How much does it cost to trade with Blackbull Markets – Spreads & fees?
|Type of fees||Fees from|
Blackbull Markets is an ECN broker offering different account types. The fee models and trading costs vary among these types. Blackbull Markets uses variable spreads, which start from 0 pips on its most popular account type. Commissions and spreads are the broker’s main revenue sources.
Unlike most world-class brokers, Blackbull’s fees fall within the industry average. The account options allow traders to choose how they wish to be billed. This article explains the trading costs associated with Blackbull’s platforms. We examine the different fee categories and the overall costs of trading with the broker.
What you will read in this Post
Overview of the Blackbull Markets Trading fees
Blackbull Markets trading and investing fees are competitive. Traders can rest assured that their funds go into their portfolio rather than trading expenses. Transparency is also assured as spreads and commissions are displayed on its website for all.
Below, we outline the categories of fees to expect when trading on Blackbull:
- Overnight costs/swaps
- Withdrawal on BlackBull Markets
Blackbull’s spread varies according to account types and instruments. Variable spreads are the type used in all accounts. Therefore, the spreads drop and rise depending on market liquidity. Traders on the ECN network can access spreads directly from the liquidity providers. Except for the standard account in which the commission is attached to the spreads displayed on the ask-bid price quotes.
Traders can expect spreads as low as 0.0 pips on the ECN prime account. However, a $3 commission fee is charged per standard lot. This account is the most popular among experienced traders. If you understand the best trading times for low spreads, you enjoy low trading costs on this account.
The minimum spread on the ECN standard account is 0.8 pips. There are no commission fees apart from spreads. The spreads already have commission attached, so it is the only trading cost on this account. Apart from overnight financing, which we explain below this section.
Spreads also vary according to the instruments. The value stated above only applies to the most commonly traded forex pair – EURUSD. The minimum for other majors like USDJPY and GBPUSD are 0.3 and 0.4 pips, respectively. In contrast, the lowest spread on gold is 0.2 pips. These rates apply to the prime account. Spreads are tighter on the institutional account and higher on the ECN standard. However, the institutional account is commission-based, like the prime, unlike the standard.
|Account type||Minimum spread||Commission|
|ECN standard||0.8 pip||0|
|ECN prime||0.0 pip||$3 per side (1 lot)|
|Institutional account||0.0 pip||Negotiable|
Blackbull accounts use two fee models – commission-based and zero commission. The prime and the institutional accounts experience tight spreads with commission fees.
There are no fixed rates for institutional accounts. If the trader meets the criteria for this account type, they can negotiate commission fees with the broker.
The prime account is the most popular. The standard commission fee on this account is $6 per round turn for a standard lot. (Standard lot = 100000 units).
How commissions are charged on BlackBull Markets
The ECN prime account has a fixed commission of $6 per standard lot (100000 units). So when you open a trade of this size, the broker deducts a $3 fee. The same sum gets deducted when you exit the trade, amounting to $6. However, these rates apply to major markets, such as forex and major US stocks. The commission is different for Australian and New Zealand shares. It also varies according to the actual shares. The leverage on the prime account is 500:1, based on leverage terms.
The institutional account is also a commission-based account type. As mentioned, the fees are negotiable on this account. But the trader has to meet specific criteria before getting a Blackbull institutional account.
The ECN standard account has its commission attached to the spreads. The lowest spread on the EURUSD is 0.8 pips, regardless of liquidity and market time. That is because the commission is already built into the spreads. So the ask-bid quotes show the fee the trader accrues for the particular instrument.
Some shares and indices have fees attached to them. For example, shares and commodities have fees attached. Major US shares cost $0.02 per share, while Europe, Australia, and New Zealand are offered at 0.10% commission. Hong Kong shares are also available and cost 0.20% commission.
These account types all permit leverage up to 500:1, though it depends on the region.
Swap fees/Overnight financing
Swaps refer to the interests paid or earned on positions held overnight. If you leave a trade open till the next business day, it may attract swap fees. Or you may earn interest in the position. The rate is not fixed because Blackbull does not determine the swaps. Market conditions and central banks determine interest rates. Swaps are derived from interest rate differentials on the currencies held.
Hence, a swap can be positive or negative. You can earn or pay the fee depending on the interest rates. A swap is positive if the currency bought retains or increases its higher interest rate over the one sold. The broker computes and credits your position with the difference.
On the other hand, if the swap is negative, it means the currency sold has a higher interest rate than the one bought. The broker deducts the difference from your position.
For example, assuming you go long on NZDJPY. And NZD has a higher interest rate. You will experience a positive swap/positive carry if you hold this trade overnight. However, if Japan’s central bank suddenly raises the JPY interest rate above NZD, you experience a negative swap (negative carry trade). You earn a positive swap and pay a negative swap.
