Am I being ripped off?

On the advert for my broker it says that they do not charge commission. I see from my statement that everytime I press the button either to buy or sell I am charged 1GBP in and 1GBP out and it is itemized as commission on my statement.

Uh ask them via live help?

It could just be the spread and if your on oanda its interest

Yes, it’ll be the spread, commission is a different thing, most brokers don’t charge commission, but most charge a spread, they have to make money somehow otherwise we wouldn’t have them :8:

I’ll check with them thanks. The spread is the difference between the buy and sell and that is taken into account on the actual profit/loss on the trade. This appears to be an extra charge - interest is itemised seperately.

If its itemised as commission on your statement, I’d certainly check with them. :slight_smile:

Dont go with a broker that charges commission. Im quite new and I dont even think brokers do this. Are you sure your not confusing spread with commission?

Thanks for your reply - when I queried the commission I was told it was because I go through an agent who uses the brokers platform. I like the platform and its very easy to use, but I am looking into moving to another broker so that I do not have the extra commission charge. Do you have any recommendations?

Although obviously if you are happy with the setup otherwise, and you are making money, don’t risk harming your trading performance for the sake of £1 per trade. Although this obviously depends on your account size and your profitability. I am just saying don’t rock your trading boat for principle, as many people struggle to find a broker they are happy with. If £1 a trade is small beans compared with your trading income and you are happy otherwise, I would just take the hit - if it makes a difference to your overall profitability then obviously you have to change.

I pay for my charting, I could get it free, but I am so happy with the package that I am happy to carry on paying rather than risk switching to something I don’t like as much for the sake of under £100 a month.

Anyway, maybe not what you wanted to hear, just thought it worth saying.

ST

Hi, I just answered a previous thread about spreads and fees, maybe it is useful for you.

http://forums.babypips.com/newbie-island/40344-fee-structure.html

There are some cashback providers around if you are so worried about your commissions you can get up to 25% rebate in many places.

Good advise and certainly worth considering. About making money though - I’m still very much a beginner and although initially I did make 10pips profit on most trades, I have subsequently taken a big knock. My fault - no stop loss so have requested a demo so that I can work out where to put the stop. Thanks

I´d be very careful with such practices, good that you say about the demo. I know that especially on MT4 is not so comfortable to set the S/L, but my server was down twice, and once I did not have the stop loss. It was 2 weeks ago when the market was moving like crazy, and it took me 20 minutes to contact the dealing desk. It was no fun!

Most traders still do not understand that making money in forex is fighting against the spreads. The higher the spread, the faster you will lose all your money.