Since most Forex brokers are not paid on a commission basis, you might be interested to know how you will compensate your Forex broker in case you are planning to get one. Forex brokers make money from spreads or pips.

Simply put, a pip is the difference between the selling and buying price of  particular currency. Therefore, if you are shopping for a Forex broker than you can compare candidates by the spread they charge. It is also important t know if the spread if the spread changes or not. Some broker widens the change when the market becomes busy. This setup could be less profitable for the trader.

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay