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Thread: Commission and Rebate

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    Default Commission and Rebate

    I read in past threads that the commission is decreasing. Has that happen yet?

    Am I correct to assume that commission is like "spread"? Where I paid the commission, the spread is non-existant in the ECN account.

    Are there rebate on ECN account?

    I was thinking that FXopen should have a chart of all pairs with given commission liuve feed qoute as seperate application or webpage. It just an idea.

    How much is it per pip in ECN lot? $10? I see $10 per pip but I am not sure if it over-stating the value per pip.
    Last edited by Bopkasen; 07-05-2010 at 05:04 PM.

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    Quote Originally Posted by Bopkasen View Post
    I read in past threads that the commission is decreasing. Has that happen yet?
    I haven't heard anything about that

    Quote Originally Posted by Bopkasen View Post
    Am I correct to assume that commission is like "spread"? Where I paid the commission, the spread is non-existant in the ECN account.
    The spread in ECN accounts comes from the interbank system and is variable from 0.5 pips. FXOpen charges a small commission instead of taking the spread.

    Quote Originally Posted by Bopkasen View Post
    Are there rebate on ECN account?
    At http://www.rebatefx.com there are ECN rebates

    Quote Originally Posted by Bopkasen View Post
    I was thinking that FXopen should have a chart of all pairs with given commission liuve feed qoute as seperate application or webpage. It just an idea.
    The commission is 0.007% or $35 per $1,000,000 on USD pairs. It doesn't change like spread so I don't think a commissions feed is useful. Maybe I understood the question?

    Quote Originally Posted by Bopkasen View Post
    How much is it per pip in ECN lot? $10? I see $10 per pip but I am not sure if it over-stating the value per pip.
    If you open 1.00 standard lots then your pip value is around $10 per pip. Value per pip depends on how much volume you are trading with.
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    Quote Originally Posted by RebateFX.com View Post
    I haven't heard anything about that



    The spread in ECN accounts comes from the interbank system and is variable from 0.5 pips. FXOpen charges a small commission instead of taking the spread.



    At http://www.rebatefx.com there are ECN rebates



    The commission is 0.007% or $35 per $1,000,000 on USD pairs. It doesn't change like spread so I don't think a commissions feed is useful. Maybe I understood the question?



    If you open 1.00 standard lots then your pip value is around $10 per pip. Value per pip depends on how much volume you are trading with.


    Two more questions

    How much is the ECN rebate?

    Can ECN account be hook up to Zulutrade? I was looking for suitable account for Zulutrade and seem that ECN is a the best solution that I need.

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    Hi, Bopkasen

    Can ECN account be hook up to Zulutrade?
    Unfortunately, only STANDARD FXOpen accounts can be linked to ZuluTrade, not ECN.

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    Quote Originally Posted by Bopkasen View Post
    How much is the ECN rebate?
    .
    RebateFX rebates are 50% of what the broker pays to RebateFX whether it be pips or commissions.
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    In PAMM ECN is the commission charged to all clients' accounts accordingly ?

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    Quote Originally Posted by rwa View Post
    In PAMM ECN is the commission charged to all clients' accounts accordingly ?
    There are no rebates for PAMM accounts as no commissions are paid to IBs.
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    I am sorry to annoy everyone with this question yet again, but I am seriously considering opening an account with $10,000, and I am trying to decide which is going to be most profitable. I understand that a true ECN account must charge a commission because they cannot take anything from the spread as compensation for the service. So please let me try to gain some in-depth understanding of how this commission is calculated on the ECN accounts.

    First, I am prefer to trade the GBPUSD pair. In the market accounts, the spread is a fixed 3pip on the GBPUSD. So, if i trade .001 lot(1 micro) and make +1pip profit, then my cost was 3pips for the spread.

    Example: long .001 GBPUSD @ 1.5550(bid price would be 1.5547) and close @ 1.5551(ask price would now be 1.5553) = $0.10 profit [$0.40 (for the 4pip movement) minus $0.30 (for the spread)]

    And this is a fixed ratio, ergo... if I was to trade 1 mini lot then multiply everything by 10 ( .001 lot*10=.01 lot , $0.10 * 10=$1.00) or by 100 for standard lots (.001 lot * 100=1 lot, $0.10 * 100=$10.00). All pretty straight forward.

    Now, as for the ECN commission, I have seen several different numbers. To start, I will only refer to round-turn to keep this simple. Also, since I am preparing to open with $10,000, we will not be referring to the >$50,000 commission rate.

    So, in the main area fxopen.com/TradingTerms.aspx under ECN it says commission USD 7 per 100000 (one standard lot). So, by this I would assume that is I trade 1 lot of the GBPUSD and close at +1 pip in the money, I would profit by $3 (1 pip = $10 then minus $7 commission).
    At the bottom of the page is says that the commission is 7 unit of the BASE currency per 100000 units. By this calculation (let us assume the GBPUSD was 1.5550 at the time), then my commission would be GBP 7 or USD 10.885 (7gbp * 1.5550usd=10.885usd).

