Why the Headline Spread Is Only the Starting Point
When a platform advertises a spread of 0.6 pips on EUR/USD, that number captures only one layer of the cost structure. For traders who hold positions overnight, the financing charge — sometimes called the swap rate or rollover fee — can dwarf the entry and exit spread, particularly on leveraged positions held across multiple sessions. The first step in reading any fee schedule is to locate the overnight financing section and calculate its effect on a position of your typical size held for your typical duration. Many retail traders skip this step entirely, which is why overnight costs consistently rank as the most underestimated expense in trading.
Currency Conversion and Deposit Method Charges
Platforms are required under MiFID II to disclose all charges in a standardised costs and charges disclosure document, known as the KID or costs-and-charges statement. If a platform cannot produce this document on request, that is itself a material piece of information. The document will show the total cost of a hypothetical position expressed in euros over a one-year holding period, which is a far more useful number than any single fee line.
Inactivity Fees and Account Maintenance Charges
A charge that catches many part-time traders off guard is the inactivity fee — a periodic charge applied when no trades are executed within a defined window, typically between one and three months. These fees are legal, common, and clearly disclosed in most platform terms, but they are rarely front-of-mind when a trader is focused on entry and exit costs. Check the account maintenance section of the fee schedule for the trigger period, the fee amount, and whether it is charged monthly or quarterly. Some platforms waive inactivity fees for accounts above a defined balance; others do not. Understanding this condition before account funding prevents a situation where a dormant account is quietly depleted while you are between trading periods.