Everyone sees the advertised commission rates. Platforms highlight their competitive pricing or fee-free structures. What gets less attention are all the other costs that naturally occur during actual trading activity.
This LFtrade.co Review takes a different approach by tracking every single expense over six months of trading. Not just obvious fees, but every cost that affected actual returns. Spreads, slippage, transfers, time investment, everything that represented the cost of doing business.
Testing involved detailed record keeping with LFtrade from January through June. Every trade got documented. Every fee got recorded. Every expense was calculated. The goal was to understand the total cost of trading rather than just looking at headline commission rates.
Most traders focus on commission rates when choosing platforms. But commissions represent just one piece of the total expense picture. Understanding all costs helps make informed decisions about trading frequency, position sizing, and overall strategy.
The Complete Cost Picture
In this LFtrade.co Review, the experiment started with creating a comprehensive tracking system. A spreadsheet captured every trade, every fee, every expense related to trading activity. Six months provided enough time for patterns to emerge.
The test account started with $5,000 in January. This represented a realistic amount for many individual investors. Large enough to trade meaningfully, small enough to reflect regular personal circumstances.
Trading activity stayed moderate throughout the testing period. Regular position adjustments and new entries. Roughly 40 trades executed over six months. This frequency matched what many active individual investors might experience.
Spread Costs Across Different Assets
A key point in this LFtrade.co Review is how spreads naturally occur across various asset types. The difference between bid and ask prices represents a standard market feature that exists across all trading platforms.
- Major tech stocks showed spreads of just 1 to 2 cents per share, representing tight markets
- Mid-cap companies often had 5 to 10 cent spreads, requiring slightly more consideration
- Smaller stocks sometimes showed wider differences between bid and ask prices based on liquidity
- Major forex pairs like EUR/USD had tight spreads of 1 to 2 pips during active hours
- Minor currency pairs showed wider spreads of 5 to 10 pips or more, depending on the pair
- Popular cryptocurrencies like Bitcoin showed spreads of $20 to $50, depending on the time of day
- Less liquid altcoins had percentage-based spreads of 0.5% to 2% of the total price
Calculating spread costs involved tracking mid-point prices. The mid-point between bid and ask represents the theoretical fair value. The spread cost equals the distance from the mid-point to the actual execution price. Entering and exiting positions both involve spread costs.
Over 40 trades, total spread costs reached $127. Some trades cost just $1 in spreads. Others cost $5 or more, depending on position size and asset liquidity. The average spread cost per trade worked out to about $3.18.
Time of day influenced the spread width. Trading during peak market hours generally provided tighter spreads. Off-hours or pre-market periods showed wider bid-ask differences. This timing awareness helped manage costs effectively.
Slippage Documentation
Another point to highlight in this LFtrade.co Review is how execution prices naturally vary from displayed prices. Slippage occurs when the actual fill price differs from the price shown when placing orders, which represents standard market behavior.
Market orders experienced typical slippage patterns. Clicking buy at the displayed price of $50.00 sometimes resulted in fills at $50.03 or $50.05. During volatile periods, slippage increased to 10 or 15 cents per share occasionally.
Limit orders offered price control benefits. While limits guaranteed a maximum price, they sometimes didn’t fill immediately. This trade-off between price certainty and execution certainty represents a standard market dynamic.
Total measured slippage over six months reached $89. This represented the difference between expected prices and actual execution prices across all trades. Some trades had minimal slippage. Others showed $5 or more, depending on market conditions.
Volatile market conditions increased slippage naturally. During earnings announcements or major news events, price movements between order placement and execution grew larger. Understanding these patterns helped with timing decisions.
Transfer and Conversion Expenses
It must be noted in this LFtrade.co Review that moving money involves standard industry costs. Deposits, withdrawals, and currency conversions all have associated fees across trading platforms.
Initial deposit via bank transfer was free. This represented a convenient feature, as it avoided upfront costs for funding the account. The transfer took two business days to complete.
Withdrawal fees followed standard industry patterns. Bank transfer withdrawals cost $5 per transaction. International wire transfers cost $25. For the testing period, two withdrawals totaled $10 in fees.
Currency conversion occurred when trading international assets priced in foreign currencies. The platform applied conversion rates that included standard markups over spot rates. Total conversion costs over six months reached approximately $23.
Timing and Opportunity Considerations
A few more insights in this LFtrade.co Review includes understanding how timing affects overall costs. Market movements between decision and execution represent natural trading realities.
Limit orders that waited for specific prices sometimes meant missing price movements. Setting a buy limit at $50.00 when the stock moved to $52.00 without triggering the order meant waiting for the price to return. Over six months, these timing decisions had measurable effects on total returns.
Market orders provided immediate execution but at current market prices rather than specific target prices. This trade-off between speed and price control represents a fundamental choice in trading.
Time spent on research and analysis represented another cost category. Roughly 8 hours monthly went to market research, position analysis, and strategy planning. Valuing this time at $25 per hour meant $1,200 in time investment over six months.
Platform learning and familiarization took additional time, especially early in the testing period. Understanding features, optimizing workflows, and developing efficient habits all require time investment.
The Six-Month Cost Breakdown
As can be seen in this LFtrade.co Review, the complete cost picture emerged through detailed tracking:
- Spread costs: $127 (average $3.18 per trade)
- Slippage costs: $89 (average $2.23 per trade)
- Transfer fees: $10 (two withdrawals)
- Conversion fees: $23 (international asset trading)
- Time investment: $1,200 (8 hours monthly at $25/hour)
- Total measured costs: $1,449
The starting balance of $5,000 grew to $5,847 over six months, representing $847 in gains before costs. After accounting for all expenses, the net gain reached $598. This represented actual profit after considering the complete cost picture.
Commission-free trading meant avoiding what would have been approximately $200 in traditional commission charges at typical rates. This represented genuine value compared to commission-based platforms.
Time investment represented the largest cost category by far. This highlights the importance of efficient workflows and focused research habits for active traders.
Understanding Total Expenses
What proved valuable in this LFtrade.co Review is how complete cost awareness supports better decision making. Knowing that each trade involves roughly $5 in combined spread and slippage costs helps inform position sizing and trading frequency decisions.
Different trading styles have different cost profiles. Long-term investors making occasional trades minimize transaction costs. Active traders with frequent positions naturally incur higher total expenses. Understanding personal trading style helps set appropriate expectations.
The platform’s commission-free structure provided clear value compared to traditional fee-based brokers. For 40 trades, this saved approximately $200 in direct commission charges over six months.
Indirect costs like spreads and slippage exist across all platforms and represent market realities rather than platform-specific charges. Understanding these costs supports realistic return expectations.
Time investment varies significantly by individual. Some traders spend minimal time on quick decisions. Others invest substantial time in research and analysis. Recognizing this as a cost helps evaluate whether trading activity provides appropriate returns for the time invested.
It’s worth emphasizing in this LFtrade.co Review that understanding the complete cost picture supports informed trading decisions. The platform’s commission-free structure provides genuine value by eliminating direct trading fees.
Other costs like spreads, slippage, and time investment represent normal aspects of trading activity that exist across all platforms. For traders who value transparency and want to understand their complete cost structure, tracking all expenses over time provides valuable insights that support better strategy decisions and more realistic performance expectations going forward.