how forexbroker earn?

[giridhar123]

i want to know will there be anyloss for forexbroker?

i think they alway earn for every transaction by traders and they are just a mediator and they alway in profit irrespective of market movement as forexbroker offer hugebonuses because they earn more and if they put some of their earning to reward people then more join and more earning.

i wrote what i expect.if it is not,tell your view.

[andry777]

There are some types of broker, they are : dealing-desk broker, non-dealing desk broker and hybrid broker. Dealing-desk broker is type of broker which didn't pass your request directly but this kind of broker is similiar like traders too. They will do trading too so they could get profit if you lost. Non-dealing desk broker is type of broker which will pass directly your request and they got profit from commission of spread. And Hybrid is type of broker which used combination of dealing-desk and non dealing-desk.

[antthenait]

I want to go straight to the point , that forex is a market place directly related to business process. It's very natural if any company may run in loss then our fund should decrease, but need to take risk before invest. But there also found too many scam broker - who might give us better fake benefit, test them perfectly before invest.

[yogeshwartyagi]

It is true that brokers make money as spread or commission every time a trade takes place.

But it is not that they are always in profit because they have some fixed expenses to manage, administrate, promote etc. And if they are not able to get enough spread/brokerage to cover up these expenses they suffer losses.

[bringpeace]

It is true that brokers make money as spread or commission every time a trade takes place.

But it is not that they are always in profit because they have some fixed expenses to manage, administrate, promote etc. And if they are not able to get enough spread/brokerage to cover up these expenses they suffer losses.

yes, but i think good broker have good maangement, so they money that use for promotec, administrate and other is not big than broker get from spread, i see broker like insta have good progress and i think insta have small spread and insta have good management

[yogeshwartyagi]

Yeah i agree with you @bringpeace few top brokers though have small spread but still are able to earn a lot

that is becuase they have huge member base and so with little spread from every member they make up a huge earning.

And that is visible in activities by insta-forex as they are spending huge amount in promotion and that is possible with the huge earning they are getting.

[adnan007]

Forex brokers earn through the spreads they offer to their traders. They also earn through the lost trades committed by their traders. It's a noticed fact that there are more traders who loose their funds daily in Forex compared to those who win. Therefore, Forex brokers earn far more then what they really pay out their traders.

[Lonely]

they include a spread (the difference between buy and sell prices) into their bid/ask quotes.

[yogeshwartyagi]

Yeah spread is major element in the earning of forex brokers

also when position is hold over night they charge some amount as swap

May be they can earn some money on the unutilised capital they have from traders.

[riddick09]

How about the commissions they have? I am not sure if every time we earn or our closed order in profit will gain earnings for them. But no matter what they need to have earnings too from us to keep the forex broker alive and continuously do its business.

[adnan007]

How about the commissions they have? I am not sure if every time we earn or our closed order in profit will gain earnings for them. But no matter what they need to have earnings too from us to keep the forex broker alive and continuously do its business.

 

Almost 70% traders loose their money in forex everyday. That is where these forex brokers succeed to earn big amount of money. However, they do earn additional money through the spreads and other charges such as the withdrawal request charge which are taken by few brokers.

[budado]

 

Almost 70% traders loose their money in forex everyday. That is where these forex brokers succeed to earn big amount of money. However, they do earn additional money through the spreads and other charges such as the withdrawal request charge which are taken by few brokers.

Forex broker never earn to traders loses. They only earn by pips and by withdrawal charge if that broker charge one, In trading if you loss its the other traders gain. Its not brokers that gain for that. just think that forex broker is a broker. one trader sell at loss then the other trader earn from that. And the forex broker is the one who connect the two trader.

[rexway]

True brokers do make their money through spread and commission anytime one enter the market,the commision charge by your broker also know as spread is were their money comes from.

[rexway]

True brokers do make their money through spread and commission anytime one enter the market,the commision charge by your broker also know as spread is were their money comes from.

[pinoycity]

What if all traders under one broker managed to win a trade on one particular trading day? Who will pay for all the winnings of all these traders? Is it the broker?

[luke1]

The answer for this issue actually is very easy and simple here. Usually they earn money from the commission made. Or second, from the people who lose money as their investors.

[yenney611]

well i think they do earn because if not, why are still there being the broker of forex. i think they also have 25% of the profit we gain. i dont know really, its their business actually.

[omostar]

What if all traders under one broker managed to win a trade on one particular trading day? Who will pay for all the winnings of all these traders? Is it the broker?

Well that will sure be a very rare and unlikely scenerio. Then again, it is not just the brokers that a trader trades with. For example, for the non dealing desk brokers, our trades do not even stay with them. Rather they have like a network of brokers and other institutions that are joined together in executing those trades. Simply, the brokers generally do not have anything to do with our trade perse.

[rexway]

@Pinoycity,for us to win a trad or not dosnt have anything to do with our brokers from what i learn,your broker busines is just to collect you that 2-3spread per trad ,your loose or gain is upto the market ground not broker biz i think

[adnan007]

Forex broker never earn to traders loses. They only earn by pips and by withdrawal charge if that broker charge one, In trading if you loss its the other traders gain. Its not brokers that gain for that. just think that forex broker is a broker. one trader sell at loss then the other trader earn from that. And the forex broker is the one who connect the two trader.

 

Spreads are the main income of the forex brokers. Moreover, there are several forex brokers that do not charge withdrawal fees and hence restricts the forex broker to earn from spreads only. I am not sure but they also receive commissions on all the lost trades that takes place under their metatrader.

[riddick09]

Yup, I only know spreads they will earn. So the higher the spreads that a forex broker have then the higher they will have earnings. For sure mostly popular forex brokers able to earn better not only in the spreads as they have contests and also make earn in the deposit bonus and then any losses made will be profit still to them.

[adnan007]

Yup, I only know spreads they will earn. So the higher the spreads that a forex broker have then the higher they will have earnings. For sure mostly popular forex brokers able to earn better not only in the spreads as they have contests and also make earn in the deposit bonus and then any losses made will be profit still to them.

 

Yes I do agree that the best means for the forex trader to earn is through spreads but having way too much spreads then normal can still work against them and cause them while looking to attract new members who look for the lowest spreads offered by online forex brokers.

[flybiz08]

I agree with you because spreads are the main income for the brokerage firms. Again, it is important to understand what type of broker we are talking about. If we were dealing with a broker that is a market maker, then spreads are not the only source of income but also your money as the market makers tend to take the other side of your trades.

[charlly007]

Forex Brokers do earn money from their customers transactions and they do give some of those earnings out in the form of bonus.Like the case of Liteforex,you will get bonus when you create your account with them and get it verified.You choose the kind of bonus you want.

[indieover]

i think that they would earn some fix amount every time that we open a trade. i think we call it a spread.some say that if we lose in our trade that they earn too. although i am not sure if they earn also every time we lose.