Understanding Spreads
The spread is the difference between the bid and ask price of a financial instrument and is a key cost factor in trading. Exness MT5 offers both fixed and variable spreads depending on the account type and market conditions.
Fixed vs Variable Spreads
When trading on platforms like Exness MT5, the spread is one of the main costs associated with executing trades. The spread is the difference between the ask price (the price at which you can buy an asset) and the bid price (the price at which you can sell it). This difference is what brokers charge for facilitating the trade. There are two main types of spreads that traders encounter:
- Fixed Spreads: These remain constant regardless of market conditions. Traders know exactly how much they will pay for each trade, making them predictable.
- Variable Spreads: These fluctuate based on market volatility and liquidity. During peak times, spreads can widen, but they tend to narrow during less volatile periods.
Exness Spread Comparison by Account Type
Exness offers different types of trading accounts, each with its own spread structure. The spread is an important consideration for traders as it directly affects the cost of entering and exiting trades. Depending on the type of account you choose, you will experience different spread levels, ranging from fixed spreads to variable spreads.
Here’s a breakdown of how spreads compare across the various Exness account types:
| Account Type | Spread Type | Typical Spread (EUR/USD) | Suitability |
|---|---|---|---|
| Standard Account | Fixed | From 0.3 pips | Beginners, traders seeking predictability |
| Raw Spread Account | Variable | From 0.0 pips | Active traders, scalpers, professional traders |
| Professional Account | Variable | From 0.0 pips | Active traders, experienced traders |
| Zero Spread Account | Zero | 0.0 pips (on select pairs) | Professional traders, high-volume traders |
Peak vs Off-Peak Spread Differences
Spreads can vary significantly depending on market conditions. Peak hours, such as during the overlap of the London and New York sessions, can experience higher volatility, leading to wider spreads. Conversely, during off-peak hours, when market activity is lower, spreads tend to narrow.
Commission Structure
Exness applies a commission-based pricing structure for specific account types. While spreads remain an important factor, the commission can also affect overall trading costs. Depending on the account type you choose, your commissions will differ. Understanding the commission structure is vital for managing your costs effectively and ensuring that your trading style matches the account type you select.
Standard Accounts Commissions
For traders using Standard Accounts on Exness MT5, the spread is typically the only cost associated with trading. Standard accounts are ideal for beginners or traders who do not want to deal with additional commission costs. The spreads here are usually variable, and the commissions are zero.
- Commission: None
- Spread: Variable (e.g., EUR/USD spread starts from 0.3 – 0.9 pips)
- Best for: Traders who prefer a straightforward approach without commissions, especially those using longer-term strategies.
Professional Accounts Fees
For more experienced traders looking for lower spreads and better execution, Exness offers Professional Accounts such as the Raw Spread Account and the Zero Spread Account. These accounts come with lower spreads but include a commission per trade.
- Raw Spread Account: Traders pay lower spreads, but the cost per trade is offset by a commission.
- Commission: $3.50 per lot (per side) for USD-denominated accounts. This means a round turn costs $7.00 per lot.
- Spread: Starts from 0.0 pips (spread is much tighter due to higher liquidity)
- Zero Spread Account: This account offers zero spread but has a higher commission to compensate for the lack of spread.
- Commission: Around $7.00 per lot (per side)
- Spread: 0.0 pips on major forex pairs.
- Best for: Active traders who are looking for lower spread costs and willing to pay a commission to reduce their overall spread costs.
Additional Trading Costs
While spreads and commissions are the primary costs of trading on Exness MT5, there are other additional trading costs that traders should be aware of. These costs can significantly impact your overall profitability, depending on your trading habits and the instruments you trade.
Overnight Fees (Swap)
The overnight fee (also known as swap) is charged when you hold a position overnight. A swap is essentially the interest paid or received for keeping a position open after a certain time. It’s important to note that swaps are influenced by various factors such as the interest rate differential between the currencies in the pair you’re trading, and can be either positive or negative.
- Positive Swap: If you hold a position in a pair where the currency you are buying has a higher interest rate than the currency you’re selling, you might receive a positive swap.
- Negative Swap: If the currency you’re buying has a lower interest rate than the one you’re selling, you may have to pay a negative swap.
Inactivity Charges
Exness charges an inactivity fee if your account remains inactive for a specific period. If there are no trades or deposits made for a certain duration, your account will be subject to a monthly inactivity fee. This fee is designed to cover the cost of maintaining accounts that are not being used.
- Inactivity Fee: The fee is charged if there is no trade activity for a period of 3 months or more.
- Amount: The fee is typically around $5 per month, though it varies depending on the account type and balance.
Exness MT5 Deposit/Withdrawal Fees
Exness does not charge any deposit fees for most of its available payment methods. However, there may be third-party fees charged by payment providers or banks. Here’s an overview of potential deposit and withdrawal costs:
- Deposit Fees: Exness covers most deposit fees for methods like bank cards, e-wallets (e.g., Neteller, Skrill), and cryptocurrencies. However, certain payment providers may charge a fee, which will be disclosed before you confirm the deposit.
- Withdrawal Fees: Exness does not generally charge withdrawal fees, except in the case of certain payment providers, such as bank wire transfers. A small fee may be charged by your bank or payment service provider for the withdrawal.
Cost Comparison
When considering Exness MT5, it’s important to compare trading costs across different account types and instruments. Exness offers a Trading Cost Calculator on their platform, which allows you to estimate the costs associated with your trades based on your chosen account type and financial instrument.
| Account Type | Commission | Spread | Overnight Fee (Swap) | Deposit/Withdrawal Fees | Best For |
|---|---|---|---|---|---|
| Standard Account | None | Variable (e.g., EUR/USD 0.3 – 0.9 pips) | Positive/Negative (based on position) | Typically free (unless via third-party provider) | Beginner traders or those who prefer simplicity |
| Raw Spread Account | $3.50 per lot (per side) | Tight (e.g., EUR/USD 0.0 – 0.3 pips) | Positive/Negative (based on position) | Typically free (unless via third-party provider) | Active traders looking for tight spreads and lower overall costs |
| Zero Spread Account | $7.00 per lot (per side) | Zero | Positive/Negative (based on position) | Typically free (unless via third-party provider) | Professional traders who prioritize zero spread over commission |
| Pro Account (e.g., Stock) | Varies (e.g., $7 per lot) | Variable (depends on the asset) | Positive/Negative (based on position) | Typically free (unless via third-party provider) | Traders focused on stocks and commodities |
| Swap-Free Account | None | Variable (same as Standard Account) | None (no swap charges) | Typically free (unless via third-party provider) | Traders who cannot use swaps due to religious reasons |
Exness Trading Cost Calculator
To help traders better estimate and manage their trading costs, Exness provides a Trading Cost Calculator. This tool allows you to easily calculate the costs associated with trading on the MT5 platform, including spreads, commissions, and overnight fees (swaps). Knowing these costs in advance can help you make more informed decisions and manage your trades more efficiently.
The Exness Trading Cost Calculator takes into account the following factors to determine your total trading costs:
- Account Type: Different account types (e.g., Standard, Raw Spread, Zero Spread) have varying cost structures.
- Instrument Traded: Different financial instruments (Forex, Commodities, Cryptocurrencies, Stocks, etc.) have unique spreads and fees.
- Trade Size: The lot size (or volume) of your trade influences the commission and spreads you will pay.
- Market Conditions: During high volatility or peak trading hours, spreads may widen, affecting your costs.
FAQs
What are the trading fees on Exness MT5?
Exness MT5 trading fees primarily consist of spreads and, for some accounts, commissions. Additional fees may include overnight swap rates and inactivity charges.