[phildunn]

I found a article about this issue at http://electronicforextrading.com/fo...commissionfree

Forex Brokers. Are They Really Commission Free?

Submitted by Forextrading on Mon, 2005-04-25 22:36. Forex Brokers

Most, if not all, Forex brokers attempt to entice prospective traders by claiming that they do not charge commissions for trading currencies. Indeed, most Forex brokers do not charge commissions, but make their money on the spread (1-5 pips depending on the broker). As you may remember from your stock trading days, the spread is the difference between the bid and the ask.
So does a pips or two make a difference? You bet it does. Many traders like the Forex market because of the leverage (400:1 depending on the broker), which gives the trader substantial buying power and control over large blocks of currencies. Let's assume that you decide to buy 100,000 block of currency. If this particular broker charges a 4 pip spread, you will end up paying the broker $40 just to enter the position. Spend another $40 to exit the position and you end up paying your broker $80. These type of costs eat away a trader's profit and increase losses.
Another way some brokers make money is by maintaining trading desks that trade against customer positions. If the broker feels that a customer entered into a losing position, it will take the opposite side of the trade and make the money that the customer ends up losing. Does this this mean my broker wants me to lose money? Judge it for yourself.
Next time a broker entices you to open an account by claiming that they do not charge any commission, make sure to find out the spread on major currency pairs. Also inquire whether they trade against their own customers, because you don't want your won broker to turn against you.

Look like it is true that brokers earn big money by trading against us !!!