How to choose the Different types of Forex Broker?

forexanbu03

Banned
Jul 3, 2020
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Hi guys

I think I have worked this out correctly but wanted to check it before settling on my broker.

Assume all other things are equal, fund security, platform tech etc...

Broker A
Typical Spread - 1
Commission - $5 round trip (1 lot)

Broker B
Typical Spread - 0.6
Commission - $7 round trip (1 lot)

Pip value (1 lot) - $10

Broker A total cost of single trade - $15

Broker B total cost of single trade - $13

Initially, I was distracted by the lower commission rate offered by Broker A but assuming the above is correct, and all other things are the same in terms of service and platform, Broker B is the right choice.

Am I missing anything, and in terms of charges it is just spread and commission that needs to be factored in right?

Thank you
 

Zeenat shein

Banned
Apr 11, 2020
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Each forex broker has different account offerings, including: Leverage and Margin, Commissions and Spreads, Initial Deposit, Ease of Deposits and Withdrawals .Customer service and currency pairing offer are also important factor to check out before selection of any broker.
 

Adrian.P

Banned
Aug 11, 2020
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As a beginner which type of broker should i trade going live. Should i trade with a broker who offer with higher leverage or just an average leverage offer broker would be good.
 

Variss

Active Trader
Sep 14, 2015
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I think that your calculation is quite right. I am treating commission costs as a fixed costs of transaction. However, spread plays more important role as it affects your total invested funds in one deal. Anyway, it is good to make this kind of analysis before you choose a broker.
 

HeavenLeighGill

Active Trader
Aug 5, 2021
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Seems right. What about instances where a broker doesn't charge commission and only has spreads? This is the kind of account I have and feel that it is cheaper than the other options.