I’m trading a demo account with 10,000 funding. When I trade 1 dollar pips the broker charges 10dollars per pip spread. When I trade .01 dollars I get charged 1 dollar per. Is this right and does that apply to live accounts? I ask because if, say, the spread is 2 dollars and I want a stop loss of 30 pips there isn’t a lot room to spare
the spread is the difference between the ask and bid price, in the same denominations as your lottage.
If the spread is 1 pip and you are trading $1 per pip, then the spread is $1
Don’t confuse spread with commissions. The spread is the difference between bid and ask price and the higher the lot the more the cash value per pip move. Some brokers charge a commission per trade (you will see this in ECN accounts) where for example you are charged x-amount per lot.
Sorry, I meant to say the spread is, say, 2 pips not dollars. I am being charged 10 dollars per pip spread when I trade in1 dollar lots. Must talk to the broker.
I have talked to the broker about this and he has confirmed the following
Trade .01 per pip and they charge 10cents per pip spread
Trade .10 per pip and they charge 1 dollar per pip spread
Trade 1 dollar per pip and they charge 10 dollar per pip spread.
That make a mockery of stop loss of 30 pips since I only have about 10 pips left!
Can someone please put me on to a broker with more reasonable costs?!
If you will use a high lot, then spread will be high and low on low lot. It depends on number of pips on a particular pair. Majors have low spread, so low amount is charged on them…
GBP/USD spread 1.6/2.0