LMFX Fees Explained 2024 (Commission, Spreads)

Every broker must charge fees for its services because it is the primary way they make money from their business. Generally, the fees are grouped into trading and non-trading fees. The trading fees are the major fees charged for each order that you place on the trading platform. Non-trading fees are other fees charged by the broker for other services like withdrawals, VPS, trading signals, etc.

In this article, we will explain all the fees charged by LMFX. The idea is to get you prepared, so, if you wish to trade with LMFX, you will know exactly the fees that you will be paying.  

Overview of LMFX

LMFX is an online forex and CFD broker that provides MT4 trading platforms for trading more than 100 forex and CFD assets. You need a minimum of $50 to start trading; there are no restrictions on trading styles and strategies. The broker offers fixed spreads, variable spreads, and raw spreads starting from 0.0 pips; you only need to choose the account type that fits your preferences.

The broker supports its clients with some tools like free VPS, economic calendar, trading calculators, etc. It also gives bonuses like a 100% deposit bonus and Phoenix recovery bonus. New traders are provided trading articles and also there is a monthly contest known as the “Learn and earn contest”; where winners can get real cash in their live trading accounts.

LMFX trading-related fees

Just like other brokers, LMFX trading fees are grouped into the following categories:

Spread fees

For every tradable asset, two prices are quoted; either the bid or ask price. Spread fees are embedded in the price quotes by marking up the prices. The difference between the bid and ask price is the spread. Forex traders buy at the ask price and sell at the bid price; the ask price is usually higher than the bid price.

If you have the LMFX premium account, it features variable spreads. This means that the spreads vary according to the market conditions. For example, in times of volatility, the spread widens but narrows in times of liquidity.

The LMFX fixed account maintains the same spreads no matter the market conditions. So, if you prefer to estimate your trade results beforehand, without surprise in trading fees, then this account is best for you.

Trading commissions

For forex trades, LMFX charges a fixed commission for every lot traded. A lot is equal to 100,000 units of currency. If you have a zero account, the commission is $4 per lot which means $8 for a round lot.

So, if you buy one lot of EURUSD, you will be charged $4; when you close the trade position, you will be charged another $4.

LMFX non-trading fees

Rollover fees are incurred when a trader leaves an open position overnight. It does not have a fixed price because it is calculated from the interest rate differential between the currencies that are being traded. The rollover or swap fees can be negative or positive depending on your position; which can be either long or short.

LMFX states that all open forex trades held over 21:00 hours GMT will be subject to overnight swap fees and triple swaps will be applied if you hold an open position over a Wednesday night. 

Deposit Fees: The broker does not charge deposit fees when you fund your LMFX wallet. However, if you use bank transfer, PayRedeem eCard, credit card, etc to fund your account, there will likely be charges from the payment processors.

Learn More: LMFX Deposit Guide

Withdrawal Fees: LMFX does not charge any withdrawal fees. If you are paid any amount below the amount you requested for withdrawal, then, the payment processing bank/company has applied their fees.  

Lean more : How to Withdraw Money From LMFX? 

Inactivity Fees: LMFX does not charge inactivity fees. Instead, if you do not trade with your LMFX live account in 90 consecutive days, it will expire. But, it can be reactivated upon request. Many brokers charge inactivity fees from dormant accounts. Each broker defines when its account goes dormant; generally, it is often 3 or 6 months.

So, inactivity fees are deducted monthly if no trade positions have been opened from the trader’s account within the specified period. The deduction continues until the trader reactivates his account and starts trading again or if the account balance depletes to zero. 

Frequently Asked Questions (FAQs)

How much do I need to open an LMFX account?

The amount you need depends on the type of account that you wish to open. For example, with only $50, you can open a Premium account. But, after the initial deposit, you can reload the account with at least $25.

LMFX zero account requires at least $100 to open. The minimum reload deposit is $50. You need $250 to open the LMFX fixed account. Later, you can reload with $50.

Is LMFX an ECN broker?

Yes, the broker asserts that it is an ECN broker that uses modern technology to aggregate raw spreads from its partner liquidity providers (LPs). It also states that it uses the straight-through processing (STP) brokerage model and routes all client orders to its LPs for onward processing at the best market prices. The LPs are made up of big commercial banks and investment firms from Europe and other parts of the world. 

Is Scalping Allowed on LMFX?

Yes, Scalping and hedging are allowed on LMFX. You can practice all trading styles with LMFX.

How does LMFX spread charges work?

Let us explain with an example. If the EURUSD is quoted as follows: ask price = 1.05050 and bid price = 1.05036. A trader goes long and trades 1 lot, what is the spread charge?

Spread = ask – bid price = (1.05050 – 1.05036) = 0.00014 or 1.4 pips.

Immediately, he opens 1 lot of EURUSD, the charges = 100,000 X 0.00014 = 14

So, LMFX charges $14 for the trade.

Please, note that the example above is for explanatory purposes. Asset prices are always fluctuating and there may be other costs associated with a trade.

Final Verdict

Forex and CFD brokers charge trading fees for all client trades and LMFX is no exception. The trading fees that you will pay depend on your account type. Most non-trading fees charged by other brokers are waived by LMFX, so it does not charge deposit fees, withdrawal fees, or inactivity fees.

If you have a zero account, you will trade raw spreads and pay a commission of $8 per lot per round trip. But, if you prefer to pay spread charges; then, you will pay via variable spreads if you have a Premium account and pay via fixed spreads if you have a fixed account.

Generally, the fees charged by LMFX are very competitive when you compare them with other brokers that qualify as alternatives to LMFX.