Jump to content

Exchange Blog Cryptocurrency Blog


All Pips



how forexbroker earn?


giridhar123

Recommended Posts

It is completely dependent upon what kind of Broker we are talking about. If we are talking about a good reliable company that spread or swap is the only way they earn their money while for a scam brokerage company there are really countless ways to earn their stuff including cheating, tricking, manipulation and desk dealing.

 

It is very important for us to know which company to trust, as all companies promise sky high, but in reality hardly any fulfills their wordings, i only trust OctaFX, it is a rare company that stands up to his saying. They provide us the best service that we can ever ask. They have low spread of just 0.2 pips with stop out level of just 15% and also there is healthy rebate of 15 USD per lot size that we receive.

Link to comment
Share on other sites

  • Replies 126
  • Created
  • Last Reply

Top Posters In This Topic

Brokers earn when we traders earn, most probably a broker is to earn a lot more than an individual trader even though the spreads are kept low since a lot of traders would be making gain from market movements, we should not worry about how brokers are earning but concentrate more on our trades.

Link to comment
Share on other sites

  On 12/1/2014 at 5:18 PM, adil007 said:

Brokers earn when we traders earn, most probably a broker is to earn a lot more than an individual trader even though the spreads are kept low since a lot of traders would be making gain from market movements, we should not worry about how brokers are earning but concentrate more on our trades.

At some points you are right but when we talk about dealing desk broker which created their own market, their clients loss = their own win. They don't use any liquiditor, so earn by their client loss is the only way.

Link to comment
Share on other sites

  On 12/4/2014 at 11:56 AM, eaglehyipmonitor.com said:

i think forex brokers are earn from our order.when we put new order then they deduct some fee that called spread.

from there all forex get good profit.there is not way if a member win or not forexbroker must earn by order which is  taken by member.

For non dealing broker which sometimes called as True Broker, they will do like what you said, broker will earn from spreads and sometimes with small comission but in to compensate that comission the spread will be lower than usual spread.

Link to comment
Share on other sites

  • 6 months later...

How forex broker earn? From spread or comission you just named between these two. ECN even earn from spread + comission, the only difference that spread is lower compared to the others. I don't mind with a bit higher spending if their service is 95% in prime.

Link to comment
Share on other sites

  • 1 month later...

I see spread is actually as the part of comission and this is true in STP broker because i use it at the moment, spread usually ranging as low as 1 pips up to 4 pips depend on the liquidity of the market. If liquidity is normal or above average it is around 1-2 pips. Not so big for forex but if i make profit they also feel glad with it LOL

Link to comment
Share on other sites

These days, there are some traders who are just not too confident in making use of payment processors. These category of traders choose one thing that is obvious and that is the fact that they make use of the brokers' cards and this way, they make all their withdrawals and deposits from within without having any issue with payment systems. In this case, brokers make money from the fees they charge them.

Link to comment
Share on other sites

Knowing how a broker earns is not important because a good broker will never take advantage of the traders. That is why it is good if traders will learn to invest in good brokers who have good reputation so that they will be sure that what the broker is charging them are things that are normal and supposed to be charged by the broker which is usually the spread fee.

Link to comment
Share on other sites

  • 2 weeks later...

Not really important but as your first assignment I think it's quite nice. With having this kind of knowledge we able to think whether the broker cheating or not, I think dealing desk broker where the broker earning from its client loss is bad idea for most traders, so a trader needs to know about it too.

Link to comment
Share on other sites

  • 4 years later...

Institutional speculators in the forex market incorporate venture and insurance agencies, annuity funds, enrichment funds, shared funds, and hedge funds. These organizations make up about 30% of all forex transactions around the world. As worldwide players on the money related circuit, these establishments take an interest in the forex market for two reasons. The principal reason is to exchange for benefit. The subsequent reason is that with a worldwide portfolio crossing a few nations, variances in the forex market require the venture directors to hedge their portfolios against currency risks.

Link to comment
Share on other sites

  • 4 weeks later...
  • 11 months later...
  • 4 weeks later...
  • 2 weeks later...
  • 3 weeks later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...