Confused about commisions

[oldtime]

I've never traded forex. So I was just fooling around in a paper account (IB).

Sold some EUR commision 2 bucks. OK

Sold some JPY and commision is $190.

You see why I'm confused?

 

[rysa2011]

What you are seeing is the commission value in the counter currency, in this case the JPY. Convert it to USD and you'll see it is equivalent. The IB platform is not the best for learning FX trading.

You may want to open a paper trading account at one of the "friendlier" FX companies that offers free training then come back to IB and take advantage of their excellent execution and low commissions.

 

[oldtime]

thanks

 

[Hurricane]

Also, don't be confused by the fact that most brokers/dealers don't charge a commission for forex. In effect they build it into the bid/ask spread. I think in general you'll find that IB spreads plus commission is a better deal than most spreads without commission.

 

[fxgator]

Quote from Hurricane:

Also, don't be confused by the fact that most brokers/dealers don't charge a commission for forex. In effect they build it into the bid/ask spread. I think in general you'll find that IB spreads plus commission is a better deal than most spreads without commission.

Was about to mention that. IB spreads plus commission is indeed a better deal than most of them, considering such aspect.