No Trading Fees at CEX.IO Broker. What’s The Catch?
Some platforms position themselves as commission-free, while still charging certain fees in a less transparent way. Such fees are usually not very easy to spot. But you can bump into them later and get disappointed. Some caveats worth mentioning:
1. Spread widening. Some platforms recoup fees by incorporating them into the spread. This means you pay a bit more than the prevailing price when you open a Long position and receive a little less when you Short. Even if the difference is small but in significant amounts, it is quite noticeable.
2. Platform fees. It can be monthly, quarterly, or annual fees just to have an account with the platform. This fee is charged regardless of whether or no you use the platform.
3. Data/Subscriptions fees. Those can be fees for receiving certain market data or research. Sometimes, it can be offered for free, and fees would apply later upon a trial period, which oftentimes are forgotten to cancel. 😬
These are not the only cases, there are many other ways platforms charge unaware traders attracted by the no-fees policy.
The main point is trading may look free on the surface, but digging deeper, you are likely to find yourself paying some commission.
That’s not our case. CEX.IO is different and now we’ll explain why.