WORKING EXAMPLE: EFX Group commissions

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alichambers
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WORKING EXAMPLE: EFX Group commissions

Postby alichambers » Thu May 24, 2007 1:41 pm

Hi,

I'm working out how FOREX commissions will affect my trades using EFX Group, and I've used an example below to calculate profits. Can anyone tell me if this example calculates correctly?

1. A spread of 2 pips
2. Commission of $5 per $100,000 traded

so...

I trade 5 lots (1 lot = $100,000)
GBP:USD: 1 pip = $10 for 1 lot
Gross pips made on this trade = +4

NetPips = 4 - 2 (spread) = +2

Gross Profit = NetPips * $10 * 5 lots = 2 * $10 * 5 lots = $100

Commission value = $5 * 5 lots = $25

NetProfit = $100-$25 = $75

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TheRumpledOne
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Postby TheRumpledOne » Thu May 24, 2007 2:34 pm

There is NO SPREAD at EFX!!

The commission cost, at this time, on the GBPUSD is about 2 pips.

4 - 2 = 2 net pips.

So you made a net 2 pips on 5 lots or $20 * 5 = $100.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

alichambers
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Postby alichambers » Thu May 24, 2007 2:54 pm

OK, thanks.

Where would I find "pip equivalents" for commission costs for the other major FX pairs at EFX? I have looked on their site but had no joy.

AC

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Postby daniil » Fri May 25, 2007 12:39 am

Hi alichambers!
http://www.efxgroup.com/commissions.html

it is not "pip equivalent", it is just a comission :)
with any ECN broker you must NOT fight against spread, you were cheated by "fixed spread" bucket shops that "fixed spread" does exist.

it was also hard for me to understand this because i was cheated too :wink: . but please try to do it by yourself.

use limit orders to enter your trades

BRGDS, Dan

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daniil
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Postby daniil » Fri May 25, 2007 12:56 am

Hi alichambers!
http://www.efxgroup.com/commissions.html

it is not "pip equivalent", it is just a comission :)
with any ECN broker you must NOT fight against spread, you were cheated by "fixed spread" bucket shops that "fixed spread" does exist.

it was also hard for me to understand this because i was cheated too :wink: . but please try to do it by yourself.

use limit orders to enter your trades

BRGDS, Dan

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Patch
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Postby Patch » Fri May 25, 2007 3:15 am

Hi Dan & Alichambers

To say the least, forum police not withstanding, and previous action brought against TS about 5 years ago, TS is a bucket shop.

Patch
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ENOUGH being a Yalie for me Back to the Sea. "What i can lose, i can win" "YES YOU CAN" - dragon33 -"Pick one method and one pair and stick with them until you master it. "The choice is yours - success or failure." TRO

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