivity fee.

MultiBank XM XTB
Inactivity fee Yes Yes No
Inactivity fee $60 per quarter after 3 months of inactivity Inactivity fee of $5 / month after 90 days. if balance reaches $0 account is archived. No inactivity fee

Read more about MultiBank inactivity fee on their own site.

AUTHOR

Gergely Korpos
Gergely Korpos
Co-founder, CPO
Gergely's aim is to bring more clarity into personal investing. He has 10 years of experience in financial markets with GE Money, KPMG and MOL. He concluded thousands of trades as a commodity trader and financial portfolio manager
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