Brokerage Charges in Forex Trading || Basics of Forex || Anish Singh Thakur || Booming Bulls

Hello guys. My name is Anish Singh Thakur and welcome to the second video of the Forex series. Let me tell you before making this video, I am wearing such clothes because I was making a video of meditation before this and I did not want to change clothes, but making this video was very important for you, so I am making it because I have to upload it tomorrow. Okay. Let's come back to the topic. This is the second video in the Forex Series. Why? Look, I'll tell you in this video also, exactly what are the charges that are… that you have to pay. What is the cost of doing business? What is the cost of doing Forex business? I will tell you this in this video. Why will I tell you? Because the next video is going to come directly that now we are going to start trading, we are going to open an account like this, in this way. In this way you will also get payouts in India, that too without any problem. In this way, you can also make a deposit.

It is a very good company in which we are going to work. But in any company or whatever the company, if you do not know what is the cost of doing business, then there is no benefit. Just like, it is known in Zerodha, twenty rupees in buy and in sell. It is known in abstract, it is known in Kotak. You should know that here too. Let's start it. What is the cost of doing Forex business? So, cost of doing Forex business, there are basically three kinds of charges. So, first charge is called brokerage. Brokerage basically commission. What commission does your broker charge? This is your first fees. The second charge is called spreads. And the third thing is called swaps. These are three things, the first of which is very easy, brokerage man. When you buy a lot or 0.5 lot or 0.1 lot then you put 3 dollars, 5 dollars, 10 dollars.

Different brokers charge differently. Some even make it free for some time. So, there are brokers like this too. So, first brokerage charges, nothing special. You now know, what is commission? What is brokerage charges? That's set. Now, the second thing, "Spreads". Now all the people who are traders, you know, bid and ask. The market depth in the stock market, bid and ask is also here. Let's talk an example of this iPhone, I want to sell it. I want to sell it for one lakh rupees, so if I want to sell it for one lakh rupees. But when I am going to sell it, I am getting 95000 in it and when I am going to buy it… Maybe I can do it right-and-left in bid-ask, I am not giving much attention.

And when I am going to buy, I am getting it in one lakh. So, the difference of five thousand, between bid and ask, it is called "Spreads". The five thousand is the difference between the price. Actually, five thousand is a huge amount. The difference is in point-woint, ten-fifteen paise-rupees, and in dollars only a few cents. So you understand, spread means, "The difference between buying price and the selling price is called Spreads." Now, the third thing, What is "Swaps"? This is a new thing. I will tell you all, what is swap? Swap is the cost of holding. What did I say? Cost of holding the currency pair or Cryptocurrency will also be available to trade, either commodity will be available, goldie will be available, everything will be found, index will also be available for other countries.

We will see. I will tell you what is the list. Means, if you hold any trade overnight. Overnight means, Forex market is open for twenty four hours. Yes, open 24 hours. But here too, daily candle closes and new daily candle start. So whatever candle is formed, it start, if you hold a pair more than one day, you have to pay the interest. What interest you have to pay? I will tell you. Okay. Every country has a different interest. The central bank of every country, like there are RBI in India, they fixes our interest rate. If you go so much technical then you will get irritated. So I will try to explain you in a simple language, in Hindi and English, what happens? So, let's restart the swap. Swap means, whenever you hold a currency for more than a day, you have to pay. Now, for example, If you talk about this pair GBP/AUD, you trade on Australian dollars Grade British pounds. What happens when you go long on GBP and short on AUB? There is one thing.

I bring you here quickly. I will write here "". You have to open this website, "". Come here. After coming here, on this website, different countries… It is showing of Euro, Europe, United States, Canada. You do not have to see this much, just to give you general knowledge, I am showing this thing. But from there, I have set an example out of it basically, so I am showing it.


If GBP interest rate is 0.1% and the interest rate of AUD is 0.25%. So basically, we will do substraction, 0.1%-0.25%. Then it will come… this will be 0.15%, right. I had to write GBP here and AUD had to write here. So it will be -0.15%. This is called "Negative Swap". Whenever Swap comes in negative, you have to pay. How much? For example, If you had taken a lot, you would multiply this thing by one. Like this with 2, 0.5. This is a small calculation. Not a huge amount comes. Still I am giving an example. And if you do a good research, you will find it in Google. Let me give another example of positive swap. Positive swap means, sometimes in a few cases, if you hold the trade, you get money. How do you get it? When a positive swap occurs. Positive swap means that if we go long at this pair, then the key interest rate of Australian Dollars is 0.25% and the Euro's key interest is 0%, for example.

This is a another day's data. It varies. So, 0.25%-0% is equal to 0.25%. This is in plus. This is called "Positive Swap". So here, you get money. Maybe something must be understood, some may not. So understand this much that after the brokerage and spread, the swap can also take place. You can say this tommorow that what is this charge, I don't know about this. So, now you know, there is something called "Swap". There is Swap calculator also on the Google. If you google that, you will also find it. I have simplified your life that there is also something called swap and you have to manage in this way. All three types of charges are over. Now I will just tell you that now we are going to start doing Forex.

And when we start Forex, we have to know everything about it and I think it's my responsibility that I, because I have been promising you people for a long time that I will bring the Forex serie. So I will bring every little thing that is really related to finance. Tomorrow, you should not feel that you did not know. Okay. Now. Last, I will tell you an important point. Wednesday is slightly different from the rest of the days for forex trading. Why does this happen? What happens, Monday…. Well I don't know why Wednesday, why not Thursday-Friday. But what is special, this day takes triple rate. They also takes swap charge on Wednesday and charge two times more. One plus two. Why? Saturday-Sunday, which is going to come in the future, they deducts the charge first. Why do they deducted? I don't know.

So remember if there is a trade on the day of Wednesday…. That means, holding on Monday, no problem. It takes one day's charge. Holding on Tuesday, no problem. It takes one day's charge. If we hold on wednesday, it will take three times the swap. So tomorrow you will also have a doubt, why did I get a higher commission on the day of Wednesday? Because wednesday is a special day for forex trading and there people takes Saturday-Sunday's charges already. Why do they take it? I do not know. Still I told you. Tomorrow you will say that, it takes more money on Wednesday, from the rest of the days.

Because, Wednesday is a special day for Forex trading. You get a different charge on that day, for holding it overnight. Alright. I hope, you must have understood what I wanted you to understand. This was a very short video. It was important for me to explain to you how and what charges are there in it. So, the next video directly is coming, directly I show you the name of the broker, I will give you the link, I will give you all the information that how to open an account? You can work in a simple way. And after that I definitely post some technical analysis tools also for the Forex trading. And I definitely put some market analysis also, that these are the things we can trade and all. I will also start that for you. Okay guys. So, I hope you are enjoying it, you are understanding it and you are like, ready for doing this new thing. Because if the margin ends, I have also talked about leverage here. It does not get like this, but good leverage, I will be helping you to get in this. So that, you can trade well with a normal capital.

Alright then. Thank you so much. Like the video if you like it. And share it with your friends. And definitely subscribed the channel, if you have not done yet. Now, about next video, I see you very soon, like in 3-5 days in my new video, where I am telling you about Forex Broker. Thank you so much guys. Bye, bye, bye. I will see you soon in the next video..

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