Where is the commission in forex trading?
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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. |
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Angel Steve, I am not agree with you. FX firms may be dealers but are brokers and take commission from traders.
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Forex Trading Course |
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Quote:
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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.
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FX firms are dealers as well as brokers. These firms charge commission as well. Angel Steve, you should do more research about forex firms.
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Forex Australia |
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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.
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