Understanding Inactivity Fees in Forex Trading
Inactivity fees are charges levied by brokers on dormant trading accounts. A dormant account is typically defined as one that has not executed any trades, made deposits, or withdrawals for a specified period. The purpose of these fees is often to cover administrative costs associated with maintaining unused accounts. However, for traders, they represent a hidden cost that can significantly affect profitability, especially for those who trade less frequently.
Exness vs Plus500: Inactivity Fee Policies
Exness Inactivity Fee
At the time of writing, Exness does not charge an inactivity fee on its trading accounts. This policy is a significant advantage for traders who might have periods of inactivity due to personal circumstances, market conditions, or those who prefer to hold positions for longer durations without frequent trading activity.
Plus500 Inactivity Fee
Plus500, on the other hand, does impose an inactivity fee. If you do not log in to your trading platform for at least three months, Plus500 may charge a fee of up to 10 USD (or equivalent in other currencies) per month. This fee is deducted from your available balance. It's important to note that the fee is only charged if there are funds in the account, and Plus500 will not put an account into a negative balance solely due to inactivity fees.
Comprehensive Broker Comparison: Exness vs Plus500
Beyond inactivity fees, a holistic comparison requires examining other critical factors such as spreads, commissions, minimum deposits, regulatory status, and available trading platforms. This table provides a snapshot of how Exness and Plus500 compare across these key metrics:
| Feature | Exness | Plus500 |
| :------------------ | :----------------------------------------------- | :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Inactivity Fee | None | Up to 10 USD per month after 3 months of inactivity (typical, at time of writing — check broker site) |
| Spreads (EUR/USD) | From 0.0 pips on some accounts (typical, at time of writing — check broker site) | From 0.8 pips (typical, at time of writing — check broker site) |
| Spreads (GBP/USD) | From 0.7 pips (typical, at time of writing — check broker site) | From 1.5 pips (typical, at time of writing — check broker site) |
| Spreads (XAU/USD) | From 0.7 pips (typical, at time of writing — check broker site) | From 0.5 pips (typical, at time of writing — check broker site) |
| Commission | Commission on some account types (e.g., Raw Spread, Zero) (typical, at time of writing — check broker site) | None (spread-only broker) |
| Min Deposit | From 1 USD (Standard Account) (typical, at time of writing — check broker site) | From 100 GBP (typical, at time of writing — check broker site) |
| Regulators | FCA (UK), CySEC (Cyprus), FSCA (South Africa), FSA (Seychelles), CMA (Kenya), FSC (BVI), FSC (Mauritius), CBCS (Curaçao and Sint Maarten) | FCA (UK), CySEC (Cyprus), ASIC (Australia), MAS (Singapore), FSA (Seychelles), FMA (New Zealand) |
| Platforms | MetaTrader 4, MetaTrader 5, Exness Terminal, Exness Trade App | Plus500 WebTrader, Plus500 Mobile App |
*CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.*
Verdict by Trader Type
Choosing between Exness and Plus500 ultimately depends on your individual trading preferences and strategy.
For the Infrequent Trader or Long-Term Holder
Exness would likely be the preferred choice. The absence of inactivity fees means you don't have to worry about charges if you step away from the markets for a while or hold positions for extended periods without active trading. Its lower minimum deposit also makes it accessible for those starting with smaller capital.
For the Active, Spread-Focused Trader
Plus500 might appeal more to traders who are consistently active and prefer a straightforward spread-only pricing model. While it has an inactivity fee, frequent trading would bypass this. Its proprietary platform is also known for being user-friendly, which can be an advantage for certain traders.
For the Algorithmic or MetaTrader User
Exness stands out with its support for MetaTrader 4 and 5, offering robust tools for technical analysis, automated trading (EAs), and custom indicators. Traders reliant on these advanced functionalities will find Exness more suitable.
Why Vantage is a Great Alternative
While Exness and Plus500 each have their merits, it's always beneficial to consider other highly-regarded brokers. Vantage is another excellent option for UK traders, known for its competitive pricing, diverse asset offerings, and strong regulatory standing. They offer a range of account types to suit different trading styles and provide access to popular platforms like MetaTrader 4 and 5. For those seeking a balance of low costs, robust technology, and comprehensive support, Vantage presents a compelling choice.
Find out more and Open a Vantage account.
Conclusion
Both Exness and Plus500 are established brokers, but their approaches to fees and features differ significantly. The presence or absence of an inactivity fee is a key differentiator, particularly for traders who anticipate periods of dormancy. Always review the most current terms and conditions directly on the broker's website before making a decision. Remember that CFD trading carries significant risk, and you should only trade with funds you can afford to lose.