A recent study by The Investors Centre has identified the United States, United Kingdom, and Singapore as the most cost-effective countries for retail investment platforms. The research, which examined platform-driven trading costs across 50 countries, highlights that whilst zero-commission trading is now standard, other fees such as spread markups, FX conversion fees, and overnight financing charges significantly impact net returns.
The study analysed fees from major platforms like Capital.com, Trading 212, and Interactive Brokers, excluding government taxes and statutory levies. It found that in the US, deep liquidity and intense broker competition minimise FX drag, whilst the UK’s high fintech density and transparent pricing compress spreads. Singapore benefits from efficient FX markets and competitive funding rates.
Conversely, Nigeria, India, and Brazil rank as the highest-cost environments due to wider FX conversion spreads and higher financing charges. The findings underscore that commission-free trading does not equate to cost-free investing, with the gap between advertised and actual trading costs in the US exceeding 60%.
Thomas Drury, Co-Founder and Senior Trading Analyst at The Investors Centre, noted, “In mature financial hubs, competition has largely eliminated visible commissions. What differentiates markets today is execution quality, FX efficiency, and financing competitiveness.”
The report suggests that retail investors can benefit from lower-cost markets by minimising FX drag, understanding spread and funding mechanics, and focusing on execution efficiency. The analysis was conducted using a standardised transaction basket across six global regions, ensuring accuracy and comparability.
