Who pays the trader?

[JenPage]

No, the profit or loss is borne by the liquidity providers who execute your trade in the real market. The broker only has the ability to charge you commission or spreads (as they provide you the trading platform) and your profits and losses are carried out in the real market if your broker is ECN/STP type of broker. However, if you all dealing with a dealing desk that is a B book broker or market makers that the profits and losses are entitled by the broker itself.

I usually stick with ecn brokers and this is pretty much how I thought it went.

 

[Shaun89]

Traders get profits from winning in the market, brokers don't pay traders, as they take comission or spread from each trader for brokerage services. Also, successful traders may earn money offering copy-trading or trading signals. Phrase "market pays to the trader" means that each trader get money from the market, that's okey.

Nice explanation. Think of it effectively as peer to peer betting. If I win then you lose. Oversimplified but that is where the money comes from to pay me.

 

[Purekiller]

Th money that the winners in forex get comes from the losers. This the way it has always been. Even the brokers get their money from the losers. based on the estimation they have realised that there are more losers than winners on most situations and because of that there will always be profit on their side no matter how many people win.

 

[Vo32ss]

Forex trading is just like betting in a way. in betting when some people lose, their money's take to pay the winners. That is just how forex trading works too and it is why some brokers work tirelessly to make sure that no trader ever wins beyond a certain limit. Some traders notice it while others do not.

 

[ele020]

I usually stick with ecn brokers and this is pretty much how I thought it went.

Yes, the broker is far away from the profits and losses, thus gives you are transparent and genuine trading environment.