What are the commissions for trading in Forex?

Salman1 · July 11, 2019

With Forex trading, the brokers constantly advertise "no commission". And, of course that's true - except for a few brokers, who do charge a commission similar to stocks. But also, of course, the brokers aren't performing their trading services for free. They too make money.

The way they do that is by charging the investor a "spread". Simply put, the spread is the difference between the bid price and the ask price for the currency being traded. The broker will add this spread onto the price of the trade and keep it as their fee for trading. So, while it isn't a commission per se, it behaves in practically the same way. It is just a little more hidden.

The good news though is that typically this spread is only charged on one side of the transaction. In other words, you don't pay the spread when you buy AND then again when you sell. It is usually only charged on the "buy" side of the trades.

So the spread really is your primary cost of trading the Forex and you should pay attention to the details of what the different brokers offer.

The spreads offered can vary pretty dramatically from broker to broker. And while it may not seem like much of a difference to be trading with a 5 pip spread vs. a 4 pip spread, it actually can add up very quickly when you multiply it out by how many trades you make and how much money you're trading. Think about it, 4 pips vs. 5 pips is a difference of 25% on your trading costs.

The other thing to recognize is that spreads can vary based on what currencies you're trading and what type of account you open.

Most brokers will give you different spreads for different currencies. The most popular currency pairs like the EURUSD or GBPUSD will typically have the lowest spreads, while currencies that have less demand will likely be traded with higher spreads. Be sure to think about what currencies you are most likely to be trading and find out what your spreads will be for those currencies.

Also, some brokers will offer different spreads for different types of accounts. A mini account, for example, may be subject to higher spreads than a full contract account.

I have been using the same broker for over 5 years now and am very happy with their service and returns.

source:- https://smartfxtrader.com/

JackieTrade · July 16, 2019

Good points. For the currencies matter I just use real-time charts and graphics, for example, when I need to convert from eur to usd. A good one can be found on www.instaforex.com, as well as a full Forex experience software.

pradegxs · July 16, 2019

I use raw spread account with Hotforex and they charge me 8$ round-turn, Tickmill charges 4$ round turn. I use them both because they have different service features which I need.

Jo Eshuijs · July 16, 2019

For me the good broker is someone who allows low commission for providing various and necessary trading services to their traders. We all need a reliable broker for our trading and to enjoy our business. But it is tough to find the right broker. So you can choose Forex4you the broker with whom I am dealing since 3 years. They have- lowest commission, low margin with lowest trading spread from 0 pips and highest leverage for their entire clients.

uncle gober · July 16, 2019

the selection of brokers must be able to be considered well, this is needed so that traders can get better and be more maximal in getting maximum security and comfort like what I got from Tickmill.

MaxRon1967 · March 27, 2023

I think you can find all the information you need about forex trading on this site https://maleextrareviewscam.com/, from reviews of brokers you can trust to market analytics and articles on how to achieve maximum profit.

maspluto · March 28, 2023

Forex trading indeed requires patience, discipline, and a strong willingness to continuously learn. As a trader, we must understand that there is no instant way to profit in forex. It takes time and effort that cannot be avoided. However, by continuously learning and utilizing all the facilities provided by brokers such as Tickmill, we can improve our trading skills and achieve maximum profits in the future.