forexlover Posted February 14, 2014 Share Posted February 14, 2014 We knows that we can earn money in forex business with the help of broker. But my question is that How can a broker can earn money? or what is earning source of a broker? Quote Link to comment Share on other sites More sharing options...
Decub Posted February 14, 2014 Share Posted February 14, 2014 Brokers majorly earn their own money from what is called spread. It is simply a bid and ask price. Because there are so many buyers and sellers in the market, there are as well high volatility and liquidity. This means that the traders are always buying and selling and it is with this movement that makes the market an interesting place, as there are more players, so are the spread and that is why brokers are always looking for traders. Quote Link to comment Share on other sites More sharing options...
gaban Posted May 28, 2014 Share Posted May 28, 2014 brokers will make money from the spread. Spread is the difference between the selling and buying value. The more the spread, the more money obtained the broker . for that, many traders who choose a broker that has low spreads. Quote Link to comment Share on other sites More sharing options...
budado Posted June 12, 2014 Share Posted June 12, 2014 Most broker sites do earn money from the spread each time we trade. They also earn money from our investments. As we deposit our money in their account they earn interest and they make good profit out of it. I do recommend that we spend more time learning how to trade first before we try to make sure that we can handle our trading account and become rich trader. Quote Link to comment Share on other sites More sharing options...
letter5 Posted June 16, 2014 Share Posted June 16, 2014 as in my own understanding i also think that a broker also made there money when a member got losses so thet will now have there own share from the lost so that is it. Quote Link to comment Share on other sites More sharing options...
budado Posted July 3, 2014 Share Posted July 3, 2014 as in my own understanding i also think that a broker also made there money when a member got losses so thet will now have there own share from the lost so that is it. How can a broker site earn when we loss? Its more on negative in their part also. Forex broker sites earn via spread. So it does not matter if we earn or loss as each time we trade they earn money from the spread. Now if we loss we can't trade any more and if we stop trading then they don't earn. So they actually loss also if we loss since we stop trading. Quote Link to comment Share on other sites More sharing options...
gaban Posted July 4, 2014 Share Posted July 4, 2014 broker may also be able to get money from our trading loss. when we experience a loss then the broker will earn money. for that, we need to minimize the loss so that we can earn money from forex. try to trade in instaforex with bonus post Quote Link to comment Share on other sites More sharing options...
budado Posted July 10, 2014 Share Posted July 10, 2014 broker may also be able to get money from our trading loss. when we experience a loss then the broker will earn money. for that, we need to minimize the loss so that we can earn money from forex. try to trade in instaforex with bonus post Can you explain how? The main reason why they are called broker is because they are the one who broker the deal between two traders. Now if you going to loss money a forex brokerage has nothing to do with your trade. Its only charge spread. And that's who its earns. It does not matter if you make profit or loss money in forex and its does not matter how big your profit or how small your profit is. The spread is the same and the commission is the same. Quote Link to comment Share on other sites More sharing options...
standart Posted July 11, 2014 Share Posted July 11, 2014 brokers earn money from traders commission. in form of spread and they are has own capital to trade on the market. brokers use small investors capital to generate profit in stock, forex and commodities trading. however, if traders invest in high amount, they'll money will be safe on segregated account. Quote Link to comment Share on other sites More sharing options...
Decub Posted July 12, 2014 Share Posted July 12, 2014 Brokers earn money from spread. I see it as basically the most common way brokers earn in Forex. The spread being the pips value between the bid and ask price is the way brokers make their own money. I ever see some people who think brokers play some hide and seek games with their trades but I doubt. Quote Link to comment Share on other sites More sharing options...
budado Posted July 20, 2014 Share Posted July 20, 2014 A forex broker sites do earn money in many ways. They can earn via spread and they can earn with our deposits also. The money they receive they can invest it in some where else and make good money out of it. I do recommend that we spend more time learning how to do trading and make profit and lets hope some day we are the one running a forex broker site. Quote Link to comment Share on other sites More sharing options...
Decub Posted July 20, 2014 Share Posted July 20, 2014 I also think they can earn very well from those credit cards they produce. I can are that most brokers are really beginning to have their own cards and this means that traders don't really have to rely much on the payment processors. In this case, they can make some considerable commission from the traders who make use of the cards. Quote Link to comment Share on other sites More sharing options...
Stekin Posted August 10, 2014 Share Posted August 10, 2014 Spread is the most popular way by which brokers earn their own money. Each and every position that a trader will make will have a spread which is what the trader pays to the broker whether he or she is making profit or not. This thing is the way they can have their own money in their pocket. Quote Link to comment Share on other sites More sharing options...
standart Posted August 10, 2014 Share Posted August 10, 2014 brokers earn money from spread and they are trading too on stock, commodities and forex market. besides brokers, they are basically a trading company too. has own money to trade and they are get additional money from traders client. brokers won't transfer order on the market when traders trade with small margin size. while if traders trade with big capital, they'll provide segregated account and orders transfered into the market. Quote Link to comment Share on other sites More sharing options...
