DislikedHellp PF, welcome back. Can i ask how much is the commision you paid for ICMarkets compared to your earnings? Don't need the real numbers, just a percentage based off your earnings will do. I am using ICMarkets too and the commision is actually quite a lot and i am not even scalping as much as you do.Ignored
A very valid question and I like it!
Generally, when scalping commission ( and of course slippage on execution) can and do eat up profit fast.
There is little room to help this. One is to try to find an IB deal, that will reduce commission per lot, in my case @ICM, from the 7$/lot to 5.5$/lot.
Another similar options is is a direct deal with the broker, made on some volume or other merits, like I have @Axi, reducing my 7$/lot to 5$/lot.
Unfortunate, that where it would matter largely, especially now, @Fixi, I don't have such luxury... They would be willing to lower commission only if I put on my trading account considerable more...something I haven't yet done...all despite that I have a sizeable allocation from them (approx 1.2 million prop money). Not that they are charging for themselves the same, but my performance derived from the master acct there, that trades with 7$/lot...
Now, to answer your question, on general, since I am scalping for smaller gains, and of course commission is paid regardless to win or loss on a trade, I can tell how total gains compare to total commissions paid, and thanks to myfxbook I just look up the numbers for you
Custom days come into play, of course.
My attached TE, ICM: commission is 21% compared to my total profit made....ie. to put 10$ in my profit, I also paid the broker 2.1$ out.
This is relative good, when scalping, in my opinion.
My 2x risk IC account the number is 39%.
On Axi it is 65%. (this excludes performance fees on prop deal)
And on Fixi 95%. ( this excludes the performance fees on prop deal)
As above mentioned, things, by large also depend on couple other factors, like the account starting date, etc.
Even some other measurements don't always agree, like Axi and Fixi, profit factor is technically identical, and 1.29 and 1.28.
Even that, doesn't have much real life meaning, because when comes to buying groceries, the cashier asks for cash.
And while overall Axi paying less commission, or has slightly better profit factor, in $ terms the Fixi account has been the better deal so far.
In the end there is the full story to consider, always.
If anything, I try to keep gains about 3x higher than commission paid, but in the end whatever comes, it really matters not that much.
Even if things 1:1, a trader can make good income.
It is just the cost to make business.
If there is a way to reduce cost, I try, but as long as end of month the trading does produce a monthly fairly decent income, I am not trying to involve a style drift to tailor solution results; ie. happy enough to pay whatever the best available commission to my situation, without thinking too much about how they relative to gains, per day, or in total.
Happy weekend!
there is always, always another trade!!
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