Can you ignore fees in EA trading?
Introduction of automated trading systems, commonly known as EAs (Expert Advisors), has become an innovative trading method for many traders. With its accuracy and efficiency, it automates everything from market analysis to trade execution, allowing traders to do less manual work. However, in the process of increasing EA trading efficiency and maximizing profits, the importance of fees that arise in addition to spreads is often overlooked.
For example, some brokers charge additional fees for EA trading on certain major currency pairs, even while offering low spreads due to their fee structure. These costs accumulate at each stage of trading and can have a noticeable impact on final profitability.
These additional fees vary with trading volume; for instance, a fee of 18 yen is charged for every 10,000 units of currency. This means that careful calculations are required for all EA trades, from small to large sizes. In particular, for EAs that trade frequently, such fees can have a larger impact on profitability, so they should be considered when selecting EAs and formulating trading strategies.
Ignoring fees can lead to a large gap between projected returns from backtests and actual performance, significantly undermining the effectiveness of EA trading. Therefore, fees are a crucial component of trading strategies, and proper management is essential to maximize profits.
Ultimately, traders should thoroughly investigate each broker's fee structure and conduct a cost analysis that includes these fees when selecting an EA. Additionally, to minimize fees, it is recommended to adopt various approaches such as choosing trading times and adjusting strategies according to trading volume.
For example, some brokers charge additional fees for EA trading on certain major currency pairs, even while offering low spreads due to their fee structure. These costs accumulate at each stage of trading and can have a noticeable impact on final profitability.
These additional fees vary with trading volume; for instance, a fee of 18 yen is charged for every 10,000 units of currency. This means that careful calculations are required for all EA trades, from small to large sizes. In particular, for EAs that trade frequently, such fees can have a larger impact on profitability, so they should be considered when selecting EAs and formulating trading strategies.
Ignoring fees can lead to a large gap between projected returns from backtests and actual performance, significantly undermining the effectiveness of EA trading. Therefore, fees are a crucial component of trading strategies, and proper management is essential to maximize profits.
Ultimately, traders should thoroughly investigate each broker's fee structure and conduct a cost analysis that includes these fees when selecting an EA. Additionally, to minimize fees, it is recommended to adopt various approaches such as choosing trading times and adjusting strategies according to trading volume.
× ![]()