How do Forex Brokers earn money?

[TareqS]

Thanks for sharing this. A trader may not need to know this, but extra knowledge in anything comes handy at some point of time. I assume most of the brokers earn very decent amount of money as well.

 

[HeavenLeighRob]

Definitely an interesting article and some good comments...I knew most of these, but did learn a couple of things!

 

[Androlen]

Well, yes, if the broker is not a scam, then it will earn the money through the spreads and other fees. That is why when I see a broker which offers too food trading conditions, I grow skeptical about whether to trust it or not. In most of the cases such brokers do certain scam actions.

 

[ksandesh5660]

Seeing more and more scams by broker these days. So, am not surprised that some of them are making money by cheating traders. This forum is full of broker reviews, so people can save their money by doing due diligence.

It's an interesting post. But it seems to me that it's not as important how a broker earns money as if you can trust it. Because there are so many scammers online these days who only want your money. It is important before you start working with a new broker to check his registration and regulator. Perhaps in this way, at least those brokers who make money by scams will be less.

Please tell how i can change my Wallet adress in cyptofxtrade to escape from fraud

 

[Toibit]

Actually it would be more correct to ask "How do Forex Dealers earn money?" as The FX market is a quote dealer driven market. A dealer is a entity that quotes two prices (bid and ask) and make money buy selling at higher price what they have previously bought or by buying at lower price what they have previously sold. Although it is true that they earn money mainly from the spread, they could actually earn more than the spread if their customer base as a whole makes bad predictions (which is the case as more than 80% of traders lose money with cfd) or lose more than the spread if their customer base as a whole makes winning trades. Those firms who are able to hedge winning trades on the interbank market are known as broker-dealer while those firms who send every order on the interbank market is known as broker. There are very few real brokers in the CFD Forex market.

 

[carpiojhen]

the fake brokers earn by manipulation charts and not granting withdrawals

 

[yuliamolodaya]

As I undestand there are not so much fraud brokers for now as 3-5 years ago, so it's easy to find good one. Most of the broker earn money getting comissions. For example one of my broker got from me 20$ (I earned totally 90$) =(

 

[ghieghie]

i believe all brokers earn money through spreads and commissions

 

[ForexTus]

They attach a small commission/spread to each trade so every trade they make a small amount from you and everyone else on the platform

 

[yashh5234]

They also earn by marking up the prices of the tradable assets