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

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

2006-11-03 09:59:19 · 2 answers · asked by finander 1 in Business & Finance ➔ Investing

2 answers

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

2006-11-03 11:12:33 · answer #1 · answered by prince47 7 · 0⤊ 1⤋

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.

2006-11-03 22:34:59 · answer #2 · answered by Common Sense 7 · 2⤊ 0⤋