What do forex brokers rely on to make money?

Ammy2323 posted:
Are the brokers making money from the loss of the customer?🙄

We can seriously discuss this topic~
I look forward to your reply.😇

CrackedMic posted:
Brokers that take the other side of your trades will make profit when you lose. Just like normal sports betting

Felhagamand posted:
Usually from comissions and spreads, so basically each time you play, that's why they really should be interested in fair play, but sometimes that doesn't really happen so what to do with all that is up to you. If you look at scam stories it's something with leverage as well.

TeamNotreDame posted:
Best type of broker are ECN brokers. The charge commission with every trade but have super low spreads and do not take the other side of your trade

Kenkatzia posted:
In return for executing buy or sell orders, the forex broker will charge a commission per trade or a spread. That is how forex brokers make their money. A spread is a difference between the bid price and the ask price for the trade. ... A broker could also charge both a commission and a spread on a trade.

lavis_book posted:
A forex broker has the responsibility of carrying out trade on behalf of his client trader. He does the job of executing the buy and sell orders for the trader concerned. Forex brokers normally operate in an OTC (over-the-counter) market so that very less rules and regulations are binding on them and they can work according to their will.

Now, how does the forex broker make money? These brokers charge their clients a basic commission for each trade or spread. Broker’s spread is basically the gap between the ask and the bid price of the transaction. There is no bondage on the broker to charge either a commission or a spread. He can, at anytime, charge both of them from the client.

There may be a possibility that some traders offer to work on commission-free basis for clients. But this is basically a way to fool the traders, as such forex brokers earn their revenue by widening the gap between their bid and ask prices.

Fearlesswalker posted:
They do rely on your transactions in reality, see my point ? So I do hope it will make wonders here no matter what. I really should understand that from the start and I would select much better broker that way, I hope you will follow my advice as well.

willtradr posted:
  Forex Brokers earn money through various sources like :
    • They charge commission or fees,some of them hidden too per trade or spread.
    • Payment Processing commission- Online brokers deduct this fees only when you deposit or withdraw money.
    • Leverage- So many brokers offer high leverage. For example 1:100 leverage,it multiplies your trading volume but with this a broker can probably make a commission by widening the spreads or trades.