Broker/commission advice needed for beginner

Status
Not open for further replies.

DerekDog

Recruit
Messages
2
Hi All
I'm new to FPA and I'm fairly new to Forex but my thing is scalping, it suits my personality and I enjoy it. But I am looking to come off demo and trade in the real world but the broker charges are a bit of a minefield for me. Recently I have been using REMOVED due to their extremely low spreads, seems ideal to me for scalping. But the commission they charge seems high, workable but high.
I tend to TP 10 points per scalp and my method does identify many trades, I can execute 20-30 trades just in a couple of hours in the UK morning.
If I demo 1.0 lots and each trade wins $15 I notice the commission takes $7 from each trade. i.e. I can win 10 trades bringing in $150 but the commission is $70 so brings my profit down to $80. It's still nice demo profit but I don't know if this is industry standard in exchange for very tight spreads.
My question is really whether $7 commission with tight spreads is better than no commission and larger spreads? Is the $7 per trade worth sticking with knowing that the tight spreads allow me more winning scalping trades?
Also does anyone have experience with REMOVED for scalping? They do have some great reviews and seem very user friendly for a beginner.
Any advice/guidance would be much appreciated.
Many thanks in advance
 

Oswald Franklin

Private, 1st Class
Messages
40
$7 with 0 to minimal spreads is better since spread-based or zero commission brokers tend to have higher cost of trading. I haven't tried REMOVED but I do scalping with REMOVED, their commission is $2/lot RT and that too low spreads. Though I don't have long experience with them but I think you can give them a try if it works for your trading system.

FPA Forums Team Note: Do not recommend companies in Beginners Bootcamp. This is a non-commercial folder.
 

ForexTus

Recruit
Messages
128
Hi All
I'm new to FPA and I'm fairly new to Forex but my thing is scalping, it suits my personality and I enjoy it. But I am looking to come off demo and trade in the real world but the broker charges are a bit of a minefield for me. Recently I have been using Global Prime due to their extremely low spreads, seems ideal to me for scalping. But the commission they charge seems high, workable but high.
I tend to TP 10 points per scalp and my method does identify many trades, I can execute 20-30 trades just in a couple of hours in the UK morning.
If I demo 1.0 lots and each trade wins $15 I notice the commission takes $7 from each trade. i.e. I can win 10 trades bringing in $150 but the commission is $70 so brings my profit down to $80. It's still nice demo profit but I don't know if this is industry standard in exchange for very tight spreads.
My question is really whether $7 commission with tight spreads is better than no commission and larger spreads? Is the $7 per trade worth sticking with knowing that the tight spreads allow me more winning scalping trades?
Also does anyone have experience with Global Prime for scalping? They do have some great reviews and seem very user friendly for a beginner.
Any advice/guidance would be much appreciated.
Many thanks in advance

I scalp nas and ger30 and i use hugosway and ic markets. They are both good and i find their spreads and charges reasonable
 

Shaun89

Recruit
Messages
69
I would say commission and low spreads is preferable. Higher spreads ultimately will undermine your strategy and maybe force your to trade differently. That said there are cheaper brokers out there with competitive spreads.
 

Pharaoh

Colonel
Messages
20,127
I have the same query is scalping better or should I go long? any advice will be helpful

I using you mean scalping vs longer duration trading. To "go long" generally means to buy instead of sell.

short vs medium vs longer duration trading is a personal choice. If staring at charts and making snap decisions with the idea of grabbing a few pips quickly appeals to you, then scalp away. If you prefer to spend more time on selecting trades for moves that could take anywhere from hours to months, then longer time frames are your friend. One's trading style really comes down to individual psychology.
 

pujiono

Private, 1st Class
Messages
26
I have the same query is scalping better or should I go long? any advice will be helpful
Although long means something different in forex, I'm taking it as you meant for time; it depends on which way you like or feel better to do, you should take your time management into consideration for this. As for me, I usually go for long as I can't be on constant follow.
 
Last edited:
Messages
102
I using you mean scalping vs longer duration trading. To "go long" generally means to buy instead of sell.

short vs medium vs longer duration trading is a personal choice. If staring at charts and making snap decisions with the idea of grabbing a few pips quickly appeals to you, then scalp away. If you prefer to spend more time on selecting trades for moves that could take anywhere from hours to months, then longer time frames are your friend. One's trading style really comes down to individual psychology.
got your point any advice for a regarding reliable broker?

FPA Forums Team Note: Please do not ask for or make broker recommendations in Beginners Bootcamp. This folder is for non-commercial discussions only. Check the Commerce Zone section of the forums for commercial discussions.
 

Colin Lewis

Private, 1st Class
Messages
47
I prefer scalps as you can usually get your daily in a few minutes/ trades. Try both on demo and see which suits
 

DerekDog

Recruit
Messages
2
Thank you all for your replies. I am tending to warm to commission due to small spreads and very often no spread on certain pairs at certain times. As Shaun89 said, more spread will affect my scalping strategy, I want to get in and out and get my 10 points quickly, if this means paying a commission for the luxury of little or no spread then I will go with it. As I was advised some time ago every broker has to earn their cash somehow, if they don't charge commission then they will have to take from the spread. All depends on how each of us trade I suppose, trades on longer time frames will fair better with no commission I suspect. Happy trading everyone and thanks again for your replies :)
 
Status
Not open for further replies.
Top