Costs

There are different types of costs you need to pay to be able to trade. Some costs are inevitable, others you can avoid by making smart choices. Below you'll see an overview of what you're approximately spending.

Broker costs

You need a broker to be able to trade. Costs vary significantly by account type.

Margin account

Initial investment: From approximately $25,000 (some brokers accept less, but this is a safe minimum).

Inevitable costs:

• Commission per trade: Average $0.003 per share with a minimum of $0.35–$1 per order. At many brokers, trading US stocks and ETFs is now free, but you still pay small regulatory costs (a few cents per order).
• Options: Average $0.60–$0.65 per contract.
• Futures: Average $1.75 per side + exchange fee of approximately $1.
• Margin interest: If you trade with borrowed money, you pay 6–14% interest per year on the borrowed amount.

Optional costs:

• Real-time market data: $1–$15 per month per exchange (often needed for daytrading).
• Platform fee: $0–$120 per month (often waived with sufficient trades).
• Currency conversion: 0.5–1% per conversion (for example, euro to dollar).
• Short borrow fees: If you go short, you sometimes pay interest to borrow the stock. This can range from <1% to 50%+ per year, depending on the stock.
• Slippage: Not really a fee, but still a cost. Your order is sometimes executed at a slightly worse price than expected, especially during news or with illiquid stocks.
• Inactivity fee: Becoming rarer, but some brokers still charge fees if you don't trade for a long time.

Important: With a margin account, you can lose your entire deposit, and in extreme cases even end up in debt. This account type is therefore less suitable for beginners.

Funded account

There are two types of funded accounts:

Evaluation program

Initial investment: Average $150–$350 per month (or one-time €300–€1,000 with some providers).

Inevitable costs:

• Monthly subscription costs during the evaluation period.
• Reset fee: If you break the rules and need to start over, you pay an average of $90–$150.
• Payout commission: You share your profit with the broker. Often you get the first $5,000–$25,000 in full, then 80/20 or 90/10 (you get 70–90%, broker gets 10–30%).
• Withdrawal costs: $2.50 for ACH (bank transfer), $40 for international wire transfers. Some brokers offer free ACH transfers, but this varies by provider.

Optional costs:

• Exchange data: Only if you trade futures, approximately $80 per month. For stocks, this is not needed.

Directly purchased funded account

Initial investment: From approximately $500 to many thousands of euros, depending on the account size.

Inevitable costs:

• Payout commission: You share your profit with the broker. Often you get the first $5,000–$25,000 in full, then 80/20 or 90/10 (you get 70–90%, broker gets 10–30%).
• Withdrawal costs: $2.50 for ACH (bank transfer), $40 for international wire transfers. Some brokers offer free ACH transfers, but this varies by provider.

Optional costs:

• Exchange data: Only if you trade futures, approximately $80 per month. For stocks, this is not needed.

Important: With both types of funded accounts: if you break the rules, you lose your account and your investment. You won't end up in debt, but you will lose your money. This account type is safer for beginners because your risk remains limited.

Trading commissions

Every time you execute a trade, you pay commission. This varies by broker and product:

• Stocks/ETFs: From $0 (at many brokers) to $0.003 per share with a minimum of $0.35–$1 per order.
• Options: Average $0.60–$0.65 per contract.
• Futures: Average $1.75 per side + exchange fee.

Tip: Even with "free" trading, you still pay small regulatory costs (SEC/FINRA fees) that are automatically deducted.

Tools

Analysis software

Inevitable costs: You need charting software to see patterns and plan trades.

• Free version: Very limited, with ads.
• Basic account: From approximately €30–35 per month (or €25–30 per month with annual payment). Free paper trading is included.
• Offers: A few times per year sharp discounts of 40–50%, for example around Black Friday.

Most real-time data is included, but for some data there's a 15-minute delay. In that case, you pay extra for real-time data.

TradeLogger

Inevitable costs: A logging tool is essential to learn trading and optimize your performance, so you become and/or stay profitable.

• Free: Try with limited account.
• Full functionality: €19.99 per month or €199 per year.
• Price: Always sharp, no extra offers.

Other important costs

Taxes: In the Netherlands, trading profits can be taxed. If you're considered a professional trader, you pay income tax (Box 1). For private traders, the wealth tax (Box 3) usually applies to your assets. The exact situation depends on your personal circumstances and how much you trade. Consult a tax advisor for your specific situation.

Start small and learn first

The biggest costs are not the tools, but losing your account due to poor money management and emotional outbursts. Therefore, invest first in knowledge and discipline before risking large amounts.