These are the fees and costs you may incur

There can be a total of 3 different fees, which vary from broker to broker. The spread is the difference between the buy and sell price (ask and bid). This can vary because the prices depend on the market situation (supply and demand). An ECN broker with direct interbank market access passes on the current market spreads to the trader. These then start from 0.0 pips and are hardly worth mentioning in the fee calculation. The ECN broker then finances itself through a commission, which is charged when orders are opened and closed.

Some brokers add an additional spread to the market spread and waive the payment of a commission. Both models are offered and can be selected before opening an account. Another fee (financing fee) can also work out to your advantage in Forex Trading! When opening a leveraged position, you are basically borrowing money from the broker. This sum must be financed overnight. Interest therefore accrues. It depends on the currency pair. In some currencies, for example, there are high interest rates from the central bank. So if you invest in a currency with a high interest rate and sell a currency with a low interest rate at the same time, you profit and get an interest credit to your account every night.

Fees in summary:

•     The spread (difference between bid and ask) is incurred when opening and closing a position.
•     The broker may charge a commission if he does not add an additional spread.
•     The financing fee of a leveraged position can be positive or negative depending on the interest.

Leverage (margin trading) with currencies explained

Leverage is a very good tool in exness client area to maximise one's profit. For example, it makes very little sense for most traders to invest one euro and wait for the currency rate to rise or fall. With a leverage of 1:100, of course, this makes more sense. Because with an investment (margin) of one euro you can already move €100 on the market.

In my opinion, a leverage is urgently needed, because the markets move you 99% of the day under one cent. Leverage can increase your risk. But the risk can be adjusted by the position size.

Is Forex Trading Dangerous?

Profits without risk are not possible in the FX market. If you do not want to take any risks, you should stay away from this place. This question cannot be answered in a general way, because the risk and the dangerousness is determined by the trader himself. The trader must decide how much money he is willing to invest and possibly lose. One can trade the market with small sums or also with large sums.

The Forex market is the most traded market in the world. The volatility (strength of movement) is very low compared to other markets, which is why the riskiness is not so high. The daily fluctuations are usually less than 1% of the asset. However, the risk can be greatly increased by using leverage! All in all, every trader has to answer for himself whether currency trading is dangerous. There is no one-size-fits-all approach here.

Many small investor accounts lose money on Forex trading. Brokers offer leverage with high effects on position taking. You can have a high risk einher schnell geld zu verdienen if you use high leverage. Often you see beginners trying to take the risk of doubling their money quickly. This can happen with luck, but I do not recommend risking your entire account in one trade.