How much does it cost to trade with Vantage Markets? – Spreads & fees explained

When you’re looking to start trading Forex, understanding the costs and what they mean for your bottom line is critical. Forex spreads and fees can vary greatly from broker to broker, so it’s important to do your research before deciding on a provider. In this post, we’ll break down how spreads and fees work and show you how to calculate and compare them between different brokers.

What are spread costs?

When trading Forex, you’ll likely encounter two costs: spreads and commissions. Spreads are the difference between the supply and price prices, and they are what you pay to perform a business. Commissions are a one-time fee charged by your broker for trading. In order to compare spreads and commissions effectively, it’s important to understand how they’re calculated.

How to calculate spreads?

Spreads are one of the most important factors to consider when choosing a forex broker. In order to understand how to calculate and compare spreads, you first need to understand what they are. A spread is essentially the difference between the buy and sells price of a currency pair. When you go to trade a currency pair, your broker will offer you two prices: the bid price and the asking price. The asking price is the price at which your broker is willing to sell the currency pair, while the bid price is the price at which your broker is willing to buy the currency pair. The difference between these two prices is known as propagation.

It’s important to compare the spreads on the different products you’re considering trading. This will give you a good idea of how much you’re paying for each trade. Keep in mind that some brokers offer fixed spreads, while others offer variable spreads. Variable spreads can move up and down, so it’s important to check the current spread before placing a trade. You should also compare the commission rates, as these can vary from broker to broker. Some brokers also charge a withdrawal or deposit fee. Be sure to factor all of these costs into your decision-making process.

When you trade with a market maker, you’re essentially trading with a partner who wants to make a profit by filling your order. This is in contrast to trading with a dealing desk, where you’re trading with a faceless company that’s only interested in making money on the spread. Because market makers are more interested in building good relationships with their clients, they typically offer better spreads and lower fees. They also tend to be more reliable when it comes to fulfilling orders and providing customer service. If you’re looking for a reliable, affordable broker, Vantage Markets should be at the top of your list.

List of Fees that can occur when trading with Vantage Markets

Here is a list of fees or charges that can apply while trading with Vantage Markets:

#1 Vantage Markets trading fees

• Trading Fees
• Financing Rates
• Conversion Fees

#2 Vantage Markets non-trading fees

• Deposit Fees
• Withdrawal Fees
• Inactivity Fees
• Account Fees

Vantage Markets fees explained

#1 Trading fees

Vantage charges cheap trading costs. It is quite difficult to contrast trading costs for FX firms. What exactly did we do is? Rather than quoting lengthy charge tables, we evaluate brokers by computing all fees associated with a hypothetical deal involving two currency pairings.

EUR/USD is a well-known currency pairing. Another common currency combination is EURGBP.

In this case, the scenario would be that you acquire for $10,000 with 30:1 leverage and sell it within a week. This all-encompassing average covers spreads and financing fees among all brokers.

	IC Markets	Vantage Markets	AXi
EUR/USD benchmark fees	2.9	3.05	4.15
EURGBP benchmark fee	3.65	3.95	5.4

 #2 Financing rates

The financing rates for Vantage financing are cheap. Financing charges might be high if you decide to trade on margins and keep your holdings for an extended period of time.

Leverages are a two-edged dagger that may drastically increase your earnings. It can potentially drastically increase your losses as well. Trading forex/CFDs with any amount of leverages may not be appropriate for all traders.

	Financing Yearly Rates
EUR/GBP financing rates	1.5%
Apple CFD financing rates	6.0%
EUR/USD financing rates	1.2%
Vodafone CFD financing rate	4.2%

#3 Currency conversion fees

For any transactions on assets based on a currency other than the denomination of your accounts, Vantage Markets will incur Currency Conversion Fees. The fees are calculated as follows: The rate of exchange obtained from liquidity vendors, plus a surcharge. For the computation, we utilized the EUR/USD trading costs.

#4 Vantage deposit fees

Whenever you transfer money from your bank account to your brokerage account, you will be charged a deposit fee. Typically, brokers do not collect fees for this service, and Vantage Markets is no exception: you can see the exactly same money on your trading account when you send using any of the depositing options Vantage provides.

Deposit Fees

$0

#5 Vantage withdrawal fees

Unlike some of the other brokerage firms we have looked at, Vantage does not impose withdrawal fees. This implies you would have the exact amount of funds in your savings account as you had in your trading account.

Withdrawal fees with wire or bank transfers

$0

 #6 Inactivity fees for Vantage

Vantage Markets does not impose inactivity fees, which is advantageous since your account will not be fined even if you do not operate for an extended period of time.

The Following table consists of the available withdrawal methods, related processing times, fees that can occur, and accepted currencies:

Methods	Processing Time	Fees	Currencies
Neteller	Immediate	Fees from Neteller may apply	CAD,EUR,JPY,USD
Bank or Wire Transfer	2 -5 working days	Transfer charges as per bank	CAD,EUR,JPY,USD
Fasapay	Immediate	0USD	USD
JCB	Immediate	0 USD	JPY
Debit or Credit Cards	Immediate	0 USD	CAD,EUR,JPY,USD
Skrill	Over the next 24 office hours	Fees from Skrill may apply	CAD,EUR,JPY,USD

How to calculate typical spreads?

