Forex brokers charge fees in one form or another, and each trade carries a commission. Traders cannot ignore these costs as they can drastically affect portfolio performance. It’s therefore important to consider your transaction costs, spreads, and commissions when opening a Forex account.
Check on Spreads
A spread is basically the transaction cost for a trade measured in pips. It is the difference between the bid and ask price of a currency pair. The larger the gap, the higher the spread. Spreads can be influenced by many factors that include market volatility, trading instruments and liquidity.
Examine the Commission charges
While the spread refers to the trading cost, commissions are paid at the entry and exit points of the trade. Some brokers may offer lower spreads, then offset them with higher commissions. Make sure to check these prices before opening an account so that you are aware of all fees.
Keep in mind that the brokerage fees can eat your profits, and look for a broker with lower fees. Enjoy lower spreads on all major currencies from 0 to 1 pip with AximTrade. The price you want to buy or sell is your choice, with 0% commissions on Standard and Cent accounts.
Look over Swap Rates
Swap rates or rollovers are overnight interest rates that are added or deducted from holding a position overnight. Overnight Trading Costs are important to monitor, as they increase the longer a trade remains open. Since a swap can be viewed as a form of interest or a fee charged by a broker, it poses a problem for Muslim traders following Sharia law.
Brokers like AximTrade offer Islamic accounts to solve this problem. The only difference between this type of account and a regular one is that there are no special fees or interest charges. AximTrade offers swap-free accounts to customers in certain regions, particularly Islamic and Arabic-speaking countries.
Where to contact us :
Website : www.forextrade1.co
Twitter : www.twitter.com/forextrade11
Telegram : telegram.me/ftrade1
Facebook : www.facebook.com/Forextrade01
Instagram : www.instagram.com/forextrade1
YouTube : www.youtube.com/ForexTrade1
Skype : forextrade01@outlook.com
Email ID : info.forextrade1@gmail.com
Discord : https://discord.gg/vEk98ZvrHP
LinkedIn : https://www.linkedin.com/company/forextrade11