budado Posted October 22, 2011 Share Posted October 22, 2011 brokers does not earn by your loss or by your profit. its earn every time you make a trade. Earning or losing. As you can see theirs a pip and the difference is what brokers earn. So in short brokers don't loss money in here at all. As long theirs someone who trade brokers earn. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted November 5, 2011 Share Posted November 5, 2011 I see i wish if i know that we can be under the broker wherein we also earn from them from their traders. I know that in pamm account that they earn from their account manager if that will be good same to the broker. Thats why there were able to earn and consistent earnings from every trade because of sort of commission of every trade. Quote Link to comment Share on other sites More sharing options...
mohammadbadr Posted November 9, 2011 Share Posted November 9, 2011 I think this talking may persuade many, because it is actually logical, but from where you get these information? the brokers have many tricks to bring the traders down and get all their money, the methods are various but not all brokers follow such regimen, some of them have a great reputation. Quote Link to comment Share on other sites More sharing options...
budado Posted November 29, 2011 Share Posted November 29, 2011 I think this talking may persuade many, because it is actually logical, but from where you get these information? the brokers have many tricks to bring the traders down and get all their money, the methods are various but not all brokers follow such regimen, some of them have a great reputation. First what information your asking? Second if its about the trader loss and the broker profit then you must know the basic of forex trading. First how forex broker earn and what is the purpose of forex broker. Brokers earn via pips. If you can see theirs the difference between buy and sell And the difference is pips and that how brokers earn. Now the price change because of supply and demands. If theirs too many who sell then theirs many supply and the price goes down. Same thing if demands increase. Now for example. If you buy it at the high price and sold it at the low price. You loss right? but it does not mean the broker earn because of your loss. Its the other trader who buy it at that price has a savings. get the idea? its like you buy an apple 1 dollar. then you sell that apple 50 cents. You loss 50 cents but does it mean that the person who sold you the apple earn? because you sold it at 50 cents? no. Does it mean the person who bought your apple by 50 cents earn? No. So its the same thing. Brokers only earn by pips and by withdrawals fee if theirs any. Quote Link to comment Share on other sites More sharing options...
flybiz08 Posted March 28, 2012 Share Posted March 28, 2012 Not all brokers do this and even with the market makers, there's is a magnitude to which they can take the other side of your trades. You can hardly find a broker taking the opposite side of a trade that has over 10 standard lots. In the same vain, such brokers will do everything to make successful traders close their accounts. Quote Link to comment Share on other sites More sharing options...
adnan007 Posted March 29, 2012 Share Posted March 29, 2012 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. Â Well, the major source from which the forex brokers is the spread as we know and for the other cases you mentioned, it not a necessity a forex broker can earn through it. However, I am wondering if the SWAP fees the forex brokers offers also allows them to earn on each of the positions. What are your views on that? Quote Link to comment Share on other sites More sharing options...
budado Posted April 6, 2012 Share Posted April 6, 2012 Â Well, the major source from which the forex brokers is the spread as we know and for the other cases you mentioned, it not a necessity a forex broker can earn through it. However, I am wondering if the SWAP fees the forex brokers offers also allows them to earn on each of the positions. What are your views on that? Yes they do earn from swap also. All transaction in forex broker site make broker site earn money. Even in withdrawals and deposit they earn money. that's why broker sites don't easily close down even the illegal one. Simply because their just too many money to earn from. But its not a joke also to have your own forex broker site. As you really need big capital to own one. Quote Link to comment Share on other sites More sharing options...
charlly007 Posted April 26, 2012 Share Posted April 26, 2012 I don't get the way brokers are making money if traders lose their trading money.I know for sure that 95% or more lose money when trading forex but how that benefits the broker is what i don't understand and does that means,the brokers can make you lose your trading money ? Quote Link to comment Share on other sites More sharing options...
antthenait Posted May 1, 2012 Share Posted May 1, 2012 As we know that each and every business has chance of get loss or gain a huge. So we have to absorb any risk factor. It's true that if any member doesn't follow current market rate and invest too much amount then there will be a chance of getting 100% loss - most of the time did this due to involve of newcomers. So study first about the current rating and predict the future - after that you can make profit. Quote Link to comment Share on other sites More sharing options...
Sixteen Posted May 3, 2012 Share Posted May 3, 2012 In terms of pips, their is differences and i think brokers make money when we trade weather we loose or gain but in terms of losees, brokers tends to get more money here as a newbie always loose until he has a good skill to make profit in forex. Another things are orders, when we make orders brokers do gain also. So their are many ways brokers tends to make profit. Quote Link to comment Share on other sites More sharing options...
budado Posted May 18, 2012 Share Posted May 18, 2012 In terms of pips, their is differences and i think brokers make money when we trade weather we loose or gain but in terms of losees, brokers tends to get more money here as a newbie always loose until he has a good skill to make profit in forex. Another things are orders, when we make orders brokers do gain also. So their are many ways brokers tends to make profit. If you lose in forex trading traders does not earn from your lose Its earn both ways via spread and via commission when you withdraw and even if you make deposit. But if you loss a trade then the one who make profit from it is the other traders that trade opposite to your position. That's my broker site even want you to keep on trading and earning simply because the more you trade the more they earn. If you loss one time then they earn one time also. Quote Link to comment Share on other sites More sharing options...
rizal83 Posted October 12, 2012 Share Posted October 12, 2012 I just found out about all of this turns out to brokers benefit from any losses that we have experienced and this means that forex is not a business because we're just risking our money for the losses we will experience and the benefits to be taken by the broker, you may can explain in more detail about this because it can arbitrarily create hesitate to say a trade Quote Link to comment Share on other sites More sharing options...
euro Posted October 15, 2013 Share Posted October 15, 2013 I mean they have to make money somehow right. Just like in gambling, you're gambling against the house and if you lose then they gain but if you gain then they lose so someone has to gain and someone has to lose. There are a lot of cheating in person in gambling so its true for online forex as well so beware of that. No brokers will make that much from trades alone. They make so much more than that but there are regulations so thank God for that and report suspicious activities. Quote Link to comment Share on other sites More sharing options...
budado Posted October 24, 2013 Share Posted October 24, 2013 Broker sites does not make profit for our loss. They make profit for our trade. So its does not matter if we end up in profit or end up at loss. Because each spread that have each time we trade is the amount our broker sites make and earn. And this is the main reason why the more volume the trade the more we can end up making good income in here. Lets just sustain and maintain our account in here. Quote Link to comment Share on other sites More sharing options...
