Lpoa means transaction authorization. In foreign exchange transactions, the most common cost is the spread fee. The price difference is the difference between the buying price and the selling price. Spread is the fee charged by the broker for each transaction, which means that the broker makes money by collecting spread. For example, suppose you want to buy Euro/USD, and the price shown in the price chart is 1.2000. The platform you choose will quote two prices: 1.2002 and 1.2000.

1. When you click the buy button, you will enter a long position with the price of 1.2002. This means that you need to pay a price difference of 2 points (the price difference between 1.2002 and 1.2000).

2. If you decide to sell, the price chart still shows that the price is 1.2000, and you will enter the market at the price of 1.2000, but you still have to pay the price difference when closing the position. This is because no matter what your closing price is, it will be two points higher than the original price. For example, if you want to close your position at 1.9980, your position price is actually 1.9982. It should also be noted that because the spread depends on the market fluctuation and the currency pair of the transaction, it is easy to have a slip point in a highly volatile market.

3. If the market fluctuation is low, that is, there is not much market activity, the broker may charge a price difference of 2 points. However, if volatility becomes higher or liquidity decreases, brokers/spread traders may increase the spread. Some brokers also have other hidden fees, such as idle fees, monthly or quarterly minimum fees, margin fees, consulting fees, overnight interest, data fees, etc., among which overnight interest is the most common.

If you need to hold a position for more than one day, the broker will charge you overnight interest. For long-term traders, isolating interest is a big expense. In addition to transaction fees, traders should also consider additional fees, such as data fees, when calculating overall profitability. For foreign exchange traders, market data, including news and price behavior analysis, can help traders understand the market situation in time. These fees are usually charged monthly. Different data providers have different prices, and the quality and types of data feeds are also different.

There are three kinds of foreign exchange transaction fees:

1. transaction commission, which is one of the income of brokers, but as far as the current situation is concerned, most of these fees are basically cancelled.

2. Price difference, the difference between the selling price and the buying price. This part is currently one of the main sources of profit for brokers.

3. When the order is overnight, some orders will have an overnight fee, which is also charged by the broker.