Key takeaways
- Every market charges through the spread; most add a commission or fee on top.
- Holding costs (swaps, funding, platform fees) matter more the longer you hold.
- Currency conversion is an easily missed cost on foreign shares and deposits.
Costs by market
| Cost | Forex / gold | Stocks | Crypto |
|---|---|---|---|
| Spread | Yes, pips | Yes, cents | Yes, % |
| Commission / fee | On some accounts, per lot | Per trade or % | Maker/taker % |
| Holding cost | Overnight swap | Platform/custody fee; CFD financing | Funding on perpetuals |
| Taxes on trades | Rare | Some countries (e.g. UK stamp duty 0.5%) | Rare |
| Transfers | Deposit/withdrawal fees | FX conversion | Network withdrawal fees |
Worked comparison: a $10,000 position held one week
- EUR/USD, about 0.09 lots (9,200 units): 1-pip spread ≈ $0.92; 5 nights of swap at an illustrative $0.20 = $1.00. Total ≈ $1.92.
- US shares via a broker with 0.5% FX fee each way for a non-US investor: conversion ≈ $50 in and $50 out, plus any commission.
- Bitcoin at 0.1% taker fee each way: $10 + $10 = $20, plus spread and any withdrawal fee.
Illustrative numbers only; actual costs vary by provider and day.
Swaps in more detail
A swap reflects the interest rate difference between the two currencies plus the broker's markup. Buying a higher-yielding currency against a lower-yielding one can earn a small credit; the reverse costs money. Brokers usually charge triple swap on Wednesday night to cover the weekend.
Common questions
Why do I pay a currency conversion fee on shares?
When your account currency differs from the share's trading currency, the broker converts at a rate that usually includes a markup.
Are zero-commission accounts really free?
No. Costs move into the spread, conversion rates or other charges.