Forex Trading: How to Calculate Cost-Per-Transaction Indeed

Blogging and Forex ZRGRZMXMFVK3, Forex Trading: How to Calculate Cost-Per-Transaction Indeed
If you are an investor, especially the recently introduced to the world of forex / futures, then believe that when you ask the staff of brokers 'legal': How much should I pay a fee per transaction? then this question must be answered not by the actual number. Why is that? there are at least two reasons why marketing / broker forex trader "legal" answer thus:

First: To impress his fee cheap. Because if the specified number of really feared could make investors hesitant to transact in a company.
Second: Marketing / trader it did not know who the real cost to spread the use of each company.

For information, the majority of active marketing that offers forex products are the marketers who have not experienced or prospective traders (because it never handled a real account), if you are already a customer will usually be busy dealing or would be more prudent to offer forex products.

Counting the Cost of Transactions Lo

Today may have been far more investors who already understand how to calculate the actual transaction costs, but I feel it still needs to be emphasized.
There are three things that MUST BE in this matter.

First: The more / Spread his wide range, meaning the harder it is an opportunity for profit. In the case of Indonesia, is widening its range spreads, does not mean the greater the fee / commission you must pay, because they still need to be combined with other factors, the value per point her in the dollar.
Second: The higher the value per point was, the higher the level of risk / benefit you receive, because the faster your margin increased / decreased only by the movement of 1 point only.
Third: The smaller the commission / fee is charged, the more diminished the burden of additional costs to be incurred. But factor this fee should be considered along with the two previous factors to get a broker with the cheapest cost (though not necessarily his best service), then this fee, I call surcharge.

Ok .. Let us count the numbers for more details. The formula to calculate the real cost of the transaction are: per-point value x Spread + Commission (the record is not lodged, because if lodged will be exposed to interest rate per day). Example (this is just an example, you can change these numbers to be adjusted):

Company A has SPREAD 6 - Commission / Fee $ 50 and value $ 10-per-point then the count of actual transaction costs are: $ 10 x 6 + $ 50 = $ 110.
Company B has SPREAD 20 - Commission / Fee $ 20 - per-point value of $ 5 then the count of actual transaction costs are: $ 5 x 20 + $ 20 = $ 120
Company C has SPREAD 8 - Commission / Fee $ 250 - per-point value of $ 40 then the count of actual transaction costs are: $ 40 x 8 + $ 250 = $ 570

From the example above seems pretty clear how to determine the actual costs you must pay to the brokerage firm forex / futures. You can just replace those numbers (if you do not already know, ask you what is a spread trader, fees and per-point value in the company where you invest). The next post will discuss about the plus-minus forex broker "legal" and "illegal". May be useful.