Blackbull offers swap-free account versions for Muslim traders looking for Sharia-compliant accounts.
Swap rates are easily accessible on Blackbull’s MT4. Once you log in on the web, navigate to Market watch on the left panel. Click on instruments and then on symbols. Press ctrl u on your keyboard, choose your currency pair and then click Properties to see its swap rates.
Fees for deposits
The broker does not charge for deposits on BlackBull Markets made into trading accounts. Funding your Blackbull account will attract zero fees from the broker regardless of the method.
Fees for withdrawals
Withdrawal fees apply on Blackbull platforms. Multiple services are offered, including banks, cards, Skrill, Neteller, and Fasapay. They all attract a $5 transfer fee when you move funds out of your Blackbull account.
A 2% conversion fee applies on Blackbull’s platforms. If your receiving account currency differs from the trading account base currency, 2% gets deducted from the transfer. The broker will first convert the currency at the current exchange rate. After that, 2% of your transfer gets deducted to cover the conversion fee. The balance is then sent to your specified destination account or wallet.
Blackbull does not charge inactivity fees. Traders do not get penalized for taking a break from the market. If your account goes dormant, you can easily get back to trading. Your balances will remain untouched. Other reputable brokers like Blackbull stipulates an inactivity fee that gets deducted monthly on dormant accounts. Luckily, Blackbull does not do such.
Is Blackbull Markets an expensive broker?
Based on our findings, we conclude that Blackbull is not an expensive broker. However, they are not a cheap broker either. The standard account allows you to trade from any amount. But this account is most suitable for beginners. Traders with over two years of market experience seek commission based accounts with tight spreads. Such traders have ample knowledge of the best market hours. And their trading strategies are more suitable for tight-spread commission-based accounts.
However, Blackbull requires a $2000 minimum deposit to use its ECN prime account. This is a large sum in many parts of the world. Even though it is a trading capital and not a cost, people consider it expensive trading. They would rather find another ECN account with a lower minimum deposit. On the other hand, the commission fee on prime is competitive and lower than some brokers’ fees.
The spreads and commissions on all its products fall within the market average. The industry minimum spread for an account like the ECN standard is 0.8 to 1.2 pips. The normal rate for an ECN account like the prime is 0.1 pip. If you use the institutional account, you can negotiate lower commissions and trade at the tightest spreads. Hence, we believe traders on Blackbull’s platforms are not paying higher trading fees.
Withdrawal charges are fixed at $5 for all payment methods. It is a common fee among well-respected brokers. But not all of them charge for withdrawals. Conversion fees are also not unique to Blackbull. Also, bear in mind that the broker does not fine dormant accounts. Based on these facts, it is safe to say Blackbull is a competitive broker.
Conclusion – The fees on BlackBull Markets are transparent
Hopefully, by reading this article, you know what trading costs to expect when using Blackbull. The broker is among the best and globally recognized ones in the industry. But their trading costs are not the lowest. However, traders can benefit greatly from Blackbull’s offerings with effective strategies and adequate market knowledge. The broker’s top-rate platforms and trading tools can be put to good use for maximum profits. Traders have the flexibility to choose their preferred billing structure. With this, you can effectively determine your trading costs beforehand. Blackbull’s fees are competitive and transparent. Traders can rest assured that their money will go into their portfolio rather than trading costs.
Frequently asked questions about the fees on BlackBull Markets:
Does Blackbull Markets take commissions?
Yes, Blackbull offers account types that charge commission. If you trade on the ECN standard account, you will pay spreads that already contain commissions. If you use the ECN prime, you will trade at a minimum spread of 0.1pip. But a $6 commission applies for one standard lot traded in two directions. If you use Blackbull’s institutional accounts, you can trade at lower spreads and commissions. Also, a $5 fee is charged for every withdrawal from your Blackbull trading account.
Does Blackbull have inactivity fees?
Blackbull does not charge an inactivity fee. The broker does not fine customers’ accounts if they go dormant. All balances are left untouched, and the trader can easily return to trading when they are ready.
What fees does Blackbull Markets charge?
Blackbull’s main revenue sources are spreads and commissions. They also make money from swaps or overnight fees. Other fees to expect are withdrawal and conversion fees. Popular assets like forex and US stocks attract spreads and commissions, depending on the account type. Some instruments have fixed commissions attached to them. US shares, index, Aussie, and Kiwi shares have specified commission fees.
Is Blackbull Markets regulated?
Blackbull Markets is regulated by New Zealand’s Financial Markets Authority FMA. They are also registered in Seychelles and regulated by the Financial Service Authority of Seychelles.
Is Blackbull trading commission free?
The ECN standard account offers a spreads-only fee model. This does not mean there is no commission fee; rather, the commission is built into the variable spreads. Traders pay commissions in the form of ask-bid spreads.