Brokers

Transaction Costs


Jul.20.2013

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Every time you exchange money and place a trade on a trading platform, you are subject to a transaction fee, whether you like it or not. These costs are usually the spread or a commission fee, which is, in fact, one of the ways most brokers make money. You didn’t think the brokers were hosting a charity party that will give you the opportunity to make money with no costs, did you? But different brokers have different business plans, and therefore different transaction costs.

It is natural to look for the most affordable transaction cost for trading. Some people may prefer a lower transaction cost and accept a less user-friendly platform. Others may prefer a higher transaction fee to ensure security. Just make sure you don’t fall into the trap of choosing a high-cost, insecure broker! They are out there, and I am not joking.

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