Cost of Trading ?

Written by Research

On Fees,Commission & other Charges :

In common international currency dealings there really should be no commission charges on regular transactions normally done by investors directly. Based under normal market conditions transactions done thru electronic order placements are executed and confirmed thru the direct-dealing system which is provided to the client / investor upon registration and signing of an account opening contract.

However, the spread between the bid and asking prices under these conditions is where the banks and other retail broker / dealers make its revenue from. Some of which term these as transaction fees where their revenue is generated from each side of the trade executed. So a normal 3 pips spread would be generated upon executed entry and subsequently the same may occur on the way out on a settlement. But be very aware during rapid market conditions where spreads can vary widely due tot he actions taken by major participants in the market. These are just some of the precautionary advises that the clients should be aware of.

So much so if a trade contract with a substantial amount of investment and leverage is involve, they are always subject to verification and confirmation due to the strict compliance that the company adheres to in the trading rules and regulations of the Foreign Exchange market. Each client and institution are always subject to trading approvals. These are taken so they would not overstep their boundaries in trading. All of these should be discussed and properly disclosed in the same manner as the disclaimer statements by the company and their representations enen before acount opning contracts.