Good in a way but the brokers who are seeking or paid commissions can’t avoid the temptation to work around the transactions so as to generate a commission. Part and parcel of the trade I guess.
I don’t think not having options is something that the traders these days face. There are doubts around the whole “commission” part but brokers primarily make commission out of the increased trading volumes.
There can be instances like these and of what I’ve studied, this practice is called churning. My point here being, that there are agencies like securities and exchange commission that have the authority to denote the broker who practices but not with an intention to benefit the trader.
It’s safe to say that it’s a broker’s main source of income then.
What is a non-commission broker, and what is the difference between them compared to other normal commission cost brokers?
Yall are you shilling this turkey broker or what.
Can’t deny @Fred. There are brokers who seek a commission per trade or per lot like turnkey forex. Then there are others who charge the spread between the bid and ask price like Ava trade. The crux is that the main way brokers make money is by keeping the spread or seeking a fixed fee per round.
Is it just me or does it happen in the market? Does the spread change constantly?
@Linda this happens when the spread is variable. So, basically when the currency pairs bid and ask price changes, the spread changes too. And no, that doesn’t happen with you alone, it’s quite common.
So does that mean fixed spreads are better than variables?
I prefer variable spreads because they’re cheaper. And this I’m talking particularly during high liquidity.
I prefer dealing in fast moving currency markets and variable spreads fit the deal. Also, it really doesn’t matter how high the spread would get, there are chances that it’ll be always lower than the fixed spread which makes their costs nearly non-existent.
If you wanna have complete control of your profits, go for variable. It’s after trading with Oanda’s fixed spreads I realized that I would rather wait for the most well-suited time to buy and sell without having to wait or worry about the fixed loss point. That’s why I swapped to turnkey forex and the variable spreads it offers.