Upul Tharanga Posted September 29, 2015 Share Posted September 29, 2015 Frankly speaking I don’t think this is something we should be really concern about, it’s not our job to know how a broker is going to earn, but of course one thing is crystal clear that honest brokers earn only from spread or swap, but scammers have multiple ways of earning. I am with a very honest and regulated broker Nova FX, it’s an outstanding company and they earn only from spread which is also stable around 1.5 pips and there is no hidden commission. Quote Link to comment Share on other sites More sharing options...
Decub Posted September 29, 2015 Share Posted September 29, 2015 Well, sometimes, when you are investing, it is good to know how your client earns because if you don't understand that, then there is high chances that you will be the one to take care of that. That is also something a lot of people do not actually know. Quote Link to comment Share on other sites More sharing options...
pepy Posted September 30, 2015 Share Posted September 30, 2015 I think this is clear enough for everyone here, right? Broker earn from comission or spreads or even both in few ECN for example. Some brokers like dealing desk broker prefer to earn from their trader's capital, and they want their trader to suffer more losses than more win. Quote Link to comment Share on other sites More sharing options...
myregister Posted October 2, 2015 Share Posted October 2, 2015 Actually a broker does not earn much from spreads, as you can see some of them expanding their services to make it more stable. Brokers earn mainly from spreads, some of them put reasonable comission plus the spread and also they earn from become liquiditor for big players. Quote Link to comment Share on other sites More sharing options...
billian Posted October 4, 2015 Share Posted October 4, 2015 I am new to forex and I don't get how a broker earn money through spread, can anyone tell me? Quote Link to comment Share on other sites More sharing options...
myregister Posted November 6, 2015 Share Posted November 6, 2015 I am new to forex and I don't get how a broker earn money through spread, can anyone tell me? It is a markup dude, they simply earn from it because the price actually not as high as that, the price that retail traders get is actually higher but not so high, they earn from that so no matter happen they still win but remember not all broker can do that because they are basically a dealing desk broker. Quote Link to comment Share on other sites More sharing options...
pepy Posted November 13, 2015 Share Posted November 13, 2015 Broker earn money from spread also they can earn money from other stream. One of the example is FXDD, they earn from spread and comission plus it also has proprietary technology where they "rent" to the other instuition. So with this alone we can conclude if a broker want they can earn not just from spreads. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 30, 2015 Share Posted November 30, 2015 Spread is actually their main income, but it is not just that because i think if broker only want to earn from spread they cannot expand, what i know other income source of broker is technology more like patented that rent to the other brokers, one of the broker who earn aside from comission or spread is FXDD. Quote Link to comment Share on other sites More sharing options...
gaban Posted December 4, 2015 Share Posted December 4, 2015 broker is the main reason of successful trader, they help trader by give them bonus and help them by leveragebroker earn money by spread, and any broker have their own value for their spread. Quote Link to comment Share on other sites More sharing options...
myregister Posted December 7, 2015 Share Posted December 7, 2015 Not just spread it is actually more complex, but if you see there are many types of broker such as DMA or ECN. ECN won't earn from spread actually they really earn from comission which imposed to a trader. Some broker just like what i said above earn also from their technology transfer like FXDD. Quote Link to comment Share on other sites More sharing options...
gaban Posted January 25, 2016 Share Posted January 25, 2016 many ways to earn money from forex brokers, one of which is to spread. Spread is the difference between bid and ask. From this spread brokers earn money. In addition, brokers can also earn money from commissions. Quote Link to comment Share on other sites More sharing options...
pepy Posted January 25, 2016 Share Posted January 25, 2016 @gaban Spread is actually the main core of earning from many kind of brokers we can find out there, but with spread alone a broker surely cannot have much expansion or even having such a big growth. There are other ways to earn from brokers like selling their technology, or by provide some seminars maybe? Quote Link to comment Share on other sites More sharing options...
onyx Posted February 2, 2016 Share Posted February 2, 2016 Broker make money through spread .When we open any position for trading we have to pay spread it is a type of commission that broker charge . We win or loose this spread goes to them. They also get commissions ans swap to hold positions. Quote Link to comment Share on other sites More sharing options...
