Jacob McGivens Posted December 1, 2014 Share Posted December 1, 2014 It is completely dependent upon what kind of Broker we are talking about. If we are talking about a good reliable company that spread or swap is the only way they earn their money while for a scam brokerage company there are really countless ways to earn their stuff including cheating, tricking, manipulation and desk dealing. It is very important for us to know which company to trust, as all companies promise sky high, but in reality hardly any fulfills their wordings, i only trust OctaFX, it is a rare company that stands up to his saying. They provide us the best service that we can ever ask. They have low spread of just 0.2 pips with stop out level of just 15% and also there is healthy rebate of 15 USD per lot size that we receive. Quote Link to comment Share on other sites More sharing options...
adil007 Posted December 1, 2014 Share Posted December 1, 2014 Brokers earn when we traders earn, most probably a broker is to earn a lot more than an individual trader even though the spreads are kept low since a lot of traders would be making gain from market movements, we should not worry about how brokers are earning but concentrate more on our trades. Quote Link to comment Share on other sites More sharing options...
myregister Posted December 2, 2014 Share Posted December 2, 2014 Brokers earn when we traders earn, most probably a broker is to earn a lot more than an individual trader even though the spreads are kept low since a lot of traders would be making gain from market movements, we should not worry about how brokers are earning but concentrate more on our trades. At some points you are right but when we talk about dealing desk broker which created their own market, their clients loss = their own win. They don't use any liquiditor, so earn by their client loss is the only way. Quote Link to comment Share on other sites More sharing options...
eaglehyipmonitor Posted December 4, 2014 Share Posted December 4, 2014 i think forex brokers are earn from our order.when we put new order then they deduct some fee that called spread. from there all forex get good profit.there is not way if a member win or not forexbroker must earn by order which is taken by member. Quote Link to comment Share on other sites More sharing options...
myregister Posted December 4, 2014 Share Posted December 4, 2014 i think forex brokers are earn from our order.when we put new order then they deduct some fee that called spread. from there all forex get good profit.there is not way if a member win or not forexbroker must earn by order which is taken by member. For non dealing broker which sometimes called as True Broker, they will do like what you said, broker will earn from spreads and sometimes with small comission but in to compensate that comission the spread will be lower than usual spread. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 24, 2015 Share Posted June 24, 2015 How forex broker earn? From spread or comission you just named between these two. ECN even earn from spread + comission, the only difference that spread is lower compared to the others. I don't mind with a bit higher spending if their service is 95% in prime. Quote Link to comment Share on other sites More sharing options...
myregister Posted August 12, 2015 Share Posted August 12, 2015 I see spread is actually as the part of comission and this is true in STP broker because i use it at the moment, spread usually ranging as low as 1 pips up to 4 pips depend on the liquidity of the market. If liquidity is normal or above average it is around 1-2 pips. Not so big for forex but if i make profit they also feel glad with it LOL Quote Link to comment Share on other sites More sharing options...
Decub Posted August 13, 2015 Share Posted August 13, 2015 These days, there are some traders who are just not too confident in making use of payment processors. These category of traders choose one thing that is obvious and that is the fact that they make use of the brokers' cards and this way, they make all their withdrawals and deposits from within without having any issue with payment systems. In this case, brokers make money from the fees they charge them. Quote Link to comment Share on other sites More sharing options...
Stekin Posted August 15, 2015 Share Posted August 15, 2015 Knowing how a broker earns is not important because a good broker will never take advantage of the traders. That is why it is good if traders will learn to invest in good brokers who have good reputation so that they will be sure that what the broker is charging them are things that are normal and supposed to be charged by the broker which is usually the spread fee. Quote Link to comment Share on other sites More sharing options...
pepy Posted August 29, 2015 Share Posted August 29, 2015 Not really important but as your first assignment I think it's quite nice. With having this kind of knowledge we able to think whether the broker cheating or not, I think dealing desk broker where the broker earning from its client loss is bad idea for most traders, so a trader needs to know about it too. Quote Link to comment Share on other sites More sharing options...
