82% of Brokers Claim Zero Spreads — But 68% Charge Hidden Commissions
We analyzed the fee structures of 340 online brokers and found that "zero spread" rarely means free. 191 brokers advertise zero spreads but charge a separate commission. Only 89 brokers (26%) offer both zero spreads and zero commission.
82% of the 340 brokers analyzed advertise zero spreads, but 68% of those charge a separate per-trade commission. In practice, only 89 brokers (26%) are genuinely free of both spreads and commissions. The real cost of trading depends on spread + commission + overnight swap combined.
- "Zero spread" claims are common but misleading — most brokers recover costs through per-lot commissions ($3–$7 typical) or wider spreads during volatility.
- Source: BrokerRank fee analysis of 340 active brokers, 2026.
Key Findings
- 82% of brokers (280 of 340) advertise zero spreads on major pairs.
- Of those, 68% charge per-trade commissions on top — "zero spread" does not mean free.
- Only 26% of brokers (89) are genuinely commission-free with no hidden charges.
- Fee structure has the lowest correlation (0.03) with overall broker quality of all 6 rating dimensions.
- Traders should compare total round-turn cost (spread + commission + overnight swap) — not just advertised spreads.
340
Brokers Analyzed
82%
Claim Zero Spread
191
Hidden Commission
26%
Truly Free
Minimum Spread Distribution
82% of brokers advertise 0.0 pips as their minimum spread — but this is the advertised minimum, not the typical spread during normal trading.
The Zero Spread Trap
Of the 280 brokers that advertise zero spreads, here's what they actually charge:
191
68% of "zero spread" brokers charge a per-trade commission ($0.01–$30+ per trade). The spread is zero, but you still pay to trade.
89
Only 26% of all brokers charge neither spread nor commission. These are typically US stock brokers (Robinhood, Webull) that profit via PFOF.
Commission Distribution
How much do brokers charge per trade beyond the spread?
Commission models vary: forex/CFD brokers charge per lot ($0.01–$7), while stock brokers charge per trade ($0–$30+). The highest commissions belong to traditional banks offering brokerage as a secondary service.
The Rating Surprise: Cheaper ≠ Better
Counterintuitively, brokers with higher spreads score better overall. Why? Because top-rated brokers invest in regulation, platforms, and support — and charge fair spreads to fund it.
| Spread Tier | Brokers | Avg Rating |
|---|---|---|
| Zero spread | 275 | 3.13 |
| Low (0.1–1.0) | 63 | 3.46 |
| High (1.0+) | 2 | 3.50 |
Zero-spread brokers average 3.13/5 while brokers with 0.1–1.0 pip spreads average 3.46/5. The lesson: don't choose a broker on spread alone.
Most Expensive Brokers by Commission
Traditional banks dominate the high-fee end. These are stock brokers that charge $10–$30+ per trade.
| Broker | Commission | Rating |
|---|---|---|
| ASB Securities | $30.00 | 2.51 |
| Westpac Share Trading | $19.95 | 2.75 |
| ANZ Share Investing | $13.00 | 2.76 |
| Hargreaves Lansdown | $11.95 | 2.79 |
| Charles Stanley Direct | $11.50 | 2.78 |
| HSBC InvestDirect | $10.50 | 3.18 |
| CommSec | $10.00 | 2.75 |
| TD Direct Investing | $9.99 | 2.67 |
| NAB Trade | $9.95 | 2.76 |
| AJ Bell | $9.95 | 2.76 |
Top-Rated Truly Free Brokers (Zero Spread + Zero Commission)
Only 89 brokers offer both zero spreads and zero commission. Here are the highest-rated. Note: these brokers may still profit from payment for order flow (PFOF) or other mechanisms.
What You Should Actually Compare
Total Cost Per Trade
Add spread cost + commission + any per-trade fees. A broker with 0.8 pip spread and no commission is often cheaper than 0.0 spread + $7 round-trip commission for smaller trade sizes.
Overnight/Swap Fees
If you hold positions overnight, swap fees can dwarf spread costs. Some brokers charge 3x swaps on Wednesdays. Islamic (swap-free) accounts exist but may have other fees instead.
Inactivity Fees
Many brokers charge $5–$15/month after 3–12 months of no trading. If you trade infrequently, this can be your biggest cost. Some brokers (like Interactive Brokers) have eliminated inactivity fees.
Currency Conversion
If your account is in USD but you trade EUR/GBP instruments, you'll pay a conversion fee (typically 0.5–1.5%). Multi-currency accounts avoid this but aren't available everywhere.
Related Reading
Methodology
This study analyzed fee data for 340 active online brokers in the BrokerRank database as of 2026. Spreads reflect the advertised minimum (typically on EUR/USD during peak hours). Commissions are per-trade or per-lot as disclosed by each broker.
Withdrawal and deposit fees were sourced from each broker's fee schedule. "Truly free" brokers are defined as having both spreadMin = 0 and commission = 0 in our database — they may still generate revenue through payment for order flow, markup on overnight swaps, or other mechanisms.
Cite This Research
Suggested citation:
— BrokerRank Research, Broker Fees Analysis 2026. brokerrank.net/research/broker-fees-analysis
Frequently Asked Questions
Do zero-spread brokers really have no fees?
No. Of the 280 brokers advertising zero spreads, 191 (68%) charge a separate commission per trade. Only 89 brokers (26% of all) offer both zero spreads and zero commission — though they may still profit from payment for order flow (PFOF) or wider spreads during volatility.
What is the cheapest way to trade?
The lowest total cost comes from brokers that offer raw spreads (near 0.0) with low fixed commissions ($3–7 per round lot). This is typically cheaper than "commission-free" brokers that widen spreads to compensate. Compare total cost, not just one fee type.
Why do brokers with higher spreads rate better?
Brokers with 0.1–1.0 pip spreads average 3.46/5 vs 3.13/5 for zero-spread brokers. This is because many zero-spread brokers are smaller, offshore, or newer. Top-rated brokers like Interactive Brokers, IG Group, and Pepperstone charge modest spreads or commissions but excel in regulation, platforms, and execution.
What hidden fees should I watch for?
Beyond spreads and commissions, watch for: inactivity fees (charged after months of no trading), swap/overnight fees (for holding positions overnight), currency conversion fees (for trading in non-base currencies), and withdrawal fees. These can exceed trading costs for low-volume traders.
This data is free to cite with attribution to BrokerRank. Please link back to the original study.
BrokerRank. "81% Claim Zero Spreads — But 68% Charge Hidden Commissions." BrokerRank, 2026. https://brokerrank.net/research/broker-fees-analysis