Broker Spread page "Include Commissions" check box bug投票結果
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Broker Spread page "Include Commissions" check box bug討論
Dec 14, 2012 at 09:47
會員從Dec 12, 2012開始
1帖子
Hello,
myfxbook's broker spread page is great:
https://www.myfxbook.com/forex-broker-spreads
But there is a bug in a way you include commissions when check box 'Include Commissions' is checked.
Firstly, you use commissions only one way, i.e. is commission is 2.5$ per 100K, then you only add this commission to the spread. You should add two-way commission for opening and closing a trade to make it equivalent to non-commission brokers. So you should add 5$ instead of 2.5$.
Secondly, your calculation on how much pips to add is not correct also. The correct way is as follows. Lets say EUR/USD is 1.3 now.
One pip is 0.0001. The equivalent pips for commission of 5$ roundtrip of 100K$ would be = (1.3 * (5$ / 100000$)) / 0.0001 = 0.65 pip. 1.3 is rate of EUR/USD, or in other words rate of base currency for pair we are interested in (EUR) against our account currency (this would be USD, because commission is calculated in USD). So in this case in my formula we use the same currency pair as for which we are calculating how much pips to add.
if it's AUD/NZD which you want to calculate and its rate is now 1.25. then the calculation would be = (1.05 * (5$ / 100000$)) / 0.0001 = 0.525 pip. Here as stated in paragraph above 1.05 would be rate of AUD/USD, because base currency of AUD/NZD is AUD and our account currency is USD. That is why we use AUD/USD here.
If we take some pair where USD is base currency like USD/CHF, then calculation would be (1 * (5$ / 100000$)) / 0.0001 = 0.5 pip, where 1 is rate of base currency USD against account currency USD, hence it is always 1.
Correcting those two bugs would make your broker comparison page even better!
myfxbook's broker spread page is great:
https://www.myfxbook.com/forex-broker-spreads
But there is a bug in a way you include commissions when check box 'Include Commissions' is checked.
Firstly, you use commissions only one way, i.e. is commission is 2.5$ per 100K, then you only add this commission to the spread. You should add two-way commission for opening and closing a trade to make it equivalent to non-commission brokers. So you should add 5$ instead of 2.5$.
Secondly, your calculation on how much pips to add is not correct also. The correct way is as follows. Lets say EUR/USD is 1.3 now.
One pip is 0.0001. The equivalent pips for commission of 5$ roundtrip of 100K$ would be = (1.3 * (5$ / 100000$)) / 0.0001 = 0.65 pip. 1.3 is rate of EUR/USD, or in other words rate of base currency for pair we are interested in (EUR) against our account currency (this would be USD, because commission is calculated in USD). So in this case in my formula we use the same currency pair as for which we are calculating how much pips to add.
if it's AUD/NZD which you want to calculate and its rate is now 1.25. then the calculation would be = (1.05 * (5$ / 100000$)) / 0.0001 = 0.525 pip. Here as stated in paragraph above 1.05 would be rate of AUD/USD, because base currency of AUD/NZD is AUD and our account currency is USD. That is why we use AUD/USD here.
If we take some pair where USD is base currency like USD/CHF, then calculation would be (1 * (5$ / 100000$)) / 0.0001 = 0.5 pip, where 1 is rate of base currency USD against account currency USD, hence it is always 1.
Correcting those two bugs would make your broker comparison page even better!
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