rexway Posted December 3, 2012 Share Posted December 3, 2012 @luck, I think what you really need to know is the difference between market marker and ECN trader if you are using ECN then your loss is taken by other trader but if market marker then its the broker that take the advantages. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted February 3, 2013 Share Posted February 3, 2013 Well, I don't know about those brokers or their advantage at all. What they have in common in the other Forex brokers will be the spread they have though, they have differ on how high or low spread they have. But the thing is, this is the reason for them to earn. From every trade we've made they have spreads either we win or lose they will have the earnings from those trades. Quote Link to comment Share on other sites More sharing options...
PROPENSITY100 Posted February 10, 2013 Share Posted February 10, 2013 I think even the brokerage houses need professionalism to run their business in profits and without proper money management they may incur losses. Most of the brokers today are hybrid brokers where they try to benefit from the combined use of dealing desk and no - dealing desk. Quote Link to comment Share on other sites More sharing options...
budado Posted February 11, 2013 Share Posted February 11, 2013 Most of the time is in spread. I know its just a small profit. Probably just 1.5 pips or 1.5 cents per smallest lot position. But sam time if you going to count million of trades its day you will be surprise how much this forex broker site earn. I do hope I can make good income in forex and some day own my own broker site also. Just imagine if I reach a day that earn enough to buy or open my own forex broker site. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted February 17, 2013 Share Posted February 17, 2013 I actually, that it's always to be in spreads. But I believe that is also others such as the withdrawals. Since, I have seen that they also charge us in that way in any payment processors. It's different in the system fees of the payment processors it is the fees for initiating a withdrawal transaction. So, there might be others that we don't know yet or not noticed. Quote Link to comment Share on other sites More sharing options...
Nagilover Posted February 18, 2013 Share Posted February 18, 2013 YEs in all of case Broker get money ever although traders get loss or get profits same as in stock market dealers get money ever from commission+spread fee too. My big sister is the dealer in stocfk market beside she earn by she play by herself as the dealer she get money from deposit Comission + profits commission I ever ask her as how many money she get she answer me as she get money more than Thailand's Prime minister salary about 6 times (around 39000 dollars/Month) so dealers and broker is get rich ever. Quote Link to comment Share on other sites More sharing options...
rexway Posted February 20, 2013 Share Posted February 20, 2013 I guess the broker do earn from the spread which we have to charge traders that is all I guess this is true we need to make sure that we trade and comeout with something more profitablehere in the market Quote Link to comment Share on other sites More sharing options...
riddick09 Posted March 5, 2013 Share Posted March 5, 2013 It's really difficult and we can say confidential to know about how much the broker earned from their spreads and commissions. That's why this entity, broker need to be regulated and that they are known business to be operational. Because, there's a huge money that is flowing here and that they can gain great profits as well. Quote Link to comment Share on other sites More sharing options...
screw_twizz Posted January 3, 2014 Share Posted January 3, 2014 The result due to this issue happens to be really easy and simple the following. Normally these people make money using your commission rate manufactured. As well as subsequent, from the folks who generate losses while the buyers. Quote Link to comment Share on other sites More sharing options...
gaban Posted January 4, 2014 Share Posted January 4, 2014 forex broker to get through and swap spreads. Each broker has provision for each of these spreads. brokers will benefit from the difference between buy and sell prices, which is usually referred to as pips. Low spreads are the most preferred by traders. Quote Link to comment Share on other sites More sharing options...
Decub Posted January 4, 2014 Share Posted January 4, 2014 I can remember when I was very much newer in Forex that I used to wonder about this too. I would always ask myself how Forex brokers do earn their own money, perhaps they would force traders to lose so they can earn. But much later on, I understood their means of earning is mainly through spread. Quote Link to comment Share on other sites More sharing options...
