Here is some definitions you may need to know before getting to the point.
A forex broker is a firm that buys and sells currencies on behalf of retail traders, usually via a Forex trading platform. Like stockbrokers, they charge a fee – though usually in the form of a spread instead of commission – in order to execute orders placed by their clients.
Commission is the charge levied by an investment broker for making trades on a trader’s behalf.
A pip is a measurement of movement in forex trading, defined as the smallest move that a currency can make.
In finance, the spread is the difference in price between the buy (bid) and sell (offer) prices quoted for an asset.
Obviously brokers making money through our trading, and they have different strategies to convince you to trade with them, some of them lowered their spreads but take commissions , some give you bonus accounts , some gives you all but make other limits to make money. Through all of these strategies you should see what is your strategy and what you get from your broker. as far as I am an IB (Introducing Broker) in some of the them, no difference for me what you choose , so i give you my information and you can choose with wide open eyes.
I do some research about most of bonus programs , all of them want you to trade super huge Lots in a short period of time , so I make some calculation even if you survive from huge lots trading , they pay your bonus from your spreads and commissions that they already charge you, so if you trade with lower spread and commission without any kind of timing obligation you can earn what they give you as bonus in long term.
They tell you about super zero spreads in one pair , and make you think that they will do that on other currencies too. but with a simple and quick research you can find out that they make their money through other pairs with larger spreads and commissions.
They lower the spread at all of the pairs but take huge commissions , so no differences .
You may open a Swap free account and you think that you pay less than what you think , but they should earn some thing , right? so they add more commissions on ling term trading and finally they will take what they want.
There is lots of these kind of ways for Brokers to make money from traders, but the question is , why is that so important, and why should we care about it , they give some services so they deserve to earn!! i do really care about win-win attitude , but when you can decrease your trading cost , why not?
By the chance i checked out my traded lots during last 6 month with a 20000$ account, and i traded some thing around 270 lots, and do some calculation, i found out i pay more than 5400$ in 6 month that could be around 1500$ and i could make 3900$ more , that means 19.5% of the capital. so i do the research about different brokers and different account types to increase my profit.
paying lower spreads always have profits, but as i am a swing trader , it’s important to me to pay lower commissions through long term trading too.
so I make a trading cost table of different brokers and i calculate spreads and commissions for each pair. the numbers you see are dollars you pay for trading one lot of that pair. I also find the best account of that broker to make a correct comparison.
As you an see now, you can find the best choice, I’ve been IB of most of them already and i wish you choose the one to pay more so i can earn more too, but as your mentor I’m responsible to find the best for you. My choice from the first day till now is Fibogroup. so please don’t hesitate to change your broker to this one.
if you decide to change your broker here is my links so you can choose each one you preferred the most. if you decided to use my link i can join you to my special members channel for more analysis and signals.