Is nextmarkets free?
nextmarkets is in fact a zero-commission broker when it comes to buying and selling stocks. Zero commission is especially useful if you trade relatively low volumes, like buying stocks for less than $500 per trade, because you won't be hit with any minimum fees the broker might charge.
We should note that the payment-for-order-flow model, which is used by some zero-commission brokers to generate income (rather than relying on commissions), could potentially create a conflict of interest between you and your broker. This could result in trade execution (like routing your orders to specific market makers) that might be unfavorable for you under certain market conditions, especially when using market orders (as opposed to limit orders, which seem to be less affected).
Keep in mind that at some brokers, you could incur non-trading charges like withdrawal or inactivity fees. Also, if you trade on margin, the margin rate charged by brokers can differ wildly. In the next chapter, we'll find out what these charges are at nextmarkets and how they compare with fees charged by its closest competitors.
If you want to read our full review, including fees, deposit options and other platforms (like web and desktop) then skip to the nextmarkets review.
Disclaimer: 52.55% 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.
nextmarkets fees
Overview of nextmarkets fees and charges
It's safe to say that nextmarkets's fees are low in general. They either don't charge a brokerage fee for things that other brokers do, or they only charge a small amount.
Here's a high-level overview of nextmarkets's fees
| Assets | Fee level | Fee terms |
|---|---|---|
| US stock fee | Low | Commission-free stock trading for orders above €250 |
| EURUSD fee | Low | The fees are built into the spread, 0.6 pips is the average spread cost during peak trading hours. |
| US mutual fund fees | - | Not available |
| Inactivity fee | Low | No inactivity fee |
nextmarkets fees
nextmarkets 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 nextmarkets fees with its closest competitors, eToro and Trading 212.
nextmarkets fees
nextmarkets trading fees
nextmarkets's trading fees are low, which makes it suitable for you even if you trade often (i.e. several times a week).
Let's break down trading fees according to the different asset classes available at nextmarkets.
Trading fees
nextmarkets's trading fees are low.
Stock fees and ETF fees
nextmarkets has low stock trading fees.
| nextmarkets | eToro | Trading 212 | |
|---|---|---|---|
| US stock | $0.0 | $0.0 | $0.0 |
| UK stock | - | $0.0 | $0.0 |
| German stock | $0.0 | $0.0 | $0.0 |
Forex fees
nextmarkets's forex fees are low.
| nextmarkets | eToro | Trading 212 | |
|---|---|---|---|
| EURUSD benchmark fee | $13.9 | $15.6 | $15.2 |
| EURGBP benchmark fee | $11.2 | $16.4 | $26.8 |
CFD fees
nextmarkets has low CFD trading fees.
| nextmarkets | eToro | Trading 212 | |
|---|---|---|---|
| Apple CFD | $1.4 | $1.2 | $0.2 |
| Vodafone CFD | - | - | $0.3 |
| Germany | - | $1.8 | - |
Currency conversion fee
nextmarkets 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..
nextmarkets fees
nextmarkets non-trading fees
When it comes to non-trading fees, nextmarkets is a rather cheap broker.
Non-trading fees include various brokerage fees and charges at nextmarkets that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.
| nextmarkets | eToro | Trading 212 | |
|---|---|---|---|
| Withdrawal fee | $0 | $5 | $0 |
| Deposit fee | $0 | $0 | $0 |
| Inactivity fee | No | Yes | No |
| Account fee | No | No | No |
nextmarkets fees
nextmarkets deposit fee
Usually, brokers don't charge anything for deposits, and nextmarkets is no different.
| nextmarkets | eToro | Trading 212 | |
|---|---|---|---|
| Bank transfer | Yes | Yes | Yes |
| Credit/debit card | Yes | Yes | Yes |
| Electronic wallets | No | Yes | Yes |
| Deposit fee | $0 | $0 | $0 |
nextmarkets fees
nextmarkets withdrawal fee
nextmarkets generally doesn't charge a withdrawal fee.
| nextmarkets | eToro | Trading 212 | |
|---|---|---|---|
| Bank transfer | Yes | Yes | Yes |
| Credit/debit card | Yes | Yes | Yes |
| Electronic wallets | No | Yes | Yes |
| Withdrawal fee for bank transfer | $0 | $5 | $0 |
nextmarkets fees
nextmarkets inactivity fee
nextmarkets does not apply an inactivity fee, which is great because your account won't be charged even if you do not trade for an extended period (like several months or years).
