Expense Ratio” in Forex Trading: Understand the Basics

4 min read

Expense ratio, also known as the management fee, is a percentage of the assets in a forex-traded fund that is charged to cover the fund’s administrative and operational costs. The amount can vary depending on the type of fund and the country in which it is managed, but typically ranges from 0.2% to 3%. An expense ratio is the most common way for an investment manager to recover the costs associated with managing a fund, as well as a possible source of revenue. It is important to consider the expense ratio when investing in a forex fund, as it can significantly decrease total returns if high.