{
  "url": "https://thetraderwiki.com/en/costs-and-fees/",
  "canonical": "https://thetraderwiki.com/en/costs-and-fees/",
  "html": "https://thetraderwiki.com/en/costs-and-fees/",
  "markdown": "https://thetraderwiki.com/en/costs-and-fees/index.md",
  "lang": "en",
  "dir": "ltr",
  "kind": "article",
  "key": "costs-and-fees",
  "title": "CFD and forex trading fees: spread, swap, commission",
  "h1": "Spreads, swap and fees: what a CFD or forex trade costs",
  "description": "Forex and CFD trading costs in plain words: what the spread is, commission, overnight financing or swap, the weekend triple charge and account fees.",
  "keywords": [
    "CFD costs",
    "what is spread in forex",
    "forex trading fees",
    "swap rate",
    "overnight financing",
    "CFD commission"
  ],
  "published": "2026-09-05",
  "updated": "2026-10-12",
  "author": {
    "name": "Sebastian M.",
    "url": "https://thetraderwiki.com/en/authors/sebastian-m/"
  },
  "publisher": {
    "name": "TheTraderWiki",
    "url": "https://thetraderwiki.com/"
  },
  "riskWarning": "CFDs are complex, leveraged products, and the regulators’ own figures show that most retail accounts lose money. Nothing on TheTraderWiki is investment advice. Read the full risk disclosure, and if you’re unsure, talk to a qualified adviser. Broker details can change and they can be wrong. Before you open an account, confirm them with the broker and the regulator’s register.",
  "breadcrumbs": [
    {
      "name": "Home",
      "url": "https://thetraderwiki.com/en/"
    },
    {
      "name": "Guides",
      "url": "https://thetraderwiki.com/en/learn/"
    },
    {
      "name": "Costs and fees",
      "url": "https://thetraderwiki.com/en/costs-and-fees/"
    }
  ],
  "lead": [
    "The costs you face when trading a CFD fall into three groups. A CFD is a contract that pays you, or charges you, for the movement in an asset’s price without you owning the asset. You pay some costs directly on the trade itself: the spread and any commission. Others come from holding the trade, which means overnight financing and, if you hold a short position on a share, a borrowing charge. A short position is a bet that the price will fall.",
    "A third group of fees relates to your account: currency conversion, inactivity and withdrawal charges.",
    "You pay all these costs regardless of whether the trade moves in your favour. Most are charged on the full size of the trade, its notional value, not on your margin, the deposit you put down. So leverage increases these costs as well."
  ],
  "leadLinks": [
    {
      "label": "CFD",
      "url": "https://thetraderwiki.com/en/glossary/#cfd",
      "type": "internal"
    },
    {
      "label": "short position",
      "url": "https://thetraderwiki.com/en/glossary/#short-position",
      "type": "internal"
    },
    {
      "label": "notional value",
      "url": "https://thetraderwiki.com/en/glossary/#notional-value",
      "type": "internal"
    },
    {
      "label": "margin",
      "url": "https://thetraderwiki.com/en/glossary/#margin",
      "type": "internal"
    },
    {
      "label": "leverage",
      "url": "https://thetraderwiki.com/en/glossary/#leverage",
      "type": "internal"
    }
  ],
  "blocks": [
    {
      "type": "list",
      "id": "key-points",
      "heading": "Key points",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#key-points",
      "ordered": false,
      "items": [
        "Every round trip, opening and closing a trade, costs you the full spread. The spread is the only cost on many products, and it becomes the largest cost when you hold a trade only briefly.",
        "You’re charged overnight financing each night based on the full value of your trade, using a yearly rate tied to a benchmark interest rate. On one night each week, you’re charged triple to account for the weekend.",
        "Six weeks of financing on a leveraged trade can cost several times the spread. When you hold a trade beyond a few days, the biggest influence on total cost is how long you hold it, not the spread or commission. The spreads from many trades in a single day can add up faster still (trading strategies).",
        "Share CFDs usually include a commission each time you open and close. Index, currency and commodity CFDs usually build the whole cost into the spread.",
        "Currency conversion, inactivity fees and withdrawal charges count as account costs. Any fair cost comparison has to include all three."
