The formula to calculate

If you are an investor, especially those newly introduced to the world of forex / futures, then believe that when you are asked to staff a broker who "legally": How much should I pay a fee per transaction? then this question must be answered not with actual amounts. Why is that? there are at least two reasons why marketing / broker forex trader "legal" answer this:


* First: In order to impress her fees inexpensive. Because if the specified number of really feared could make investors hesitant to transact in a company. * Second: Marketing / her trader 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 an inexperienced marketer or potential traders (because never handled a real account), if the customer already has a transaction will usually be more busy or would be more prudent to offer forex products.

Counting the Cost Transaction Lo Today might 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 issue: 1. First: The more / Spread her wide range, meaning the more difficult opportunities for profit. In the case of Indonesia, the wider it spreads the distance, does not mean that the greater the fee / commission you should pay, because they still need to be combined with other factors, namely the value of his points in the dollar. 2. Second: The higher the value of his points, the higher the level of risk / benefit you receive, because the sooner your margin increases / decreases only with the movement of one point only. 3. Third: The smaller the commission / fee is charged, then the less additional cost burden that must be removed. However, this fee factors should be considered together with the two previous factors to get a broker with the cheapest cost (though not necessarily his best service), then I call this fee as an additional cost.

Ok .. Let us count the numbers for more details. The formula to calculate actual transaction costs are: per-point value x Spread + Commission (the notes are not placed on medication, because if lodged will be exposed to interest rate per day).

Example: 1. Company A has SPREAD 6 - Commission / Fee $ 50 and value-per-Points $ 10 then the count of actual transaction costs are: $ 10 x 6 + $ 50 = $ 110. ===> To forex Company B has SPREAD 3 - Commission / Fee $ 50 and value-per-Points $ 10 then the count of actual transaction costs are: $ 10 x 3 + $ 30 = $ 80. ===> To forex

2. Company B has SPREAD 20 - Commission / Fee $ 20 - Value-per-Point $ 5 then the count of actual transaction costs are: $ 5 x 20 + $ 20 = $ 120. ===> To index Company B has SPREAD 5 - Commission / Fee $ 50 - per-Points Value $ 5 then the count of actual transaction costs are: $ 5 x 5 + $ 50 = $ 75 .===> to index

3. Company C has SPREAD 10 - Commission / Fee $ 240 - per-point value $ 50, the count of actual transaction costs are: $ 50 x 10 + $ 240 = $ 740 .===> to index Company C has SPREAD 5 - Commission / Fee $ 50 - per-Points Value $ 5 then the count of actual transaction costs are: $ 5 x 5 + $ 50 = $ 75 .===> to index

From the example above seems clear enough to know how the actual costs you must pay to the brokerage firm forex / futures. J If you do not already know, ask you what is a spread trader, fee and per-point value in the company where you invest). With the above example you must know which companies are cheap, because with small spreads and commission charges / fees then you will be easier to make profits in this business. thanks.