If you trade using USA brokers such FXCM or OANDA you got message in your trading platform “prohibited by fifo rule” or “mt4 hedge is prohibited”. Prohibited by fifo rule means The First in First Out’ and it is the rule in forex trading.
Many years ago, I gave one example in this website Prohibited by fifo rule and it is problem that I need to solve in mt4 platform. Now, here are more details and everything you need to know about fifo forex rules.

If you’re a forex trader who is planning to involve handing with a Forex broker based in the United States and you’re required to abide by the rules under FIFO. You must read this article carefully from the beginning to the close. Many ways and techniques are there – when you understand and put them to work, it will help you deal with issues under these restrictive rules. For this, you need to plan on a priority basis.

Forex traders have traded and opened a number of positions on the same currency pair ever since Forex trading started. However, considering the business conditions, many industry watchers believe that the Forex market is likely to implement rules similar to the futures and stock market, implementing the First In First Out (FIFO) rule for forex traders. Though there may be some resistance initially, it is likely a majority of the forex brokers are likely to agree to implement this rule because of the huge losses they are facing due to the null positions adopted by a large number of forex traders.

FIFO compliance and NFA

What is FIFO?

The First in First Out’ is the rule in forex trade. It requires as per the norms under the regulation of the National Futures Association (NFA). According to the rule, the first order has to be finished first if a customer has over one open trade of the same pair of forex and amount.

Don’t get overwhelmed. It’s simple and easy to execute. You could plan and build your star. If you think this not credible, you can refer to the demo account. Experience shows things keep on changing during a span of time and this is unlikely to work at a later date. And, as a matter of proof about the extent of success, you can create a demo account prior to venturing into live trade.

Be aware that you are not permitted to hedge forex; because of this traders do not favor FIFA. They would rather prefer it to go. In this context, it’s also important to what hedging is.

Therefore, It’s also important to define hedging and explain it.

Since the fifo rule is being discussed many traders would like to get more information. The United States accepted the FIFO rule for stock market brokers in 2009 according to the National Futures Association (NFA). According to this rule, the investor or trader will first have to close the oldest positions they have opened first , when the trader is having multiple traders of the same pair and size. Hence, all brokers regulated by the NFA will have to ensure that they and their traders are complying with this policy. The fifo rule in forex ensures that investors do not keep open positions for a currency pair, while finalizing other trades for the same currency pair. This ensures that the market is active and remains volatile since the fluctuations are reduced due to open positions. The FIFO rule hopes to reduce the problems caused by open positions, so that forex trading is profitable and there is no stalling.

How the FIFO principle works

It is easier to understand how the FIFO rule will be implemented using an example. A trader wishes to invest in USD/EURO currency pair by scaling. Hence the trader will go long on the three positions at different times, and also entry levels. In the position taken first, position 1, trader purchased USD/EUR Forex futures at 1.3004, the second position the trader chose 1.3001, and in the third position the trader purchased at the level of 1.3007. If the USD/EUR level reaches 1.3005, the trader wishes to close the second position since his profit will be more. However under the new rules of NFA and FIFO, this will not be possible. Under the new fifo rules, the trader will have to sell the position 1 first, and the other positions in the same order in which they were purchased. Every investor will have to comply with this new FIFO rule for trading in forex.

Understanding why the FIFO rule was implemented

The main reason why it was necessary to implement the FIFO rule was because the volatility in the market was reducing. A large number of traders were keeping their trades open for many days, their position was stagnating decreasing the volatility. The currency volumes traded each day also reduced. Hence to overcome these problems, the Forex tradings new FIFO rules were implemented. Forex experts believe that this will positively impact the Forex market in the long term. The rule is already implemented for the stocks, futures market, and it will also help forex trading. Any broker can provide more information on this rule and other aspects of forex trading.

Hedging

Hedging involves a set of ways to secure your investment from the harmful effect resulting from the adverse movement of a pair of currencies.

If you’re a trader in the United States, you have to abide by the rules associated with hedging and FIFO. Don’t get confused if you’re a newbie in the market. And, don’t indulge in things prohibited by FIFO rule.

As you gain experience, it will be easy for you to understand and even predict the movement to some extent. Of course, if you’re an experienced trader and have gone forward, you will be able to tackle the situation easily.

How to forex hedge in a US based account?

When a foreign currency such as the US dollar wildly fluctuates, it is sensible to obviate the high risk involves as much as possible. The benefits of forex hedge in a US-based account is that you’re unlikely to lose money if the other currency in your investment drops.