ValdisTF Posted May 12, 2014 Share Posted May 12, 2014 There are few different ways how brokers make money. It could be spread and the commission. Quote Link to comment Share on other sites More sharing options...
surya77 Posted May 14, 2014 Share Posted May 14, 2014 forex broker si earn the profit from spread cahrge, any broker have a diffrence spread fee, if the ECN broker have a good spread dealing to the client. Quote Link to comment Share on other sites More sharing options...
abdelmadjid Posted May 16, 2014 Share Posted May 16, 2014 i think good broker have good maangement, so they money that use for promotec, administrate and other is not big than broker Quote Link to comment Share on other sites More sharing options...
budado Posted July 5, 2014 Share Posted July 5, 2014 When you trade you notice that theirs a spread. That's spread is the main reason earnings of a forex broker site. Its time we trade they earn commission via spread. And they also earn commission from our deposit. Since each time we make deposit they put our money in the bank and its earn interest in their. Quote Link to comment Share on other sites More sharing options...
standart Posted July 6, 2014 Share Posted July 6, 2014 forex brokers use some of traders money to trade back on market. and they are charge spread which it including fees which help brokers gain profit. however, brokers don't use high investors money to trade. big traders or investors money will be safe on back account. since brokers offering segregated account. Quote Link to comment Share on other sites More sharing options...
Decub Posted July 8, 2014 Share Posted July 8, 2014 Spread is the fee between the bid and ask price and that is the main way brokers earn. In binaries, it is known as the difference in call and put and it is also how they make their profit. Suffice it to say that there might be yet, other means by which they can make money from the business but it lies mainly on these. Quote Link to comment Share on other sites More sharing options...
adil007 Posted July 9, 2014 Share Posted July 9, 2014 Yes @Decub is right spread is like the commission/fee of the broker, that is why a broker attracts as many traders as possible because the more traders trade the more the broker earns in this manner. Quote Link to comment Share on other sites More sharing options...
standart Posted July 9, 2014 Share Posted July 9, 2014 brokers get commission from spread and they are use some company assets to trade on markets. they are hired skilled traders who has good ability to trade and make profit in trading. if brokers being regulated already, they are has high back up fund to lead them to last for long period of time. Quote Link to comment Share on other sites More sharing options...
budado Posted July 17, 2014 Share Posted July 17, 2014 Theirs many ways a forex broker earn. First one is via spread. The spread between buy and sell position. The other one is commission. If we invest some forex broker site earn with some few fees in our deposit and our withdrawal. The other one is that when we invest they can use our money to invest also and that means they can earn from our deposits. Quote Link to comment Share on other sites More sharing options...
myregister Posted October 28, 2014 Share Posted October 28, 2014 There is only one way for broker to earn money from their client, first from comission + spread or from quite high spread markup alone. Or there is a broker which we know as dealing desk type that earn money from their clients but as long as their clients loss their money. Quote Link to comment Share on other sites More sharing options...
Milo Beck Posted November 1, 2014 Share Posted November 1, 2014 In my view a good broker will earn only by 2 ways. It would be from spread that he charges or the commission while if it is not a legitimate company they will do it by stealing our money. I trade with a regulated company like OctaFX, which puts no restrictions and have ideal conditions like low spread of just 0.2 pips even in the hottest news while they never force anyone to pay swap which is why they have no swap free account for all. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 4, 2014 Share Posted November 4, 2014 Commision and Spread or by Spread only. Spready only is available for trader who trade in STP or DMA. Usually if we compare it STP and DMA has higher spread rate compared to ECN which combined comission with spreads. It is nice to know that ECN has lower spreads and also if we calculate the comission, overall cost is lower. Quote Link to comment Share on other sites More sharing options...
adil007 Posted November 27, 2014 Share Posted November 27, 2014 Well brokers earn by spreads mainly which is in a way their commission and they deserve this much at least since they are providing us with the opportunity to earn and providing us their services. However spreads are not that much high that we should worry about. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 28, 2014 Share Posted November 28, 2014 Well brokers earn by spreads mainly which is in a way their commission and they deserve this much at least since they are providing us with the opportunity to earn and providing us their services. However spreads are not that much high that we should worry about. But those spread does not much high, it should be in reasonable range of movement, if the spread is too high we could lose before we trade, or even reached margin before struggling to hold our position. I prefer more ECN ways beacuse it is more effective compared to STP account. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.