How to figure out if commission or high spread is better for me?

Beginner Questions
1

For a beginner, I am wondering which would be more suitable: low spreads and commission or high spreads and no commission.

For example:
Broker A offers 0.4 EURUSD spread and $2 commission per side (total $4) for 100K traded.
Broker B offers 1.6 EURUSD spread and no commission.

As a beginner, my trading volume will be really low. I think not more than 150-200K in a month (not sure).

How do I figure out which is cheaper for me? How do I do the calculation to figure out if broker A or broker B is cheaper for me?

2

Anyone who can answer this? How can I calculate costs between two brokers; one who only charges spread and the other one who charges low spread and commission?

3

It depend what kind trader u are,
If u scalper or short term choose broker A
But if u prefer long term trading choose broker B

4

Hi jass, there are so many broker offer lower spread and no commission. You can compare them and choose the most fit with your trading style and capital.

5

Jas, please do due diligence before choosing a broker.
Being cheap is no good if they rip you off

6

On XM EURUSD has 0.0 - 0.1 spread at the moment.

Anyway, you gotta do the math here. :smiley:

7

0 spread and no commission… trader’s heaven (sarcastic clap). It smells like market maker, but you are right – it depends on what you are looking for.
Just to help with the math:

  1. 1.6 pips spread on EURUSD = - $16 right after you place the trade if you trade 1 lot (100k)
  2. 0.4 pips spread on EURUSD + $4 commission per 1 lot (100k) = $4 (floating PnL) + $4 commission = - $8 right after you open the trade

I hope this helps.