      ],
      "links": [
        {
          "label": "trading strategies",
          "url": "https://thetraderwiki.com/en/trading-strategies/#costs-decide",
          "type": "internal"
        }
      ]
    },
    {
      "type": "prose",
      "id": "spread",
      "heading": "What is the spread in forex and CFD trading?",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#spread",
      "paragraphs": [
        "The spread in forex and CFD trading is the gap between the price you can buy at, called the ask, and the price you can sell at, called the bid. You pay the spread in full on every completed trade because you open at one price and close at the other. On a currency pair, the spread is measured in pips, usually the fourth decimal place of the price (pips and lots). On an index, it’s measured in points. On a share, it’s measured in the share’s own currency. The cost in money is the spread multiplied by the size of your trade.",
        "A made-up example shows a currency pair quoted at 1.1000 to sell and 1.1001 to buy, giving a spread of one pip. You buy 10,000 units at 1.1001, and if you closed straight away you would have to sell at 1.1000. You would be down 1.00 in the pair’s quote currency, the second currency in the pair, before the price had moved at all. The price has to rise one pip just for you to break even.",
        "Measured against your margin, a spread that looks tiny next to the price isn’t tiny. On a major currency pair priced near 1.10, one pip is about 0.01 % of the trade’s full size. If the company that opens your account is regulated in the EU, ESMA sets the retail margin for that type of asset at 3.33 % (ESMA Decision (EU) 2018/796). You pay that pip before the price has moved, and it is about 0.27 % of that margin.",
        "Spreads get wider when the market opens, around data releases and during overnight hours. The spread a provider advertises is the best case, not its average (how a trade works)."
      ],
      "links": [
        {
          "label": "pips",
          "url": "https://thetraderwiki.com/en/glossary/#pip",
          "type": "internal"
        },
        {
          "label": "pips and lots",
          "url": "https://thetraderwiki.com/en/pips-lots-and-position-size/#what-is-a-pip",
          "type": "internal"
        },
        {
          "label": "quote currency",
          "url": "https://thetraderwiki.com/en/glossary/#quote-currency",
          "type": "internal"
        },
        {
          "label": "the company that opens your account",
          "url": "https://thetraderwiki.com/en/broker-groups-and-regulators/",
          "type": "internal"
        },
        {
          "label": "ESMA",
          "url": "https://www.esma.europa.eu/",
          "type": "source",
          "title": "European Securities and Markets Authority",
          "publisher": "ESMA"
        },
        {
          "label": "ESMA Decision (EU) 2018/796",
          "url": "https://eur-lex.europa.eu/eli/dec/2018/796/oj",
          "type": "source",
          "title": "ESMA Decision (EU) 2018/796 of 22 May 2018 to temporarily restrict contracts for differences in the Union",
          "publisher": "Official Journal of the European Union (EUR-Lex)"
        },
        {
          "label": "data releases",
          "url": "https://thetraderwiki.com/en/economic-calendar/#spreads-and-slippage",
          "type": "internal"
        },
        {
          "label": "how a trade works",
          "url": "https://thetraderwiki.com/en/how-cfd-trading-works/#quote-and-spread",
          "type": "internal"
        }
      ]
    },
    {
      "type": "prose",
      "id": "commission",
      "heading": "Commission",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#commission",
      "paragraphs": [
        "Commission is a separate charge for each CFD trade, most often on share CFDs (shares and crypto CFDs). It’s calculated as a percentage of the trade’s full size or a fixed amount per share. You pay it when you open the trade and again when you close it. Index, currency and commodity CFDs are usually quoted commission-free, with the provider making all its money on the trade through the spread.",
        "A commission-free quote is a different way of pricing and isn’t automatically cheaper. Providers that charge commission on currency CFDs usually give you a narrower spread in return (account types). So the all-in cost of opening and closing a trade of a given size is the only fair comparison (choosing a provider)."
