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Are there any other transaction charges to an order other than the pip spread?
appreciate all replies! thanks in advance!
over 2 years ago
Best Answer - Chosen by Voters
Yes, the pip spread is not the only transaction cost. Some brokers charge some sort of fee for leaving trades overnight. Not singling any broker out but I'll use EasyForex as an example. They charge what they call a "DAILY RENEWAL FEE." It states that "As long as deals are open, you will be charged a renewal fee of 0.03%. For example: a renewal fee for a $2,500 deal will be $0.75 (75 cents). However, if the total amount of all open deals exceeds $50,000 you will be charged a renewal fee of only 0.015%. For example: if the total of all your open deals exceeds $50,000, the renewal fee for a $2,500 deal will be only $0.375 (37.5 cents)."
over 2 years ago
Answers (1)
In forex trading, the bid/ask spread is already the transaction cost for a round-turn trade. Though, you must be reminded that different brokers offer different spreads. Also, the kind of leverage you use have a big impact on the 'transaction cost.' Kindly check the link below for more information.
over 2 years ago
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