abdulla1 Posted April 5, 2011 Share Posted April 5, 2011 The broker assumes two groups- 1. Group A :- 95% of traders who lose money 2. Group B :- 5% of traders who makes money The broker assumes that every new acount belongs to group A. After some time when you earn consistantly, they re-assign you to group B. After you joined group B, they lump your trades with all of the rest of group B & hedge against your trades. Basically your brokes puts up with group B but in fact, is interested in gaining group A acounts. It means if a Group A trader lost $1000 - that is, completely blows up his $1000 acount. Then the broker gets all of that money. In fact the broker doesn't make money on the spread; he makes money on the loosing acounts ! Got it ? Quote Link to comment Share on other sites More sharing options...
bloger90 Posted April 15, 2011 Share Posted April 15, 2011 Well is it really true? Because if your are lossing that means another person is profiting that amount . I don't think your broker can get that money. But for sure they will earn from the spread. so i think they want you to succeed and make many trades as possible. Quote Link to comment Share on other sites More sharing options...
winning11 Posted April 16, 2011 Share Posted April 16, 2011 Well is it really true? Because if your are lossing that means another person is profiting that amount . I don't think your broker can get that money. But for sure they will earn from the spread. so i think they want you to succeed and make many trades as possible. I agree. The profit from the spread alone is already very very huge. This is just like a zero-sum game, and the broker gains for the trading service it offers. It is pretty reasonable. Quote Link to comment Share on other sites More sharing options...
boniez Posted April 21, 2011 Share Posted April 21, 2011 Well is it really true? Because if your are lossing that means another person is profiting that amount . I don't think your broker can get that money. But for sure they will earn from the spread. so i think they want you to succeed and make many trades as possible. Not all brokers only get profit from the spread alone. there is brokers who benefit through our spread and there are also brokers who make a profit fromm the trader loss, low incidence of broker who benefit from the loss of traders are those who have a bad reputation and have probability of scam Quote Link to comment Share on other sites More sharing options...
hyipreviewblog Posted May 18, 2011 Share Posted May 18, 2011 most broker get profit from the spread of pair in forex market...maybe there are some broker that earn money from trader's loss...you must avoid this broker cause they will do everything to make you lose and you wiill never withdraw from them... Quote Link to comment Share on other sites More sharing options...
andry777 Posted May 27, 2011 Share Posted May 27, 2011 Type of broker which took profit from our losses is dealing-desk broker. I tried to give explanation which I knew, that broker will accept request from traders but they didn't pass it directly to forex market although in their chart, that fund is passed to forex market. The broker used the amount as their fund to do trading by theirself, so if we lost in trading, they didn't need to pay us or it means they got profit from our losses. Quote Link to comment Share on other sites More sharing options...
indieover Posted June 13, 2011 Share Posted June 13, 2011 Not all brokers only get profit from the spread alone. there is brokers who benefit through our spread and there are also brokers who make a profit fromm the trader loss, low incidence of broker who benefit from the loss of traders are those who have a bad reputation and have probability of scam but i think that broker should only make profit from the spread and not from the loss of traders. indeed we can call them scam broker if they want to earn from the loss of their tradres. who would want to trade in brokers where the brokers wanted their most of the traders to loss. for them to earn more. Quote Link to comment Share on other sites More sharing options...
winning11 Posted June 16, 2011 Share Posted June 16, 2011 The spread can be regarded as "fee that the broker charge for its services". It remains constant. No matter a trader profits or loses, it is undeniable that the broker provides the trading services, which justifies the fact that the broker can earn even when the trader loses. Quote Link to comment Share on other sites More sharing options...
indieover Posted June 18, 2011 Share Posted June 18, 2011 that should be the case that the broker would earn only from the fixed spread. i don't know if other brokers don't have fixed spread. but i prefer to trade on brokers that does have fixed spread only. so i know how much i will lose for each open trade that i do. Quote Link to comment Share on other sites More sharing options...
Nikhil Posted June 23, 2011 Share Posted June 23, 2011 @indieover yes i also like fixed spread broker and obviously it low and there is some broker thats really want to low spread in major pairs . anyway if we scalping then this spread play a great rule no doubt when we only take risk for few pips when do scalping. Quote Link to comment Share on other sites More sharing options...
antthenait Posted July 11, 2011 Share Posted July 11, 2011 I don't believe that in forex there will be 95% loosing chance, it's true for any auto bot system there might be a change of loss, because of their auto changeable program. but for real time market exchange their should work our calculative plans. So 50-50 is sure. Quote Link to comment Share on other sites More sharing options...
andry777 Posted July 13, 2011 Share Posted July 13, 2011 The spread can be regarded as "fee that the broker charge for its services". It remains constant. No matter a trader profits or loses, it is undeniable that the broker provides the trading services, which justifies the fact that the broker can earn even when the trader loses. I think that is not the explanation, traders will gain commission from spread and that means it's not broker get profits from your losses but brokers got profits from your transaction. The statement here talked about non dealing-desk broker which didn't process our request directly to forex market but they used our funds to trade in forex market. If we got profits, brokers should pay us but if we got losses, they don't need to pay us. Quote Link to comment Share on other sites More sharing options...
hyipreviewblog Posted July 14, 2011 Share Posted July 14, 2011 brokers get profit from spread on each currency pairs. So when you open and close position they will make profits from every pair spread. But sometimes there are brokers that also make profits when you lose, you must keep away from these brokers cause they never want you to win cause it means their loss. Quote Link to comment Share on other sites More sharing options...
andry777 Posted July 18, 2011 Share Posted July 18, 2011 @hyipreviewblog Yes, that is commonly what will be given to forex broker because they have provided all things that is important to be used in trading. So spread is like fees that we should pay to brokers. But for brokers which take advantages on our losses, it is usually non-dealing desk broker. Quote Link to comment Share on other sites More sharing options...
