How much does it cost to manage a portfolio with RoboMarkets? We compare Cash and Margin accounts, trading fees, turnover, leverage, and the costs of API-based portfolio automation.
Analytical Platform supports a technical API connection to a RoboMarkets brokerage account. We have therefore prepared an overview of the main costs users should consider when using this account.
Analytical Platform is not a broker, and trading itself does not take place within Analytical Platform. The brokerage account, order execution, client funds, and associated fees are managed by RoboMarkets. The API connection does not change the broker’s pricing or trading conditions.
How Much Does Trading Cost at 10% Turnover?
Turnover indicates how much of the portfolio is replaced over a given period. In this example, we assume 10% monthly turnover: positions representing 10% of the portfolio are sold each month and new positions of the same value are purchased.
With a trading fee starting at 0.075% per order, the costs are as follows:
| Transaction | Share of portfolio | Cost |
|---|---|---|
| Positions sold | 10% | 0.0075% of the portfolio |
| New positions purchased | 10% | 0.0075% of the portfolio |
| Total per month | — | 0.015% of the portfolio |
| Total per year | — | 0.18% of the portfolio |
For a portfolio worth EUR 100,000, this represents approximately EUR 15 per month or EUR 180 per year.
The calculation assumes 10% monthly portfolio turnover and a base trading fee of 0.075%. It does not include spreads, currency conversion, potential slippage, or Margin Account financing.
Cash or Margin Account?
| Feature | Cash Account | Margin Account |
|---|---|---|
| Maximum leverage | 1:1 | Up to 1:20 |
| Trading fee | From 0.075% per order | From 0.075% per order |
| Overnight financing | 0% | 7% p.a. |
| Short selling | No | Yes |
| Risk of forced position closure | No | Yes |
A Cash Account is generally more suitable when the amount of invested capital is high enough to execute all positions without temporary financing, particularly for long-term investing without leverage.
A Margin Account provides access to leverage and short selling. However, positions held overnight are automatically subject to financing costs. The fee is calculated on the full value of the open position, not only on the margin used.
Why Can a Cash Account Be a Problem for Automated Trading?
Consider an account with EUR 120 in capital and a portfolio consisting of ten stocks. The strategy aims to invest EUR 12 in each company.
If one share also costs EUR 120, the target position is 0.1 shares. Creating this position through the API may require two transactions:
| Transaction | Number of shares | Value |
|---|---|---|
| Purchase | 1.1 shares | EUR 132 |
| Subsequent sale | 1 share | −EUR 120 |
| Final position | 0.1 shares | EUR 12 |
RoboMarkets handles the creation of some fractional positions through its API in a somewhat inconvenient way. Although the required final position is worth only EUR 12, temporarily creating it requires EUR 132 in buying power.
On a Cash Account containing EUR 120, the broker will therefore reject the EUR 132 purchase. Automated portfolio construction may fail even though the total value of the required final positions does not exceed the account’s total capital.
A Margin Account solves this problem by providing temporary buying power. In this case, leverage is not primarily used to increase speculative exposure. Instead, it serves as a technical buffer required to create small and fractional positions through the API.
When May a Cash or Margin Account Be More Practical?
| Situation | Practical option |
|---|---|
| Lower amount of invested capital, where API execution requires temporary additional buying power | Margin may be necessary |
| Higher amount of invested capital, where positions can be created without temporary financing | Cash is generally more cost-effective |
| Short selling or deliberate use of leverage | Margin |
There is no fixed amount at which a Cash Account automatically becomes the better option. It depends on the total capital, the number of stocks in the strategy, their prices, and the target allocation of each position.
With a lower amount of invested capital, some target allocations may be worth less than one share. Because of how RoboMarkets handles fractional positions through its API, a Margin Account may then be technically necessary.
As the amount of invested capital increases, individual allocations become large enough to be executed without temporary financing. The technical advantage of a Margin Account then disappears, while its 7% annual financing cost remains.
In simple terms, a Margin Account may be necessary when the invested capital is too low for the portfolio to be executed through the API using cash alone. With a higher amount of invested capital, a Cash Account is generally more cost-effective.
Conclusion
In our view, RoboMarkets is an attractive European broker that provides API access to advanced investment strategies with starting capital as low as USD 120.
When the amount of invested capital is relatively low, a Margin Account may be technically necessary due to API execution requirements.
- 7% per year for position financing,
- trading fees for individual purchases and sales,
- potential spreads and currency conversion costs.
At 10% monthly turnover, trading fees represent approximately 0.18% of the portfolio per year. Together with Margin Account financing, the total cost is therefore at least 7.18% per year.
A strategy used with a small Margin Account must therefore generate a sufficiently high expected return to overcome these costs over the long term.
When the amount of invested capital is high enough to use a Cash Account without execution issues, RoboMarkets’ pricing is considerably more attractive. The 7% financing cost no longer applies, and the investor primarily pays a low fee for executed trades. From a cost perspective, RoboMarkets can therefore be a very attractive option for accounts with sufficient invested capital.
This article is provided for general informational purposes only. It does not constitute an investment recommendation, investment advice, an offer, or a solicitation to buy or sell financial instruments. Analytical Platform is not the provider of the brokerage account and does not determine or charge RoboMarkets’ fees. Current terms and rates should always be verified directly with the broker.