CahCuncun Posted September 10, 2014 Share Posted September 10, 2014 brokers earn money from spread and they are trading too on stock, commodities and forex market. besides brokers, they are basically a trading company too. has own money to trade and they are get additional money from traders client. brokers won't transfer order on the market when traders trade with small margin size. while if traders trade with big capital, they'll provide segregated account and orders transfered into the market. Â Yes, a good broker will earn from spread. Different with a scam broker, a scam broker also earn money by scamming their clients. That's why we should choose regulated broker for trading in forex. We can use review from traders to help us get the right broker. Â Be more than a trader, be a TenkoTrader Quote Link to comment Share on other sites More sharing options...
arsii619 Posted September 13, 2014 Share Posted September 13, 2014 Brokers earn in the way the difference between the buy and sell price is the spread which is the basic income of a broker. you have seen many brokers have different spread they have their price set. other way to earn is their commission on some stock and commodities. Quote Link to comment Share on other sites More sharing options...
Milo Beck Posted November 8, 2014 Share Posted November 8, 2014 I think majority of the brokers can earn from spread only and the remaining ones try to just steal our money which is what they earn from, therefore we should select only a good broker like OctaFX, as they have amazing offers like 50% bonus on all deposit while also they have wonderful free news and analysis system which we can follow blindly and still expect to be successful while they also have special system where we can follow the best traders and that all combines to incredible combo which will make even a newbie successful. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 9, 2014 Share Posted November 9, 2014 Spread or your loss, in non dealing desk broker we can see it easily that broker earns money from the spreads for each position that a trader open, while in dealing desk broker, the broker earn money from the loss position of a trader, the more you loss the more happy they are. Quote Link to comment Share on other sites More sharing options...
Decub Posted July 6, 2015 Share Posted July 6, 2015 Spread or your loss, in non dealing desk broker we can see it easily that broker earns money from the spreads for each position that a trader open, while in dealing desk broker, the broker earn money from the loss position of a trader, the more you loss the more happy they are. I really find it so difficult to believe the issue about DD brokers but since I don't do them, I will simply agree to that. If a broker makes profit from traders' losses, then there is that high tendency that they will keep on manipulating their system to their favour. To this effect, it is the poor traders that will end up feeling the pains. Quote Link to comment Share on other sites More sharing options...
Stekin Posted July 7, 2015 Share Posted July 7, 2015 We can know that it is with spread that a broker can earn money. The broker charges the traders some fee for their position and it is the fees that are also responsible for the income of the broker. There are so many brokers as we can see that have some kind of cards for deposit and withdrawal and the traders who make use of these cards pay dearly for it too. Quote Link to comment Share on other sites More sharing options...
pepy Posted July 13, 2015 Share Posted July 13, 2015 They have margin where we share the risk with them when we open a position. Spread is the other income for most brokers, some offer comission and also another feature like liquidity access to market for big corporation which prefer the anonymous trading without need to be traced. Quote Link to comment Share on other sites More sharing options...
Decub Posted July 14, 2015 Share Posted July 14, 2015 They have margin where we share the risk with them when we open a position. Spread is the other income for most brokers, some offer comission and also another feature like liquidity access to market for big corporation which prefer the anonymous trading without need to be traced. That is true though but I think that somehow, margin or higher margin might not in any way benefit the broker because along the line, the trader himself might just end up getting the best from it by making profits far beyond whatever it is that is the profit he would have made if there were no margin. Quote Link to comment Share on other sites More sharing options...
Stekin Posted July 16, 2015 Share Posted July 16, 2015 Good brokers will be satisfied with the way they make money from spread or through some other means like the commission they charge on withdrawal while the other bad ones will think of how to milk away the hard earned resources that others have laboured for. They will like to hide certain information from the traders and charge them so much when they see that they are in good profit. Quote Link to comment Share on other sites More sharing options...
Decub Posted July 16, 2015 Share Posted July 16, 2015 So many see brokerage as good business not knowing that it's not easy to be one. To become a broker, one of the things that one must do is to know that it involves a lot of money. I usually here a lot of people who say they want to make the same kinda money the brokers make forgetting that it took them so much to get there. Quote Link to comment Share on other sites More sharing options...
pepy Posted September 18, 2015 Share Posted September 18, 2015 It is hard to be true, but it is worth for them, the earning is big and also it has more than one income stream, not just from spread but also from the comission or even their partnership with one big instuition who need more liquidity to the market. Quote Link to comment Share on other sites More sharing options...
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