FinCoder Posted July 19, 2011 Share Posted July 19, 2011 But brokers get money loaning you money over a night too? I am talking about swab now. Is that really true what the thread starter said in the begining? Can someone confirm it? Quote Link to comment Share on other sites More sharing options...
hyipreviewblog Posted July 22, 2011 Share Posted July 22, 2011 but i think that broker should only make profit from the spread and not from the loss of traders. indeed we can call them scam broker if they want to earn from the loss of their tradres. who would want to trade in brokers where the brokers wanted their most of the traders to loss. for them to earn more. Yes, we can called them scam cause this brokers will never pay you if you win from them. They just want you to open account with them and then try many ways to make sure you loss on every trading. So it is better we make some investigation first before we join with one broker. Quote Link to comment Share on other sites More sharing options...
samshh Posted July 23, 2011 Share Posted July 23, 2011 I agree But There is 95% risk so its seems scary but if you are lucky you will rock the money live happy life. well can anyone tell me how much minimum i can spend on forex ? Quote Link to comment Share on other sites More sharing options...
winzpc Posted July 23, 2011 Share Posted July 23, 2011 Well is it really true? Because if your are lossing that means another person is profiting that amount . I don't think your broker can get that money. But for sure they will earn from the spread. so i think they want you to succeed and make many trades as possible. I agree with you, everytime someone loss in their trade then otherone will earn that because is always balance between the BUY and SELL order, it's like stock. So I think broker earn money from the spread and swap. I agree But There is 95% risk so its seems scary but if you are lucky you will rock the money live happy life. well can anyone tell me how much minimum i can spend on forex ? Yeah, forex is very risky and much trade lose in this business. I think that 95% trader lose the trade because they think forex is an easy business and didn't learn the forex basic. Seeing many professional trader that can make a huge profit and they want too be like the pro one. But they don't know how the progress that the pro trader have done to become a successful trader. winzpc Quote Link to comment Share on other sites More sharing options...
andry777 Posted July 25, 2011 Share Posted July 25, 2011 @winzpc I am disagree with statements that said there is 95% people who lost in forex trading because there is no detail statistic of that. It was only people assumption because they lost in forex and they knew many of their friends who is failed too. There are many people who is success in forex business too. Quote Link to comment Share on other sites More sharing options...
hyipreviewblog Posted July 25, 2011 Share Posted July 25, 2011 @winzpc I am disagree with statements that said there is 95% people who lost in forex trading because there is no detail statistic of that. It was only people assumption because they lost in forex and they knew many of their friends who is failed too. There are many people who is success in forex business too. Yes, I also not agree with winzpc that 95% people lost on forex market but the right one is 99%..lol. Let us not debate about it and just face the reality that most people who try forex and when they lost they will complain that forex is like gambling and you can only play it if you have a good luck. They just don't know that forex very well and I hope this kind people will not back on forex again. There are many traders out there that already earn for living with forex and they kept quiet cause they don't want to debate with many people that feel pessimist with forex. Quote Link to comment Share on other sites More sharing options...
hoanglong Posted August 29, 2011 Share Posted August 29, 2011 There have brokers that make profit from commission or spread, the more we trade and make profit the more brokers earned but it's not like all brokers work like that. There have brokers that see your losses as their profit, they did not excuse your trades in the real market, they just simple trade opposite way with you! Quote Link to comment Share on other sites More sharing options...
bringpeace Posted August 30, 2011 Share Posted August 30, 2011 Broker no only get money from our loss, Broker get money from our order and not depend our loss or make profit, everytime we make order, broker will get profit from spread, maybe any bad broker, so our order hold with broker and when we get loss they can take our order Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted September 4, 2011 Share Posted September 4, 2011 You said it right @bringpeace brokers are not concerned with whether our trade goes in profit or in loss they always make money in the form of spread or any other charges they apply time to time. And yes brokers are only who make guaranteed profit from our trades. Quote Link to comment Share on other sites More sharing options...
adnan007 Posted September 27, 2011 Share Posted September 27, 2011 You said it right @bringpeace brokers are not concerned with whether our trade goes in profit or in loss they always make money in the form of spread or any other charges they apply time to time. And yes brokers are only who make guaranteed profit from our trades. I agree with you @yogesh. As most of the traders loose in forex daly, the main source of income of forex brokers come through it. However, they do have additional fees such as the spreads and commisions for earning some additional income from their systems. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted October 17, 2011 Share Posted October 17, 2011 Not only they are making money from spread - but many people open account deposit little money trade once or twice and forget it, also when positions are squred off due to lack of margin little balance is left in account and account holder usually do not return to such account. Other than this excessfunds that we have in our account can be used by brokers for earning from other market sources. Quote Link to comment Share on other sites More sharing options...
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