Commissions of stock brokers for opening transactions on the stock exchange
When starting trading on the forex currency exchange, you should know how much and what you will have to pay for, that
is, what the commissions of stock brokers are.
Surprisingly, many traders are simply unaware of the number of additional costs they may have to face.
Sometimes this data is not always provided in clear form, so you should be especially careful when reading trading conditions and contracts.
A stockbroker's commission on Forex can be of the following types - spread, fee per lot, swap for transferring positions, SMS for withdrawing neighbors.
Sometimes other fees may also apply, depending on the company you are trading with.
What brokerage commissions for individuals can be found on the stock or foreign exchange market?
Forex spread is the main fee that a broker charges when trading currencies, in fact it is the difference between buying and selling a currency pair.
That is, you bought a euro for 1.1053 dollars, but you can sell it right away only for 1.1051, 2 points cheaper. Moreover, this difference is charged simultaneously with the opening of a new position, that is, immediately after opening a transaction, your financial result will be equal to -2 points.
The spread can be floating or fixed, depending on trading conditions. Its value depends on how popular the currency pair is and can range from 0.1 to 100 points.
The minimum commission of stock brokers "spread" is indicated here - https://time-forex.com/vsebrokery/spred-broker
Volume fee - sometimes this point acts as a trap for inexperienced traders; the dealing center, in addition to the standard spread, also charges a fee in percentage or in a fixed amount for each transaction. For example, the spread size is 1 point, and the broker's commission is 0.02%.
As a result, opening an order with a volume of 1 lot on EURUSD, we get 10 + 20 dollars, that is, in fact, the fee for opening a transaction was 3 points. True, the fee for a lot is found mainly on accounts with a floating spread.
Brokerage companies often write in advertising that trading is carried out without a spread, forgetting to indicate the amount of the charged commission.
The figure shows that in addition to the spread, the stock broker's commission is $60 per 1 million turnover, that is, in this case you will have to pay about $6 for one lot. Or approximately another 0.6 points to the size of the floating spread.
In most cases, there is no particular difference between the commission and the spread; if you recalculate how much you will pay for one transaction of the same volume, then most likely these two indicators will be equal.
Exchange brokers without commission, only spread and swap -
Alpari and RoboForex Swap - a fee for transferring an order to the next day, may include the difference between the lending rates for both currencies in a currency pair and an additional broker commission.
In addition, it should be noted that the fee for transferring positions is charged not only for currencies, but also when trading other assets, such as stocks, futures, metals.
The swap amount is usually not large and cannot radically change the financial result, while the swap can be either negative or positive.
You can find out how important swop is when trading on the stock exchange on the page - https://time-forex.com/praktika/svop-fx and also how this type of payment is calculated.
Withdrawal of funds - many companies also charge money for withdrawing your honestly earned money, usually the fee is about 0.5-2%. This is how the broker encourages clients to continue further trading or use certain payment systems.
But sometimes, for some types of payment systems, stock broker commissions for withdrawing funds can reach 4%.
These are, perhaps, all the cases when you will have to pay extra money using the services of Forex dealing centers