Non-trading costs are charges that have nothing to do with opening or closing a position. The most common are inactivity fees on accounts that have not traded for a period, currency conversion when money moves between currencies, and fees on some deposits or withdrawals. They are usually small, but they reduce the balance whether or not you trade, so it is worth knowing which ones apply to you.
Key takeaways
- An inactivity fee is typically charged monthly once an account has had no trading for a set period.
- Currency conversion applies when the deposit, account and instrument currencies differ.
- Payment providers can charge fees even when the broker does not.
- These costs are listed in the broker’s fee schedule, and at Marketsall in the client area.
- Choosing the account currency carefully avoids most conversion costs.
| Inactivity fee | See the fee schedule in the client area |
|---|---|
| Inactivity period | After a period with no trading activity |
| Deposit fee | None charged by Marketsall; providers may charge |
| Withdrawal fee | Shown per method in the client area |
| Currency conversion | Applied at the prevailing rate when currencies differ |
| Where listed | Fee schedule and client area |
The common non-trading costs
| Cost | When it applies | How to reduce it |
|---|---|---|
| Inactivity fee | After a period with no trades | Withdraw unused funds or close the account if you stop trading |
| Currency conversion | Deposit, account and profit in different currencies | Open the account in the currency you deposit |
| Withdrawal fee | On some methods or below certain amounts | Choose the method with no fee; combine small withdrawals |
| Deposit fee | Rarely by the broker; sometimes by the provider | Check your bank’s international transfer charges |
| Provider and bank fees | Card cash-advance treatment, correspondent bank fees | Ask your bank; use domestic schemes where possible |
How inactivity fees work
Brokers charge inactivity fees to cover the cost of maintaining dormant accounts. The fee typically starts after a set number of months with no trading and is deducted monthly from the balance until activity resumes or the balance reaches zero. It never takes an account below zero. If you are taking a break from trading, the simplest way to avoid it is to withdraw the balance.
Currency conversion: the one people miss
| Step | Example |
|---|---|
| Deposit | You send euros to an account held in dollars: converted once |
| Trading | Profit on a yen-quoted symbol is converted into dollars |
| Withdrawal | Dollars are sent back to your euro bank account: converted again |
Holding the account in the currency you deposit and withdraw in removes the first and last conversion. Profit and loss on instruments quoted in other currencies are always converted into the account currency, which is normal and appears in the trade result. Choosing the currency is covered in Marketsall account types compared; the movement of money in and out in deposits and withdrawals explained.
Putting trading and non-trading costs together
For an active trader, spread, commission and overnight financing dwarf non-trading costs. For an occasional trader, an inactivity fee can be the largest single charge in a year. Review both once a month using your MT5 trade history and the client-area statement. The broader picture of what you pay is in how CFD brokers make money.
Common mistakes to avoid
Leaving a small balance in a dormant account. Inactivity fees can erode it.
Depositing in one currency, trading in another. Conversion can apply on the way in and out.
Ignoring provider fees. Banks and card issuers can charge even when the broker does not.
Not reading the fee schedule. It lists every non-trading charge.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
What is an inactivity fee?
A charge applied to trading accounts that have had no trading activity for a set period. It is usually deducted monthly from the balance until activity resumes or the balance reaches zero.
How can I avoid an inactivity fee?
Trade at least once within the inactivity period, or withdraw your balance if you plan to stop trading for a while. The fee cannot take an account below zero.
What are non-trading fees?
Charges unrelated to opening or closing positions, such as inactivity fees, currency conversion, and some deposit or withdrawal fees. They are listed in a broker’s fee schedule.
Do I pay currency conversion on trades?
Profit and loss on instruments quoted in another currency are converted into your account currency, which is normal. Additional conversion happens if you deposit or withdraw in a currency different from the account’s.
Are deposits free?
Many brokers do not charge for deposits, but your bank, card issuer or wallet may charge its own fees, particularly for international transfers.
Related reading
Keep a monthly fee tally
Add a line for inactivity, conversion and withdrawal charges to your trading journal each month, so the non-trading total is judged next to spread and swap rather than discovered at year end.
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