I am reading ECN brokers charge fixed commission rates per transaction. Would someone please explain in a real world example how that equates to dollars.
Thanks,
ej trader
They charge you $20 or so per $million traded - ie 10 contracts traded, or 5 round full contracts + spread. Simple.
If you trade with MT4 you pay the commission per Lot, for Example: My broker the UniversalFX charge a commission of 4$ per Lot, 2$ for opening and 2$ for closing + Spreadcosts from 0.30 - 0.80 Pips.
The Dukascopy Bank have also a commission of 48$ per Million, that means 4.80$ per Lot but you must calculate x2 because when you open and close a trade, you buy and sell and thats 2 transactions. You pay 9.60$ per Lot, 4.80$ for opening and 4.80$ for closing + 2x Spreadcosts from 0.50 - 1.50 Pips.
So that means that if the broker doesn`t charge commissions, only spread costs, it´s a Market Maker or a Non-dealing desk broker?
pretty much that’s a good general rule. i havent seen an ECN that doesnt chart commission
If I am reading the previous thread right, you pay a commission per lot (meaning 100,000 units). The one example is $2 for opening and $2 for close. My question, is this money ($4) charged to the trader pro rated until the trader reaches the 100,000 units in trading? My second question is, how does the spreadcosts charged to the trader equate to actual dollars out of the trader’s pocket?