Hedging forex is in reality simple. To make it easy for you, create two different accounts. The objective is to ensure safety and you must remember which account is for what. If one of the accounts does not do well, the other makes profits. You need to keep remove the money from one account to another to reach the desired balance between the accounts.

In this context, you should also consider account that the broker you are linked to let you to perform the inter-account money removal.

If you work with a USA brokerage such as OANDA or FXCM, the job described in the preceding paragraphs becomes easy. On the Java platform of OANDA, access one of your accounts on one browser such as Google, use Firefox to open the forex trading platform. Ensure you open both the accounts simultaneously. You should keep all the logs in one of the accounts and all the sorts in the second account. The background color should be different so that you can differentiate between them easily. It also helps you minimize the errors in the entry of orders.

Get Around FIFO Rule

How to deal Forex Hedging and FIFO

In this context, you need to work under the purview of rules. If you are familiar with the modalities of the market, it will be easier for you to comprehend. Of course, you must have the competence to plan everything, which is likely to help you immensely.

Many people dislike rules under FIFO. If you don’t wish to hedge, it’s fine. To many people, FIFO rules don’t accrue benefits. However, if you know how to deal with the situation under IFO, it will be easier for you.

The way to deal with it easily is to use lots of different sizes. In such an instance, if the earlier lot is different in size from the one that comes later, FIFO rules don’t apply.

As OANDA or FXCM brokers let nano lots, you can use the lots in different sizes without having to come under the purview of rules under FIFO. The nano-sized lots enable you to mitigate the risk significantly. This is particularly true in the case of small accounts.

When does hedging forex fail to work?

The strategies, methods, can work for any forex broker. However, it’s sensible to check it out using a demo account before you move forward.

Be warned not to take anything for granted.

In certain cases of platforms and brokers where the FIFO is not compatible, it will not work. There are many brokers who are unable to work in the FIFO tech environment.

For instance, problems such as when you’re working on the FXCM platform, all the trades overlapped and this does not let lots of nano. In such a case, you cannot use a FIFO strategy.

A simple example

To start with, you worked with 1,000 units of currency at 100.00 and second lot with 1,001 at 105.00 the total number at blended position is 2001 and the average price at 102.50. If the price as of now is 104.00, you cannot remove the 1,001 units at a profit of 100 units. If you exit, you will have to bear a loss of 150 units.

When you work under the stringent rules of FIFO, odds are few to divert part of the profit earned. To realize an amount of profit, the best thing to do is to wait until the older position becomes profitable.

So if you intend to realize a profit, remember to test it with a demo account that you created with your broker. You don’t have to be registered and pay for an account. In such a case, you will be giving undue advantage to the broker who does not let the position sizes work properly.

A word of caution

Of course, you may or may not like FIFO norms and hedging forex rules, they are all meant to protect the interest of traders like you against the onslaught of other traders. This is important because dealing with multiple positions can lead to a complex situation. So, don’t commit things that are prohibited by the FIFO rule.

They are all strategies and you should take into consideration to implement them when you are clear with the fundamentals and are familiar with the platform and rules, etc. However, the strategies may not work with the system and your typical personality.

Therefore, remember not to use the various methods and techniques – you should not apply them all because they may not work well. You should take caution and move forward.

Repainting indicator
The repainting indicator is one that goes on changing in its value as an indicator repositioning its line at the point where the current price bar is forming. Such indicators take the help of future data to bring forth the values and signals for entry. In this way, repainting indicators ensure their exit and entry signals in the past look highly accurate and has zero error.

Non-repainting indicators hardly ever change in their value in closed bars. When a particular bar is closed, non-repainting indicators stay unchanged in values on a closed bars. The closed bar has close, open, low and high levels that don’t change when a bar is closed. The value of an indicator oughtn’t to change so long it is based on bars closed.

Example : Renko Super Signal Repaint Indicator (Renko Super-signals_v3 double repain indicator)
Image 1: Renko Super Signal Repaint Indicator touch high channel

Image 2: After couple hours price is going more up. Indicator will delete green circle and put new one which represents high.

Image 3: When we look indicator on chart everything is perfect – indicator shows high and low perfectly. This is false look because there are a lot of highs and lows that we can not see – we see only perfect ones:

What is Repainting in Forex All About?

