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Admiral Markets Costs & Spreads at a glance
Costs and fees are an important issue for most traders, especially when comparing the numerous brokers. If you decide to trade forex or CFDs, you accept some cost factors, but these do not always occur with every trade. Nevertheless, it is important to know first of all all all possible types of fees and costs, which of course reduce the net profit in total. In this guide we would like to give you the most important types of fees and of course explicitly mention the costs that can be incurred by the broker Admiral Markets.
Spread, financing costs and fees for deposits and withdrawals
If you take a look at the numerous Forex and CFD brokers and investigate what the costs are, you will certainly notice three types of fees in particular. Frequently, the following cost factors are the ones that you will face as a trader:
- Spread or commissions
- Financing costs
- Fees for deposits and withdrawals
- Inactivity fees
The spread definitely accounts for the largest share of the total cost of trading Forex and CFDs. This difference can be seen when you look at the bid and ask price for each currency pair, or even numerous CFDs. This is because Forex brokers will usually pay you slightly less money in Euros than they received before when you want to trade a currency pair or even CFDs. Admiral Markets is no exception. However, this difference is not too high and is often only in the second decimal place in the percentage range.
However, the spread is usually quoted in pips and not as a percentage, which of course does not change the proportionality. It is important to know that the more exotic the currency pair being traded, the higher the spreads usually become. On the other hand, for standard currency pairs, such as the euro and Swiss franc, many brokers often quote spreads of just one or two pips.
Extract from the Forex spreads at Admiral Markets:
Here you can see an excerpt from the live spreads on the most popular currencies at Admiral Markets. The EUR/USD is already tradable at a spread of 1.1 pips and the GBP/USD at 2.2 pips in MT4.
Extract from the spreads for Index-tracking CFDs at Admiral Markets:
The spreads for Index CFDs are also quite positive, for example 1 point in the DAX30. Even better, however, is the spread in the Dow Jones CFD, which can be traded during peak trading hours with only 1 point spread.
Financing costs are another cost factor that almost every Forex and CFD broker incurs. However, as a trader you are only affected by this type of fee if you hold a position overnight. In addition, financing costs are normally only charged for long positions, i.e. for foreign currency positions. You can avoid the third cost element in most cases. These are fees that some brokers charge for some deposit and withdrawal methods. In most cases, however, there is at least one payment method available for which both deposits and withdrawals are free of charge.
The costs at Broker Admiral Markets in detail
Now that we have provided you with general information about the cost factors that can occur when trading foreign exchange and CFDs, we would now like to talk specifically about the costs incurred by the broker Admiral Markets. As a MetaTrader Broker, Admiral Markets naturally offers its clients the opportunity to trade via the MT4, which is popular with traders. The MetaTrader 4 Admiral Markets trading account can be used by the traders free of charge. There are therefore no account or custody account fees, as is the case with many securities brokers, for example. Commissions are only charged when trading stock CFDs. You can compare these with the order costs for securities trading. In detail, commissions of 0.10 US dollars or 0.10 euros are charged for stock CFDs. However, the other two account variants, namely the MetaTrader 4 Admiral.Prime Trading account and the MetaTrader 5 Trading account, always incur order costs. For example, with the Admiral.Prime trading account the broker charges a fee of three Euro per traded lot and with the MetaTrader 5 trading account 0.003 percent of the trading volume is charged.
ECN trading from 0 pips
The ECN Broker Admiral Markets is one of the providers who, among other things, provide a so-called ECN account for foreign exchange trading. In this case, traders can already trade at interbank spreads from zero pips, so that no fees are charged in this area. Furthermore, this Admiral.Prime account is characterised by ECN order execution without any requests. The minimum deposit is €1,000 and this account can be used to trade foreign exchange as well as gold and silver CFDs. If the Admiral.Markets Basic Account is sufficient for you, which is probably especially true for newcomers, you can trade at narrow forex spreads without commissions.
The spreads are variable with the broker and usually start from 0.8 pips. This basic account can already be used with a minimum deposit of 200 Euro and here too the trader benefits from an order execution without requests. Currently 31 currencies, seven commodity CFDs and 17 index CFDs can be traded via the Admiral Markets Basic Account. Although this selection is not too large, it should be sufficient for most traders. The maximum leverage on this account is 1:500, while the Admiral Prime account has a much lower leverage of 1:200.
The broker also charges Admiral Markets for financing costs if currency positions are held overnight. The interest rate used as a basis for the corresponding positions is within the usual range. You can avoid the financing costs by taking care not to hold a position for more than one day. Sometimes, however, this is not advisable from a strategic point of view because it may result in losses. Since the financing costs are, of course, related to the year, they represent only a relatively small cost factor if you hold the position for only a few days or even a few weeks.
Conclusion on the costs with the broker Admiral Markets
The overall conclusion on the costs incurred when trading via the broker Admiral Markets is positive. These are the usual cost factors, in particular spreads, commissions and financing costs, which you will also find with other brokers. With the Admiral.Prime account you can even trade from 0 pips spreads and thus theoretically free of charge. However, the spreads on the normal account are also quite acceptable at just over 1 pip in the EUR/USD or 1 point in the DAX30 CFD, for example. The spread on the DowJones which can be traded at Admiral Markets during the main trading hours starting at a spread of 1 point can stand out positively. There are four deposit methods available, which do not incur any costs. You only have to expect fees from the third payout per month, as only one payout method is available and it is only free for the first two payouts per month.