Inactivity fee

An inactivity fee is a charge levied by brokers on trading accounts that have not shown any activity, such as opening or closing trades, making deposits, or withdrawals, for a specified period. Brokers typically deduct a fixed amount from the account balance, often monthly or quarterly, after this dormancy period is met. The duration before the fee applies varies by broker, commonly from three months to a year.

For a retail trader, inactivity fees can slowly erode account capital, especially for smaller balances. If an account remains dormant, these charges can eventually deplete the funds, potentially leading to account closure by the broker. Traders should be aware of their broker's specific terms regarding inactivity to avoid unexpected deductions or to decide whether to close an unused account.