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Free forex trading means that the forex broker does not charge a commission. So yes, to a certain extent forex trading is relatively free. The question is, how do brokers receive payment for their services? Well, they gain a very small amount of money, calculated by the fourth decimal point (or pip) out. So, a broker that charges 4 pips gets 0.0004 take on the trade value.
Do you need to pay a broker? If you are a novice to trading and forex trading, or you do not have a wide and vast amount of resources that can be dedicated to finding the right buyer/seller or bid/ask price, then it is recommended that you find a free forex broker that is registered with a governing organization. Many tenured traders use brokers also, especially considering the hours that the market is open.
|Jennifer Mathes, Ph.D.|