What do forex brokers rely on to make money?

Are the brokers making money from the loss of the customer?🙄

We can seriously discuss this topic~
I look forward to your reply.😇

Ammy2323 posted:
Are the brokers making money from the loss of the customer?🙄

We can seriously discuss this topic~
I look forward to your reply.😇

Brokers make money from commissions and spreads.

Of course, anyone never gives you free service

Brokers that take the other side of your trades will make profit when you lose. Just like normal sports betting

CrackedMic posted:
Brokers that take the other side of your trades will make profit when you lose. Just like normal sports betting

The problem is that many brokers do not recognize it.

Usually from comissions and spreads, so basically each time you play, that's why they really should be interested in fair play, but sometimes that doesn't really happen so what to do with all that is up to you. If you look at scam stories it's something with leverage as well.

Felhagamand posted:
Usually from comissions and spreads, so basically each time you play, that's why they really should be interested in fair play, but sometimes that doesn't really happen so what to do with all that is up to you. If you look at scam stories it's something with leverage as well.

well said. There is no free lunch in the world. Haha~ Can I communicate with you often? I want to learn more with you.

Best type of broker are ECN brokers. The charge commission with every trade but have super low spreads and do not take the other side of your trade

TeamNotreDame posted:
Best type of broker are ECN brokers. The charge commission with every trade but have super low spreads and do not take the other side of your trade

i agree, you get direct quotes from the LPs and no interference.

Forex Brokers earn money through various sources like :
    • They charge commission or fees,some of them hidden too per trade or spread.
    • Payment Processing commission- Online brokers deduct this fees only when you deposit or withdraw money.
    • Leverage- So many brokers offer high leverage. For example 1:100 leverage,it multiplies your trading volume but with this a broker can probably make a commission by widening the spreads or trades.

A forex broker has the responsibility of carrying out trade on behalf of his client trader. He does the job of executing the buy and sell orders for the trader concerned. Forex brokers normally operate in an OTC (over-the-counter) market so that very less rules and regulations are binding on them and they can work according to their will.

Now, how does the forex broker make money? These brokers charge their clients a basic commission for each trade or spread. Broker’s spread is basically the gap between the ask and the bid price of the transaction. There is no bondage on the broker to charge either a commission or a spread. He can, at anytime, charge both of them from the client.

There may be a possibility that some traders offer to work on commission-free basis for clients. But this is basically a way to fool the traders, as such forex brokers earn their revenue by widening the gap between their bid and ask prices.

Kenkatzia posted:
In return for executing buy or sell orders, the forex broker will charge a commission per trade or a spread. That is how forex brokers make their money. A spread is a difference between the bid price and the ask price for the trade. ... A broker could also charge both a commission and a spread on a trade.

Yes; that’s the general way of money making by Fx brokers! But market maker brokers do trade against the traders!

lavis_book posted:
A forex broker has the responsibility of carrying out trade on behalf of his client trader. He does the job of executing the buy and sell orders for the trader concerned. Forex brokers normally operate in an OTC (over-the-counter) market so that very less rules and regulations are binding on them and they can work according to their will.

Now, how does the forex broker make money? These brokers charge their clients a basic commission for each trade or spread. Broker’s spread is basically the gap between the ask and the bid price of the transaction. There is no bondage on the broker to charge either a commission or a spread. He can, at anytime, charge both of them from the client.

There may be a possibility that some traders offer to work on commission-free basis for clients. But this is basically a way to fool the traders, as such forex brokers earn their revenue by widening the gap between their bid and ask prices.

Buddy; there have so many new traders here who are interested to know; how traders make consistent money from this market! Brokers make money here quite easily; but for the traders it’s too challenging!

They do rely on your transactions in reality, see my point ? So I do hope it will make wonders here no matter what. I really should understand that from the start and I would select much better broker that way, I hope you will follow my advice as well.

Fearlesswalker posted:
They do rely on your transactions in reality, see my point ? So I do hope it will make wonders here no matter what. I really should understand that from the start and I would select much better broker that way, I hope you will follow my advice as well.

You are correct & I think; your better broker means, regulated & good service provider broker’s; isn’t?

Your commisions, and I assume on that thing which is called leverage for something like that. I do not really want it to be seen honestly. Can you please make it possible anyway? That's why I am completely switching to the stock market soon.

Brokers reply on people who are unhappy with their financial situation and have an addictive personality type

willtradr posted:
  Forex Brokers earn money through various sources like :
    • They charge commission or fees,some of them hidden too per trade or spread.
    • Payment Processing commission- Online brokers deduct this fees only when you deposit or withdraw money.
    • Leverage- So many brokers offer high leverage. For example 1:100 leverage,it multiplies your trading volume but with this a broker can probably make a commission by widening the spreads or trades.

I agree with you

Broker’s authentic way to make money from spread and commission. However, scam broker steal traders fund.