Forex traders use technical indicators as a set of guidelines in forecasting and taking the appropriate conclusion. In many cases, traders tend to use indicators rather than direct them in the wrong way.

Today, scammers abound everywhere on the Internet and wait to catch prey on ill-informed products buyers. A lot of indicators are sold making a promise to bring superb results, which finally are found to be schemes of fraudsters.

This article seeks to explain the query what is repainting in forex. The notion of repainting is used by many fraudsters. Repainting renders indicators attractive when studied on illustrating the charts. It’s not a case of live trading. To bring clarity, we’d differentiate the repainting indicator from non-repainting indicators.

Forex indicators differentiated

The figure shows the indicator recalculating its value according to the present price. As a matter of common practice, you find this indicator continuously emitting false signals not reflecting any chart of the past. The indicator is, for instance, likely to emit five signals and of these, three are wrong. Theygo out of sight later keeping only two signals for entry.

The given illustration shows entry signals and trade completely open. Now consider the following figures having the BUY signals gone out of sight and following a few bars.

The figure shows the trader having closed the BUY signal (previous) and seems to have followed a certain BUY & SELL pattern. Both SELL and BUY signals go out of sight and are, thus, not shown by the chart. Thus, it looks as though those traders were logical. However, in reality, this repainting indicator on the basis of MT4 made the trader a fool.

However, repainting doesn’t mislead anyone. We will see how it is thus:

The present price bar moving average, for instance, keep on adjusting according to the changes in price. However, when the bar comes to lose the average will ceases undergoing any change in relation to the closed bar. The core idea is not being selective about the sort of indicators of the price whether moving forward or lagging indicators. This indicator generally becomes static when the price bar comes to a close. This will bar the indicator formation or fluctuation after the closure of the price.

However, it is not so in repainting indicators because values keep changing on closed bars while dealing with repainting indicators. These indicators generally apply bars at the right when estimating the values.

While an indicator that is a non-repainting is expected to use the prices in estimating the values, the indictor should not change at all. When a bar becomes open, the opening price remains constant. Therefore, the indicator needs to re-estimate the values.

For instance, if open prices are used to determine moving averages, repainting should not happen as only one open price per bar (is acceptable) which is not going to change. However, it is not involving repainting indicators.

In a few instances, many indicators are generated to estimate the values with the high, close, low or high prices. In these instances, the indicator tends to repaint the formation of new bars happens. To match with the close, high, or the low price, the relevant indicator has to consistently apply the present price until the bar comes to a close. As the price rises and falls, new lows and new highs are formed and thus, ultimately comes the closing price. Thus, the indicator continues to repaint up to the closure of the bar. For instance, if 10 SMA is applied to the bar on the five-minute chart, the MA tail will rise and fall until the closure of the bar.

Good, bad indicators distinguished

As we discussed elsewhere in the article, it’s important to note that repainting indicators as a whole are bad. In other words, you can find good repainting indicators as well as bad ones. Good indicators like the fractals and the zigzag do not aim to deceive users.

As a trader, you need to learn the way to use indicators. Zigzag and fractals enable traders to spot specific patterns. Thus, they go on changing as prices fluctuate. The bottom line is that you are not supposed to impose a model to build up, the indicator must follow the price until the formation of the pattern.

How to differentiate good repaint indicators from the bad ones?

To start with, it’s of absolute importance to ensure to be careful while dealing with indicators. Theif repainting indicator creator does not ask the users about it, odds are high it’s a bad one and users thus become fools. On the other hand, an indicator creator who lets the users know all the useful facts on the indicator.

Elsewhere, the indicator is likely manifest some signals indicting entry, which goes out of sight after some time with prices moving in the reversed direction. It’s an unambiguous indication of repainting indicator badly. This makes it unreliable. The entry signals ought not go out of sight when they manifest by the chart. All the signals at entry from the indicator need to be visible on the chart that enables users to assess how reliable the indicator is.

A relevant example is when the indicator gives the signal for a ‘buy’, you should decide to get started once the indicator is able to show that it could sell and determine to sell as well. However, the signal that you’re likely to get, and, the indicator that you determine to follow may go out of sight because that was a counterfeit signal. This subjects your trade to bear losses and you might be hard-pressed to close the trade or possibly look for the forthcoming indicator that is likely to be promising. This is likely to happen in many instances and may result in unpredictable loses and boredom particularly if you’re working on minor time frames.

