FXTM Fees

FXTM Fees Editor’s Verdict

Trading fees rank among the most important factors in evaluating a broker, as they directly impact profitability, and can dictate which trading strategies are likely to be more profitable.

I have conducted an in-depth review of the FXTM fees, on top of the FXTM updated broker review, with a complete breakdown of trading costs. Overall, FXTM presents traders with one of the cheapest pricing environments in its Advantage account, which requires a minimum deposit of $200. Find out why FXTM ranks among the cheapest brokers industry-wide through our comprehensive FXTM fees analysis.

Overview of FXTM Fees and Charges

The trading environment at FXTM is ideal for algorithmic traders, scalpers, and high-frequency strategies due to their ultra-low trading costs. The innovative order execution technology, which delivers an average price improvement of 0.29 pips or $2.90 per lot and an execution speed of 0.072 seconds, adds to the FXTM cost advantage.

FXTM provides its Advantage account for a minimum deposit of only $200. While the $200 FXTM minimum deposit for the Advantage account is higher than most competitors, it is cheap considering the low FXTM fees, and it is more efficient to trade with a larger starting deposit than $200 anyway.

Here is a snapshot of FXTM’s fees:

FXTM Fees, Spreads, and Commission Explained

Online multi-asset brokers like FXTM have a lower fee structure than full-commission brick-and-mortar brokers. They have disrupted the traditional brokerage model over the past two decades, made trading more accessible, resulting in a cheaper pricing environment.

Technology and scalability created a growth platform. At the core of the global financial system is the Forex market, the most liquid financial market with a daily turnover approaching $7 trillion.

While trading costs are low, traders must know the FXTM fees to understand what they must pay, why they must pay it, and how they compare to other brokers. Trading costs at brokers fall into two categories: trading and non-trading fees.

Trading fees consist of:

• Spreads (the difference between the bid and the ask price of an asset)
• Commissions (volume-and-account dependent)
• Swap rates (charged on leveraged overnight positions)
• Currency conversion fee (applicable each time the currency of the asset differs from the account base currency)

Non-trading fees are:

• Deposit fee (not applicable at FXTM)
• Withdrawal fee (six payment processors are free)
• Inactivity fee (applies only after six months at FXTM)
• Currency conversion fee (for deposits and withdrawals in currencies that differ from the account base currency)

FXTM Trading Fees

FXTM trading fees apply to each trade transaction. The FXTM Micro and Advantage Plus accounts are commission-free but have higher spreads, making them more expensive than the commission-based Advantage alternative.

Here is the difference in minimum spreads and commissions at FXTM:

One of the most ignored trading costs is swap rates on leveraged overnight positions. Depending on the trading strategy, it may become the most significant fee per trade. Traders should check them before evaluating the total trading costs.

Swap rates apply to positions held open overnight. Note that swap rates triple on Wednesday to account for trades kept open over the weekend. Forex traders can avoid them by closing their positions before the cut-off time, which is 5pm New York time for almost all brokers.

MT4/MT5 traders can access swap rates from their platform by following these steps:

1. Right-click on the desired symbol in the Market Watch window and select Specification.

2. Scroll down until you see Swap Long and Swap Short.

A currency conversion fee is almost unavoidable, as Forex traders transact using multiple currencies, and each pair consists of two. Most traders opt for the US Dollar as their account base currency since it forms part of 80%+ of all Forex transactions.

Each time a trader transacts in a currency other than the US Dollar, FXTM must convert US Dollars, and a currency conversion fee applies. FXTM updates conversion rates daily, and traders can obtain them from their back office.

Hong Kong-listed equity traders must pay a series of additional fees. They consist of stamp duty (0.1%/national trade to the Hong Kong government), HKSFC trade levy (0.0027%/national trade to the Hong Kong SFC), HKEX trading fees (0.005%/national trade to the HKEX), settlement fee (0.002%/national trade to the Hong Kong Clearing House, and exchange fee (0.008%/national trade to the HKEX), plus a monthly live pricing fee of $120 per month.

FXTM Non-Trading Fees

FXTM non-trading fees consist of account transactions other than trading, like deposits and withdrawals. They are less frequent, but traders must know about them to avoid confusion. The non-trading fees at FXTM remain minimal, as outlined below.

FXTM Deposit Fee

All deposits at FXTM are free, meaning a trader who makes a $500 deposit into their FXTM trading account will receive $500. Traders should check any potential fees their payment processor may levy, but FXTM does not charge any deposit fees.

FXTM Withdrawal Fee

FXTM withdrawal fees apply to several payment processors, but six remain free of charge.

Below are details about the withdrawal fees for each FXTM withdrawal method:

• Bank wires - €30
• Credit/debit cards - €2
• GlobePay - Commission-free
• Skrill - Commission-free
• PayRedeem - Commission-free
• Perfect Money - 0.50%
• Neteller - Commission-free
• Local Indian payment methods - Commission-free
• Local Nigerian instant bank transfers - Commission-free
• Equity bank transfer - Undisclosed
• Ghanaian local bank transfer - Undisclosed
• African local solutions - $1
• M-Pesa - Undisclosed
• FasaPay - 0.50%
• TC Pay Wallet - Undisclosed

Third-party withdrawal fees may apply, dependent on the payment processors, and these are beyond the control of FXTM. Therefore, traders should check their options and compare withdrawal fees, also considering fees from their payment processors for transactions to other sources, like their bank account.

FXTM Inactivity Fee

After six months of dormancy, FXTM levies a $5 monthly inactivity fee. Traders can avoid this charge by placing a minimum of one trade every six months. Traders can always contact customer support to clarify the rules and requirements regarding inactivity.

FXTM Safety and Security

FXTM is a well-regulated broker with a clean operational record for over a decade. It has licenses from the Financial Services Commission in Mauritius, the Financial Conduct Authority in the UK, the Cyprus Securities and Exchange Commission, and the Capital Markets Authority in Kenya. FXTM is also a member of the Hong Kong-based Financial Commission, which requires periodic audits to ensure brokers maintain adequate capital requirements.

FXTM segregates client deposits from corporate funds, meaning it has no access to them for internal use. Additionally, it deploys the SSL (Secure Sockets Layer) network security protocol to guarantee a secure connection to FXTM services.

FAQs

Does FXTM charge inactivity fees?

FXTM levies a $5 monthly inactivity fee after six months of dormancy.

When does FXTM charge fees?

FXTM charges fees as they apply. For example, spreads are automatically added to each trade, commissions when a trader opens and closes a position, swap rates after midnight, and currency conversion fees as necessary with each transaction.

How much does FXTM charge for withdrawal?

Internal withdrawal costs depend on the payment processors. Bank wires are the most expensive, costing €30, credit/debit cards €2, Perfect Money and FasaPay 0.50%, Africa local solutions $1, but six payment processors remain free of charge.

What trading fees does FXTM charge?

FXTM charges spreads, commissions, swap rates on leveraged overnight positions, as well as currency conversion fees where applicable.

Does FXTM charge commissions?

FXTM charges commissions in its Advantage account, which has lower trading costs than the commission-free account alternative.

By DailyForex.com Team

The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.