In forex trading,how much do a brokerage firm charge for each trade?
Author: It seems easy to trade with a mobile phone,But if the charge is more than you earn what is the point of day trading?
It is through spreads which i like much better than stock fees. I use Oanda (oanda.com) as my broker which have relatively low fees and excellent customer reviews. Also http://www.babypips.com helped me understand everything about forex starting off. I even came across a blog with a decent strategy for trading. http://softwareforexreviews.blogspot.com/2009/10/forex-software-project.html#comments
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If the charge is more than what you earn then do not trade. If you are part time trader then day trading is not suitable for you because day trading can make you sit in front of your monitor all of time. You can visit: http://www.imyatrader.com/choosing-best-time-frames.html/
All brokers have different charges and they vary by currency pair as well. Most of the time you will be paying between 2-3 pips per trade. In unusually busy markets (like when big news is released) brokers can charge a lot more. It all depends on the current spread which will be displayed in your platform.
try this site..maybe it could help you..
http://www.currency-trading-tutorial.net/
Good question!
A broker charges a commission called ‘the spread’ on every trade you make. This can be something like 3 pips (the smallest possible value of a pair). So if your trade only gained you 2 pips then you still lose.
That’s certainly something to keep in mind. Check out the brokers here: http://forextradingwinners.com/category/forex-broker-reviews. They are cheap and reliable.