pepy Posted February 12, 2016 Share Posted February 12, 2016 Actually it is not just from spreads, but yes mostly brokers earn money from spreads since this is the most effective yet efficient way for broker to reap money from their clients, if your broker earn from spreads they would love to see you always in profit. So it means more trading for them which means more profits. Quote Link to comment Share on other sites More sharing options...
myregister Posted February 17, 2016 Share Posted February 17, 2016 Yes, it is not just from spread but there is what we called as buckesthop usually they are dealing desk broker, has its own internal market that try as the best as they can to reflected the real forex market, but there's a conflict of interest between trader and broker and they earn not just from your spread but from your loss. Quote Link to comment Share on other sites More sharing options...
aliforex Posted March 11, 2016 Share Posted March 11, 2016 Yes, it is not just from spread but there is what we called as buckesthop usually they are dealing desk broker, has its own internal market that try as the best as they can to reflected the real forex market, but there's a conflict of interest between trader and broker and they earn not just from your spread but from your loss. I also ever heard it. That's why i think we should try to be better trader from time to time so we will get loss But i think it'snot easy thing to do. Quote Link to comment Share on other sites More sharing options...
myregister Posted March 14, 2016 Share Posted March 14, 2016 Spread, selling their technology, or other additional commisions, from joint cooperation with other brokers. Basically most from that additional commision and also spreads. I see that most brokers combined more than one way to earn, and this is proven to be sustainable. Quote Link to comment Share on other sites More sharing options...
gaban Posted March 15, 2016 Share Posted March 15, 2016 yes, many ways to broker earn money. if the broker dealing desk so broker can earn money from traders who lose. this is different from non-dealing desk broker where they get the money from the spread or commission on ECN accounts Quote Link to comment Share on other sites More sharing options...
myregister Posted March 15, 2016 Share Posted March 15, 2016 Yes that is true dealing desk will earn when somebody lose and this is the only way they earn, since their market is their own market not from liquidity provider which we know as one of the reliable company to get the real market price feed, but i think it is better if someone want to earn from non dealing desk broker, even the comission is higher but when you lose they actually dislike because there is a chance you may stop trade later. Quote Link to comment Share on other sites More sharing options...
pepy Posted March 21, 2016 Share Posted March 21, 2016 That is why it is better to think twice when want to join broker like dealing desk broker. The dealing desk broker also offers lower comission thanks to its broker made market they act as market maker create their own market for their own good, but most traders hate it since they can manipulate it. Quote Link to comment Share on other sites More sharing options...
myregister Posted June 22, 2016 Share Posted June 22, 2016 Broker can earn money through spread and this is common knowledge for someone who trade for the first time or someone who search for the knowledge of foreign exchange for the first time. The other way for broker to earn money is by techonology renting or transfer which give tremendous income if manage properly. Quote Link to comment Share on other sites More sharing options...
bearhugs Posted June 23, 2016 Share Posted June 23, 2016 Brokers make money from spreed and also from swap, if you open trades and let it during long time from day to day, swap let the trader lose amount of money or win amount. Quote Link to comment Share on other sites More sharing options...
radex78 Posted June 23, 2016 Share Posted June 23, 2016 Yes that is true dealing desk will earn when somebody lose and this is the only way they earn, since their market is their own market not from liquidity provider which we know as one of the reliable company to get the real market price feed, but i think it is better if someone want to earn from non dealing desk broker, even the comission is higher but when you lose they actually dislike because there is a chance you may stop trade later. Yes broker dealing desk also like if trader losing money but actually as broker also will trying to keep their client being active on these broker because as broker will need trader and trader also need broker, and maybe broker non dealing desk will more preferable among trader than dealing desk broker Quote Link to comment Share on other sites More sharing options...
tray22 Posted June 23, 2016 Share Posted June 23, 2016 Personally I think that brokers earn from their spread it is the spread that is the right way which the broker do earn from as this normally make them charge their favourit spread at their own convinient Quote Link to comment Share on other sites More sharing options...
myregister Posted June 24, 2016 Share Posted June 24, 2016 That is true the broker actually earn their own comission from spread mainly, this is why you will find that they still able to offers competitive rates because usually they have other side of income, some big brokers turn theirselves into liquidity provider if they have enough clientbase. Quote Link to comment Share on other sites More sharing options...
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