Forex trading is for everyone, but it is not, either. It is for investors, experts, traders with courage, wisdom and positive. It is not for those who are afraid of risk. Traders can earn a lot very quickly in forex market and they could also lose much more with a blink of eyes. One of the most important things is to choose the most suitable brokers, which includes choosing the trading platforms, trading methods, the currency pairs provided, leverages, service and the lowest trading cost.
There are many brokers advertising no commission, which attracts lots of traders. However, they secretly include the commission into the spread so they could take the surplus for their own. Traders with low trading volume could save money at a broker offering no commission while the spread is reasonable and competitive.
Meanwhile, traders with high trading volume could make use of brokers who offering only commission. Why so? We will take ATC as an example. Its flat commission pricing is like a clear winner. The commission round turn (when you buy and sell for both sides) is priced and is $1.00 for 10,000 units. This is also the minimum commission.
We now have many brokers with reasonable pricing and conditions to compare.
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This broker offers an average spread about 0.2 pips with 7 dollars per round lot commission. In total, your spread is about 0.9 pips for a trade. There is also a discount provided by this market, which is about 1.5 dollars. As a result, you have to pay only $5.5 instead of $7 originally and your spread now is about 0.75 pips after deducting 0.15 pips. Just imagine that the average spread is zero, which doesn’t often happen, then you only have to pay 0.55 pips for the cost in the best condition. Anyway, the average fee per lot traded is 0.75 pips in ICMarkets.
This broker offers a very good commission, which is also much lower at just only $4 per round lot. Meanwhile, the spread provided is from 0.4 to 0.6 pips. Now we will take the maximum spread to make an example. If the spread is 0.6 pips, the total cost for a trade is 1 pip. But the discount rate is 5% of total fee, then now you have to pay $3.8 for a lot traded instead of $4, and the total fee is 0.98 pips. If the spread is 0.4 pips, the total fee is 0.8 pips, then your payment now is 0.78 pips. In short, the average fee per lot traded is 0.78 pips in ArmadaMarkets.
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BRKV – Although this is kind of a new forex broker, we will check its spreads and commissions to see if they are competitive or not. It is surprising that its live spread is about 0.5 pips when the spread for USD/JPY is only 0.4 pips, which is lower than that of EUR/USD (0.5 pips). However, we will take the spread of EUR/USD to make an example. This broker offers $5 of commission for a round lot. This makes the total fee around 1 pip, which is less than usual. Nevertheless, if we involved $5 per million rebates/ $0.5 per standard lot, we would save an amount of 0.005 pips per lot traded. However, this saving rate varies depending on the number of lots traded by the traders. In this case, we could say if you have many trading lots at a time, your total cost is about 0.9 to 0.95 pips. Briefly, the average fee per lot traded is 0.95 pips.
This broker from Australia is partially the same as ICM with the average spread is about 0.6 pips and commission is $7.53. Now, for one round standard lot, the cost is about 1.353 pips in total. This broker offers a rebate of $0.75 AUD per round lot, which is $0.79 in USD currency. As a result, the commission you have to pay now is deducted into $6.74 and the cost is totally about 1.274 pips. The average fee per lot traded is 1.274 pips.
We will have a look at the “Pro” account of this broker since it has no commission for standard account. Its spread is from 0.1 to 1 pip, with the commission is about $7 per round lot for the main currency pairs. In average, the spread should be 0.55 pips for easy comparison. This makes the total cost of 1.25 pips. With $1.5 discount for the commission, you have to pay only $5.5 instead of $7 for commission originally, which is the same as the amount of ICM. You also have to pay 1.1 pips in total now after applying the discount. In brief, the average fee per lot traded is 1.1 pips.
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This broker has commission’s currency in EUR, which is 2.5€ per standard 100K lot (and 2.80€ on MT4) and will be exchanged into $3.67 USD per side or $7.34 round lot if it is correct. As a result, its spreads are going to zero but there is no figures or data, we will take the quoting on MyFXBook which is about 0.4 pips. Now, the total commission for traders is 1.134 pips. In conclusion, the average fee per lot traded is 1.134 pips.
Since the cost of its MT4 ECN account is very much cheaper than that of FASS, we will take it as the example. It has $2.5 per side per 1 lot, the total commission is $5 per round lot. The spread varies reasonably from 0.3 to 0.4 pips with good conditions and volatility. If we take the spread at 0.4 pips, the cost will be 0.9 pips in total per standard lot. This is very good as it is on the lower side. However, with $50,000 deposited, the commission will be $1.8 per side, $3.6 per round lot or 0.76 pips total fee. In brief, the average cost per lot traded is 0.76 pips.
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