The fact that when they go out of sight when there is a false signal of entry appears, it creates a fake visual impression for any trader who generally takes things for granted becomes interested in this particular indicator. It happens so because the situation looks close to all performing at exit and entry points. The indicators consider the bar prices shown on the right.

Fractals – a quality repainting indicator

In the course when fractals fluctuate, some signals may vanish, which is fine. Fractals are built from five bars. For fractals until the top bar generally comes down in the middle because the two bars aside form the lower highs close to the middle one.

In the case of fractals down, the bar at the lowest level will come in the middle whereas the successive two bars will come up on both sides. The sign of fractal appears to be the one formed by the two bars at the end. In a few cases, either the fourth or the fifth bar is likely to increase or decrease and become less than the middle one. It is, thus, makes the odds of fractal down and fractal up fewer. In such an instance, the sign of indicator vanishes, but it does not mean it’s a that bad.

This only indicates that the fractal was not formed. Once five bar pattern is built properly, and as the fifth bar ends, the signal is visible.. The fractal constitutes a powerful indicator that is a symbol of getting success when traders are aware of its working mechanism.

ZigZag – the other good quality repainting indicator

The zigzag indicator continues repainting. It is the way it is supposed to function. The zigzag indicator comes to play its role in the case when a particular stock or security is about going in a reverse direction. As it’s evident, the lows, highs, waves and swings, new lows and new highs are built. This indicator adjusts accordingly to show the change. In such a case, the indicator changes in the same way prices do.

How does bad repainting deceive traders?

Bad repainting indicators generally fire signals, reestimate its values subsequently with the aid of bars at the right. Should the signals that manifested be wrong, it will go out sight in the chart a fresh signal is likely to be given. When users make a perspective on the performance track record of such indicators, it shows the entry signals to be perfect. However, strictly speaking, every genuine signal goes out of sight fast.

The second significant point is that bad indicators of repainting normally look to forecast perfectly the extent of resistance and support. But the indicators continue to adjust the levels when there is an instance of high new price form. The users of these indicators will do the job wrongly to find that the level was changed when there was a change in prices.

Indicators of bad repainting tend to use the data for the future (right bars) to come with values. It is aimed to trick the users to ensure charts of the past are replete with excellent points.

To check whether or not the indicator is a repainting:

1. Use strategy tester MT4

2. Perform a backtest for selected indicators.

3. To check the result at a faster pace, use a small time frame.

4. Keep values of non-repainting indicator unaltered after the price bar closuree.

5. The values of repainting indicators are mentioned on price bars already closed.

How to gauge the quality of indicator repainting?

Quite a few ways are used by traders to check whether the indicator used is worth it. The MetaTrader strategy is among the most widely used ones. From the platform of meta trade, you can access the strategy-tester easily from the menu atop. Fill in the data including the indicator that you wish to test, date, period and range in which it is to be checked. With the right speed, the users can test the indicators. You may mark and record screenshots to make a comparison between after and before charts.

It is important to note that when performing the testing, use a lower time span. In such a case, you can get the results quickly. A time span of five minutes or just one minute will enable to get the results more quickly than using four hours time. Note that testing has to be done at the right pace because if it is too fast, it may miss a few details. Further, even it is lower, you are likely lose focus. The MetaTrader’s meter will help in adjusting to the appropriate speed. And, the speed should right one – neither too slow nor too fast.

If the values of the indicator continue to change with respect to closed bars, you need no repainting indicator. Keep values of non-repainting indicator unaltered and on all the closed bars. If you wish to replace the values as price bars close, that is no other than a repainting indicator. In the same way, if signals are not found on your chart.

Stopping indicator repainting – how to do it?

The lone way to execute it is reprograming. In some situations, it might be a task involving a few lines of code and at times the site could be a complex job. In such cases, the indicator is recoded to stop the use of bars on your right, you will make a non-repainting indicator (normal). That it is not the identical indicator shows mostly losing entry signals alone; once it’s changed into non-repainting indicators.

A wrap-up

In reality, non-repainting indicators bring fewer problems. Of course, IN most cases they tend to lag. They are valuable because of the lot of information they carry. The information doesn’t alter. It is probably beneficial to refer to the charts of the past. However, the reliability and the attribute used with other indicators make them more reliable. Few traders find it useful to have indicators of this type. The past track record these indicators reveal is a fairly good and traders tend to think they can reach the goal. However, the reality is that everything is not the same as it was before.

