Forex spreads

R

run_forex_run

Hi,

I am a newbie to FX trading. I have a couple of queries and really appreciate some help/suggestions.

1. Do you pay for the spread both getting in and out of a trade? If the spread is 5 pips, we have to pay 10 pips just to cover our ass?

2. My account provider also charges a 'commission' on top of this both way spreads. Is this common?

3. Could you kindly suggest me a good broker with tighter spreads who is not a bucket shop?

Thanks again for you help guys.
 
You buy at the ask and sell at the bid. So if you entered a buy and then immediately sold, you would loose the spread, not twice the spread.

Most forex dealers do not charge a commission but some do. From my experience, those charging a commission have tighter spreads so you might find it works better for you.

I use IB for forex but it might not be the best for someone new to forex trading. See what recommendations others give you.
 
Quote from KrispyKreme50:

Hurricane, how much do you need to trade Forex on IB? How much leverage do they offer? Thanks.
More...

You need 10,000 USD to open an account. 50:1 leverage.
 
Quote from ATLien:

You need 10,000 USD to open an account. 50:1 leverage.
More...

40:1 on majors, 40:1 twice on crosses, some pairs as low as 20:1.

It's on their webpage.
 
When I am buying, I am paying ask. If I put a stoploss at 45, it is taken out once the price hits 40. But if the profit target is 75, it stays on until price crosses 80. It looks like I lose 5 pips no matter what (on top of the 5 pips spread I pay when I get in). I am not complaining but wondering if its the standard norm.

Could somebody please suggest a good broker for forex newbie?
 
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