Hi Traders I have been using a demo account on and off for 2 years and Iām now seriously considering opening a live account. But first I have a couple of questions. (1) I would like to know if there are any hidden charges. I know all brokers differ and they make a profit on the spreads but are there any other charges, fees, withdrawal fees, interest ect. (2) I am Irish and live in Ireland and would like some info on taxes ect. I donāt know any traders in fact I never even met someone who trades forex so I would be grateful for any help thank you
Well yes all brokers are different as far as fees go. Typically no there are no hidden fees except most brokers will charge an inactivity fee if you dont use your account. Interest rates typically get paid or charged to you at 1700 est (New York time). Interest rates depend on the pair you are trading and the interest rate difference between the 2 currencies. As far as taxes I will not comment as I am not from Ireland and not sure how taxes go in your country. For that matter this is the first year I will have to deal with taxes here in the USA as far as trading goes and I am not completely sure how I am going to be affected here. I also know there are some brokers that charge withdrawal fees so check on that before opening an account as some do some dont. I think that about sums it up. If I cant think of anything else I will let you know. Good Luck and welcome to baby pips even though you are not exactly new. Hope you have enjoyed your time here so far.
Well: thereās the brokerās profits (your losses) that youāve left out bobmaninc. Alright: the end RESULT of these āchargesā are not really āhiddenā i.e. theyāre pretty much āout there after the factā letās face it. Itās just the lengths that some brokers may go to that may be āhiddenā in order to āchargeā you. So Iām not sure. Are they āhidden chargesā or not??? But as is the case with all of the other fees etc. that you mentioned: itās broker dependant!!! LOL!!!
Regards,
Dale.
I left that part out because its not a hidden fee. A loss is a loss. It really dont matter who made that money because it was not you. I do think though the most common one people dont realize is interest rates. I dont see it as an account killer (if it is you didnt have enough capitol to trade in the first place). Second would be inactivity fees. People put trading down to take a break only to come back and see there account depleted away.
Thanks for your reply bob. Ya Iām not new as you can see but I am only getting serious now hence the questions. I keep getting drawn back but I am not sure if I will have the discipline/patients or mental strength for trading. I will open a live account in the new year (I am considering FXCM) because if I donāt try it I will always wonder what could have been. I know I wonāt get rich quick but it would be nice to get rich slowly.
There are basically three charges in spot.
The spread is a given, and will be there on every spot broker. Thatās their bread and butter. But your broker may, or may not have a trade commission on top of that. Some do, some donāt. The last possible charge is the swap rate for holding a trade open. Most do, some donāt.
JUST a bit of humour bob. Just a bit of humour.
But you are right. Honestly: not even I have heard of āinactivity feesā (not on this ālevelā or ātierā of broker anyway). So itās a good thing you pointed it out I guess.
Regards,
Dale.
Inactivity fees?
I thought there were just activity fees. For overtrading, lol. If my broker would charge inactivity fees, Iād definitely search for another one.
Hello Mr. Gecko.
See now thereās another āhidden chargeā bob never mentioned (āovertradingā)!!! ROFLMAO!!!
Never forget: āyou get what you pay forā.
Regards,
Dale.
Hello Dale!
Well, itās not really a fee or is it? In relation to that āyou get what you pay forā it is one pays more for the signals he gets, lol.
Anyways, to become a little more serious, the most hidden fee is slippage as far as I can tell. So one getās probably better filing limit instead of market orders. Or filing market orders with tight max. slippage settings.
Hello.
I think that between you and I weāre doing more harm than good on this thread!!! LOL!!!
Sorry MikeyG: just having a bit of fun (and welcome by the way).
Now youāre talking about a WHOLE other BUNCH of stuff Mr. Gecko e.g. slippage. Iām not ENTIRELY convinced thatās a āchargeā or a āfeeā (be it āhiddenā or otherwise). Thatās more of a āIād better learn what slippage is before I start tradingā type of thing.
Regards,
Dale.
Well, if you are precise, slippage is for sure no fee or charge. Do we suppose to be precise here anytime? Oh my, I need a new keyboard again, lol.
Well, okay now really serious (I try my best! lol!): If the spread from a bucket shop aka market maker ābumpsā, that is probably a hidden fee? Lol.