Low Transaction Cost & Virtually No Commissions

In the currency market, you pay no commissions and no exchange fees because you deal directly with the market maker in a purely electronic online exchange, eliminating both ticket costs and middleman brokerage fees. There is still a cost to initiating the trade, but that cost is reflected in the bid/ask spread that is also present in all markets including futures or equities trading. Combined with the tight, consistent, and fully transparent spread, currency trading costs are lower than any other market.

Active stock traders often see substantial portions of the gross profits go to brokers in the form of commissions, and the exchanges in the form of exchange and data fees. While equity brokers may advertise enticing commissions, the spread between the bid and ask is not fixed and may vary with market conditions, particularly with smaller less liquid stocks. This spread can be 3 to 8 cents or more, depending on the time of day, and results in an added hidden transaction cost much greater than the stated discount commission rate. When dealing directly with a market maker, there are no commissions, the only cost to you is the spread, which is fixed and transparent.

*Please note that your broker of choice is compenstation through the spread which varies depending on which currencies you trade and the broker you choose. FX Trainer is not a broker. The spread is the difference between the current bid and curent ask price on a specific currency.