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Personal Finance and Forex Share tips of the trade or ask questions regarding the best way to manage your personal accounts and savings. Where should you have your funds allocated in terms of liquidity, dollar leverage (against inflation) and retirement planning.

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Old 09-09-2008, 04:57 PM
K. Vaughn K. Vaughn is offline
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Forex commissions for trading?

OK, so everyone says that its all about the "spread" and that most Forex sites do not charge a commission. I understand this only tenuously. Please, can someone give me a real life example of what the total commission charge would be for a hypothetical investment?

I plan on investing a hundred bucks at a time and the site I'm using has a 3 pip spread I believe (forex.com). So what does all this translate to in terms of commissions?? Give me some solid numbers pleeeease!
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Old 10-08-2008, 05:27 PM
Crux Crux is offline
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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.
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