Spreads: the hidden cost of every trade
A spread is the difference between the buy price and the sell price of any instrument. When a platform offers 'commission-free trading,' it typically generates revenue through the spread instead. The spread is paid on every trade, entry and exit. On frequently traded instruments, this cost is usually small. On less liquid instruments, spreads can be significantly wider. When reviewing the Quantum AI platform or any other, find where the spread schedule is published — often in the product disclosure statement or fee schedule — and calculate the spread cost on a typical trade size before depositing.
Overnight fees and their compounding effect
Positions held beyond the daily close on many platforms attract an overnight financing fee, sometimes called a swap rate. This fee reflects the cost of holding a leveraged position. For traders who hold positions for days or weeks rather than closing intraday, overnight fees compound and can represent a substantial portion of total cost. Some platforms express these fees as a percentage per night; others use an annualised rate. Both need to be converted to a daily cost and multiplied by your expected holding period to get a realistic total cost figure.
Inactivity fees and how to avoid them
Many trading platforms charge a monthly fee on accounts that have not placed a trade within a specified period. The threshold and fee amount vary by platform. If you open an account with the intention of trading occasionally, or if your trading frequency drops, an inactivity fee can quietly reduce your account balance. Before registering on any platform, locate the inactivity fee clause in the terms and note both the qualifying period and the fee amount. Setting a calendar reminder for the activity threshold is a practical way to avoid the charge.
Deposit and withdrawal fees
Some platforms charge fees on deposits or withdrawals, particularly for specific payment methods. Currency conversion fees apply where your account currency differs from your deposit currency. In Singapore, traders depositing in SGD may encounter conversion charges if the platform's base currency is USD or EUR. These fees are not always prominently displayed — they appear in the full fee schedule rather than on the marketing pages. Always calculate the round-trip cost of depositing and withdrawing before committing to a platform.