Table of contents:
GKFX costs and fees at a glance
Also with the broker GKFX, traders naturally incur costs in connection with the trading of currencies, CFDs or other financial products. In case you have not yet informed yourself in detail about the costs involved in trading with GKFX, we would like to help you with this guide to get a good overview of the fees charged by the broker and the costs involved in trading with GKFX. Not only will we explicitly explain the costs and fees involved in trading, but we will also provide you with information about the costs you may incur when you deposit and withdraw funds to and from your trading account.
The spread as the main cost factor with GKFX
For any broker that provides trading in Forex or CFDs, the spread is usually the main cost factor. While professional and experienced traders will of course know what the spread is all about, beginners may not be familiar with this term. Therefore, we would like to start by briefly explaining what the spread is actually about. Simplified, the spread is a difference that results for every broker between the ask price on the one hand and the bid price on the other. For the Forex broker, the spread is usually the most important source of income, which of course means that this cost factor is one of the most important factors for traders when comparing Forex and CFD brokers.
When trading forex, the spread is always expressed in pips, as this is the accepted measure. A pip, in turn, is the smallest change in price quotation that an exchange rate can have.
If, for example, the ask price for the currency pair euro and US dollar is 1.3500 dollars and the bid price is 1.3501 dollars, then in this case the fourth decimal place with a change from “0” to “1” would simultaneously be the change of one pip. How high the spread ultimately is, depends on the broker on the one hand and on the currency pair to be traded on the other. In the case of the main currency pair, the euro and the US dollar, the spreads usually range from one pip to three pips. If, on the other hand, somewhat more exotic currency pairs are being traded, it is also possible for the broker GKFX that the spread can range between four and over ten pips.
Here is an extract from the spreads for Index-tracking CFDs at GKFX:
Spreads on Index-CFDs
|UK100||UK 100 Rolling||CFD||1 (1 Pip)|
|ESX50||EuroStoxx 50 Rolling||CFD||1 (1 Pip)|
|DAX30||German 30 Rolling||CFD||1 (1 Pip)|
|SP500||SP 500 Rolling||CFD||0,4 (4 Pips)|
|WS30||WS 30 Rolling||CFD||2 (2 Pips)|
|NAS100||NAS 100 Rolling||CFD||1 (1 Pip)|
|RUSS||Russel 2k Rolling||CFD||0,4 (0,4 Pips)|
|AEX25||AEX 25 Rolling||CFD||0,2 (0,2 Pips)|
|CAC40||French 40 Rolling||CFD||0,8 (0,8 Pips)|
|SMI20||Swiss 20 Rolling||CFD||6 (6 Pips)|
|SWE30||Swedish 30 Rolling||CFD||0,4 (0,4 Pips)|
|IBX35||Spanish 35 Expiring Future||CFD||4 (4 Pips)|
|Brent||ICE Brent Expiring Future||CFD||5 Ticks|
|Gold Spot||Polish 20 Expiring Future||Spot||5 Ticks|
For example, the spread for trading in the DAX30 on weekdays from 09:00 – 22:00 is only 1 point fixed. In the Dow Jones only 2 points spread is due on weekdays from 09:00 – 22:00. The spread is also fixed during this period. In currency trading, the spreads are somewhat higher, for example 1.5 pips in EUR/USD, but in our opinion they are still within reasonable limits if you do not want to trade or even scalp at very short notice.
An important detail in connection with the spread is that there are both fixed and variable spreads. In the case of the fixed spread, it is so that the corresponding currency pairs can always be traded with the same spread (measured in pips). However, one disadvantage is that fixed spreads are usually slightly higher than variable spreads, but these can be changed by the broker at any time. This is not really the case with GKFX, however, as the DAX30 can be traded with only 1 point spread during peak trading hours, as already mentioned from 09:00 to 22:00.
Commissions and financing costs as additional fees
In addition to the spread as the main cost factor, many brokers have at least two other types of costs to consider, namely commissions on the one hand and the financing costs incurred on the other. The commission is a fee that is usually charged for each trade placed. Depending on the broker, this is either a fixed or a variable fee, which also depends on the trading volume of the respective client. It is important to note that such commissions are usually only charged by ECN and STP brokers. If, on the other hand, a so-called market maker is involved, the spread is usually the only fee factor in this respect, as in this case commissions are rarely charged. Fortunately, GKFX is also one of the brokers who do not charge commissions.
A further cost factor, which is in principle estimated by every broker, is the so-called financing costs. However, these are only incurred on condition that a position is still in the customer’s portfolio after the close of trading. This is why we also talk about the so-called overnight costs, because in this case the broker practically lends the customer money from one day to the next. The financing costs are calculated on the basis of an interest rate set by the broker, which can vary not only from provider to provider, but also from currency pair to currency pair or from trading product to trading product.
GKFX costs depend on the account model selected
With the Broker GKFX it is so that the height of the resulting costs depends in particular on which account model the customer has decided on. For example, no commissions are charged on any account, while the level of the spread differs between the four account types for private clients.
Customers can choose between the micro account, the trading account with variable or fixed spread and the VIP account. Spreads are most favourable on the VIP account, where they start from 0.6 pips, while the trading account with a fixed spread and the micro account have spreads for currency trading starting from 1.5 pips. However, the spreads for trading Index CFDs do not differ between account types. There are differences between accounts not only in terms of cost, especially the spread, but also in terms of minimum trade size, leverage and maximum trade size.
Note costs for deposits and withdrawals
Another cost factor, which usually plays only a minor role, but which should not be completely ignored, is any fees for deposits and withdrawals at GKFX.
GKFX gives its clients the option of choosing one of three account currencies – Euro, US Dollar or British Pound – for both deposits and withdrawals. There are several payment methods available for deposits, including bank transfer, credit or debit card payment and various online payment services, including skrill and instant bank transfer. Although there are generally no charges for withdrawals, this is only applicable to deposits to a limited extent. For example, a transaction fee of 1.5 percent is charged for deposits made by credit or debit card from outside the UK. The basis for the calculation is the amount that the customer deposits into their trading account.
Conclusion on the costs with the broker GKFX
All in all, the costs of the broker GKFX are certainly in the upper range. Depending on the chosen account model, the estimated spreads start at a favourable 0.6 pips, while the broker does not charge any commissions. Particularly positive are the spreads on index CFDs such as the DAX30 or the DowJones which are very favourable at 1 or 2 pips during the main trading hours from 09:00 to 22:00. Financing costs are also within the usual range and there is only a 1.5 percent fee for deposits if the customer decides to deposit by credit or debit card. All in all, the broker GKFX therefore certainly scores very well in direct comparison with numerous other providers in the area of costs, so that this fact could well be a decision criterion in favour of the Forex broker.