Kingstone
Active member
Brokers often take their cut in a trade in two ways; commissions and spreads. When a commission is charged on both losses and profits, the spread is usually very low. And when the broker does not charge a commission, the spread is usually very high.
An example of such a broker that does not charge a commission on every trade placed but with a high spread is the FBS. This broker is known for high spread and when you set your stop loss and take profit at a particular level, it usually cuts it more than you placed (I have seen that many times).. However, one advantage is that it does not charge anything for an overnight trade as all charges have been covered by the spreads.
A broker with very low spread is FTMO but they charge commission on every trade. Your $50 profit is not entirely your profit as part of it goes to the broker. I run this broker's demo often to practice my skills and I learned that I make more profit on their platform than the ones with a high spread. It will not take long for my trades to be reading positively. As a result, I can easily close a trade and end in small losses with high lot size.
Which do you prefer? A broker with high spread or a broker that charges Commissions?
An example of such a broker that does not charge a commission on every trade placed but with a high spread is the FBS. This broker is known for high spread and when you set your stop loss and take profit at a particular level, it usually cuts it more than you placed (I have seen that many times).. However, one advantage is that it does not charge anything for an overnight trade as all charges have been covered by the spreads.
A broker with very low spread is FTMO but they charge commission on every trade. Your $50 profit is not entirely your profit as part of it goes to the broker. I run this broker's demo often to practice my skills and I learned that I make more profit on their platform than the ones with a high spread. It will not take long for my trades to be reading positively. As a result, I can easily close a trade and end in small losses with high lot size.
Which do you prefer? A broker with high spread or a broker that charges Commissions?