I'm trying to learn about currency trading because I want to do a relatively large EUR to CAD. I read on EF people quoting the cost of these kinds of trades but I can't figure out how they get the numbers. I'm stuck at pips vs given exchange rate.
Places like my bank, or xe.com give me an exchange rate, whereas FOREX trading sites (like Swissquote) give a spread in pips. And on top of this there are also fees. Swissquote gives me a spread in pips
(3.1 for EURCAD >100,000, those are pips right?
). And xe.com tells me they will sell me 1375.71 CAD for 1000 EUR. So how do I compare these two? (and xe will probably give me a better exchange rate for 100,000)
Doing some reading on oanda
it tells me "The monetary value of each pip depends on three factors: the currency pair being traded, the size of the trade, and the exchange rate."
So for an example, lets say I want to move 100,000 EUR to CAD and compare swissquote of 3.1 pips vs a hypothetical exchange rate that xe quotes for me (1000 EUR gets me 1375.71 CAD, and as an aside using google midpoint exchange rate is 1398.48 CAD).
For the next step I am missing data, but I don't know what I'm missing. Can someone help me along?