Commission and Spreads ~ Commissions are the amount you pay your broker for entering a trade. Some FOREX brokers don’t charge a “commission” but they do charge a “spread” which is the difference from the bid and ask price of a currency. My broker (PFG Best) charges a small commission and has a very tight spread. Other brokers have no commission but have much larger spreads.
I prefer to pay a small commission and enjoy the tighter spreads, because it lets me be more precise in my entries. When the spread is larger, I might end up entering a trade (if I am using a limit order, which my strategy calls for) that true price action never really would have executed.
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