      ],
      "links": [
        {
          "label": "shares and crypto CFDs",
          "url": "https://thetraderwiki.com/en/shares-and-crypto-cfds/#commission-model",
          "type": "internal"
        },
        {
          "label": "account types",
          "url": "https://thetraderwiki.com/en/trading-account-types/#standard-vs-raw",
          "type": "internal"
        },
        {
          "label": "choosing a provider",
          "url": "https://thetraderwiki.com/en/choosing-a-provider/#cost-comparison",
          "type": "internal"
        }
      ]
    },
    {
      "type": "prose",
      "id": "overnight-financing",
      "heading": "Overnight financing",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#overnight-financing",
      "paragraphs": [
        "If you keep a CFD trade open past the provider’s daily cut-off, you pay an overnight financing charge. The charge exists because your margin covers only part of the trade. The provider carries the rest for you, much as a lender would. The charge is worked out on the full size of the trade, not on the borrowed part alone and not on your margin. The rate is a yearly one, built from a benchmark interest rate for the asset’s currency plus or minus the provider’s own mark-up.",
        "You pay the benchmark plus the mark-up on a long trade, a bet that the price will rise. On a short position you receive the benchmark minus the mark-up, and when the mark-up is bigger than the benchmark, that turns into a payment from you.",
        "Financing works differently for currency CFDs. Their financing rests on the gap between the interest rates of the two currencies in the pair. If you hold a trade long the currency with the higher interest rate, you can earn a small credit, while a trade short it pays (forex trading). The current rate for each instrument appears on your platform as the swap or overnight rate. A swap-free account drops the charge and usually replaces it with a fee of another kind. The overnight rate is quoted per day and changes when the benchmark does."
      ],
      "links": [
        {
          "label": "forex trading",
          "url": "https://thetraderwiki.com/en/forex-trading/#swap-and-carry",
          "type": "internal"
        },
        {
          "label": "swap-free account",
          "url": "https://thetraderwiki.com/en/trading-account-types/#islamic-swap-free",
          "type": "internal"
        }
      ]
    },
    {
      "type": "prose",
      "id": "financing-formula",
      "heading": "The financing formula",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#financing-formula",
      "basis": "arithmetic",
      "basisLabel": "Worked arithmetic: the numbers follow from the formula given in this section.",
      "paragraphs": [
        "A CFD kept open overnight uses this financing formula: daily charge = notional value × yearly financing rate ÷ 365. Some providers divide by 360. Take a made-up trade whose full size is 10,000, with a benchmark rate of 4 % and a mark-up of 2.5 %. A long trade carries a yearly rate of 6.5 %, so the daily charge is 10,000 × 0.065 ÷ 365 = 1.78.",
        "On a short trade, the yearly rate is 4 % minus 2.5 %, which equals 1.5 %, and you receive that rate, about 0.41 a day. If the benchmark were 2 %, the short trade would pay 0.5 % a year and would not receive anything.",
        "Each day the provider works out the trade’s full size again at the closing price, so the charge rises on a winning long trade and falls on a losing one. The rate always applies to your exposure and never to your margin."
      ]
    },
    {
      "type": "table",
      "id": "multi-week-total",
      "heading": "A six-week hold: what financing adds up to",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#multi-week-total",
      "basis": "illustrative",
      "basisLabel": "Illustrative figures: a made-up example, not a forecast or a quote.",
      "intro": [
        "Holding a trade for six weeks shows how financing builds up when the price doesn’t move. This made-up example has you long 10,000 of a share CFD. The yearly financing rate is 6.5 %. You hold the trade for 42 nights, including six weekends."
