Forex commission

[Rossini]

For those of you that trade in a larger size, how low can it go? For someone trading say 300m+ PCM (that’s where I would expect to be in the near future) what kind of discount can you get? I’m paying £2.5 per lot per round turn at the moment.

Cheers.

 

[Rhody Trader]

My question would be: Why would you pay at all? Your size seems sufficient to provide you entree to the interbank market in proper?

 

[gc1]

My best guess would be somewhere between $10 and $20 per mil per side. Maybe somebody actually doing that volume could give a more accurate figure.

 

[intradaybill]

My question would be: Why would you pay at all? Your size seems sufficient to provide you entree to the interbank market in proper?

Good point John, why paying commission in addition to spread?

 

[ns1000]

The only reason to pay com would be to use an aggregator like currenex and settlement fees to a prime broker. You could trade directly with a bank for free, but you wouldn't necessarily get the best prices. The cheapest currenex providers won't have as many market makers linked in - there's a good argument that you'd get your 0.1 pip back by not going bargain basement.

 

[Claudia123]

If you can afford to trade at that level without borrowing - why bother trading??? find a beach

 

[Rossini]

My question would be: Why would you pay at all? Your size seems sufficient to provide you entree to the interbank market in proper?

Hi RT! What do you mean by ''interbank market in proper'' do you mean some kind of margin account directly with a bank?

Plus unless you have some genuine interest pricing lined up in an ecn to augment the support pricing, it's harder to get given on the bid / paid on the offer as the market often has to come to you first (making it better in the long run to have a single margin account with a decent bank and cross the spread imho for someone in that position).

GJ

Thanks for the help, I know i'm being think now but what is crossing the spread?

 

[Rhody Trader]

Hi RT! What do you mean by ''interbank market in proper'' do you mean some kind of margin account directly with a bank?

That's exactly what I mean.

 

[Rossini]

Thanks