Both of you have the same difficulty, here: you’re confusing “brokers” with “counterparty market-makers”.
You’re both thinking of counterparty market-makers but using the word “broker” to describe them.
They’re not brokers. They’re pretending to be brokers. And this is the point that explains the issue.
Genuine brokers make their money as a commission, not from the spread. They charge a small fixed fee to place a trade into the market for you.
If you use a real broker, a spread of 0.0 to 0.1 pips is common . It’s normal .
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I Stand Corrected seems some brokers quote 5 and 4 decimal may have confused
Falstaff:
So for JPY bets the numbers will look something like ; 89.123, Satrt at the decimal point and count 2 to the right - so the fuull pip value is the “2” the “3” is the “Point value”
On other instruments such as EUR USD like ; 1.23456 , start at the decimal point and count 4 to the right - so the “Pip value” is defined by the “5” and the “6” is the “Point value”
My broker has 3 4 5 decimal places guess this may be some advantage…? or not …?
sorry…
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This is answer I needed. Thank you for nice reply. But practically it is quite difficult to make sure a real Forex Broker.
Cariar
February 1, 2018, 6:20pm
66
Spreads and fees are the broker’s earnings. That’s why you should pay attention to their amount in case the broker might make a fool of you.
Kreg
February 4, 2018, 5:43pm
67
Brokers are basically middlemen between the market and traders, as I understand. Their services can’t be free, that’s what spreads are for, comissions, that is the broker’s income.
