Jump to content

Exchange Blog Cryptocurrency Blog


All Pips



how forexbroker earn?


giridhar123

Recommended Posts

For sure forex brokers do earn money from their spread as its common and everybody knows that and in terms of losees too they do earn money from it. Though there are losees in every business but i do think a good broker will manage its resources well after expenses inorder to land in a stable profit always.

Link to comment
Share on other sites

  • 5 weeks later...
  • Replies 126
  • Created
  • Last Reply

Top Posters In This Topic

Many beginning Currency trading investors wonder how the Foreign exchange agents earn their money on the common investors, if they are not casino houses. Understanding the fundamental concepts of the brokers’ business economics will help investors to tell apart real Foreign exchange agents from the «bucket shop» frauds and the moral companies from the illegal.....

Link to comment
Share on other sites

Its usually depends on type of account you have. But one thing for sure if you invest money in forex your broker earn. Some forex broker site already give fees when you invest money. While other do charge when you withdraw money. Other charge commission fees, other earn via pair spread. Other don't charge spread but charge fix fees per amount of trade you make. In short theirs so many ways a broker site can earn.

Link to comment
Share on other sites

Yes, they are. Although, we don't have idea how big is it even in one trading account. But so far, as I know they earn from the spreads and I think in the fees also in the withdrawals. So far, whenever we win or loss trades they are surely winning or gaining profit. That's why there were brokers created because they will not lose.

Link to comment
Share on other sites

Well I think there are many ways which forex brokers can earn from but the major and the basic ways which we know is the spread so its better for us to chose a broker with low spread so that it can be of our favoure whenever we consider the fact of chosing a forex broker and i also think that brokers also earn while we loos too.

Link to comment
Share on other sites

Definitely, they earn pretty big when they have big investors that have high leverage. Since either they win or lose trade they will have profit. But many traders only have now 2-3 pips as spread so for sure its favorable already for traders for them to have more profits. And we can learn that brokers will really earn if they have investors.

Link to comment
Share on other sites

Most broker sites earn using our deposits. Lets face it. Once we make deposit they can use our money on what ever purposes they want to and just give us our money back if we withdraw it. Secondly they charge commission fee, spread per pair that we are trading, swap fees and so on. In short every thing we do in forex we pay for it. Also if we don't trade we even get charge becuase of inactivity. lols.

Link to comment
Share on other sites

Yes it is true that forex broker earn from the spread but I also beleived that the money which we are using to trade is also use for another purpose which we dose no know anything about ,but this is not our concern since we can always get our money anytime we request for the withdrawal.

Link to comment
Share on other sites

  • 2 weeks later...
  • 2 weeks later...

all i know that they earn from the spread for each trade. i don't know if they are earning if we lose or profit in our trade. but i am sure that they are earning pretty well since we can see a lot of brokers online.

It does not matter if we earn or loss they will still going to earn. First they earn because of the spread. Win or loss theirs always a spread each time we open and close a position. Second commision charges. When we deposit some forex broker site charge deposit fees and withdrawal fees. So in short forex broker site really earn with our money. Not only that some broker site even earn interest from our deposits.

Link to comment
Share on other sites

How I wish I can open my own forex broker site also. I'm thinking of affiliating myself in one good broker sites. In this way I can open my own broker site and promote it and earn percentage of spread its time my members trade. But I still don't know how the whole scheme works or how much capital I need or how to get many investors in my broker site if I open one. But if I can then I'm sure going to open one. theirs just too many Filipino's that I think will going to trade in forex along with me.

Link to comment
Share on other sites

  • 2 weeks later...
  • 3 weeks later...

There are many type of brokers in Forex market. Dealing desk, non dealing desk, stp and so on. I am trading with non dealing desk broker. Most brokers were earning via traders order spreads. This brokers only the safe, they won't affect our orders in any chance.

Link to comment
Share on other sites

Forex brokers earn through spread and commission. Each and everytime a trader makes a trade the broker earns decent amount with spread or commission, some brokers earn in both ways. Some brokers offer low spreads to make their site more popular which will help them to get more traders and some well know brokers increase the spreads according to their interest.

Link to comment
Share on other sites

  • 2 weeks later...
  • 1 month later...

Forex brokers earn through spread and commission. Each and everytime a trader makes a trade the broker earns decent amount with spread or commission, some brokers earn in both ways. Some brokers offer low spreads to make their site more popular which will help them to get more traders and some well know brokers increase the spreads according to their interest.

very true, today many emerging forex broker that offers an excess of the other brokers to attract members of the forex traders to start trading forex broker site. even many forex brokers that offer free bonus without investing forex trader advance to play in it. therefore we have to look sharp and smart and accurate information when they want to find a forex broker so that we can also benefit from this broker.

Link to comment
Share on other sites

actually a lot of benefits that we can take from the brokers that offer bonuses to its traders and it all depends on how we are to take advantage of the bonus given to take advantage and we should first develop trading systems so that we can take advantage of a bonus given broker with the best

Link to comment
Share on other sites

  • 1 month later...

It is becoming a common thing to know, forex broker earn money from the spread. It is like opening the foreign bills exchange or what we call the money changer. Money changer can make money from the spread between two currencies actually. This system is about the same thing

Link to comment
Share on other sites

  • 2 weeks later...

If your account has fix spread then broker sites earn via spread but if your trading no spread account then you paying commission. Usually commission is base on lot size. For example in every 10 lot size you trade you pay this amount and so on. For me I prefer to have a fix spread account. In this way I'm sure what I earn is what I can withdraw without needing to compute commissions.

Link to comment
Share on other sites

I hear, many broker do the Profit / Loss system, it means, the Futures company accept the investor's account to its own account. If the investor does not make profit, then the profit is going to the Futures company account. This practice is not a new thing happened in Forex business

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...