Jun 02 2021 0

You have to compare the trading cost of forex brokers carefully before choosing for yourself a forex broker to trade. Of course, it must be after knowing that the broker is reliable. The trading fee of a forex broker is a combination of many different factors, and we will compare all of those factors of every broker. The following article compares the fees of most reliable forex brokers tested by BRKV Forex.

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How to know which broker is reliable?

The fastest way to know if a forex broker is reliable or not is to look at its forex regulation. A forex regulation is a certificate that a broker is under the management and monitoring of a financial institution of a certain country in the world. These regulations are very difficult to obtain and those financial institutions only give them to really reliable exchanges. Here is our list of reliable forex brokers in the forex market as well as their forex regulations:

Exness CySEC, FCA Xem thêm ở đây
XM CySEC, DFSA, ASIC Xem thêm ở đây
HotForex CySEC, FCA, FSCA Xem thêm ở đây
Saxo Bank FCA, FSA  
Forex.com   FCM, RFED, CFTC, NFA    


Forex spreads comparison

Among the types of forex transaction costs, spread is the factor that accounts for the highest percentage of them. It is the fee that forex brokers will add to the spread that the liquidity provider tells them. Therefore, the first fee that we need to compare is definitely the spread.

Spread is the difference between the bid and ask price of a currency pair, which is traded mainly in the foreign exchange market. Here is our comparison of the spreads of the most reliable forex brokers in the world:

  • Exness broker: 0.7 pips
  • XM broker: 0.8 pips
  • HotForex broker: 1 pip

Forex commission fees comparison

No-Dealing Desk (NDD) forex brokers often use computer systems such as Electronic Communication Networks (ECNs), Straight Through Process (STP) or Direct Market Access (DMA) to connect you directly with liquidity providers including global banks, major financial institutions and even individual investors.

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By cutting out the middleman (themselves), NDD brokers are able to offer the “most pure” or “rawest” spreads possible, as prices are set by liquidity providers without any interference. price intervention from the NDD exchange itself. To keep spreads at 'raw' or their market rate, brokers charge a commission for your trading so they can recoup the cost of their service. Since these brokers make their profit through commissions, not spreads, increasing spread costs is not in their favor. Instead, NDD offers tighter spreads in the hope that lower costs will encourage more trading.

Commissions will be charged for each lot that you trade. Here is our comparison of the commission rates of the most reliable forex brokers in the world:

  • HotForex broker: $6/lot
  • Exness broker: $7/lot
  • XM broker: $7/lot

Minimum deposits comparison

The minimum deposit is the bare minimum requirement of fundings of a forex broker if a trader wishes to open a trading account on the broker’s platform. It can be counted as the first trading fee you have to pay for the broker because almost all new forex traders will lose their money at the beginning.

Some brokers can require a lot from their customers from the start. I’m talking about thousands of dollars for the minimum deposit. Nobody should pay that much at the start. The best forex brokers never ask traders to put in that much. Here is our comparison of the minimum deposit of the most reliable forex brokers in the world:

  • Exness broker: 1 dollar
  • XM broker: 5 dollars
  • HotForex broker: 5 dollars

Other trading fees comparison

Relative commission fee

With relative commissions, transaction costs will be based on a standard lot. If you are trading with small lots (such as Micro or Nano) the commission cost will usually be a relative or prorated amount based on the commission for a standard lot. However, some brokers may charge a slightly higher commission for smaller lots to encourage larger trades.

If the commission is based on the forex order size, then:

  • Mini Lot = Trade amount per Standard lot x 0.1
  • Micro Lot = Trade amount per Standard lot x 0.01
  • Nano Lot = Trade amount per Standard lot x 0.001

Fixed commission fee

Some forex brokers charge a flat commission instead of a relative commission. This means you will be charged the same regardless of your trade size and volume. This method is less common than relative commissions

Commision by tier

While most forex brokers charge relatively the same commission regardless of volume. Some forex brokers offer a commission discount on high volume trades. This means that commission fees will decrease according to how much you trade. These are called variable or tiered commissions.

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Currency conversion fee

Most forex brokers advertise commission costs in USD. Unless announced by the broker, you will need to convert the commission cost to your currency to determine the final cost.

Bonus comparison

To minimize transaction costs, you can use bonus programs and promotions while trading. Bonus is the amount of money that the forex broker gives you to encourage customers to trade more. There are 3 types of forex bonus:

  • Welcome bonus: the broker gives money when you open an account
  • Deposit bonus: the broker gives money when you make your first deposit
  • Lot-back bonus: the more you trade, the bigger the bonus

To deduct the transaction costs, we should choose the brokers with the best lot-back bonuses. You can refer to some of the best bonus programs on the market today below:

  • $30 welcome bonus of XM
  • 100% deposit bonus of XM
  • Lot Back Bonus: $16 for each traded lot from Exness
  • 100% SuperCharged Bonus of HotForex (deposit bonus)
  • 30% Rescue Program of HotForex (welcome bonus)
  • FXTM’s Loyal customers program

The above is how we compare the trading cost of the best forex brokers in the world. If you really care about trading fees, take a look at the brokers we introduce in this article.


Fanara Filippo

Hey, I’m Fanara Filippo. I’m the founder of this site. I'm currently living in Bangkok, Thailand. I have been trading forex for more than 5 years. You can read my articles about the best forex brokers on this page. Let’s review brokers today.

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