On the end, most trades when hear question “What is Repainting in Forex ?” they think only one thing – something bad. Traders like to see false signals when they testing indicator or Ea, to see real picture.

In this article we will write about spreads, forex commission, non commission offers. The best choice for all traders is to choose reputable, big brokers which offer tight spreads for major forex pairs and “fair” spreads for other instruments.

Simplifying Spread and Commission in Forex Trade

When it comes to the trading of forex, in general, there are several costs related to gaining from trade as well as when you wish to exit.

In the Stock market, as you know, you need to pay the commission as well as a spread on the trade you execute. You will have to pay when to enter and exit the market. We’ll simplify the notion of forex commission vs non commission.

As for forex markets, diverse pricing models find the application. The charges levied on you may not be clear to start with, but as we move forward we’d explain the way forex brokers charge for your trading and the most plausible choices for you.

Major definitions Fixed spreads, Variable spreads and Commission :

Fixed spreads – It is by far the easiest model that appears to be quite beginner-friendly although it has some concealed drawbacks. In fact, a fixed spread is going to imply requotes in case your broker makes use of instantaneous execution model at a time of enhanced volatility in currency prices, and it will also mean slippage in case your broker is operating using market execution. In these 2 situations, your trading procedure is going to be disrupted which will make you miss any trade or even land a trade which is not similar to the already planned one. Nonetheless, a fixed spread permits precise trading cost scheduling and it will also safeguard you from those trades which might otherwise have been much more costly. I am of the notion that the fixed spreads are actually appropriate for the short-term dealers including the scalpers.

Variable spreads – It is a model which makes the ask/bid difference modify almost every single tick. It moreover implies that the traders are going to experience wider spreads in normal circumstances at the time when the market is calm. Regrettably, it will likewise lead to extremely wide spreads when there is a low liquidity phase or at the time of high volatility. This kind of trading charges is appropriate for the long-term merchants since they have got the luxury of less limited timing while opening their individual positions.

Commission – It is a conventional compensation model intended for trading mediators within non-spot Forex; it happens to be a less well-known scheme in the retail FX industry at present. Some sort of commission is associated with 0-spread accounts plus ECN accounts featuring non-zero spreads and this depends on the trade volume. Traders operating at the time of news or phases of low liquidity usually prefer this sort of fee. Paying commissions that are quite high on most occasions safeguards these merchants from unusually wide spreads, slippage, and requotes.

An essential feature of trading in any kind of asset will be the cost of the sale and purchase of that asset. This also includes currencies. One notable cost in the currency trading is derived from the commissions on the trades. Therefore, it will be imperative for the traders to evaluate and also measure the size and types of commissions for figuring out their prices and prospective profits on every single trade.

Spread: The elementary price of any trade

In general, in FX trading, the commissions are paid according to what the dealers and brokers refer to as “the spread”. Currencies are going to be traded in pairs, plus these are usually offered at a “bid” price and also at an “ask” price on the trading platforms out there. This implies that the dealer or broker is going to sell the currency at a particular price to a merchant (ask price), and purchase the identical currency at a lower price from the trader (bid price). Spread is actually the difference between the 2 prices.

Just commissions happen to be those commissions which are paid on a fixed spread of usually 2 or 3 “pips” in between the bid price and ask price. A pip will be termed as 1/100th of a % point of any particular currency quote for almost every currency out there.

The spread in between the 2 prices can modify as per the demand in the present market for the currency with a flexible rate commission. The spread usually becomes widened under this particular model once there is more liquidity in the marketplace.

When it comes to the percentage-based commission, it’s a minor percentage made into the tighter spread. The broker, in this situation, takes the percentage which might amount to just a small portion of a pip. Following this, he leaves the rest of the spread to a larger market maker with whom he is working. This kind of commission will allow any trader on some occasions to shell out a lower price of probably just a single pip for making trade on a specific currency pair.

Traders that are experienced with equities, options or futures will be acquainted with commissions. These are charged frequently by the brokers in these types of markets at a flat rate every trade irrespective of the asset’s volume which alters hands. According to the dealer or broker used by them, the currency traders are going to come across several kinds of commissions which include variable commissions, fixed commissions, plus percentage-based per-trade commissions.

How do brokers earn – Forex commission vs. non commission ?

To know what pricing model is suitable for the way you trade to know whether you need to use common spread, it is important to discuss how brokers earn in the market.

