Discuss Commission free brokers

[4evermaat]

yeah but we have two different situations, commission + spread or just spread. Which one is better?

assuming that the company is not running a glorified ponzi scheme, it should be about equal. I think the separate commission is a bit more transparent and gives you a more 'raw' spread.

 

[NatureGirl]

assuming that the company is not running a glorified ponzi scheme, it should be about equal. I think the separate commission is a bit more transparent and gives you a more 'raw' spread.

so it once again comes down to personal strategies and preferences huh?

 

[4evermaat]

so it once again comes down to personal strategies and preferences huh?

start with understanding the business model that the brokerage is running.

Is it really Prime of Prime? The Keys to Understanding

[Originally written by Anya Aratovskaya for Advanced Markets Fx Blog; 2015.09.15] Is it really Prime of Prime? Keys to Understanding As a VP of sales, I have noticed that during many of my conversations lately I am helping brokers and fund managers identify the most appropriate trading venue...

www.forexpeacearmy.com

if you don't understand how they are making money, they are likely converting your deposit into a donation.

 

[thomassup]

They may compensate by widening spreads or using other fee structures. It's essential to carefully review the terms and conditions to understand all costs involved before choosing a commission-free broker

 

[NatureGirl]

start with understanding the business model that the brokerage is running.

Is it really Prime of Prime? The Keys to Understanding

[Originally written by Anya Aratovskaya for Advanced Markets Fx Blog; 2015.09.15] Is it really Prime of Prime? Keys to Understanding As a VP of sales, I have noticed that during many of my conversations lately I am helping brokers and fund managers identify the most appropriate trading venue...

www.forexpeacearmy.com

if you don't understand how they are making money, they are likely converting your deposit into a donation.

i completely understand how brokerages makin money. what does it do with what i said earlier?

 

[4evermaat]

i completely understand how brokerages makin money. what does it do with what i said earlier?

You've already gotten some solid responses from myself and others.

-> the commission-free model is not necessarily a scam, but you need to consider the total cost of trading. like the spread markup, swap markup, slippage/execution, etc. There is no free lunch.

I would rather have raw spread whenever possible, because you can better see all the costs. Although in some CFD instruments, it is not feasible to have raw spread (the Liquidity Provider include many costs in the spread already anyways)

-> If you cannot readily determine the total cost of trading, then either:
a) it won't matter for you anyways.
b) you probably shouldn't be trading cfds.

Dont overthink it.

 

[NatureGirl]

You've already gotten some solid responses from myself and others.

-> the commission-free model is not necessarily a scam, but you need to consider the total cost of trading. like the spread markup, swap markup, slippage/execution, etc. There is no free lunch.

I would rather have raw spread whenever possible, because you can better see all the costs. Although in some CFD instruments, it is not feasible to have raw spread (the Liquidity Provider include many costs in the spread already anyways)

-> If you cannot readily determine the total cost of trading, then either:
a) it won't matter for you anyways.
b) you probably shouldn't be trading cfds.

Dont overthink it.

now its simple and were good to go. thats what i tried to say in the first place. thank U so much

 

[Mneri]

I suppose you mean the absence of a trading commission when you talk about commission-free brewers.
But the majority of the brokers are commission-free in this instance.
They provide both commission and spreads only account types so that you can choose the one that aligns with your trading strategy and goals.

However as it was previously said there is no such thing as a free meal. Brokers will charge you a fee in some way, shape or form. Whether it’s commissions or spreads.