While it appears that the trading Forex Exchange is free of commission charges and exchange fees, the bid offer spread actually represents the cost of trading.
While it appears that the trading Forex Exchange is free of commission charges and exchange fees, the bid offer spread actually represents the cost of trading. Closer analysis and calculation will show that every time a trader enters the market, he will not be in profit territory until the market has moved at least 1 point greater or lesser than his entry price. Accordingly, reducing the Bid Offer spread in turn reduces the break-even point of every trade. Do the math, and remember that unlike exchange-traded products, spreads and prices will vary from one broker to another.
