The real costs of trading

Broker, Account and Platform — Lesson 5 of 5

Many people count their profits and ignore what leaves the account along the way. In short-term trading especially, costs can be the difference between a winner and a loser.

The full list of costs

Cost	When it is paid	Its size
Spread	every trade	the heaviest cumulatively
Commission	every trade on raw accounts	fixed and known
Swap	every night held	matters on long-held trades
Slippage	on fast execution	variable; grows around news
Withdrawal fees	when you take your profits out	depends on broker and method
Inactivity fee	when the account is left dormant	usually monthly
Currency conversion	when the deposit currency differs	hidden and usually ignored

05 — Lesson 5 of 5

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