Do Retail Brokers benefit from profitable traders?

True, because above all we are risking our hard earned money to the forex market and forex broker plays a vital role for retail traders like us. Thus, well regulated broker is the only go.

If a broker is well-regulated, I rather deposit to them even if they don't provide any bonus, any competition or with higher deposit amount.
 
I guess until and unless we are trading with atleast millions of money there would be no much effect on the forex market. But certainly few thousand dollars makes a lot of difference for us and the forex broker, its either they make the money or we make the money.
You can earn money from forex trading, of course with good trading. Furthermore, if you're still a newbie, then please learn first.
 
Brokers benefit from all traders, whether in the form of trading against them or in the form of commissions from executed trades.
 
Brokers benefit from all traders, whether in the form of trading against them or in the form of commissions from executed trades.

Yes they are always at the winning edge and it is only the traders who are suffering the ups and downs in the forex trading business which needs a lot of effort to sustain the profitability.
 
There are different type of brokers: A) the ones that hedge all clients positions with thirdparty and interest is to have clients who profit, B) who only has virtual dealer and manages risk through that (normally these have interest on client losing money so they go for pip hunting, slow execution and slippage) and C) who has own department that hedge positions in the market form all clients exposure.

I notice that
Group A brokers reading on forums are: Swissquotes, PhillipCapital UK, ETX Capital
Group B brokers reading on forums are Activtrades, Plus 500, EToro, Iron FX
Group C brokers reading on forums are CMC, IG, Saxo, FXCM

hope this helps
 
There are different type of brokers: A) the ones that hedge all clients positions with thirdparty and interest is to have clients who profit, B) who only has virtual dealer and manages risk through that (normally these have interest on client losing money so they go for pip hunting, slow execution and slippage) and C) who has own department that hedge positions in the market form all clients exposure.

I notice that
Group A brokers reading on forums are: Swissquotes, PhillipCapital UK, ETX Capital
Group B brokers reading on forums are Activtrades, Plus 500, EToro, Iron FX
Group C brokers reading on forums are CMC, IG, Saxo, FXCM

hope this helps

Hi Vulkan,

To clarify regarding FXCM, we offer traders a choice between two different forex execution options.

Our Standard Account (minimum $2000) offers No Dealing Desk (NDD) execution where each client order is offset one-for-one with the best prices from competing liquidity providers. On the NDD model, we don't profit from client losses or lose from client profits. Instead, we make money from client trading volume. Therefore, we want you to be profitable so you can trade more, and we welcome all trading styles including scalping, news trading and EA trading.

For traders new to the forex market, our introductory Mini Account (minimum $50) provides access the most popular and liquid forex pairs at prices as low as 1.4 and enjoy the educational resources at DailyFX and exceptional client support. Mini Accounts feature dealing desk execution, where FXCM can act as a dealer determining prices and spreads. Accounts that execute on dealing desk execution may be restricted from scalping, news trading, trading EAs, and API trading.

For more information comparing FXCM's account options, click here: http://bit.ly/1Pjty6Q
 
Its nice to know the wonderful opportunities provided by the forex brokers such that the aspirant forex traders can take the benefit out of the same. Always we need to focus on our profitability with the regulated forex broker.
 
no they don't, they will take you off the books if you take to much profit

If the broker is truly STP or ECN, they won't care how profitable you are.

If the broker is an STP-hybrid (can send specific clients to STP or "market-making" liquidity), then profitable traders may suddenly find themselves getting more slippage, more requotes, and wider spreads. In this case, the broker isn't cheating. It just connected the account to the real market.

If the broker is a pure bucketship, it may try "discouragement" like widened spreads, requotes, etc. and/or it may take other action - like confiscating profits earned over many months when the client tries to make a withdrawal.
 
Someone is always trading against you in the forex markets.

If the broker has a dealer license, then it should trade against you.

Banks trade against each other every day all day long.

And banks lose around 75% of their trades. They are making the market. They have to full fill the order. This is a FACT.

Retail market is a grey area in a sense, where more than 90% of the clients do end up losing their deposits. The 10% or so that do actually win at it can easily be accommodated by the honest brokers.

If you deposit $1000 into broker's account, it will trade against you but if you deposit $10 million, it will definitely be passed on to a bank else it would be taking a huge risk.

Also, let it be known that ECN does not necessarily mean the broker earns pennies on a trade. A mid-sized broker can pretty much have a profit sharing deal with a bank, when the bank trades against the client.

Take it as a small fish is eaten up by a medium fish is eaten up by a large fish.
 
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