Virtually Commission Free Trading

In most financial markets, traders must pay a spread and a commission. All traded financial products have a 'bid' (buy) price, and an 'ask' (sell) price, with the difference defining the spread, or cost of placing the trade. Forex online trading platforms include both the buy and sell price. This allows traders to see the real cost of the trade. The spreads are tight because of the around the clock liquidity in the currency market. Other traders are more vulnerable to liquidity risk and typically receive wider dealing spreads, especially during after-hours trading.

FX day trading charges no commission or transactions fees to trade currencies online or over the phone. The over-the-counter structure of the currency market eliminates exchange and clearing fees, which in turn lowers transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen. All clients have access to dealable bid/ask quotes. For example, in the futures market, the prices represent the last trade, not necessarily the price for which the contract will be filled. This lack of transparency hides the true cost of the trade. Your broker of choice is compensated through the spread which varies depending on which currencies you trade and the broker you choose. The spread is the difference between the current bid and current ask price on a specific currency.