Does the Zero Spread account cut the balance at the beginning?

Broker Account
23 Mar 2022, 16:31 3,295 Views
Temperature About Forex, I want to ask about the zero spread account that I use. Earlier, I opened a position NZDJPY Buy using 3 lots. I remember my Balance in MT5 was 22000 USD, but when I entered it became 21,988 USD. Deducted 12 USD. After I closed with a profitable position, there was a commission of 24 USD, with a breakdown of in 12 USD, out 12 USD. Only today I was deducted directly from the balance.
Does the zero spread account have new regulations?
Usually, the broker's commission deduction happens after the transaction is completed.
The advantage of this zero spread account is that there are no overnight swap fees. Fortunately, my broker is honest, because I am still traumatized by being cheated by icmarkets ASIC Australia broker. When I used 0.01-0.1 lots, that broker was honest. After I used 1-10 lots, that broker used stop loss hunter, the chart was very different from other brokers.
Thanks, Forex Experts

8 Answer

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erik tri cahyo 29 Mar 2022, 11:12
To Nathan Wanata,

Zero spread accounts will indeed be charged a commission in lieu of the spread. Regarding when the fee will be charged (whether charged at the beginning when a position is opened or at the end when the position is closed), it entirely depends on the broker's policy. Therefore, for more details, you can consult the customer service of the broker in question.
H
Halimah 01 Apr 2022, 14:00
Is the commission per position, Pk? It's not just once at the beginning, right? So if you open many positions, the commission deductions will be many as well? If when opening a position, when closing it turns out to be a loss, do you also get charged a commission?
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erik tri cahyo 04 Apr 2022, 12:36
To Halimah,

That's correct. Commission is usually calculated and charged based on the lot size of the positions being opened/closed. So, the more positions you open, the larger the commission charged may be. And that commission will still be charged even if the positions opened/closed are at a loss.
A
Arista 09 Nov 2022, 17:15
Just want to ask, what does floating spread mean? And is it different from a fixed spread?
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Erik Tri Cahyo 10 Nov 2022, 09:16
To Arista,

A floating spread is a dynamic spread that can widen or narrow with market volatility. A typical floating spread for EUR/USD is generally in the range of 8 to 25 pips. If market volatility is calm, the spread applied may be in the range of 8 to 15 pips. However, when market volatility changes, it is not uncommon for the spread to widen to more than 25 pips.

Meanwhile, a fixed spread is a spread that will not be affected/change even if market volatility is fluctuating. For example, a fixed spread on the EUR/USD pair is set at 20 pips. The broker then guarantees that the spread obtained will remain fixed at 20 pips under any volatility conditions.

Hope this helps.
R
Regina 15 Nov 2022, 17:05
Trading gold (XAU/USD) but the spread is up to 35 Pips. Is that normal, sir?
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Erik Tri Cahyo 16 Nov 2022, 08:39
To Regina,

It's still considered normal. Because the normal spread range for the gold instrument (XAU/USD) is in the range of 20 to 60 pips.

Hope this helps.
M
Martin 19 Feb 2023, 17:03

@ Nathan Wanata:

As far as I know, the commission is only charged once for each transaction, and it is done after the transaction is completed (the position has been cleared), whether the transaction result is profit or loss. If it is charged twice, please ask your broker.

- … I hope my broker is honest, because I am still traumatized by being cheated by the icmarkets ASIC australia broker. When I used 0.01-0.1 lot, that broker was honest. After I used 1-10 lot, that broker used stop loss hunting, the chart was far different from other brokers.

If you feel cheated by a broker, please complain to the regulatory body (in this case ASICS Australia) by attaching evidence such as screenshots, etc.


@ Regina:

- Trading gold (XAU/USD) but the spread trading is up to 35 Pips. Is that normal, sir?

The XAU/USD pair indeed has a larger spread than EUR/USD or other forex pairs because the pip unit for the XAU/USD pair is calculated to 2 decimal places, while for forex pairs such as EUR/USD it is calculated to 4 or 5 decimal places, thus the spread for XAU/USD is larger than forex pairs.
Around 35 pips is still reasonable. As far as I know, it can go up to over 50 pips.

 

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