Normally standard account charges spread by about 1.2 pips to 1.5 pips on EURUSD (the most scalable pair in Forex), which means you pay 15$ to enter and get out of the trade no matter whether you win or lose trading 1 lot of EURUSD.
With ECN they will have your spread of 0.3 and charge you commission of 7$ for 1 lot of trade EURUSD. So the cost is 10$ a trade of 1 lot.
Now you go to a trade for scalping which is aiming for 1–3 pips which is 10 to 30$ profit.
So:
- If standard account: cost is 15$ and potential profit is 10$ to 30$.
- ECN: cost is 10$ and potential profit 10$ to 30$.
Will Vu
PS: I added this PS after someone mailed me about a broker for scalping advices. Yes, I can send an affiliate link to you for opening an account with a broker can and get you the spread of my group which is 0.2 pips on EURUSD and 5$ commission. Total is 7$ for the cost of 1 lot trade.
PPS: I’ll put the link in my Quora blog so no need to sending link through email.
Regards,
Will Vu - Forex Investors since 2006
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