Currency

in currency trading, the brokerage firm dont charge commission, why would they do that?

Public Comments

  1. because the advantage of utilising the available cash balance for trading purpose. margin trading.
  2. 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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