What type of commission do forex brokers charge?

Three forms of commission are used by brokers in forex. Some firms offer a fixed spread, others offer a variable spread and still others charge a commission based on a percentage of the spread. So which is the best choice? At first glance, it seems that the fixed spread may be the right choice, because then you would know exactly what to expect.

What is a low-Commission forex broker?

Generally, low-commission Forex brokers maintain a pricing advantage over zero-commission brokers as they offer spreads which are not marked up, therefore the actual trading cost is more transparent. Commission-based pricing models are usually cheaper than commission-free or spread-based alternatives.

What is a commission broker?

A commission broker is an employee of a brokerage company who gets remunerated for the number of trades they execute. The commission structure can encourage unethical behavior by unscrupulous commission brokers.

Do forex brokers charge flat fees?

Forex brokers can charge flat fees by applying commission charges on trades where there are tighter spreads. Other forex brokers who offer wider spreads do not charge commissions and thus offer commission-free options. Some brokers can offer a mix of trading accounts where commissions are applied to some while others offer commission-free options.