What are financing and rollover fees in the stock/currency market trading system?

Asked 4 years ago

I've just started getting into trading on Forex, and I've recently heard that there is something called financing and rollover fees. What do these mean, and how do they work? Thank you.

Rollover fee Financing fee

Andia Rispah Igobwa

Tuesday, August 17, 2021

The purpose of a financing fee is to charge the trader for taking out money using borrowed funds. 
Rollover fees are put on top of most trades to discourage high-frequency trading. 
Rollover costs begin at $50 per trade for traditional brokerage accounts and cryptocurrencies and can cost well over $100 or more when commission charges are added in. 
It is a significant deterrent against traders who might otherwise engage in high-speed market arbitrage between exchanges with different prices. 
If you feel that any two securities have an identical price, be sure to verify the commissions associated with your trades if they are not standardized before you buy or sell. 