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    Thread: Who pays our profit? Brokers or other traders ?

    1. #21
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      here are many participants in the field of forex trading. The hedge funds, the central banks, the commercial banks, as well as the retailers. These set of people makes up the over five trillion capital base of the forex market. These set of people trade against each others in the forex market. What this means is that these different groups makes profits and as well loss money to each other. But at the bottom of the ladder is the retail traders who make little profits compared to other groups. Anytime a retail trader places a trade, there is always someone at the other end trading against him. It could be an hedge fund, central banks, commercial banks, or even a retail trader. Therefore a profit made is a loss to the other party. Likewise a loss recorded is a profit to the other party. Therefore the profits and the losses are rotating between the various groups of forex traders.


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    4. #22
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      Default Re: In forex market, is the broker that pay traders profit with their money or another institution?

      The brokers are directly responsible for paying the profits made by their clients, though in some cases they may have to source it from their liquidity provider who happened to be the counter party to your trades. The contract between the retail trader and the broker demands that the broker is responsible for the payment, regardless of the liquidity provider that took the counter party of the trades.

      The broker may be the market maker or it may be another different liquidity provider. Though the counter party to your trade may be quite distinct from the broker, you need not know such party because your broker is the middle ground between you and the forex market.
      POSSIBILITIES ARE INFINITE IN THE FOREX MARKET, YOU CAN ACCOMPLISH ANYTHING !


    5. #23
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      Default Re: In forex market, is the broker that pay traders profit with their money or another institution?

      In the forex market traders don't pay client from their own money. The money come all the way from the forex market.

      The broker ms are just an agent that got us through to the market, as we have an account, so are they.
      When we deposit with a broker, the funds stays in the brokers account. So they gives us an access to the market.
      When we trade automatically the worth of our trade is Being deducted from the brokers account, and so is our account.

      And when we make profit the profit will be credited into the brokers account, making us eligible to withdraw such profit any time.

      So brokers don't pay from their own personal money, the market pays us through the brokers. As we enter the market through the brokers.


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    7. #24
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      Default Re: In forex market, is the broker that pay traders profit with their money or another institution?

      Generally this is a very important topic, Many newbies or maybe even all Newbies ask this question and this is because they are quite keen and anxious to know where they are being paid from. Forex Brokers are the only ones that pay up a Forex currency traders profits and they do this either directly or indirectly.

      A dealing desk Broker also known as Market maker Broker pay back their profiting traders from their spreads and from the losses of the traders that have lost in a particular trade, Lets say EUR/JPY.

      A Non dealing desk Broker also known as ECN Broker also pay traders profits, But they do not pay it directly, They pay it indirectly. This is because the big Banks that serve as their liquidity providers collect spreads from each trader under them that opens a trade and then pays the Broker the Money for their winning traders and then the Brokers pay their traders in return,.


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    9. #25
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      Default Re: In forex market, is the broker that pay traders profit with their money or another institution?

      Paying Our Profits Depends on The Type of Broker and There are Two Types of Forex Brokers In Forex Market :

      1- ECN Brokers : And They Get the Money Directly From The Big Players In The Market as Inter-banks Then The Broker Pay It To The Traders Directly without any Dealing Desk Because it only work as a broker Between The Trader and The Liquidity Providers In Forex Market .

      2- Market Maker Or STP Brokers : They Get The Money Also From The Market But Indirectly Because they have a Dealing Desk They always adjust Every thing in it before Paying the trader's Profits So They may Pay Traders profits Via Dealing Desk Strategies To cover These Profits Via Traders Loses or other Ways For Paying The Profits Of The Other Traders .


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    11. #26
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      Default Re: Who pays our profit? Brokers or other traders ?

      There is nobody that pays for your profit, whatever you earn or lose in the forex market is just another incentive or error that could happen in the market, forex market is like a very large ocean that have different creatures, we cannot exhaust the water of an ocean regardless of how thirsty we are, that is what we do in the forex business, you cannot say that someone owns the market or that your profit is taken from someone else through losses, I think the money you made is just like getting water from a river, there are many more current of that river that will keep making the water to flow regardless of how much you have fetched. So our profit and losses are independent of what someone else is trying to do in the market.


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    13. #27
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      Default Re: Who pays our profit? Brokers or other traders ?

      As per i know broker is a agent which helps trader to made deal with each others, So that when we make profit that time someone loss his money and when we loss our money that time others trader made profit, so its clear that our profit comes from others traders and broker only help us to do this things and yes for doing this broker take little commission and i think spread are the commission of that broker, but in this whole circle banks have some important rules and i am trying to knowing more about that.


    14. #28
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      Default Re: Who pays our profit? Brokers or other traders ?

      Forex means foreign exchange, what that should tell us is that whenever we execute a trade, there is always someone who is willing to sell if we buy or do the opposite, the reason we don't not get a lag is because there are millions of people who are trading at the same time which implies that you will always get someone to buy from you, that is how Forex works, when you do encounter losses, it does not mean someone else has automatically collected your money, there was a a circulation in the market, whereby some people win and others lose but the money still remains stable because there are more people entering new positions to trade.


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    16. #29
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      Default Re: Who pays our profit? Brokers or other traders ?

      Dear four remember our profit will be paid by our broker now how can we get paid by the broker basically when we are going to trade with any broker he has a leverage value and has a separate benefit for that same dad he gives us a leverage up to the limit of our account so we get now that he didnít pay any Loss and he totally work that how much we owe and he get it from dad a percentage and after that he paid us so no other trader will be us thatís the tragedy and planning of our broker that how can he managed his account to get paid his members and support their members to trade with four extra day


    17. #30
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      Default Re: Who pays our profit? Brokers or other traders ?

      There is big question here who provide our profit . some people says broker will paid our profit and some people says loser of forex market provide our profit. But from our view we can easily see we invest in a broker and all kinds of activities like deposit , withdrawn are done by broker. But where broker get this money. Directly we can say broker paid our profit from their side but they get the money from the loser site that is the true fact. In forex market all are not make profit in forex business. Some people make profit and some people make loss. So who make loss then lose their money and they loser lose their money from the broker. Broker keep this money and who will make profit broker will paid this money to the profit winner. But some time market maker broker also provide profit money because they also open trade against our trade.


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