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Want to know how brokers make profit from your loss ?


abdulla1

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I think that brokers do not get money from the trading accounts when they are in loss, brokers just take their spread commissions since the market has to keep on moving and the traders which make a gain that has to come somewhere from the market movement, otherwise if brokers took the amount how would traders get their profit.

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I think that brokers do not get money from the trading accounts when they are in loss, brokers just take their spread commissions since the market has to keep on moving and the traders which make a gain that has to come somewhere from the market movement, otherwise if brokers took the amount how would traders get their profit.

It seems that you don't know about dealing desk broker, they not only earn from your spreads but from your loss because they create their own market, they don't use the market that using by big liquditors. But if that is non dealing desk, you should not worry because your statement is right.

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It seems that you don't know about dealing desk broker, they not only earn from your spreads but from your loss because they create their own market, they don't use the market that using by big liquditors. But if that is non dealing desk, you should not worry because your statement is right.

 

Yes, that's why we must choose non dealing desk broker. We must be selective and try to look for information about broker before we start trading with real account. Make sure too, that we also feel comfort to start with that broker

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@aliforex: As what thread starter want to know i give him some clue, because dealing desk broker in fact created their own market, they don't have liquiditor as market maker which means the market is "fake", and they are the one who can manipulate the price. And since they maintain it they must make profit from loss not from someone's spread.

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It is good to read these things, but we must keep one thing in our mind very clear, it is that we to will never find a good broker happy when we lose. The reason is that they only earn from our spread, so if we lose out they no longer will be getting spread from us. While a scammer will love to see us lose because they have other ways to steal our funds. I trade with OctaFX and they are a true ECN broker, so they care about our profits and that is why they always make sure we get the ideal conditions.

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I think this is usually a wrong assertion that brokers make profits from people's losses. I am yet to be convinced of such because there is little or nothing a broker can gain from another trader's loss provided they charge things like spread and swap which is usually their main base for making profit.

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I think this is usually a wrong assertion that brokers make profits from people's losses. I am yet to be convinced of such because there is little or nothing a broker can gain from another trader's loss provided they charge things like spread and swap which is usually their main base for making profit.

If your broker is not a dealing desk then that is true, that is a wrong assertion since i think it is better for them if we make profit because they earn from spread. But in fact it is different with dealing desk broker, since it is their own market, they are market maker, they against you so they could get profit, and they don't earn with such a spread because their market is not the real market.

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Well, personally, I wouldn't go for a DD broker since I know they manipulate the market to their favour. I see Forex as something controlled from the central which is also a function of news, hence, no reason to opt in for any broker who determines the market himself.

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Forex has different sources but the price differences between sources is not that big, usually only few pipettes. DD is what we must avoid for sure, my broker that i am using right now is non dealing desk broker, its rate is nice and the broker earn from spreads not from our loss, and they would be happy if we make profit because it means more income for them.

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  • 5 months later...

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

But there is a broker that earn even when we loss. That broker you said also earn from our loss i mean even we are in loss the broker still earn money, that is bad for them because a trader might stop trading if loss but when traders are in profit brokers still earn too.

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  • 1 year later...

The broker who earn from your loss is dealing desk broker and i agree that we don't have to join them, the risk is higher rather than conventional non dealing desk broker. The market in dealing desk is also controlled by broker so it is useless against them in their trading, only lose will await us.

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Yes many trader said if dealing desk broker will get profit from trader loss, but although as dealing desk usually also as company actually want their client always active in company so they will using many ways to attract their client being active, and however if trader making profit and withdraw money still broker will paying trader as long as not making bankrupt company

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If there is a broker who act like that then you must think twice before join that kind of broker. It is better to lose in non dealing desk rather than be a winner in dealing desk broker. Making money in that broker would be so much hard especially if you want to earn big, it is just like broker love you to lose more.

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Yes, who want to join that kind of broker. There are much risk to join that broker rather than trade with non dealing desk. If your broker is honest i am sure that broker is non dealing desk which earn from your spread and actually really want you to keep trade with them so they could get some too. In fact it is quite hard to spot broker like that, but if your broker start to do stop hunting loss or ridiculous terms you should be cautious maybe that is dealing desk broker.

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  • 2 weeks later...

But actually broker also still make profit from our lose no matter what kind of dealing they do. In non dealing desk the main income from broker is spread, no matter if their client is win or lose. Logically they still make some earning or profit right? The difference only that in non dealing desk it doesn't matter if you win or lose,  the broker's earning is the same depend on spread, but in dealing desk if you lose they earn big, but if you win they lose.

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  • 11 months later...

If we are talking about non-dealing desk then they still make the profit from our loss, what I mean by that is they will get their fee and that is all, so if you win and lose it doesn't matter for non-dealing desk broker. For dealing desk, well your loss means their profit in literal sense. You or Them, you against them.

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In my opinion no broker wants to loose any trader who is helping them earning money in terms of spreads or commissions. The dealing desk brokers eventually exposed with the passage of time however it might be good if we check traders review about the broker before finalizing any broker.

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In my opinion no broker wants to loose any trader who is helping them earning money in terms of spreads or commissions. The dealing desk brokers eventually exposed with the passage of time however it might be good if we check traders review about the broker before finalizing any broker.

No brokers? You forget dealing desk type broker? They totally want you to lose if not in short term it must be in long term. In dealing desk, you are against the broker, it is you with broker not you trade in the market where people trade to each other. In more fair broker aka non-dealing desk, broker still gets profit but in form of commission like spread. So the more you trade in non-dealing desk, the more they love it.

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  • 5 weeks later...

In my opinion no broker wants to loose any trader who is helping them earning money in terms of spreads or commissions. The dealing desk brokers eventually exposed with the passage of time however it might be good if we check traders review about the broker before finalizing any broker.

A dealing desk and also a bucket shop broker, that is the worst. They control the internal market they created for them and step by step taking all the money. Here, we just talk about the theory but in practice, it's quite hard to make difference between dealing desk and bucket-shop broker. Stop Loss hunting is one of the features almost any bucket-shop brokers.

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  • 2 weeks later...

because by evaluating every trading that has been run, traders can get which lessons to be improved and also which ones to avoid in order not to make the same mistakes. So that trading will be able to run with more leverage

specifically for a dealer brokers usually expect our losses and that is their business and try to make us lose. and if we lose they will get a profit. they are a type of broker market maker. and we have to do is we have to evaluate the extent of our trading ability so far. if we lose more often than the profit means our trading ability is still low

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  • 8 months later...
  • 3 weeks later...

I think broker does not have any concern with your profits or losses. They take their commission which is taken only when the users of broker platform execute orders. A good broker always want you to win. He will earn money from both situations. Am I right?

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  • 4 years later...

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