Where is the commission in forex trading?
Angel Steve, I am not agree with you. FX firms may be dealers but are brokers and take commission from traders.
Angel Steve, I am not agree with you. FX firms may be dealers but are brokers and take commission from traders.
I agree with you, they take a commission and also give them a commission to the partner who acts as IB.
I disagree, you are solely referring to Market makers which use a dealing desk(thus they're dealers), which in fact act as a counterparty. Whereas ECN brokers are merely 'the mail man' of your trades and they do charge a commission.
FX firms are dealers as well as brokers. These firms charge commission as well. Angel Steve, you should do more research about forex firms.
Commissions often take away a lot of the gains that investors are able to make for themselves. Since the Forex markets have none of these, it is not difficult to make plenty of money in these markets in a short amount of time. Those who are interested in doing this need to make sure that they get their account set up with a dealer at some point soon. There are plenty of brokers to select from, and it is just a matter of picking the one that is right for you.
The FX market doesn't have commissions. Unlike exchange-based markets, is really a principals-only market. FX firms are dealers, not brokers. This can be critical distinction that most investors must realize. Unlike brokers, dealers assume market risk by being a counterparty to the investor's trade. They don't charge commission instead, they create their funds through the bid-ask spread.
Nice post. We all really need facts like this to keep us going. We can't really do without these people.
The FX market doesn't have commissions. Unlike exchange-based markets, is really a principals-only market. FX firms are dealers, not brokers. This can be critical distinction that most investors must realize. Unlike brokers, dealers assume market risk by being a counterparty to the investor's trade. They don't charge commission instead, they create their funds through the bid-ask spread.
Are you talking of spreads as their gains. That is not too bad to have for their services, just that sometimes there might be something else.
There are different types of commission in forex trading. We can say spread is also a type of commission that every broker charge on every trade.Then if you work with swap accounts , you will pay or get commission on profit or loss as your broker will set it.
Commissions are based on total amount of the forex at the rate of 2.50 per 100,000 executed of the base currency, each side. It is received by broker.
Of course there are commissions.
Why will you get a rebate from sites like cashbackforex for every trade done if there are no commissions?
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The FX market doesn't have commissions. Unlike exchange-based markets, is
really a principals-only market. FX firms are dealers, not brokers. This can be critical distinction that most investors must realize. Unlike brokers, dealers assume market risk by being a counterparty to the investor's trade. They don't charge commission instead, they create their funds through the bid-ask spread.