Forex brokers earn money in any of the two ways:

One of them is, they add commissions and spreads into a trade of traders to make profits.

Another way the broker earns a profit is making a market for themselves and earn a profit when a trader loses. To paraphrase, the broker gains from other traders and earns profits because of others’ loss.

The broker earns money form communions and spread using the process called Straight Through Processing (STP).

An STP broker works thus: They take your trades away and processes through their groups of liquidity and bans providers.

The bank group sends in turn, a price to the broker and the broker combines a spread with the price and, thus earns profit from the spread they levy on traders.

Working in this model, as a broker, you have the option not having to pay commissions to pay a higher spread. Alternatively, you may pay a certain amount of money for each of the trades and thus pay fewer spreads.

How does the market maker work?

The market makes doesn’t work in a way as discussed in the preceding paragraphs. Normally market makers have an order book that they’re trying to make it comparable because they make the market and they actively participate in trade elsewhere.

The market maker is able to contemplate the incoming of traders. They can target traders and they are going to experience a profound gain when the target traders are not affected by the market. The market maker realizes a direct gain. A clear disagreement of interests emerges.

Which broker to choose, you have 100% liberty as a retail trader. However, there are important conditions that a broker should fulfill. The conditions will mention clearly what a broker should offer you.

Spreads vs commission as trading costs

The spread is defined as the differential amount between the ask price and the bid price. When you enter the platform of trading, you can notice the differential in the price you can sell or buy. It is this difference that is called the spread.

The following example will help you understand better: EURUSD 1.1378 – 1.1379.

The difference between the price is equals the markup in the spread.

Note that you will have to play the spread for one time. In other words, you have to pay the spread once for each completed trade.

Important

Spreads vary widely across forex pairs when you are in the trade. The main pairs that are more intensely traded experience lowest spreads and the more unusual pairs will bring larger spreads.

Further, you can see that in the event of an important announcement as a matter of policy measures, of there is ripples of in the market, the spreads increase. It will come to normal over time.

Commissions

Many brokers offer you to choose the option to pay no commission and a bigger spread or you pay the commission each trade to get smaller spreads.

Of course, you need to research thoroughly to find what suits you best.

A wrap-up

If you take the option with STP brokers and pay the commission of each time, you will access spreads starting at 0. You may get tight spreads, you will have to pay for spreads once per trade. Note that commission is levied for exit and entry.

Spreads are clear in the market. Ensure you work out a strategy before choosing what account is most suitable for you.

While beginning trading Forex, the very first thing that you will be observing here is there are no explicit fees which can be charged by a broker from you (except if you commence using an ECN account). As a matter of fact, you will often come across the phrase “no fees as well as no commission” in any advertisement which is related to Forex. It is a fact that it is not possible for the brokers to operate without any earning, and therefore, most of the Forex traders have to pay some kind of spread on every single trade. On the other hand, commission depending on the trade volume can be employed by any broker if its functioning model consists of zero spreads or raw spreads. Essentially, you will come across 3 sorts of fees which are common in online FX trading at present: variable spreads, fixed spreads, plus commission. Every single of these come with its individual advantages and drawbacks and will serve properly or poorly as per your trading type.

Generating profits

The amount of commission shelled out might prove to be critical in figuring out exactly the amount of profit or deficit that is registered by a trader on a specific trade. In every case, the cost of a currency pair is going to be forced to move about the commission/spread prices so that the trader is able to generate revenue on a trade.

When it comes to spreads, the trader is going to come across different situations. For instance, on most occasions, the highly traded currency pairs are going to be offered at wider spreads.

However, the volume of revenue or deficit which can be realized will not depend only on the spreads. For instance, currency pairs having low spreads might display reduced volatility, and therefore offer lesser opportunities for bigger profits or losses.

Selecting a commission structure and a dealer or broker

You’ll come across various sorts of commissions which are charged among the dealers and brokers at present, and therefore the traders might find it quite useful to evaluate what kind of trading they intend to perform prior to selecting what type of dealer or broker to work with. Several of them might be offering features like analytical tools which aid in justifying higher commission costs or spreads. Traders might also like to take into consideration whether they like to work with lower commission costs and spread and large volumes in more liquid and conventional markets; or take the risk of trading in markets which are more volatile where there is a high possibility for profits or losses.

Advice : You need to see your past history of trades and to see average number of trading positions per month.Than based on your research to choose best broker’s option. In my case, typical spreads that offer big brokers are enough for my trading style.