How to Read a Broker's Terms: Spreads, Swaps, and Hidden Fees Explained

✓ Last verified 2026-07-26

Broker pricing pages usually lead with the most flattering number. Understanding the full cost structure means reading past the headline.

The main ways brokers charge you

• Spread — the gap between the buy and sell price. Even “zero commission” accounts almost always earn the broker money through a wider spread. Compare spread type: fixed spreads stay constant, variable/floating spreads widen during volatile or low-liquidity periods (which is often exactly when you need reliable pricing most).
• Commission — a per-trade or per-lot fee charged in addition to (usually tighter) spreads, common on “raw” or ECN-style accounts.
• Swap/rollover fees — charged (or occasionally credited) for holding a leveraged position open overnight, reflecting the interest rate differential between the two currencies. These compound the longer a position stays open, which matters for anyone holding trades for more than a day or two.
• Inactivity fees — some brokers charge a recurring fee if an account has no trading activity for a defined period.
• Withdrawal fees — some brokers charge a fee per withdrawal, or only waive it above a certain withdrawal amount or below a certain frequency.
• Currency conversion fees — if you fund or withdraw in a currency different from your account’s base currency, a conversion spread applies on top of any explicit fee.

Where to actually find these numbers

Pricing pages typically show only the headline spread on the most popular instrument (usually EUR/USD) under ideal conditions. The full fee schedule — swap rates by instrument, inactivity fee amount and trigger period, withdrawal fee schedule — is usually in a separate legal/terms document, not the marketing pricing page. Look specifically for documents titled something like “Fee Schedule,” “Contract Specifications,” or within the full Terms and Conditions.

Questions worth answering before you fund an account

1. What is the typical spread on the specific instruments you plan to trade, not just the flagship pair, and does it widen noticeably around major news events?
2. What are the swap rates for the specific pairs and direction (long vs short) you intend to hold overnight?
3. Is there an inactivity fee, and what triggers it?
4. Is there a withdrawal fee, and does it depend on the method or frequency?
5. What is the currency conversion spread if you’re funding in a currency other than the account’s base currency?

The practical takeaway

• Treat the advertised headline spread as a floor, not a full picture of trading costs.
• Read the actual fee schedule document, not just the pricing marketing page, before opening an account.
• Factor in swap costs specifically if your strategy involves holding positions for more than a day — they compound and are easy to underestimate.

This is general educational information, not investment advice. Fee structures vary significantly by broker and by account type — always confirm current fees directly with the specific broker and account type you’re considering.