What is the inactivity fee of your online broker?
When you buy or sell crypto, forex, or other assets, trading fees from a broker might kick in. As every broker is different, the trading fee they charge is also different.
That’s why you must thoroughly check the broker to understand the charges you need to pay after registration. Knowing the trading costs is important as it directly influences your trading portfolio.
As far as cutting down the trading fee is concerned, you cannot control deposit, withdrawal, or similar fees. But you can eliminate annoying brokerage fees like inactivity charges.
Keep reading to know everything about inactivity fees.
What is an inactivity fee?
You become liable for paying inactivity fees when you do not use your trading account for a long time. It is a type of non-trading fee.
Not using the trading account means not making deposits, withdrawals, or conducting trade. If you neglect your account for a given period of time, your broker can ask you to pay an inactivity fee.
At some point in the period when you don’t use your trading account, inactivity fees can occur. Most traders end up paying this fee when they forget such an account exists, unknowingly start a trading account, or do not use it intentionally.
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How much does the inactivity fee cost?
No two trading brokers are the same, so the inactivity fee they charge is also different. But usually, the charges are between $5 to $15 after the account crosses the given period of inactivity.
For instance, your broker might charge an inactivity fee after four, six, ten, or so months of inactivity.
After your account crosses this period, you are required to pay the fee to continue using the account. In addition, you need to transfer, withdraw, or deposit through the account.
What happens when you have too many inactivity fees?
If your inactivity fees increase to a certain number, your trading broker will try to contact you. But if the account stays inactive for a considerable time, the trading broker will charge an additional escheatment fee and then transfer the balance to the state.
At any point in this process, retrieving the funds might sound difficult, but it is possible. So, if you want to get access to your trading account back, you will have to pay the inactivity fee.
How to avoid the inactivity fee
Whether you are not using your trading account intentionally or unintentionally, you will be charged an inactivity fee. But you can try to avoid the inactivity fee by following these tips.
- Make regular deposits or withdrawals
- Shift money to a more active account
- Account maintenance fee
Trade more than 3,000+ markets from 0.0 pips spread without commissions and professional platforms:
(Risk warning: 78.1% of retail CFD accounts lose money)
1. Make regular deposits or withdrawals
You can avoid paying inactivity fees by making regular deposits or withdrawing funds from your trading account. You can do easy transactions to ensure your account isn’t inactive.
Try keeping a portion of your salary for depositing to the trading account, and set a reminder for regular deposits and withdrawals. Or you can set a reminder for transferring into the account monthly.
2. Shift money to a more active account
If you are only depositing, withdrawing, and making small trades to keep the account active, maybe you should delete your account. You can transfer the money to a more active account to keep the funds safe.
3. Account maintenance fee
Brokers charge account maintenance fees when certain trading account conditions are not met. A maintenance fee is charged annually, and the criteria for it might vary from one broker to another. Remember that not all trading brokers charge maintenance fees.
Conclusion about the inactivity fee of your online broker
If you do not log into your online broker account for a given period of time that varies for each broker, you will have to pay an inactivity fee. But you can avoid paying it by following the tips in this post.
Trade more than 3,000+ markets from 0.0 pips spread without commissions and professional platforms:
(Risk warning: 78.1% of retail CFD accounts lose money)
Last Updated on June 17, 2023 by Andre Witzel
