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What do forex brokers rely on to make money?

lavis_book
Jul 13 2019 at 06:18
38帖子
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
Jul 21 2019 at 15:11
20帖子
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.

AniLorak
Jul 23 2019 at 15:28
920帖子
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!

AmDiab
Jul 23 2019 at 16:25
718帖子
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!

Fearlesswalker (Fearlesswalker)
Aug 31 2019 at 19:45
23帖子
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.

AniLorak
Aug 31 2019 at 19:56
920帖子
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?

Wrathdragon
Feb 03 2020 at 19:38
19帖子
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.

finnishpension
Feb 04 2020 at 14:57
11帖子
Brokers reply on people who are unhappy with their financial situation and have an addictive personality type

Johannes92563 (Johannes92563)
Feb 26 2020 at 11:22
12帖子
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

SofieAndreasen
Aug 28 2020 at 00:38
441帖子
Broker’s authentic way to make money from spread and commission. However, scam broker steal traders fund.

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