When calculating typical spreads, you’ll need to take the following into account: The type of spread (fixed or variable)

• The currency pairs

• The size of the trade the commission if applicable

• For example, if you’re trading the EUR/USD currency pair with a fixed spread of 2 pips, your total cost for the trade would be 4 pips (2 pips for the spread plus 2 pips for the commission).

Calculating typical trading fees

When calculating how much it will cost you to trade Forex, there are three main factors to take into account: spreads, commissions, and swaps.

Spreads are the difference between the Bid and Ask prices of a currency pair, and commissions are charged per trade. Swaps are the interest payments made (or received) when you hold a position overnight.

Typically, the wider the spread, the more expensive it is to trade. Commission rates vary depending on your broker and the type of account you have but tend to be lower for frequent traders or those with high account balances. Swaps can be either positive or negative, depending on the interest rates of the currencies involved.

How to compare spreads & fees?

In order to compare spreads and fees, you need to calculate the cost of each transaction. This involves taking the spread and multiplying it by the size of your trade. For instance, if you’re trading EUR/USD and the spread is 2 pips, your cost would be (2 pips x 100,000 units) or $200. The next step is to figure out how much each pip is worth in your currency. To do this, divide 1 by the number of pips in your spread. Finally, multiply your cost per pip by the number of pips in your trade to get the total cost of your transaction.

Type of spread	Minimum Pips	Commission charged
Fixed spread	1.5 pips	No commission
Classic spread	1.2 pips	No commission
Raw spread	0.1 Pips	$4 per round

What to look for when comparing spreads & fees?

When you’re looking to trade with a new broker, it’s important to compare the spreads and fees charged by each. These costs can quickly add up, so it’s crucial to find a broker that offers competitive rates. The main factors you’ll want to compare are the spreads (the difference between the bid and ask prices) and the commissions or fees charged. 

Some brokers also charge a withdrawal or inactivity fee, so be sure to factor that in as well. It’s also important to look at the overall cost of trading. This is calculated by multiplying the spread by the number of units traded. So, for example, if you’re trading 100,000 units and the spread is 2 pips, your overall cost would be £200 (2 multiplied by 100,000). When comparing brokers, be sure to use the same currency pair and lot size so that you can accurately compare costs.

The commission costs for stock trading are shown in the table underneath.

US Stock CFD	$6/trade
UK and EU Stock CFD	€10/trade/side
AU Stock CFD	$5/trade/side

Trading forex with a market maker

With a market maker, you are essentially dealing with a financial institution that “makes the market” for you. They buy and sell currencies with you, acting as your counterparty on every trade. This means that they’re always there to provide liquidity (i.e., buy or sell a currency when you need it), which is one of the main benefits of trading with a market maker. They also offer tighter spreads than many of the ECNs out there, so if that’s important to you, a market maker could be a good option. Remember that there can be certain trade-offs (e.g., a narrower range of products, longer execution times.) As a result, before selecting a broker, it is critical to conduct a study and evaluate your alternatives.

How do spreads and fees affect your trading?

Spreads and fees are one of the most important aspects of trading. To generate a profit, you must gain more money on successful transactions than you lost on failed transactions. And that’s where spreads and fees come in.

When you deal with Vantage Markets, you are operating on some of the sector’s narrowest spreads. And because we’re an STP broker, we don’t add any mark-ups to our spreads – so you get the benefit of tight spreads no matter what instrument you trade.

But that’s not all. We also offer some of the lowest commissions in the industry. So, whether you’re a high-frequency trader or a long-term investor, you’ll be able to trade with confidence, knowing that your costs are as low as possible.

How do trading spreads and fees work?

When you trade with a broker, you will be charged a spread and/or commission on each trade. A spread is a difference between the buy and sell prices of an asset, while a commission is a set fee that you pay to the broker for each trade. Most brokers will charge a combination of a spread and commission, but some may only charge one or the other. It’s important to understand how these costs work before you start trading, as they can have a big impact on your overall profitability.

How to reduce trading costs?

There are a few ways you can keep your trading costs as low as possible. First, make sure you’re taking full advantage of our commission-free trading. Second, use our tight spreads to get the most value for your trades. Third, be mindful of the fees you’re paying on every trade. Every little bit counts, so make sure you’re not overpaying for your trading activities. 

Finally, use our powerful tools and strategies to make the most of each and every trade. With Vantage Markets, you can keep your trading costs to a minimum and still enjoy world-class trading conditions.

Spread’s impact trading costs

Your spreads are the difference between the prices at which you are willing to buy and sell a security. The wider the spread, the more it prices you to trade. The impact of your spread on your trading costs can be significant, so it’s important to understand how it works.

When you trade, you are buying and selling at the same time. This is called a market order. Your transaction is quickly completed at best obtainable price. The value you receive is determined by the security’s liquidity. The ease with which securities may be bought or sold without impacting their price is referred to as liquidity.

Your spread is essentially the cost of doing business with your broker. This is the difference between the bid value and the asking cost. The tighter the spread, the less you’ll pay in commissions. Vantage Markets offers some of the tightest spreads in the industry so that you can keep your costs as low as possible.

Conclusion

Vantage Markets offers some of the most competitive spreads and fees in the industry. We believe that everyone should have access to quality trading services, which is why we offer some of the most affordable rates in the market. Visit our website today to learn more about our products and services, or open a demo account to experience first-hand how easy and affordable trading can be with Vantage Markets. 

   

FAQ – The most asked questions about cost to trade with Vantage Markets :

---

See more articles about forex trading:

Last Updated on January 27, 2023 by Arkady Müller