How Forex Brokers Charge Per Trade

[Makapangyarihan]

When I make a practice trade, I seem to already get charged the spread immediately. Is this how most forex brokers work? Does this mean that all our trades would always start on a loss because we get charged the trade fee immediately after we enter a position? Do all forex brokers work this way?

 

[Enivid]

When you open a trade, the spread is already applied to it. If you Buy, you do it at the Ask price - if you want to close this Buy, you need to sell at the Bid price. If you Sell, you do it at the Bid price - if you want to close this Sell, you need to buy at the Ask price. There is always a difference between Bid and Ask.

All brokers work this way, except for those who offer zero-spread accounts, but those charge commission for trading, which an be even higher than the spread cost.

 

[Andrew Lockwood]

Hi Makeapangyarihan, as Enifid mentioned, the spread is the difference between the bid and the ask price which essentially means that it's the space between either side of the market. Hopefully you guys don't mind me sharing a video here that I've done on the subject.

 

[Ketrama Rinok]

Hi Makeapangyarihan, as Enifid mentioned, the spread is the difference between the bid and the ask price which essentially means that it's the space between either side of the market. Hopefully you guys don't mind me sharing a video here that I've done on the subject.

Thanks so much

 

[Lesiro]

The spread is prevalent in every market and it is almost indispensable. More important point is how much is the spread. Further, the spread would be higher if you are trading small amount and come down as the lot size increases. In fact, the forex market is unique it offers huge amount of liquidity and therefore, the spreads are lower than other markets such as equities.