There are a number of hidden fees that your broker may add to your trades. These are spreads, commissions, swap fees, deposit fees, withdrawal fees, etc. All of these fees add up over time, and if you're not careful, they could reduce your profits. We are going to look at some of the steps you can take to reduce the fees you pay and prevent some of your profits from going into broker profits.
Find the right broker
There are a lot of brokers in the market, and with so many of them, there is also a lot of variety in the fees that are charged. Some have high fees, some have low fees, and some don't, but you'll need to weigh the benefits between the fees and the features you'll receive. A broker with very low fees may not offer the same features as a broker with higher fees. However, if you are paying too much on all plans, it might be time to look for another broker .. There are industry standards for fees, so if you're with a broker whose fees are much higher than the rest of the market, you should probably consider switching brokers and picking one whose overhead is slightly lower. lower.
Swap feesare fees charged by your broker when you hold a trade overnight, these fees are applied directly to the held trade. You won't find many brokers that don't have swap fees, but there are a few and some brokers also offer Islamic accounts that don't have swap fees, but the spreads on these accounts are often higher. For many brokers there is not much you can do about swap fees, you have to accept them, but you can of course reduce the amount you pay by trying to close your trades before the end point of the evening. You will need to assess whether it is worth closing your trade early to avoid the swap or to
The spread is an important element, it represents the difference between the purchase price and the sale price. If a broker has a large spread, the markets will have to move a lot more for you to make the same profit as with a broker with a lower spread. Brokers often offer different types of accounts, accounts such as ECN accounts usually have lower spreads. If you have a high spread account there is no harm in contacting your broker to ask if they can reduce your spreads, most can do this on an individual account and if you are a good client many will be happy to give a small discount on your spreads.
The average commission charged these days seems to be around $6 per lot traded. Some accounts have commissions and some don't, those that don't often have large spreads, as the commission is often charged to reduce the spreads on the account. If you are charged more than $6 per lot traded, you are likely the victim of a scam. Look for a new broker with a lower commission or contact your broker to request a reduction in your commission; if you have a high trading volume with the broker, they will probably be happy to lower your commissions a bit.
It's a bit of a dinosaur that one, but some brokers still charge for depositing money into your account, i.e. they charge you to put your money in their accounts. If your broker does this get out, that's the only advice, there is no place in the world of forex trading for brokers who charge you to deposit your money into their account.
Just like deposit fees, some brokers charge for withdrawing your money. This can be a bit of a pain, especially if it's not advertised on the site. There are several things you can do, you can look for a broker that does not offer withdrawal fees, there are many, but it can be a bit complicated to move all your money to another trading account. You may also want to check which withdrawal methods are available, as some brokers charge for one method but not another, so it may be worth changing the method used to one that is not charged. If you are a big player, with a high volume of transactions, contact your broker,
Some brokers will offer you interest for just having money in your account, a fantastic way to earn some extra cash and help offset the effects of the fees you pay. Of course, you're not going to earn thousands of dollars a month from interest, but even a few extra dollars a week or month will help offset some of the fees you're paying. There aren't many brokers that offer this kind of service, but if you find one with decent features and fees, it's a great way to earn some extra.
These are some of the things you can do to help reduce or offset the fees your broker may charge. For many there is nothing you can do, but for others it may be worth contacting your broker to ask if they can reduce the fees charged to you. It's okay to ask, and many brokers will be happy to offer you something new if you're a good customer.