Types of fees which brokers charge
May 9, 2021
When in forex trade and you open forex brokers with zaraccounts, then you need to expect the following fees which are charged by brokers:
It might be the difference between the bid and the ask price. It is the fees which is common that is charged by the forex brokers. When the spread is lower of the broker, then that is better for you. Before you sign-up with any broker, you need to look for the contract of the broker and its specification page because in most instances, it contains information regarding the spread of the broker.
Commissions – charged on ECN account
Majority of the ECN brokers will tend to charge lower spreads but instead, continue to charge you commission for both closing as well as when you open position based on the trading volume and amount.
The forex brokers do mention each side of their commission of the order/trade. So, in case the broker mentions that, per ever lot per side, a commission of $2, meaning, that the broker will be charging $2 for opening position and an extra 2$ during the position closing.
The total commission for such an example would be $4. If you happen to have a high volume trader, then the structure of fees with the ECN will become more transparent, having lower trading costs for you.
Forex brokers are known to charge small fees in case you wish to keep a position open overnight. The fees is normally referred to as swap rates or rollover fees. The fees depend on your broker and the pair of currency that you are trading.
Most of the brokers are known to be charged with payment gateway fees as well as processing fees on the withdrawals/deposits. Each broker is known to charge differently and thus, you have to go for the one that seems to charge favorably with others charging zero amount.
Trade execution speed matters
Another factor that you have to consider is to find out if the broker is offering quick order speed execution. Fast execution is known to eliminate re-quotes and slippage. If you are a trader who is an intraday who closes/opens many daily positions, then it should be even more important for you to opt for a broker that has the best execution speed of trade.
But there happens to be no method of testing the execution speed other than having to place trades on the platform of broker’s live. There are some brokers offering good execution on demo, but at the same time, not offering the same speed when doing live trading. And thus, in case you are about to choose a broker then, you have to go for their live platform trading conditions with low position and minimum funding sizes.
Majority of the good brokers have a trading or terms conditions page on their online site about their policy for execution. You need to check the execution policy of the broker and look for terms such as real-time, re-quotes, and other executions.