Have you ever asked yourself what is the impact of the spread on your trading? The following tool allows to quantify the spread impact depending on your trading style. You just need to enter the following parameter values:
Trading activity: number of trades closed per time frame (day, week, month, year).
Avg. deal leverage: estimated average leverage.
Account equity: net asset value of your account.
Past return on equity: past performance calculated as a percentage of your equity.
Current spread: the spread you’re paying right now to your broker.
New spread: the spread you would like to compare.
After pressing the Calculate button, you will get the improvement in your return by reducing the spread.
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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
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