Commission vs. Spread

Discussion in 'Forex Brokers' started by rickkeller, Jan 9, 2007.

  1. Please forgive this newbie question and potentially faulty logic, but I would appreciate any feedback on this. I assume that Forex brokers are in the business to make money or they wouldn't be doing it and it seems the two primary methods for achieving this is through commissions or through spread. On the surface a broker w/o commission seems like a better deal, but based on all of the comments I read about bucket shops trading against you, software/processes that are several pips out of whack, etc., I am not so sure. Based on all of the nightmare stories I have read, it might be smarter to deal with a fixed commission, rather than this unknown element. However, I could be naive in my thought processes, because I guess there could be a broker out there who charges commission and also sticks it to you on the trade.

    As a newbie in Forex there are quite a lot of initial decisions to make that are probably critical to success with current landscape of brokers (ECN vs. Market Makers, this commission question, etc) so if anyone has any feedback on this I'd appreciate it.
  2. I think if you are going to trade the kingforexsignals with Rob, I recommend using MB trading. The spreads with Oanda just are too ridiculous for news trading at this point.