None commision broker 1.5,on gbpusd 1.2 on eurusd, commision broker less but works out the same really. Not enough motion to easily cover the costs currently, DAX/GER30 0.9 spread 0 comms, taking 5-10pts profit within mins, fx was getting to maybe 2pts profit, then losing 6 due to high costs, couldnt get profitable with that against me. Dax will slow fx will speed up sooner or later, then I'll switch back.
I agree (my own average commissions calculated over nearly a 3-year period, when I was trading spot forex, were 1.1 for EUR/USD and 1.4 for GBP/USD, using a no-commision "broker", i.e. counterparty market-maker). For some, yes, doubtless ... but this depends on both your position-size and your trading frequency: I actually saved a lot of money in dealing costs by switching to a commission broker as soon as I could afford to. (We're both not quite answering the OP's question, as he asked for it in terms of a percentage of price, but I don't understand why and never looked at it that way, myself.)
Which commission broker are you using? I use IB and they scale the commissions with size so it doesn't help which coincides with what TrueType said.
I was using IB (this was quite a while ago - but I saved money, back then, by switching from Oanda to IB, when it eventually became worth my while to do so. I was "semi-scalping" several lots of spot forex, at the time).
Yup IB is indeed competitive, but I am looking to see how to drive costs even lower. Sometimes I can trade a lot on a huge day and the costs really add up. Some here have mentioned they can drive costs to as low as $10 per M.
Busy day and I’m up like $50, my comms add upto $200 spread cost will be close to that, very annoying I’m sub 10k so no options available as yet. Trade dax, just spread to pay hides the cost side 0.9 would be hard to beat, whats the total cost at IB?
Take EURUSD IB is at around $2 for first $100k. 0.1 to 0.3 Pip spread throughout the day not incl news.
As we all know spread is the variation in the bid price from the ask price. And what is the appropriate spread on common pairs is a relative question. Many trading platforms offer different spread as per their trading facilities and system. Again trading requirements and system that you want will say what is appropriate for you. for example : I am working with major pairs and receiving low and fixed spread 1 pip on any major pair and as per the trading facilities I enjoy I think it is appropriate for me.