    So, for clarification...If I was to trade the GBPUSD via ECN and for some freak event the volume was awesome and the spread was .5pips....would this calculation be correct (I will use accurate half-turn at this point)...

    EXAMPLE: Long 1 lot GBPUSD @ 1.5550 THEN close 1 lot GBPUSD @ 1.5560. The commission would be USD 10.8885 [(3.5 * 1.5550 = USD 5.4425)+(3.5 * 1.5560= USD 5.446)=USD 10.8885]. Please Correct me if I am wrong in my understanding of this.

    Am I further correct in my profit calculation of
    $84.11 (10pips - 0.5pip spread=9.5pips * $10/lot=$95 - $10.8885 commission=$84.1115 net profit).

    OR would it be more correct to calculate the payout this way
    $136.93 (10pips - 0.5pips spread =9.5pips * 1.5560 GBPUSD conversion rate * $10/lot=$147.82 - $10.8885 commission=$136.9315 net profit)

    Sorry for being so particular about this, but I would like to know exactly how I am to calculate my expenses and earnings if I am going to sign up for an ECN account.
    Thank you for the assistance!

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    Quote Originally Posted by MisterAudio View Post
    So, for clarification...If I was to trade the GBPUSD via ECN and for some freak event the volume was awesome and the spread was .5pips....would this calculation be correct (I will use accurate half-turn at this point)...

    EXAMPLE: Long 1 lot GBPUSD @ 1.5550 THEN close 1 lot GBPUSD @ 1.5560. The commission would be USD 10.8885 [(3.5 * 1.5550 = USD 5.4425)+(3.5 * 1.5560= USD 5.446)=USD 10.8885]. Please Correct me if I am wrong in my understanding of this.

    Am I further correct in my profit calculation of
    $84.11 (10pips - 0.5pip spread=9.5pips * $10/lot=$95 - $10.8885 commission=$84.1115 net profit).

    OR would it be more correct to calculate the payout this way
    $136.93 (10pips - 0.5pips spread =9.5pips * 1.5560 GBPUSD conversion rate * $10/lot=$147.82 - $10.8885 commission=$136.9315 net profit)

    Sorry for being so particular about this, but I would like to know exactly how I am to calculate my expenses and earnings if I am going to sign up for an ECN account.
    Thank you for the assistance!
    Hi

    You are correct in the first example as the earning per pip would be $10. To make it easier, I prefer to think of it in the way that I need to close the trade +2 or more to make it a profitable one since the commission is slightly more than 1 pip in value.
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    Thank for very much for clarifying the commission calculations for me. Hopefully this post will glarify it for anyone else who doesn't understand how the ECN com is done.

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    ECN Account:

    Size Symbol Commission Profit/loss
    0.10 gbp/usd 0.83 5.10
    1.00 aud/usd 5.46 45.00

    1) In above examples, is the commission already charged/built into profits as shown on trading platform and that when I close the trades my profits will be 5.10 & 45.00 and commission will not be deducted from the profits?

    2) The commissions (i.e usd0.83 and usd5.46) are for both ways (Buy/Sell and Close trades)?

    Thank you.
    "Making Profit IS EASY, keeping it IS NOT!"

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    Quote Originally Posted by RahmanSL View Post
    ECN Account:

    Size Symbol Commission Profit/loss
    0.10 gbp/usd 0.83 5.10
    1.00 aud/usd 5.46 45.00

    1) In above examples, is the commission already charged/built into profits as shown on trading platform and that when I close the trades my profits will be 5.10 & 45.00 and commission will not be deducted from the profits?

    2) The commissions (i.e usd0.83 and usd5.46) are for both ways (Buy/Sell and Close trades)?

    Thank you.
    Hi

    1- The new commission calculation
    1.6642 x 5 x 0.1 = 0.8321
    1.0897 x 5 x 1 = 5.4485
    The profit/loss you get already deduct/add the fee commission charges .


    2- yes, the charges are both ways - open and close trade.

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    Thank you nonamer for your clarification which is very clear to me now.
    "Making Profit IS EASY, keeping it IS NOT!"

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    I did a re-check on FxOpen ECN MT4 Trading platform for commission.

    The commission shown on trading platform is only for one way. When you close out the trade, FxOpen deduct additional commission for closing out.

    E.g.:

    Currencies: GBP/USD Size: 0.20 Commission: 1.67

    The commission shown is only for one way (i.e opening trade). When you close that trade, an additional usd1.67 is charged.
    So, round trip is USD3.34
    "Making Profit IS EASY, keeping it IS NOT!"

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    Maybe I didn't explain the above too clearly.

    My ECN acount Balance was usd7,887.70

    I decided to close out:

    Currencies: GBP/USD Size: 0.20 Commission (as shown on MT4): 1.67 Profit showing is usd5.60

    After closing that position, the account balance is usd7,891.63

    That means, the commission of usd1.67 is ONLY deducted after that GBP/USD position has been closed, since if it was already deducted when the trade was placed, the Balance in account should have became usd7,93.30
    "Making Profit IS EASY, keeping it IS NOT!"

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