There are three types of account which differ on the way you are charged. First is raw spread+commission, second type account has only floating spread and third offers fixed spread. Raw spread accounts are excellent for scalping as part of the costs you are charged are fixed (commission) so you don’t need to care much about spread widening during volatility as spreads stay quite narrow at this time. Floating spreads are also good both for scalping and other trading styles but you don’t get any advantage there. Fixed spreads allow you to avoid spread widening as broker takes some spread risks on itself but charging you higher even when spreads are lower.
Its up to you what to choose but I would definitely recommend raw spread+commission type.
Welcome to the forum! And thanks for trading with FXCM
If you’re looking for quick trades (scalping) and looking for the lowest costs possible, I would suggest looking at pairs such as the EUR/USD or USD/JPY which has an average spread of 0.5 pips vs. 1.1 pips for EUR/JPY. The commission cost is also lower for EUR/USD and USD/JPY at €3.00 per 100k (per side) vs. EUR/JPY at €6.00 per 100k (per side).
This is purely looking at scalping from a trading cost perspective. Scalpers also look for volatile currency pairs since it may present more opportunities to trade, and paying somewhat higher cost may be worth it if it results in more potential trading opportunities.
You must understand that a broker makes money off of commissions. So there will be commission in any case. But if you think the commission is too high, find a different broker, what’s the problem?
hello Dionisis,
you can check all detailed information for commission(s) for all currency pairs - as Jason stated above -for FXCM. You can also check other account types your broker may offer, in case commission(s) is different. At the end of the day, if you think fees are still too high for your trades-trading style, as Kreg mentioned, you can always find another broker.
