ECN and Commission? Is it worth it?
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Thread: ECN and Commission? Is it worth it?

  1. #1
    Hi,
    I've been searching ECN brokers such as ATC with very very low spreads but for every trade we will need to pay a commision such as : $0.49/10K lot. . .Is it?

    Would you trade by paying for a commision to trade from an ECN? Or exchange from a regular for NO commision?

    What is ECN anyways?

  2. #2
    STP is what you need FXCM for example is the STP,

  3. #3
    To answer this query fr yourself, you need to begin thinking about how much a predetermined spread prices you compared to what a floating propagate may cost you coupled with the commission.

    For example, using a fixed spread, it's simple to calculate that for a 10,000 unit commerce on the EUR/USD will cost you $1 per pip right? If the spread is always 2 pips, (A fairly adequate fixed distribute) it will cost you a total of $2 to open and after, close that commerce. With variable set ups on STP processors like FXCM, you might find a commission free spread on a few pairs as low as 1 pip but also see the spread jump higher at times of bandwidth or who understands. All I'm saying is that here, you have to simply figure out what the spread is costing you.

    In comparison, a commission for every trade can help save you heaps on the spread however add to the cost as well of course. Again, thinking of 10,000 device transactions, we will figure it out for your own EUR/USD pair.

    My broker charges $7 a lot per round twist a 10,000 unit commerce on the EUR/USD will probably cost $0.70 cents from begin to finish, ($.35 to open the commerce and $0.35 to shut) and the cost of the spread. Occasionally, I have seen zero spread on my broker's feed but generally, I'd peg it at about a 0.5 average spread, often providing me with transactions which execute on a 0.3 spread amount. On a 10,000 device commerce, the spread then costs me $0.50 for a 0.5 spread along with the commission a second $0.70 for a total of $1.20 to exchange 10,000 units.

    Therefore, for fixed spread, the trade is
    Spread=cost
    For commissioned brokers, the trade is
    dispersed commission=cost

    None of this of course takes slippage into account which is another whole ball of wax.

  4. #4
    Quote Originally Posted by ;
    Hi,
    I have been looking ECN brokers like ATC with very very low spreads but for each trade we need to cover a commision like : $0.49/10K lot. . .Is it?

    Can you trade by paying for a commision to trade out of an ECN? Or exchange from a routine for NO commision?

    What's ECN anyways?
    You may find more information on this.

  5. #5
    Together with ECN trading, you get interbank quotes, low spreads and changeable ones. It boils down to what your preferences are. And yes, it's a lot easier to compute pips with fixed. .
    Right now, I utilize tradersway and a few other ECN brokerages, with both fixed and variable spreads. You may choose to review all the info online, decide what you want to perform next and make the call!

  6. #6
    I am interested in how can scalper make money if the goal is only few pips, but commission is greater compared to earn? Or the earning could only be made by using high leverage in his or her case?

  7. #7
    Quote Originally Posted by ;
    Hi, I've been looking ECN brokers such as ATC with very very low spreads but for every trade we will need to pay a commision such as : $0.49/10K lot. . .Is it worth it? Would you rather trade by paying a commision to exchange out of an ECN? Or trade from a regular for NO commision? What is ECN anyways?
    Thing is, very few men and women know what ECN excactly is.

    ECN stands for Electronic Communiion Network. What it means is that if you place an order, it is going to be visible in the orderbook. LMAX such as is a true ECN Network:




    If you enter an order into the Network, It'll Be visible on LMAX Homepage. You can test this through very times, enter an order of such as 2 lots at a particular Price, and it'll be immetiately visible. Afterward, other Traders can deliver a market order against your Limit order. That is what ECN is.

  8. #8
    Quote Originally Posted by ;
    Hello, I have been looking ECN brokers like ATC with very low spreads but for every trade we will need to pay a commision like : $0.49/10K lot. . .Is it worth it? Can you rather trade by paying a commision to exchange from an ECN? Or exchange from a regular for NO commision? What's ECN anyways?
    Hello Kapa,

    would you use market orders or pending orders and can you exchange regularly?

  9. #9
    Men! This thread is dead. End of year 2011. Please check.

    I'm just using this thread to ask my stupid question. Appreciate that if you can help.

    My Issue:
    I'm interested about how do scalper earn cash if the target is just few pips, but commission is much higher compared to earn? Or the earning could only be produced by using high leverage in his or her case?

  10. #10
    Quote Originally Posted by ;
    Guys! This thread is dead. End of season 2011. Please check. I am just using this thread to ask my dumb question. Enjoy that if you could help. My Question: I am curious about how do scalper earn cash if the goal is just few pips, but commission is higher compared to earn? Or the earning can only be produced by using high leverage in his or her case?
    Ofc a scalper would earn the commissions back, their profit goal will probably be higher than the commissions. For instance, if the commission is $10 rtsl, then when they set a normal lot order to get a pair such as eurusd, every pip is worth $10 so $10 is 0.7 pips. Their profit goal will probably be over 0.7 pips into account for the commission and all of the spread may be (bid/ ask price based on which is employed to shut the trade).

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