      ],
      "caption": "Made-up example: financing on a 10,000 long share CFD at 6.5 % a year, with the price unchanged. The weekend is charged as a triple night. Each figure is worked out from the exact daily charge and then rounded, so adding the rounded weekly figures can be a cent out.",
      "head": [
        "Period",
        "Nights charged",
        "Financing paid",
        "Running total"
      ],
      "rows": [
        [
          "Week 1",
          "7",
          "12.47",
          "12.47"
        ],
        [
          "Week 2",
          "7",
          "12.47",
          "24.93"
        ],
        [
          "Week 3",
          "7",
          "12.47",
          "37.40"
        ],
        [
          "Week 4",
          "7",
          "12.47",
          "49.86"
        ],
        [
          "Week 5",
          "7",
          "12.47",
          "62.33"
        ],
        [
          "Week 6",
          "7",
          "12.47",
          "74.79"
        ],
        [
          "Six weeks",
          "42",
          "74.79",
          "74.79"
        ]
      ],
      "numericColumns": [
        1,
        2,
        3
      ],
      "outro": [
        "Financing this trade for six weeks came to 74.79, worked out as 10,000 × 6.5 % × 42 ÷ 365. That’s about 0.75 % of the trade’s full size. With a 20 % margin of 2,000, that’s about 3.7 % of your margin, and the price didn’t move at all. A 0.1 % spread on the same trade would have cost 10 for the round trip, so holding the trade cost more than seven times the spread."
      ]
    },
    {
      "type": "prose",
      "id": "weekend-charge",
      "heading": "The weekend triple charge",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#weekend-charge",
      "paragraphs": [
        "The weekend triple charge is when your provider applies three nights of financing at a single daily cut-off during the week. For currency CFDs this is usually Wednesday, and for most others it falls on Friday. The charge covers the two days the market is closed while you still hold the trade. Over a full week it adds nothing, because you pay seven nights for seven days.",
        "Short holds work differently. Open a trade the day before the triple charge and close it the day after, and you pay four nights for a two-day hold. The triple-charge day for each instrument is in your provider’s documents."
      ]
    },
    {
      "type": "prose",
      "id": "currency-conversion",
      "heading": "Currency conversion",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#currency-conversion",
      "paragraphs": [
        "Currency conversion applies whenever a CFD is priced in a currency that isn’t your account’s currency. You pay it in two places. Your profit or loss when you close the trade is one: the provider converts it into your account’s currency at its own rate. The other is your margin, which some providers hold in the instrument’s currency.",
        "Your provider’s conversion rate adds a mark-up to the interbank rate, the rate banks deal at between themselves. Usually the mark-up is shown as a percentage. On an account that trades several markets, this is one of the hardest costs to spot. You avoid it when your account’s currency matches the markets you trade most. The choosing a provider page lists the conversion mark-up among the things to compare."
      ],
      "links": [
        {
          "label": "choosing a provider",
          "url": "https://thetraderwiki.com/en/choosing-a-provider/",
          "type": "internal"
        }
      ]
    },
    {
      "type": "deflist",
      "id": "other-fees",
      "heading": "Inactivity, withdrawal and data fees",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#other-fees",
      "intro": [
        "Charges on the account itself include inactivity, withdrawal and data fees. None of these relate to a single trade, yet they push up the overall cost of holding the account. The list also includes a charge that’s easy to miss: currency conversion."
      ],
      "items": [
        {
          "term": "Inactivity fee",
          "definition": "A monthly charge on an account that hasn’t traded for a stated period, often several months. The charge comes out of your balance until the balance reaches zero or you trade again. The terms state the period and the amount."
        },
        {
          "term": "Withdrawal fee",
          "definition": "A charge for moving money out of your account. Some providers waive it for a set number of withdrawals a month or above a minimum amount. Sometimes it comes from the payment method and not the provider."
        },
        {
          "term": "Market data fee",
          "definition": "A charge for live prices from certain exchanges, most often on share CFDs. Some providers waive the charge if you trade a minimum volume."
