I’m in process of opening a real small account but have a pricing option! No commission, spread only or Commission, lower spread. My question is what is the best pricing option in the two? thanks in advance
It depends on your position-size and trade-frequency.
Each of the two options will suit different traders, according to their own position-sizes and trade-frequencies, which is why the two different options are available.
It’s probably appropriate to estimate your number of trades per week/month, have a look at the dealing-costs of what you’ve estimated (judging by typical spreads, etc.), for each of the two available pricing-structures, and decide that way.
Generally, if your trading volume and frequency justifies avoiding wider spreads (i.e. selecting “commission + lower spread”) that’s going to be the better option, in principle, but whether it’s justified in your individual circumstances certainly isn’t something that anyone can give you constructive advice about without knowing a lot more about your planned trading than you’ve said.
If you plan on doing longer term (1H, 4H, 1D) trades, I would imagine no commission, spread only would be the more efficient option since a slightly higher spread won’t eat into your profits if you’re trying to catch 50-100 pip moves.
However if you plan on trading lower timeframes, the commission + lower spread option seems like a better idea, since you’ll want the smallest spread possible if you’re only trying to catch 10 pip moves.
I plan on trading with Oanda when I open a live account and I’ve been asking myself the same question over the past few weeks. I am more of a scalper so getting the lowest spread possible is my priority.
Thanks LaughingCharlie and gmctwonine for the great information. I’m opening small account maybe 100$, its my first time to open real account so I just want to start small account to see and practice for real cause a lot of people saying demo account and real account is far far different so before i open a higher account I want to practice also my discipline and emotions while trading in real.
So what is the best for the small account and 1H time frame?
I would use Oanda, for that.
Yes that’s what I’m going to use Oanda.