Undoubtedly, forex trading is on the rise. Several forex brokerages are being opened at a very high rate, and several folks are now leaving their jobs to trade forex.
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76% success rate
Entry, take profit & stop loss
Amount to risk per trade
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Up to 5 signals daily
76% success rate
Entry, take profit & stop loss
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Up to 5 signals daily
76% success rate
Entry, take profit & stop loss
Amount to risk per trade
Risk reward ratioSeparate Swing Trading Group
Up to 5 signals daily
76% success rate
Entry, take profit & stop loss
Amount to risk per trade
Risk reward ratiomonth
1 - month
Subscription
Up to 5 signals daily
76% success rate
Entry, take profit & stop loss
Amount to risk per trade
Risk reward ratiomonth
3 - month
Subscription
Up to 5 signals daily
76% success rate
Entry, take profit & stop loss
Amount to risk per trade
Risk reward ratiomonth
Most popular
6 - month
Subscription
Up to 5 signals daily
76% success rate
Entry, take profit & stop loss
Amount to risk per trade
Risk reward ratiomonth
Lifetime
Subscription
Up to 5 signals daily
76% success rate
Entry, take profit & stop loss
Amount to risk per trade
Risk reward ratioSeparate Swing Trading Group
Up to 5 signals daily
76% success rate
Entry, take profit & stop loss
Amount to risk per trade
Risk reward ratiomonth
Eightcap - Regulated Platform With Tight Spreads
- Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
- Use our Secure and Encrypted Infrastructure
- Spreads from 0.0 pips on Raw Accounts
- Trade on the Award-Winning MT4 & MT5 Platforms
- Multi-jurisdictional Regulation
- No Commission Trading on Standard Accounts
It’s not rocket science as to why all that is happening as it’s because the forex market is far bigger, it’s simple and with enormous potentials for profits.
But what makes it different from the other financial markets?
When you think about forex trading, and for example, the stock exchange, some basic differences such as more volatility, higher liquidity, high leverage, low trading commissions as well as costs come into the mind.
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Payment methods
Trading platforms
Regulated by
Support
Min.Deposit
Leverage max
Currency Pairs
Classification
Mobile App
Rating
Total cost
$ 0
Commission
3.5
Min.Deposit
$100
Spread min.
Variables pips
Leverage max
100
Currency Pairs
40
Trading platforms
Funding Methods
Regulated by
FCA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
0.3
EUR/CHF
0.2
GBP/USD
0.0
GBP/JPY
0.1
GBP/CHF
0.3
USD/JPY
0.0
USD/CHF
0.2
CHF/JPY
0.3
Additional Fee
Continuous rate
Variables
Conversión
Variables pips
Regulation
Yes
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Rating
Total cost
$ 0
Commission
0
Min.Deposit
$100
Spread min.
- pips
Leverage max
400
Currency Pairs
50
Trading platforms
Funding Methods
Regulated by
CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Etfs
Average spread
EUR/GBP
1
EUR/USD
0.9
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
Yes
CYSEC
Yes
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
Yes
CBFSAI
Yes
BVIFSC
Yes
FSCA
Yes
FSA
Yes
FFAJ
Yes
ADGM
Yes
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Rating
Total cost
$ 0
Commission
6.00
Min.Deposit
$10
Spread min.
- pips
Leverage max
10
Currency Pairs
60
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Cryptocurrencies
Average spread
EUR/GBP
1
EUR/USD
1
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
Your capital is at risk.
Rating
Total cost
$ 0
Commission
0.1
Min.Deposit
$50
Spread min.
- pips
Leverage max
500
Currency Pairs
40
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Actions
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
-
EUR/CHF
-
GBP/USD
-
GBP/JPY
-
GBP/CHF
-
USD/JPY
-
USD/CHF
-
CHF/JPY
-
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
So, let’s specifically look at how the trading costs, as well as commissions in forex, compared to the other global markets.
The Stock Market
In the stock market, a trader is charged a commission on both sides of a trade. It means that a trader makes the trade in cooperation with the broker, who charges a fixed amount per trade, per share, or some scaled commission depending on the size of the trade. Furthermore, the commission is applied both when buying and selling a stock.
Forex Trading
When looking at the forex market, forex brokers do not charge commission. However, a few brokers will advertise that they do charge some commission like in the stocks.
Therefore, it means that the forex market lets all traders open as well as close positions without a commission.
But how do the forex brokers make their money?
As much as they advertise that they do not charge a commission, forex brokers also make money. It gets a little bit tricky here. No commissions charged by brokers-true, but they don’t trade out of their heart’s goodness.
In fact, forex brokers come out on top, literally in a big way. What they charge is known as forex spreads, which is the difference between the price a broker will buy from you and the price they’ll sell the currency.
Therefore, as much as it doesn’t sound like a commission, the principle is merely the same.
It’s, therefore, essential to understand the costs related to trade before making major decisions. The main principle about the forex market is that it’s based majorly on the supply and demand like most markets.
For instance, with high demand for the USD, its value goes up against other currencies, and that’s how spreads are defined as well as calculated.
Unlike the stock market, the spread is charged only on one side of a transaction, meaning a trader won’t pay a spread when buying and also when selling; it’s only charged once on the buying side of a trade.
Things to Keep in Mind
Now you must understand that the spreads are not uniform across several brokers.
Different brokers offer different spreads, and that small difference can be your game-changer in the long run.
For instance, a 5 pip spread against a 4 pip spread; over time, the difference could be massive.
Moreover, the spreads vary depending on the type of currencies being traded and the type of account a trader opens. For instance, the popular EUR/USD or GBP/USD currency pairs have the lowest spreads from brokers, while currencies with less demand have higher spreads.
Similarly, the type of account opened can be subject to a different spread, like a minim account has higher spreads compared to a full contract account.
Also, even the fixed spreads do change periodically; hence, it’s significant to stick to what the broker charges.
You should also be aware of the brokers that offer fixed spreads as they restrict trades, especially during the news releases when the market is volatile, and thus the insurance doesn’t really help.
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Conclusion
Having a clear understanding of the commissions, spreads, and the trading costs in forex trading can help any trader in making educated decisions regarding their forex trading strategies.
Therefore, ensure you know the currencies you’ll trade, how frequent, and the type of account to use, and that way, you’ll stay on top of the game ready for the market.
