Spot FX Commisssion Structures

C

CPTrader

For brokers that charge commissions for spt FX (i.e. they do NOT embed a markup into the spread) what is a competitive commission rate? Will this commission rate be a flat dollar amount or a pip charge. And what would this pip charge translate into in dollars?

Many thanks!
 
IB charges 0.4 pip or $5.00 per RT, whichever is greater.

http://www.interactivebrokers.com/en/accounts/fees/commissionForex.php?ib_entity=llc#currency

As far as I know, all other firms with a similar (transparent commission) business model require trade size in integer multiples of 1 lot (100,000 units), vs. any number over 25,000 for IB. Anyone know otherwise?

Until one's account exceeds USD 200,000 - 400,000 (depending on risk settings), whole lot sizing is a serious disadvantage, in terms of proper position sizing / risk management.
 
Hotspot charges $3 per 100k of whatever the base currency is, so its cheaper to deal eur and gbp than usd/jpy for instance.

InterbankFX charges 0.5 pip of base currency per 100k

COESFX charges a full pip

All of these charges are per side, but actually not terrible since the spreads are pretty good.
 
xenia, you seem to be a resident fx expert here. I'm about to begin modeling my successful sp system for the eurofx. I simply feel the off exchange market, while incredibly liquid, is still a very big bucket shop. They control the capital, the quotes and the fills, I just don't see how it can be fair. Or at the very least, the average trade has to be very high to overcome these inherent costs. How far off base do you think I am?
 
Quote from taboni:

Hotspot charges $3 per 100k of whatever the base currency is, so its cheaper to deal eur and gbp than usd/jpy for instance.

InterbankFX charges 0.5 pip of base currency per 100k

COESFX charges a full pip

All of these charges are per side, but actually not terrible since the spreads are pretty good.
More...

So would you think a commission of 0.5 - 1pip for an interbank fx platform like currenex or EBS is "competitive" versus using GLOBEX futures?

Thanks in advance.
 
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