>Trading on Margin/Leverage- When referring to margin trading,we are talking about the ability of a trader to trade with more money than what he has in his account.In the Forex market,with just a small margin,a trader is able to trade a much larger position than he would when trading on the stock market.This enhanced leveraging factor allows the trader to magnify his profits when the opportunity arises.
>Commissions / No Commissions-Most Forex brokers do not charge commissions,but rather make money on the dealing spread.The dealing spread is the difference between the bid and the ask quote. At present,under normal market conditions the dealing spread over the Major currency pairs should be no more than 3 pips.New electronic Communication Networks (ECNs) systems are now offered by Forex brokers. As a rule of thumb they offer a much improved spread, but at the same time the brokers charge a commission per lot for using the ECN as your executing system. Find out from your broker about costs associated with executing through an ECN based execution
platform, as they should offer an improved overall cost (Spread plus commissions).
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