I'm totaly new to Forex but I love to read these forums. I've been trading equities and Futures but didn't have a clue about Forex until recently. One day after reading a lot here, I thought I would check out Forex and set me up a demo account. I started practicing with the MT4 platform.
To my amazement, every time I opened a position I was automatically negative -40.00 for one lot. My broker says that this was to cover the brokeridge fee and pretty much standard for Forex. $40.00??? OK, I understand that, but it only costs me about 5.00 per round trip trading Futures with a potential profit of 5.00 to 18.00 per tick, per contract, depending on which instrument I use.
So I'm asking myself, why pay $40 for $10.00 per pip and have to gain 4 pips just to break even when with Futures I can actually make a profit from just one tick? Am I missing something?
I don't mean to be negative. Just an honest question.
To my amazement, every time I opened a position I was automatically negative -40.00 for one lot. My broker says that this was to cover the brokeridge fee and pretty much standard for Forex. $40.00??? OK, I understand that, but it only costs me about 5.00 per round trip trading Futures with a potential profit of 5.00 to 18.00 per tick, per contract, depending on which instrument I use.
So I'm asking myself, why pay $40 for $10.00 per pip and have to gain 4 pips just to break even when with Futures I can actually make a profit from just one tick? Am I missing something?
I don't mean to be negative. Just an honest question.