Which Forex Brokerage Firm?

What is the typical commission charged by these direct access brokers? Wanted to work out how much of a difference there is between commission charging and spread charging brokers.



Quote from cstfx:

IB is really for the more experienced trader, one who has been trading a while and does not need any hand holdng. If you are new to the game, you would be better served starting small with one of the ubiquitous market makers (bucket shops) to learn and get a feel for the currency markets.

If you feel you have enough experience to trade without a net, so to speak, there are plenty of ECN type trading platforms you can use which give you really tight spreads (because the broker charges you a commish, he does not inflate the spread to make his money) such as IB, HotSpotFx(r), MB Trading, Man Financial, etc. However, on many of these paltforms, particularly the more professional ones, such as Currenex and FxAll and even HotspotFX(i) you need larger deposits to open an account and you ccan't fund them with your credit/debit/paypal account. Those firms that offer that are only after your money any way they can get it.

HotspotFX(r) lets you open an account with 7500, and IB let's you open an account with 5K. Probably the 2 best choices right now for the individual trader who is looking for STP.
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Quote from orange_trad:

IB is the best for tight spreads (eurusd 1 pip: anyone is welcome to beat it) + small commish

Oanda is second best (eurusd 1.2 pip no commish)

both reliable, IB more so

itrader911: IB has been around since 1977, no lawsuits a'la FXCM sofar... It's been in forex since 2005 only, but it won't blow the whole company just to gain a couple pips against your S/L...
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HOw much commission does IB charge on forex transactions?
 
Its 0.2 pips per transaction, that doesnt always equate to $2 for 100.000 units, i.e. USD/JPY will be differnet.

But its a really cheap commission anyways.

In comparison, MB charges $5 per 100k *USD* traded. For example GBP/USD is at 2.0150, you pay for 100k units $10.08. Thats more than a pip per side, or 4 times what you would pay at IB (IB has a $2.5 minimum commission per transaction). Its even 5 times cheaper if you overcome the min. commissions.
 
Last I looked GBPUSD spread on IB was 2 pips

So if commission is $8 both sides as above.

Then 1x $100,000 USD contract will cost $28.00

Let compare

www.dukascopy.com is 1 to 2 pip spread with $20 USD commission.

From what I can find GBPUSD trading costs are basically a standard $30 USD. ( Spread and commissions), and if your lucky on a 1 pip spread then cost would be $20.00 USD.
 
Quote from Pippi436:

Its 0.2 pips per transaction, that doesnt always equate to $2 for 100.000 units, i.e. USD/JPY will be differnet.
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It's $2 per $100k of trade value.

When you trade a 100k USD/JPY lot, you are trading $100,000 worth of JPY. The referenced base currency is the first one.

Now, on my referenced GBP/USD trade, a 100k lot is 100,000 GBP (at exchange rate of, say, $2.01, the trade costs $201,000. Again, the first currency in the pair is the referenced currency.

The 0.00002 rate applies to the dollar amt of the trade.

And it's a mistake to label the commish a fixed percentage of a pip as pip value varies on different pairs.
 
Quote from hanzahar:

correction

isn't it 2.50?
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On minimum commission charged. If you are trading anything greater than 100k lots, your calculated ciommish will be greater than that, so minimum would not qualify.
 
Quote from Digs:

Last I looked GBPUSD spread on IB was 2 pips

So if commission is $8 both sides as above.

Then 1x $100,000 USD contract will cost $28.00

Let compare

www.dukascopy.com is 1 to 2 pip spread with $20 USD commission.

From what I can find GBPUSD trading costs are basically a standard $30 USD. ( Spread and commissions), and if your lucky on a 1 pip spread then cost would be $20.00 USD.
More...

Hello Dukascopy have 20 $ commission per one million!! And even depending on volume, I see that you can have 10 $
 
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