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How EXACTLY are the brokers compensated?

Discussion in 'Forex' started by Ramon Ramirez, Apr 24, 2012.

  1. Ramon Ramirez

    Ramon Ramirez Registered

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    How EXACTLY are the brokers compensated? Just by spread,slippage and swap? How do they finance our high leverages and manage to give us such a sweet deal??? And what are their financial interest in spot forex?
     
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  3. Roisin Mulvaney

    Roisin Mulvaney Registered

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    I think a good broker mostly earns with spread as that is a legitimate way but a scam or wrong broker will try to get things with slippage and hidden charges. I am lucky that I am trading with a regulated broker OctaFX, it earns only with low spread that is also just 0.2 pips and there is no hidden charges while they have swap free account option so even thats not charged if we dont want to pay it.
     
  4. Mark Hoffman

    Mark Hoffman Registered

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    Unfortunately, there arent too many brokers who are willing to compensate regardless of anything they do. This is where we need to be strong minded. Its not easy world where you can walk over and expert to get justice, its something that got to be earned. Initially, I found it too hard to imagine how to fight for something like that, but with addition for experts like WInchargeback into the fight, it all worked beautifully. So, if you are also trying out getting justice than click here!
     
  5. Bevan Congdon

    Bevan Congdon Registered

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    Brokers compensate through commissions and are as often as possible under extraordinary weight to do in that capacity. There are clear things a broker should swear off: lying, bending and hard-offer procedures; regardless, some exploitative lead is more subtle, however no more commendable. As binary options trader I like lxmarkets.com as it is a main options broker. You can in a flash deposit and withdraw your cash. It has quick payout framework with alluring rate.
     
  6. ForexMartTrader

    ForexMartTrader Registered

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    Brokers are usually compensated through the spread that is paid on every currency pair traded in the forex market. For true ECN brokers, your profits or loss does not affect the broker.
     
  7. Justin Vaughan

    Justin Vaughan Registered

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    Through commissions a broker is compensated. A trader trade through a broker trading platform. Trader buy or sell foreign currencies. The exchange rate is determined earlier. Broker compensate the commission from this exchange rate. Maximum broker in the market keep more compensation and provide less profit. So that trader how much earn is not impact in their business. Because they are getting less from their broker. The best lowest spreads provider in the market is TryMarkets.
     
  8. ForexMartTrader

    ForexMartTrader Registered

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    The spread and the commissions paid by the trader on different assets class during forex trading provides income to the broker. This accounts for the differences in the spreads observed among different brokers, as each broker determines its own spread.
     
  9. sakura

    sakura Registered

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    Traders, who take their CFD trading seriously, will find the best available applications in the CFD market with FXB Trading. There is an incentive for traders at this place in terms of its mobile apps that allow traders who travel frequently to keep a close eye on the market status.
     
  10. alwiandesta

    alwiandesta Registered

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    I think a good broker generates with spreads because it is a legitimate way but a fake broker will try to get things with slippage and hidden fees. I am fortunate that I am trading with my preferred broker, only generate low spreads and no hidden fees
     

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