        },
        {
          "term": "Account currency conversion",
          "definition": "A mark-up on converting between your account’s currency and the instrument’s currency is charged on profit, on loss and sometimes on margin."
        }
      ]
    },
    {
      "type": "table",
      "id": "all-in-comparison",
      "heading": "All-in cost: a day trade against a six-week hold",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#all-in-comparison",
      "basis": "illustrative",
      "basisLabel": "Illustrative figures: a made-up example, not a forecast or a quote.",
      "intro": [
        "An all-in cost comparison of a day trade against a six-week hold using the same made-up figures shows why holding time matters most. The trade is a 10,000 share CFD with 20 % margin, a spread of 0.1 %, commission of 0.1 % each way and financing at 6.5 % a year."
      ],
      "caption": "Made-up all-in costs for a 10,000 share CFD: margin 20 %, spread 0.1 %, commission 0.1 % each way, financing 6.5 % a year.",
      "head": [
        "Cost",
        "Day trade (closed same day)",
        "Six-week hold (42 nights)"
      ],
      "rows": [
        [
          "Spread (0.1 % of the trade’s size)",
          "10.00",
          "10.00"
        ],
        [
          "Commission (0.1 % each way)",
          "20.00",
          "20.00"
        ],
        [
          "Overnight financing",
          "0.00",
          "74.79"
        ],
        [
          "Total cost",
          "30.00",
          "104.79"
        ],
        [
          "Cost as a share of the 2,000 margin",
          "1.5 %",
          "5.2 %"
        ],
        [
          "Price move needed to break even",
          "0.30 %",
          "1.05 %"
        ]
      ],
      "numericColumns": [
        1,
        2
      ],
      "outro": [
        "For the six-week trade to make anything, it has to gain more than 1 %. Whether it wins or loses, its costs take more than 5 % of the margin. The day trade breaks even after about a third of a per cent. Neither figure includes currency conversion, and that would push the totals up. Our trading strategies page runs the same sums for approaches that trade many times a day. The trading styles page compares the costs of scalping, day trading and swing trading."
      ],
      "links": [
        {
          "label": "trading strategies",
          "url": "https://thetraderwiki.com/en/trading-strategies/#costs-decide",
          "type": "internal"
        },
        {
          "label": "trading styles",
          "url": "https://thetraderwiki.com/en/scalping-day-trading-and-swing-trading/#cost-comparison",
          "type": "internal"
        }
      ]
    },
    {
      "type": "callout",
      "id": "costs-warning",
      "heading": "You pay the costs whichever way the price goes",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#costs-warning",
      "variant": "warning",
      "label": "Risk warning",
      "paragraphs": [
        "You pay the costs whichever way the price goes. The price’s direction is never certain, but the costs are. On a losing trade you pay every line in a cost table, and you pay them on a winning trade too. With leverage, the costs run to many times what the same money would pay in a product that doesn’t use leverage. A provider’s published loss rate is measured after these costs, and that’s one reason it’s so high (ESMA press release, 27 March 2018)."
      ],
      "links": [
        {
          "label": "ESMA press release, 27 March 2018",
          "url": "https://www.esma.europa.eu/press-news/esma-news/esma-agrees-prohibit-binary-options-and-restrict-cfds-protect-retail-investors",
          "type": "source",
          "title": "ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors",
          "publisher": "ESMA"
        }
      ]
    },
    {
      "type": "faq",
      "id": "cost-questions",
      "heading": "Common questions about spreads, swap and fees",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#cost-questions",
      "intro": [
        "Common questions about spreads, swap and fees ask what each charge is and when you pay it."
