How do forex brokers charge traders with pip spreads? -

i know that the less pip spreads a forex broker offers the better. but why? how do they make money by offering more or less pip spreads? thanks in advance. A quot;pipquot; is a fraction of a unit of currency. For instance, the current level of the dollar versus the British pound is $1.9671 per pound. The $0.0001 is called a pip. A forex broker will make a quote $1.9670 bid and $1.9672 offered. In this case, the spread is 2 pips (i.e., $0.0002). If you want to buy pounds, you must pay $1.9672 dollars. If you want to sell pounds, you will receive $1.9670. So, if you trade frequently, you would prefer a narrow spread, like the one above, to a spread of, say, $1.9500 bid and $1.9700 offered. In the latter case, you need the $/pound rate to move a lot just to break even. When you excute a live postition the broker will charge you 2-4 pips . You can trading in the following platform for try ,you will know everthing. You can open an free Marketiva forex \gold\fund\indexs online trading account , with $5 reward and $20000 virtrual fund for practice .Just click the following link to open an account. http://www-forex.spaces.live.com