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What trading US stocks actually costs
What are the real costs of trading US stocks?
Short answer: Commission is now zero at most brokers, which means the real costs moved elsewhere: currency conversion on funding, the bid-ask spread on every trade, overnight financing if you use leverage, dividend withholding tax, and inactivity fees. For a small non-USD account, conversion alone usually exceeds everything else combined.
Currency conversion
Charged as a percentage of the amount converted, typically between 0.15% and 0.6% depending on the broker. On a $2,000 deposit that is between $3 and $12 — before you have bought anything.
The spread
Invisible but real. You buy at the ask and sell at the bid, so the spread is paid on every round trip. Negligible in Apple; several percent in a thinly traded sub-$5 stock.
Overnight financing
Only applies to leveraged positions — margin loans and CFDs. It is charged daily and compounds, which is why leveraged products are structurally unsuited to long holding periods.
The fees you forget
Inactivity fees, custody fees in some jurisdictions, withdrawal charges, and market data subscriptions on professional platforms. None are large individually; together they can exceed commission by a wide margin.
Where to do it
Frequently asked questions
Is zero commission really free?
No. Zero-commission brokers are paid elsewhere — through payment for order flow, currency conversion, or interest on your idle cash. The cost is real but not itemised on your contract note.
What is the cheapest way to trade US stocks from abroad?
Generally a multi-currency broker where you convert once at a low rate and hold USD, rather than converting on every trade.
Reviewed August 2026. Information only — not investment, tax or legal advice.