You work hard for your profits, don’t let excessive trading commissions eat into your FX and Index trading portfolio.
No matter what type of trader you are you will always be subject to transaction costs. Every single time you enter a trade, you will have to pay for either the spread or trading commissions so it is only natural to look for the most affordable and cheapest rates.
The easiest way to compare FX brokers is to compare the spreads of the most actively traded currency pairs, for example EUR/USD, AUD/USD etc.
If the EUR/USD spread at broker X is 3 pips and at broker Y is 0.8 pip, then trading 1 lot of EUR/USD at broker X costs you $30 US dollars, while at broker Y it costs you $8 US dollars.
Traders are always subject to transaction costs. With each trade made, you will have to pay for either the spread and/or a commission. Another example is a 0.5 pip spread on a 1 lot of EUR/USD plus $3.50 per side commission = $5 brokerage + $7 commission = $12.
Low-Cost CFD Trading With TradeDirect365
At TradeDirect365, the spreads on our CloudTrade trading platform are among the industry’s lowest and they are fixed. The EUR/USD, AUD/USD and JPY/USD are fixed at 0.8 pips with no commission = $8 (buy & sell on 1 lot).
Some leading Australian FX brokers will have a headline spread that seems low but flick to larger spreads (Variable spreads) and you will find it very difficult to be filled consistently at the headline spread. Many traders also find they can be subject to dealer re-quotes, delays and interventions (especially during important news releases or surprise events).
TradeDirect365 has been built by traders for speed of execution with fixed spreads so you know what your final transaction costs are each time you trade.
TD365 Index fixed spreads:
- Australia 200 fixed spread 0.9 (Syd 10am – 4:30pm)
- Germany 30 fixed spread 1 (UK 7am – 4:30 pm
- US SPX500 fixed spread 0.3 (All sessions)
How to Tell if Your CFD Broker is Ripping You Off – Read More Here