Bagus Posted October 26, 2013 Share Posted October 26, 2013 Broker sites does not make profit for our loss. They make profit for our trade. So its does not matter if we end up in profit or end up at loss. Because each spread that have each time we trade is the amount our broker sites make and earn. And this is the main reason why the more volume the trade the more we can end up making good income in here. Lets just sustain and maintain our account in here. which I know is the only broker will be able to get profit from each transaction spreads that we pay to them and they do not get the advantage of trading transactions that we get lost because this is not a rule like that they just can commission and the spread of our transactions Quote Link to comment Share on other sites More sharing options...
RASTA Posted October 26, 2013 Share Posted October 26, 2013 I agree with you that the brokers earn money from every transaction fee and commission trade we do what we do and do not get from the traders who lost to the type of trade that is healthy too which I know is the only broker will be able to get profit from each transaction spreads that we pay to them and they do not get the advantage of trading transactions that we get lost because this is not a rule like that they just can commission and the spread of our transactions Quote Link to comment Share on other sites More sharing options...
Bagus Posted October 30, 2013 Share Posted October 30, 2013 I agree with you that the brokers earn money from every transaction fee and commission trade we do what we do and do not get from the traders who lost to the type of trade that is healthy too I also felt so true that a professional broker then they will not force themselves in this trade to get a trade in a fraudulent manner since they already did the job where they will get money from this trading spreads and commissions Quote Link to comment Share on other sites More sharing options...
uncle gober Posted November 7, 2013 Share Posted November 7, 2013 A good broker will get profit from spread and commisions. Not by scamming trader. So far, i trust Armada Markets to trade in forex. They give me convenient service which makes me feel comfort when trading. I can be more focus when trading. Quote Link to comment Share on other sites More sharing options...
gaban Posted November 11, 2013 Share Posted November 11, 2013 A good broker will get profit from spread and commisions. Not by scamming trader. So far, i trust Armada Markets to trade in forex. They give me convenient service which makes me feel comfort when trading. I can be more focus when trading. Â yes, the broker will indeed benefit from spreads and commissions. and all this time I believe trading on instaforex. in instaforex, I can trade with ease. So I can focus with my trading. and most importantly instaforex not a scam broker. Quote Link to comment Share on other sites More sharing options...
budado Posted November 30, 2013 Share Posted November 30, 2013 Forex broker site does not earn from our loss. Its earn from our trade. So it does not matter if we end up making profit or going to end up losing their profit is the same as the spread is what make them earn. I do believe that in two to three years time I can have big trading capital that forex broker sites will surely going to earn good each time I trade. Quote Link to comment Share on other sites More sharing options...
standart Posted December 7, 2013 Share Posted December 7, 2013 dealing desk brokers get profit from traders loss. even they are sometimes trade against traders positions. such brokers including bucket shop which have small capital to run the business. for traders safety, better if they are join not dealing desk brokers. such brokers usually regulated and set high minimum deposit. Quote Link to comment Share on other sites More sharing options...
screw_twizz Posted January 1, 2014 Share Posted January 1, 2014 Style of broker which needed cash in on the cutbacks will be dealing-desk broker. My spouse and i experimented with to offer explanation that i realized, that will broker encourage demand from merchants they didn't pass it right to forex market although inside their graph, that will account will be passed to forex market. The particular broker employed just how much since their account to perform investing by means of theirself, therefore in the event that we all lost within investing, they didn't have to spend you or perhaps this means they acquired cash in on the cutbacks. Quote Link to comment Share on other sites More sharing options...
Decub Posted January 6, 2014 Share Posted January 6, 2014 Well, the TS was just assuming I guess, or probably his own opinion. For me, brokers make money from spread and that is the only way I know money can be made here. The assumption that brokers rip off traders and are always happy about their losses is just something borne out of suspicion. Quote Link to comment Share on other sites More sharing options...
Milo Beck Posted November 12, 2014 Share Posted November 12, 2014 It is very interesting, but to be honest i feel it is way too much complicated for a newbie to understand this stuff; therefore it is useless to go in such details. Mostly a true broker is will make earn by spread no matter if we lose or win. I love trading with OctaFX, as they are a true ECN company so they offer a very low spread of just 0.2 pips only by which they earn without any extra fees or hidden charges. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 16, 2014 Share Posted November 16, 2014 It is very interesting, but to be honest i feel it is way too much complicated for a newbie to understand this stuff; therefore it is useless to go in such details. Mostly a true broker is will make earn by spread no matter if we lose or win. I love trading with OctaFX, as they are a true ECN company so they offer a very low spread of just 0.2 pips only by which they earn without any extra fees or hidden charges. That is right true brokers earn from that what i mean as true broker here is a non dealing desk broker, which will love actually if you keep making profit which means that you will trade more and more later and giving them money, while ECN i think that there is a comission added beside of lower spreads. Quote Link to comment Share on other sites More sharing options...
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