Really fitting everyone to the same template makes sense, because everyone offers different conditions.
Absolutely true Smith. The amount you pay depends on the money you invest in each of your trades rather than the numbers of times you trade. Let’s say if you have only $1000 for trading and you’re with a broker who seeks $20 per trade, the commission fee alone eats up 2% of your trade. Then, when you close the position, another $20 goes to the commission fee. Now do the math. You’ll end up paying $40 for your trade or 4% of the initial amount. Now, you’ll at least have to earn a minimum 4% return on your trade to make profit.
So you’re saying, with this brokerage fee structure that’s actually common, how often we trade doesn’t matter. What matters is that we make enough profit to carve out a percentage to cover the costs of the commission fees. Though there are some brokerage firms that give commission discounts to traders who invest a lot, right?
Right, so there are numerous brokers out there who may seek $20 per trade from the traders but may seek less from the ones who make more than say 50 trades in a month. Now there are brokers who would like to seek an annual percentage fee no matter how often you trade. This entirely depends on the brokerage you select. I for instance have worked with both the types, like Fxview, eToro, and Pepperstone. What would work for which trader, only they can decide
I second you! Every trader has its specific needs which we cannot put under one umbrella. They are as diverse as the common folks in this world.
I'm a beginner looking for a reputable broker with regulation from ASIC or FCA? An older broker with 10years or more business experience would be suitable for me.
More than fast withdrawals look for the tightest spreads and good leverages. I have traded using Fxview and XTB which provided me with good leverages and spreads. It was good for my strategy and you should also think about your broker in terms of different parameters, not just fast withdrawals.