High spreads v commission: Which is better??

[Kingstone]

Brokers often take their cut in a trade in two ways; commissions and spreads. When a commission is charged on both losses and profits, the spread is usually very low. And when the broker does not charge a commission, the spread is usually very high.
An example of such a broker that does not charge a commission on every trade placed but with a high spread is the FBS. This broker is known for high spread and when you set your stop loss and take profit at a particular level, it usually cuts it more than you placed (I have seen that many times).. However, one advantage is that it does not charge anything for an overnight trade as all charges have been covered by the spreads.
A broker with very low spread is FTMO but they charge commission on every trade. Your $50 profit is not entirely your profit as part of it goes to the broker. I run this broker's demo often to practice my skills and I learned that I make more profit on their platform than the ones with a high spread. It will not take long for my trades to be reading positively. As a result, I can easily close a trade and end in small losses with high lot size.

Which do you prefer? A broker with high spread or a broker that charges Commissions?

 

[Victorial]

I do not think anyone will pick a broker with high spreads. High spreads are just very bad for trading. It could be said that one is just making money for the brokers. I think I have heard about the two brokers you mentioned. FBS is known for that and that is one reason I will not trade on their platform. They are too greedy. FTMO is similar to the one that my friend is using. He said he liked My forex funds better.

 

[Kingstone]

Yeah. That is right. FTMO is similar to my forex funds but my forex funds are much better. Although I have not used either of those before, I have watched a review on Youtube about the platforms. They will give you some money to trade in form of a challenge. If you pass the challenge, you will be given a live account in which you can be withdrawing profits weekly or monthly. I am just scared of the challenge. It is not easy.

 

[tetramorium]

When brokers either charge high spreads or high commissions, I believe that we end up paying more. I prefer variable but tight spreads and genuine commission rates as well. Currently I am trading with TurnkeyForex because I find their pricing reasonable. The spreads are no doubt very tight and commissions are only $2 per lot rt.

 

[Jack Reacher]

Low spreads is good for scalping. Low spreads broker is the best as they have most lessened spreads. Their spreads don't change much. They remain in each functional sense undaunted. An unpleasant can hit your stop catastrophe by growing the spreads purposefully. In any case, never propose scalping for new traders. For scalping you require astoundingly strong viewpoint. I am also a trader at Eurotrader It is one of the best forex brokers with low spread as low as zero pip..

 

[Chlamys]

I agree, low spreads are a must for scalping. I have recently switched to coinexx as the wide spreads before were eating up all my profits. I personally would always go for low spreads over low commission.

 

[Dita Walczak]

Generally, in order to choose a broker, you need to know about the character of the broker. Learn how to operate a broker service. If you want to survive in trading, you must choose an honest and reliable broker. Eurotrader brokers are always keen to provide that service.

 

[Torsade]

You must always consider the strategy you will be using before choosing to trade with a certain broker. If you will be using a fast strategy like scalping, you will have to pay your broker for every trade you execute. If the costs are high, your commissions are higher.

 

[Shrubbery]

A broker’s costs can have a significant impact on the profits you take home. If they charge you more than they should, you don’t take home anything.

 

[Revetment]

I will always choose a broker with low commissions and tight spreads. There is no point in using a broker that will eat up all that I would ever make in the market. What do I trade for? The broker or myself?