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How does my broker's make money in Forex?


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We know that this question has been in the mind of many traders since their opening of their accounts. This is very common as we see the brokers that they are always busy with their traders. They are giving them bonuses, they are giving them services and they are always happy to help you when you need. If these brokers are so selfless and they can give anything to their traders, how do these brokers make their money? This is a very good question and we would like to answer this with our article.  This article will open your mind and you will see that your wonderful broker is not so wonderful after all. They are taking your money and they are also rich. Most of the time these brokers will try to make a profit with your money and you will never know. This is the ultimate article that will tell you how these brokers are making their fortunes with the traders’ money.

Learn to trade first

Before you think about your brokerage firm profit factors it’s highly imperative that you master the art of trading first. Majority of the traders are losing money in the online trading industry due to their lack of trading knowledge. In fact, many novice traders even don’t know about the Introducing broker trading conditions. As a currency trader, it’s your duty to explore all the details of your trading environment. If you don’t know about the advanced features of your trading platform then it will be really hard or you to make money. In fact, some brokers have specified trading rules. For instance, you might not be allowed to scalp the market or hedge any open position in the financial industry. Knowingly or unknowingly if you do so then you might even get banned from that broker. So it’s highly imperative that you learn about the Introducing broker trading conditions.

There are three major sections which every trader should learn. The technical part will help you to find the profitable trades in the online trading industry whereas the fundamental sections will help you measure the overall strength of the market trend. Last but not the least is the sentiment analysis which you will develop over the period of time. Once you have these three sets of skills look for the best Introducing broker trading conditions to start your career as a full-time trader.

Remember the fees when you place every trade?

If you can remember, you are always giving some money to your broker whenever you are placing a new trade. This is the charge that brokers take from you as their fee and this is how they make money. This is not the only way to make money but this is one of the most common ways. we think that this is how they make their fortune but you will be surprised to know that these brokers have so many sources of income in Forex. They are no less than professional traders and sometimes bigger than professionals as traders have to trade with them in Forex.

They also trade on their own account

These brokers also trade on their own account. Just because they are a broker and you are trader does not mean they cannot trade the market. These trade way more than you and they are also successful in their career.  They make a lot of money by trading in their own account. Their account is also large and the profit they make is also big.

They also trade on managed accounts

These brokers also trade on the managed accounts. Managed accounts are accounts that have been opened and invested by other people but the broker is managing that account. If they make a profit, the account owner gets a share and so does the broker. This is a profitable idea for traders who like to trade the market with money. If you think you cannot make a profit, just give it to some brokers who will do that for you.

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  • 1 month later...
Guest andengireng

Be careful with your broker, you have to understand what type is your broker. If your broker is a DD type, it is mean that you against your broker, you will never win, because that's how that broker make any money. But if your broker is an NDD type, it is mean that you trading against market, your broker never played you. So that's why I choose FreshForex as my broker because FreshForex is an NDD type and FreshForex is a reliable broker.

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Broker is an active stakeholder in the forex market and apparently broker makes money from forex trading. It takes commissions and earns money by providing services and assistance to its customers. Spread is another form of earning of any broker. Spread is the indispensable deviation in the ask price from the bid price of a currency pair. But we traders always to bear lower spread as it is an important transaction costs for the traders.

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Guest gaban
23 hours ago, ViproMarket said:

this is necessary for traders to be better and better leverage in improving existing trading skills and have the ability to analyze that can to see opportunities and risks that exist.

In improving the ability of a better trading it is where the way things we should do, forex business is not a business risk is very large, so where we should always to try in learning and learning so that where can be able to trade to get maximum results. Need a routine learning phase where we want to succeed in this forex business

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Guest gaban
On 3/7/2018 at 10:08 AM, uncle gober said:

it is true, because before that we can try in dmeo account first in order to be better and maximal when traders run trading activities in real account together.

Where to plunge in a real trading account we must have the stages of a good learning stage, forex business it takes the stages of the stages of learning is good for where we desire in getting maximum results, forex business it takes the learning process to increase the ability of more trading both to be able to trade able to bring a profit consistently

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Guest gaban
5 hours ago, uncle gober said:

because that is the trader can to take advantage of demo account provided for better can and can be more focused again in doing training and learning well and correctly.

Where traders are indeed the first thing that should always be routine in the existence of good learning stages, because the forex business where the business is very big risk that there is, so where we always routine the stages of a good learning stage to where can be able to trade successfully maximum result

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Broker is an essential stakeholder in any foreign currency trading which acts as an intermediary between the traders of a currency pair, i.e. buyer and seller of a currency pair. While selecting a broker, we have to give concentration on lowest spread and charges since as traders we will always require lower transaction cost as possible. I am working with a non-dealing desk broker AAFX and it is amking money from being my counter party in various trades and as a customer I am also receiving lowest costs and it charges no commissions. It is offering me lowest zero spread, 1:2000 high leverage and fastest trade execution.

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Trader should select NDD type of broker. It helps to trade and it plays it role against the market. But if you are using DD type of broker it will play its role against you. That’s why I have selected TradesFX, because it is NDD type broker. It helps me with their all to make money. From this broker I am getting real time market streaming. Their most recent market news helps me to take important trading decisions. I can select any trading pair according to the market demand as my broker has 50 currency pair support.

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Guest gaban
On 3/19/2018 at 10:35 AM, ViproMarket said:

the most important thing is that traders should be able to focus on the existing trading passion in order to become better and more leverage in running the existing trading activities in the real account with better and more leverage than ever before.

To run forex trading where we must always the stages in the learning process, forex business is not an instant business, forex risk business is very big that exist, so continue in the level of better trading ability so that where we can better understand how to manage the trading which is profitable when it comes to real trading with Instaforex later

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