What are the costs of forex trading?

 

The costs in forex trading depend very much on the respective broker. In general, order fees (Commission), spreads, and financing costs are significantly different and should be compared as part of the brokerage option.

 

Order fees usually only apply to ECN brokers and not to market makers.
Spreads, margin and financing costs should also be considered when choosing the broker.
Transparency in terms of costs, regulation and deposit guarantee is a good broker.
Comprehensive information and continuous training should always be included in the trading strategy.
A free demo account allows you to test strategies, tools and trading platforms.
Through the use of risk management tools, losses can be limited and even price gains maintained.
Only capital should be used for trading, which can be dispensed with in the event of a loss.
Often no order fee for market makers

In the case of so-called market makers, i.e. brokers who provide the customers with direct trading courses themselves, there is often no order fee. This is especially attractive for beginners with small trading accounts. Market makers do not forward the customer orders or only partially to the interbank markets but also match the customer orders internally. This way, no order fees are charged for the customers. The overwhelming number of forex brokers now works according to the market maker model and deserves only the most fixed spread.

 

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