Gee Dee Posted March 12, 2020 Share Posted March 12, 2020 Institutional speculators in the forex market incorporate venture and insurance agencies, annuity funds, enrichment funds, shared funds, and hedge funds. These organizations make up about 30% of all forex transactions around the world. As worldwide players on the money related circuit, these establishments take an interest in the forex market for two reasons. The principal reason is to exchange for benefit. The subsequent reason is that with a worldwide portfolio crossing a few nations, variances in the forex market require the venture directors to hedge their portfolios against currency risks. Quote Link to comment Share on other sites More sharing options...
Axeray Posted March 18, 2020 Share Posted March 18, 2020 You can make money with good brokers who will provide you with the best conditions. For example, as at Amarkets, there is a good leverage to help invest minimal investments. Quote Link to comment Share on other sites More sharing options...
Latham Lapard Posted April 9, 2020 Share Posted April 9, 2020 In my view, a real broker earns via spreads or commissions. But of course, if the broker is not reliable or trustworthy, then it can earn by scamming clients, so got to be careful in that area. Quote Link to comment Share on other sites More sharing options...
Rinanee Posted March 11, 2021 Share Posted March 11, 2021 I agree with you introductory reliable and honest broker earns on spreads and commissions that are all maintained and provided openly Quote Link to comment Share on other sites More sharing options...
gds221 Posted March 11, 2021 Share Posted March 11, 2021 To be honest, I rarely ask myself this question. For me, the main aspect is my earnings. It was by this parameter that I chose a broker from Amarkets for work, and I was able to earn quite good money. Quote Link to comment Share on other sites More sharing options...
Gidencenti Posted April 4, 2021 Share Posted April 4, 2021 all the commissions that are only in the work of the trader himself are a very small part of the very earnings of the broker Quote Link to comment Share on other sites More sharing options...
Monaya Posted April 17, 2021 Share Posted April 17, 2021 If a broker is reliable, then the commissions that he takes for his earnings are, in principle, not very noticeable. Quote Link to comment Share on other sites More sharing options...
Vaabum Posted April 18, 2021 Share Posted April 18, 2021 Most often - on commissions and similar trifles, I understand Quote Link to comment Share on other sites More sharing options...
gds221 Posted April 20, 2021 Share Posted April 20, 2021 To be honest, the main thing for me is that I make money with this broker. For example, I have been working with a broker Amarkets for quite some time, and I am quite satisfied with the level of earnings. Quote Link to comment Share on other sites More sharing options...
Gidencenti Posted May 6, 2021 Share Posted May 6, 2021 I am now working with Amarkets too, this is a great option for any trader's work, so I advise you to try Quote Link to comment Share on other sites More sharing options...
gds221 Posted May 12, 2021 Share Posted May 12, 2021 I think it is more important for the trader to know not how the broker earns, but how the trader himself can earn. Quote Link to comment Share on other sites More sharing options...
Vaabum Posted May 13, 2021 Share Posted May 13, 2021 Honestly, I didn't even think much about it. What matters to me is how I earn, not how the broker earns:) Quote Link to comment Share on other sites More sharing options...
gds221 Posted May 14, 2021 Share Posted May 14, 2021 Honestly, I was always more interested in how to earn me, not how the broker earns) Quote Link to comment Share on other sites More sharing options...
Vaabum Posted May 14, 2021 Share Posted May 14, 2021 Usually brokers earn on commissions and other trifles, mainly due to the volume. Quote Link to comment Share on other sites More sharing options...
Dora Wi Posted May 14, 2021 Share Posted May 14, 2021 On 4/18/2021 at 7:03 PM, Vaabum said: Most often - on commissions and similar trifles, I understand Yes, and also on spreads. Quote Link to comment Share on other sites More sharing options...
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