in currency trading, the brokerage firm dont charge commission, why would they do that?
Public Comments
- because the advantage of utilising the available cash balance for trading purpose. margin trading.
- Currency brokers (FOREX, FX) don't charge a commision but they make their money on the spread between bid and ask (buy and sell). Three points spread on the EUR/USD would equal $30 for every "regular" lot. Some copmpanies charge as high as 15 points for a spread.... so that would be $150 for every regular lot.
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