      ],
      "items": [
        {
          "id": "what-is-spread-in-forex",
          "question": "What is spread in forex?",
          "url": "https://thetraderwiki.com/en/costs-and-fees/#what-is-spread-in-forex",
          "answer": [
            "In forex, the spread is the difference between the price you buy a currency pair at and the price you sell it at. It’s counted in pips. You pay the spread on every trade since you open at one price and close at another. The most traded pairs have the narrowest spreads, and those spreads are narrowest during the busiest hours of the day."
          ]
        },
        {
          "id": "what-is-swap-in-forex",
          "question": "What is swap in forex?",
          "url": "https://thetraderwiki.com/en/costs-and-fees/#what-is-swap-in-forex",
          "answer": [
            "Swap in forex is the overnight charge, or credit, on a currency trade held past your provider’s daily cut-off. It comes from the gap between the two currencies’ interest rates, adjusted by the provider’s mark-up (forex trading). Swap, rollover and overnight financing are three names for the same charge."
          ]
        },
        {
          "id": "raw-spread-or-standard-account",
          "question": "Is a raw spread account cheaper than a standard account?",
          "url": "https://thetraderwiki.com/en/costs-and-fees/#raw-spread-or-standard-account",
          "answer": [
            "A raw spread account quotes a tighter spread and adds a commission. A standard account builds the whole cost into a wider spread. Which account type costs less depends on the all-in cost of opening and closing a trade of your size. The account types page works through an example."
          ]
        },
        {
          "id": "what-is-an-inactivity-fee",
          "question": "What is an inactivity fee?",
          "url": "https://thetraderwiki.com/en/costs-and-fees/#what-is-an-inactivity-fee",
          "answer": [
            "An inactivity fee is a monthly charge on an account that hasn’t traded for a period set in the provider’s terms. Until you trade again or your balance reaches zero, the provider takes this fee from your balance."
          ]
        }
      ],
      "links": [
        {
          "label": "forex trading",
          "url": "https://thetraderwiki.com/en/forex-trading/#swap-and-carry",
          "type": "internal"
        },
        {
          "label": "account types",
          "url": "https://thetraderwiki.com/en/trading-account-types/#cost-comparison",
          "type": "internal"
        }
      ]
    },
    {
      "type": "sources",
      "id": "sources",
      "heading": "Sources",
      "url": "https://thetraderwiki.com/en/costs-and-fees/#sources",
      "intro": [
        "The original documents this page cites, in the order they first appear."
      ],
      "items": [
        {
          "key": "esma",
          "title": "European Securities and Markets Authority",
          "publisher": "ESMA",
          "url": "https://www.esma.europa.eu/"
        },
        {
          "key": "esma-2018-decision",
          "title": "ESMA Decision (EU) 2018/796 of 22 May 2018 to temporarily restrict contracts for differences in the Union",
          "publisher": "Official Journal of the European Union (EUR-Lex)",
          "date": "2018-05-22",
          "url": "https://eur-lex.europa.eu/eli/dec/2018/796/oj"
        },
        {
          "key": "esma-2018-press",
          "title": "ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors",
          "publisher": "ESMA",
          "date": "2018-03-27",
          "url": "https://www.esma.europa.eu/press-news/esma-news/esma-agrees-prohibit-binary-options-and-restrict-cfds-protect-retail-investors"
        }
      ]
    }
  ],
  "related": [
    {
      "title": "What is leverage in trading? Leverage and margin",
      "url": "https://thetraderwiki.com/en/leverage-and-margin/",
      "blurb": "What leverage does to your buying power, the margin terms your platform uses and who sets the limits."
    },
    {
      "title": "How CFD trading works, from quote to statement",
      "url": "https://thetraderwiki.com/en/how-cfd-trading-works/",
      "blurb": "Every stage of a CFD trade: quote, order, fill, margin, overnight financing, closing and your statement."
    },
    {
      "title": "Trading account types: standard, raw, Islamic, demo",
      "url": "https://thetraderwiki.com/en/trading-account-types/",
      "blurb": "Standard, raw spread, swap-free, demo and professional accounts, and what each one really changes."
    },
    {
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