All traders want to make forex and commodity trading a business that lasts a long time and generates consistent profits. Including you, right? Of course, in running a business, you must know the costs that you have to spend for the continuity of the business. What fees do you need to pay in forex trading? Get to know everything before choosing a broker so you don’t fall into the trap of hidden fees.
Spreads, swaps, and commissions
Spreads, swaps, and commissions are costs that are sure to exist in all forex brokers. Therefore, the broker must communicate these three fees. However, many novice traders still don’t understand the difference. The spread is the difference between the bid and asks prices. You can view the bid and ask prices on trading platforms such as MetaTrader 4 or eToro Mobile. The bid price is the price you use for sell orders, while the asking price is for buy orders. If you notice, the bid price is always lower than the asking price, for more information eToro fees.
Swap is a fee that will be charged if any of your orders “stay” in the market. Staying here means that your order is open beyond the US market close limit. Read here to find out the forex market opening and closing hours in the American, European, and Asian sessions. Usually, the broker will list the swap fee for each product. A negative swap fee means you have to pay the swab fee. However, if the swap fee is positive, then the fee will be paid to you and become additional income.
Then, you also need to pay the broker’s commission fee. Usually, a commission fee is charged per 1 lot you trade. At eToro for example, the commission charged is $1 per 1 lot transaction. This fee is quite low, but still must be included in the calculation of your net profit and loss, yes. At certain times, eToro also offers a 0 commission promo so that traders can achieve greater profit potential. Make sure you follow eToro on Instagram and Twitter and subscribe to the newsletter for the latest promo info.
The three costs above should be your concern when choosing a forex broker. Pay attention to all three at once, not just one fee, because sometimes there are brokers who offer 0, but high commission fees. Vice versa.
Top up and withdrawal fees
We recommend that you choose a forex broker that does not charge a top-up or fund deposit, and a withdrawal or withdrawal fee. Also choose a broker that offers many bank options for top-ups and withdrawals, such as eToro, so you can have free interbank transfer fees. You can also top up via Virtual Account so that your transactions are verified automatically and can trade immediately, for more information read this article.
Training and advisory fees
To become a successful forex trader, you must continue to learn and practice to sharpen your skills in developing trading strategies, to achieve potential profits and manage risk better. Therefore, it is very important to have access to a variety of educational materials that you can use at any time.
Choose a forex broker that provides education for free, either in the form of educational videos, articles, or webinars and seminars. You are also advised to choose a broker that offers an advisor or a personal contact person you can contact when you need help or have questions, such as eToro. Having a contact person will be very helpful because they can also share access to educational materials that are not open to the public. The training, education, and advisory fees charged to you can reduce your net profit. Better, you choose a broker who is not stingy and cooperative so that you can enjoy the best trading experience, for more information clicking here.
Choosing a broker is one of the most important things in your initial steps as a trader. Make sure you choose a transparent broker so that you are not surprised that suddenly your profit is cut by hidden costs that you did not know about before. Also, read tips on choosing a good broker in this article.