Orders & execution · Beginner

Trading Costs: Spreads, Commissions and Fees

A 1-minute lesson from the MarketPro academy, one of 16 in orders and execution.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

Every trade involves costs beyond the quoted share price, and understanding these costs is important for setting realistic expectations about the true expense of trading. These costs can be easy to overlook individually but can add up meaningfully over time, especially for strategies that involve frequent trading, since each additional trade adds another layer of cost on top of any price movement.

Every trade involves costs beyond the quoted share price, and understanding these costs is important for setting realistic expectations about the true expense of trading.

Common Types of Trading Costs

Commissions: a fee some brokers charge per trade or per share, though many platforms today offer commission-free trading on certain products.
Spreads: the built-in gap between the bid and ask price, which represents an implicit cost of entering and exiting a position.
Overnight financing or swap fees: charges that can apply when holding certain leveraged positions open past a specific daily cutoff.
Currency conversion fees: costs that may apply when trading instruments denominated in a different currency than the account's base currency.

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These costs can be easy to overlook individually but can add up meaningfully over time, especially for strategies that involve frequent trading, since each additional trade adds another layer of cost on top of any price movement.

Costs also vary between brokers and account types, so comparing fee structures—not just headline commission rates—can reveal a more complete picture of what a given trading style will actually cost over time. A strategy that looks profitable before costs can look quite different once realistic fees and spreads are factored in.

Lesson 10 of 16 in Orders and execution

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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