What hidden costs do CFD brokers charge?
Verdict
- The costs CFD traders most often miss are overnight financing, currency conversion, withdrawal fees and inactivity charges. Pepperstone, our pick, publishes its full schedule and charges no inactivity or account-keeping fee.
- The one Pepperstone charge that is easy to miss: its international costs page lists US$20 for an international bank-wire withdrawal, even though its withdrawals table shows every method as free.
- Elsewhere, XS reserves the right to charge up to 3% on withdrawals where there has been no trading activity, and Plus500's UAE fee page lists an inactivity fee of up to US$10 a month after three months without a login.
- Singapore residents are served by Pepperstone Markets Limited (SCB, The Bahamas, SIA-F217); Pepperstone holds no MAS licence.
The spread is the cost every broker advertises. The ones that surprise people sit elsewhere: in the overnight rate, the currency your account is held in, how you take money out, and what happens when you stop trading.
Pepperstone's cost sheet, line by line
| Cost | Pepperstone |
|---|---|
| Spread, EUR/USD | Standard 1.1 pips average; Razor 0.1 pips average |
| Commission | Razor US$3.50 per side (SGD 4.55 in an SGD account); Standard none on FX |
| Share CFD commission | 0.2% per side on Hong Kong shares |
| Overnight financing | Charged on positions held past the daily rollover |
| Deposits | Free |
| Withdrawals | Free by card, e-wallet and domestic transfer; US$20 for international wires per the costs page |
| Inactivity fee | None; accounts under 10 units unused for 3+ months may be archived |
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Six costs that don't show in the headline spread
- Overnight financing: charged on the full position value every night, so a leveraged trade held for weeks can cost more in financing than in spread.
- Currency conversion: trading US shares from an SGD account means converting each profit and loss. Pepperstone offers ten base currencies, including SGD, USD and HKD, so you can match the account to what you trade.
- Share commissions: charged on both sides, as a percentage or per share.
- Withdrawal fees: usually on bank wires, and sometimes only in the fine print.
- Inactivity fees: a monthly charge once an account goes quiet.
- Slippage: stops are not guaranteed at Pepperstone, so a gap can fill your exit at a worse price.
What other brokers publish
| Broker | Charge | Where it is published |
|---|---|---|
| XS | Up to 3% withdrawal fee where there has been no trading activity or abuse | Withdrawals page |
| XS | Card withdrawals take 7 to 10 working days | Withdrawals page |
| Plus500 | Inactivity fee up to US$10 a month after 3 months without login | UAE fees page |
| Pepperstone | US$20 on international bank-wire withdrawals | International costs page |
How to find your real cost before trading
- Price one full round trip: spread plus commission on both sides.
- Check the overnight rate on the platform for every product you plan to hold.
- Pick a base currency that matches your deposits or your main market.
- Read the withdrawal page for each method and test a small withdrawal early.
Sources
Fees as published on each broker's site.
Does Pepperstone charge for deposits?
No. Cards, Apple Pay, Google Pay, PayPal, Neteller, Skrill and bank transfers are listed as free on its international site.
Is there a fee for holding a Pepperstone account in SGD?
Pepperstone publishes no fee for choosing SGD as the base currency; it is one of ten available on the international site.
What is the cheapest way to withdraw from Pepperstone?
Cards, e-wallets and domestic bank transfers are free; Pepperstone lists e-wallets at up to 1 business day and cards at up to 2.
Fees are only part of the risk: CFDs are leveraged and can lose you money quickly. Pepperstone's international site states that 80% of retail investor accounts lose money with this provider. Not investment advice.