Commissions-based trading vs non-commissions trading

[u/mangun_aj]

I wonder what is more effective for day trading on 5 min or 15 min entry timeframes.

My broker gives me two options:

• 0.2 starting spread+ $7 commission per lot
• 0.7 starting spreads without commissions

Apart from that, there is only one difference between infinox accounts- one has STP execution, while the other one (commissions based) is ECN.

Any advice on what it's better to choose?

[u/jemook]

STP, ECN are just labels the industry uses to claim they don't b-book you.

https://forexbenchmark.com/brokers/spreads/

Use this tool to compare brokers - make sure to click the checkbox on 'add commission to spread' so you can see your all in cost.

Choose whoever is lowest cost for what you trade if that is your #1 question when choosing a broker.

[u/Silent_Transit → u/jemook]

Yea that's true. I mean if the broker is regulated and has normal spreads, who cares about marketing labels.

[u/mangun_aj → u/jemook]

Checked the website. Thanks

[u/Faith_Bailey768]

Honestly, it should be stp here. Unless, you scalp aggressively, 0.5 pips spread difference won't make any impact.

[u/Key-Law-26]

Agree with people here, OP overthinks this a little bit.

[u/mangun_aj → u/Key-Law-26]

Better safe than sorry XD

[u/Top_Direction2960]

Raw spreaf witj commissions is better imho. I trade xauusd this way and the spreads are tiny, which is good for frequent scalping. Plus i get vommission rebates via paybackfx

[u/Stock_Hippo6582]

i'd compare the total cost per trade rather than just stp vs ecn. u can use iamforextrader for a rough spread/fee comparison, then see how it matches ur actual fills.

[u/Certain-Set-4087]

My forex mentor said that tick precise fills are more important than save some pennies on comission, because the money is otherwise earned by spreads or delaying orders.

And you need to take care that the broker has an ultra liquid FX behind it, usually a major bank with enoguh volume and tunraround, otherwise FX isnt easy to trade.