Retail Forex broker Admiral Markets is planning to reduce costs for its clients who have ECN accounts, that is Admiral.Prime accounts.
From August 10, 2015, the company is slashing the commissions for currency pairs and spot metals (Gold and Silver) as follows:
- currency pairs and spot gold – USD 3.0 per 1.0 lots;
- spot silver – USD 0.3 per 1.0 lots.
(the numbers are for a single-sided trade).
Those of you who are acquainted with the pros and cons of the ECN model will understand that cutting commissions is an essential improvement in trading conditions, as ECN accounts normally come along with tight spreads and deep liquidity. It is the commission one should watch for when trading from an ECN account and that is why the decision of Admiral Markets to axe commissions is a good piece of news.
To gauge how the coming changes will affect trading costs, let’s take a look at a mathematical example with the EUR/USD pair. The current commission rate for EUR/USD is USD 35 per 1 million USD of a position’s notional value, which is about USD 7.63 per 1.0 lots EURUSD round turn (assuming the market rate is 1.09).
As a result of the change, not only will the commissions be reduced but their calculation will be easier.
Perspective commission rates for all deposit currencies supported by Admiral Markets are listed below:
To view the official announcement on the pending changes, click here.