How do Forex Brokers earn money?

nahiyar

Private, 1st Class
Messages
881
They charge different types of commissions as spread, swap, withdraw commissions . Brokers are having some others ways too to make earning they provide signals and trading systems , Trading courses and trainings are there to get earning so as many people come to forex trading they want to get knowledge and pay money for it.
 

Felhamand

Private
Messages
11
That is a very nice overview of how brokers benefit from their activity. I think that it is very useful for traders to know about it, so that they will understand that spreads and commissions are inevitable in forex trading and so that they will never choose the 'broker' which claims that there are no charges for the traders who work with it.
Surely, apart from spreads and commissions modern brokers also offer some other services which can be of great help to traders especially those who are making their first steps in trading. I am talking about trading signals, educational centers and some analytics. Some of the brokers provide their traders with so much useful information. Such services are not free but I wouldn's say that they cost a fortune. Their prices are fine and an average trader can easily afford using these services which can bring them very nice profits.
 

tomhiggs

Recruit
Messages
29
There are many sources for a broker to earn money, spreads and commissions are the basics for them apart from it brokers can charge for the trading style, for which you have to pay. Many other advcanced tools like vps, social trading platforms are major popular services for which any broker can charge.
 
Messages
155
Hi. So how do legit brokers make money? And how do you find for real, 100% legit brokers?
Some of the previous replies had some good explanations on how legit brokers make money - basically, they earn through spreads and commissions.
To find a good broker, you should first of all make sure it is regulated by a good regulatory body, and you should do some research about the reputation of the broker (news articles, reviews). Try to avoid brokers that are very new or you can't find much information about. There are also a lot of reviews on this forum.
 
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